Current federal contracting laws are harming the livelihood of small architecture firms, costing the government more money by increasing the number of firms competing, while discouraging small firms from entering the market, according to AIA testimony presented today on Capitol Hill.
Testifying before the House of Representatives Small Business Committee, AIA First Vice President Helene Combs Dreiling, FAIA, called for reform of the design-build contracting process so that design and architectural firms can bid on federal contracts without fear of bankrupting themselves in the process. The federal market has been a key for architecture firms’ survival in the recession, and increased competition has forced many small players to stop participating in federal contracts.
“When teams are shortlisted in two-step design-build, an architecture firm spends a median of $260,000 to compete for a design-build project, by making plans, models and other materials,” Dreiling testified. When approximately 76% of firms make less than $1 million annually, this creates a “Hobson’s Choice” on spending limited capital for the chance to win a federal contract.
“In almost 87 percent of federal design-build competitions, there are no stipends provided to the architectural firm,” she said. “The firm must hope that they win to make up the costs they expend in competing for the job.”
Dreiling said there is a great need for Congress to reform federal contracting laws so that small businesses can both survive the bidding process and bring quality work to the federal government.
“We ask the Committee to look at tightening the statute so that all firms can accurately determine the risks and rewards of participating in this market,” Dreiling testified.
About The American Institute of Architects
Founded in 1857, members of the American Institute of Architects consistently work to create more valuable, healthy, secure, and sustainable buildings, neighborhoods, and communities. Through nearly 300 state and local chapters, the AIA advocates for public policies that promote economic vitality and public well being. Members adhere to a code of ethics and conduct to ensure the highest professional standards. The AIA provides members with tools and resources to assist them in their careers and business as well as engaging civic and government leaders, and the public to find solutions to pressing issues facing our communities, institutions, nation and world. Visit www.aia.org.
Related Stories
Architects | Sep 21, 2016
DLR Group broadens its practice range and market penetration with addition of Westlake Reed Leskosky
The merger, say company officials, creates “a global design leader” in a consolidating industry.
Architects | Sep 21, 2016
Design for the transition from thinking to creating
While heads-down work continues, the changing nature of learning and work has resulted in a shift toward frequent and spontaneous exchanges.
Codes and Standards | Sep 21, 2016
Healthy buildings becoming a key design priority for both architects and building owners
Nationwide survey finds nearly three of four architects cite health impacts influencing design decisions
Cultural Facilities | Sep 19, 2016
International competition recognizes insect-inspired design for Moscow Circus School
The proposal would make the school’s activities more transparent to the public.
Architects | Sep 19, 2016
A workplace designed for the innovation economy
Over the past 100 years, how we work has changed dramatically, and these changes have impacted workplace design.
Architects | Sep 16, 2016
Former architect now builds architectural wonders out of LEGO blocks
Adam Reed Tucker’s creations are currently on display at the Museum of Science and Industry.
Architects | Sep 15, 2016
Implicit bias: How the unconscious mind drives business decisions
Companies are tapping into the latest research in psychology and sociology to advance their diversity and inclusion efforts when it comes to hiring, promoting, compensation, and high-performance teaming, writes BD+C's David Barista.
Museums | Sep 14, 2016
Architectural model museum opens in Japan
The museum includes models from Japanese architects including Shingeru Ban, Kengo Kuma, and Riken Yamamoto.
Designers | Sep 13, 2016
5 trends propelling a new era of food halls
Food halls have not only become an economical solution for restauranteurs and chefs experiencing skyrocketing retail prices and rents in large cities, but they also tap into our increased interest in gourmet locally sourced food, writes Gensler's Toshi Kasai.
AEC Tech | Sep 6, 2016
Innovation intervention: How AEC firms are driving growth through R&D programs
AEC firms are taking a page from the tech industry, by infusing a deep commitment to innovation and disruption into their cultural DNA.