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 | Apr 14, 2016
You can watch over 50 architectural documentaries on YouTube for free
The Arts & Culture Bureau YouTube channel offers architectural documentaries about structures and works that span thousands of years and dozens of locations
Senior Living Design | Apr 14, 2016
Creating a home for eldercare using the ‘Green House’ design concept
VOA Associates’ Douglas King offers design considerations in implementing the Green House concept in eldercare for continuing care retirement communities.
Industrial Facilities | Apr 13, 2016
Ford begins 10-year plan to centralize Dearborn, Mich., campus
The company said that it will rebuild 7.5 million sf of work space over a 10-year period, which will shift 30,000 employees from 70 buildings now into two primary locations.
Building Tech | Apr 12, 2016
Should we be worried about a tech slowdown?
Is the U.S. in an innovative funk, or is this just the calm before the storm?
Multifamily Housing | Apr 7, 2016
Multifamily and Specialized Housing projects honored in 2016 AIA Housing Awards
A San Francisco low-income mixed-use complex, a Los Angeles homeless veterans housing facility, and a series of student residential buildings at UMass were among the winners.
Green | Apr 4, 2016
AIA report analyzes 20 years of the best green projects
"Lessons from the Leading Edge" is a study of the 200 Committee on the Environment (COTE) Top Ten Award winning projects since 1997.
Architects | Apr 1, 2016
Adrian Smith earns UIC’s Legacies and Leaders Award
The Chicago architect graduated from the school and created a scholarship for aspiring architects.
Architects | Mar 31, 2016
Zaha Hadid dies at 65
Often credited as being a pioneer for women architects for her work in a male-dominated field, Hadid had designs commissioned around the world from London to Hong Kong to Cincinnati.
Architects | Mar 31, 2016
Auto-shading windows and point-of-decision design are among the research projects to receive AIA funding grants
Firms represented by the projects and initiatives receiving grants include HKS, DO|SU Studio Architecture, and McClain + Yu Architecture and Design.
Hotel Facilities | Mar 30, 2016
The Usonian Inn, a Frank Lloyd Wright-inspired motor lodge, is on the market for $665,000
The Usonian Inn proudly displays many Wright-inspired characteristics, the most prominent of which is the use of cantilevered overhangs.