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
29 Great Solutions for the AEC Industry
AEC firms are hotbeds of invention and innovation to meet client needs in today's highly competitive environment. The editors of Building Design+Construction are pleased to present 29 "Great Solutions" to some of the most complex problems and issues facing Building Teams today. Our solutions cover eight key areas: Design, BIM + IT, Collaboration, Healthcare, Products, Technology, Business Management, and Green Building.
| Aug 11, 2010
Permanent tribute to Daniel Burnham and his Plan of Chicago proposed for Grant Park Museum Campus
The first-place winner of a design competition for a public memorial celebrating Daniel Burnham's impact on Chicago will be announced at a news conference Wednesday, July 8, at 10am CDT. The proposed site for the memorial is on the Museum Campus just north of The Field Museum. The announcement comes after nearly two years of planning by Chicago's architecture, design and urban planning community about how to best honor the legacy of Burnham and the Plan of Chicago he co-wrote with Edward Bennett.
| Aug 11, 2010
Arup, SOM top BD+C's ranking of the country's largest mixed-use design firms
A ranking of the Top 75 Mixed-Use Design Firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Architecture billings index takes turn for the worse
After showing signs of stabilization over the last three months, the Architecture Billings Index (ABI) plunged nearly five points in June. 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. The American Institute of Architects (AIA) reported the June ABI rating was 37.7, far lower than the 42.9 the previous month.
| Aug 11, 2010
International Living Building Institute established to advance 'living buildings'
The idea of a Living Building, a high-performance building that produces its own power and cleans and reuses all of its water, is gaining momentum around the world. In an effort to oversee the global development of Living Buildings, the International Living Building Institute (ILBI) has been established.
| Aug 11, 2010
Populous selected to design 'crystalline skin' stadium for 2014 Winter Olympics
Russian officials have selected global architect Populous to design the main stadium for the 2014 Winter Olympic and Paralympic Games in Sochi, Russia. The 40,000-seat stadium will feature a crystalline skin that "engages with its surroundings by day and provides an iconic representation of the color and spectacle of the games when illuminated at night," said Populous senior principal John Barrow.
| Aug 11, 2010
M&A deal volume down 67% in engineering/construction sector: PricewaterhouseCoopers
Global Economic Uncertainty Results in Sluggish Deal Activity in U.S.; China Shows Significant Opportunity for Growth
| Aug 11, 2010
Three Opus Corporation companies file for bankruptcy
Opus Corporation, a developer headquartered in Minnetonka, Minn., filed for bankruptcy in three of its five regional operating companies: Opus East, Opus South, and Opus West. CEO Mark Rauenhorst said sharp declines in commercial real estate values and tight credit markets caused difficulties in refinancing assets and restructuring lending agreements.
