Current federal contracting laws are discouraging talented architects from competing for federal contracts, depriving government and, by inference, taxpayers of the best design expertise available, according to AIA testimony presented today on Capitol Hill.
Testifying before the House of Representatives Committee on Oversight and Government Reform, Charles Dalluge, Executive Vice President of Omaha, Nebraska-based architecture firm Leo A Daly, called for reform of the design-build contracting process so that more design and architectural firms can bid on federal contracts without fear of losing money in the process.
The federal market has been a key for architecture firms’ survival in the recession, and increased competition costs have forced many firms from participating in federal contracts, Dalluge testified.
“According to a survey published by the AIA Large Firm Roundtable in 2012, between 2007 and 2011 architecture firms in teams that competed for public- and private-sector design-build projects spent a median of $260,000, by making detailed plans, models and other materials,” Dalluge said. In recent years, federal agencies have forced larger numbers of teams to compete against one another, reducing the chances that any one team can win.
“Due to the current economic climate, design firms face the dilemma of ‘betting it all’ on a contract they may not get, or self-selecting out of the federal design-build market,” Dalluge said, adding that it also costs taxpayers more money “when contracting officers spend increasing amounts of time reviewing a larger number of complicated design proposals.”
To reform the burdensome federal contracting process, Dalluge called on Congress to pass The Design-Build Efficiency and Jobs Act of 2013 (H.R. 2750), which was introduced by Rep. Sam Graves (R-MO) in July.
“H.R. 2750 requires contracting officers to provide a written justification to the head of an agency for requiring more than five finalists in the second stage of a design-build solicitation and agency approval of such justification,” Dalluge said. “H.R. 2750 will provide more certainty and opportunities for design firms of all sizes who wish to enter the federal marketplace. It will ensure that agencies have the ability to select the most qualified design-build teams who will deliver the best buildings for agencies and the public. It also will limit federal agencies’ burdens in reviewing a large number of proposals.”
About the American Institute of Architects
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. Members adhere to a code of ethics and professional conduct to ensure the highest standards in professional practice. Embracing their responsibility to serve society, AIA members engage civic and government leaders and the public in helping find needed solutions to pressing issues facing our communities, institutions, nation and world. Visit www.aia.org.
About LEO A DALY
Established in 1915, LEO A DALY is an international architecture, engineering, and interior design firm. The Company’s portfolio includes award-winning projects in 87 countries and all 50 states. With over 800 employees in 30 offices worldwide, the firm ranks in the top 10 largest design firms in the United States and top 25 globally. For more information, visit www.leoadaly.com
Related Stories
| Aug 11, 2010
PCA partners with MIT on concrete research center
MIT today announced the creation of the Concrete Sustainability Hub, a research center established at MIT in collaboration with the Portland Cement Association (PCA) and Ready Mixed Concrete (RMC) Research & Education Foundation.
| Aug 11, 2010
Study explains the financial value of green commercial buildings
Green building may be booming, especially in the Northwest, but the claims made for high-performance buildings have been slow to gain traction in the financial community. Appraisers, lenders, investors and brokers have found it difficult to confirm the value of high-performance green features and related savings. A new study of office buildings identifies how high-performance green features and systems can increase the value of commercial buildings.
| Aug 11, 2010
Architecture Billings Index flat in May, according to AIA
After a slight decline in April, the Architecture Billings Index was up a tenth of a point to 42.9 in May. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. Any score above 50 indicates an increase in billings.
| Aug 11, 2010
Architecture Billings Index drops to lowest level since June
Another stall in the recovery for the construction industry as the Architecture Billings Index (ABI) dropped to its lowest level since June. The American Institute of Architects (AIA) reported the August ABI rating was 41.7, down slightly from 43.1 in July. This score indicates a decline in demand for design services (any score above 50 indicates an increase in billings).
| Aug 11, 2010
RTKL names Lance Josal president and CEO
Lance K. Josal FAIA has been named President and CEO of RTKL Associates Inc., the international planning, design and engineering firm. Josal succeeds RTKL’s current President and CEO, David C. Hudson AIA, who is retiring from the firm. The changes will take effect on 1 September 2009.
| Aug 11, 2010
Balfour Beatty agrees to acquire Parsons Brinckerhoff for $626 million
Balfour Beatty, the international engineering, construction, investment and services group, has agreed to acquire Parsons Brinckerhoff for $626 million. Balfour Beatty executives believe the merger will be a major step forward in accomplishing a number of Balfour Beatty’s objectives, including establishing a global professional services business of scale, creating a leading position in U.S. civil infrastructure, particularly in the transportation sector, and enhancing its global reach.
| Aug 11, 2010
Construction unemployment rises to 17.1% as another 64,000 construction workers are laid off in September
The national unemployment rate for the construction industry rose to 17.1 percent as another 64,000 construction workers lost their jobs in September, according to an analysis of new employment data released today. With 80 percent of layoffs occurring in nonresidential construction, Ken Simonson, chief economist for the Associated General Contractors of America, said the decline in nonresidential construction has eclipsed housing’s problems.
| Aug 11, 2010
Billings at U.S. architecture firms exceeds $40 billion annually
In the three-year period leading up to the current recession, gross billings at U.S. architecture firms increased nearly $16 billion from 2005 and totaled $44.3 billion in 2008. This equates to 54 percent growth over the three-year period with annual growth of about 16 percent. These findings are from the American Institute of Architects (AIA) Business of Architecture: AIA Survey Report on Firm Characteristics.
