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
| Jun 4, 2014
Market update: A difficult first quarter for construction spending comes to an end
This year's unusually difficult winter took its toll on construction activity. Nonetheless, first quarter spending for all the major groups was up compared to the same period in 2013.
| Jun 4, 2014
Construction team named for Atlanta Braves ballpark
A joint venture between Barton Malow, Brasfield & Gorrie, Mortenson Construction, and New South Construction will build the Atlanta Braves ballpark, which is scheduled to open in early 2017. Check out the latest renderings of the plan.
| Jun 3, 2014
Must see: World's tallest LEGO tower built in Budapest
The tower, built in front of St. Stephen's Basilica, is topped with a Rubik's cube and was built using thousands of blocks.
| Jun 3, 2014
Great leadership comes down to one thing
While it’s often said that strong leadership is an organization’s competitive advantage, is there a single characteristic that can predict which leaders will be most effective? SPONSORED CONTENT
| Jun 3, 2014
Libeskind's latest skyscraper breaks ground in the Philippines
The Century Spire, Daniel Libeskind's latest project, has just broken ground in Century City, southwest of Manila. It is meant to accommodate apartments and offices.
| Jun 2, 2014
Registration is open for 2014 BUILDINGChicago/Greening the Heartland Expo and Conference
BUILDINGChicago is a major conference and trade expo serving architects, engineers, contractors, property owners, real estate developers, government officials and community organizations in the Midwest.
| Jun 2, 2014
Nonresidential construction spending expands in April
Ten of 16 nonresidential construction subsectors posted increases in spending in April, according to the latest U.S. Census Bureau data.
| Jun 2, 2014
Parking structures group launches LEED-type program for parking garages
The Green Parking Council, an affiliate of the International Parking Institute, has launched the Green Garage Certification program, the parking industry equivalent of LEED certification.
| Jun 2, 2014
SOM unveils plans for Miami transit hub
The elevated station will be a key portal within All Aboard Florida’s rail system, the nation's only privately owned, operated, and financed rail network.
| Jun 1, 2014
Architect license upon graduation? NCARB aims to accelerate licensing process
Incorporating internship and examination requirements into university education, the regulatory organization looks to simplify and shorten the licensing process.
