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
| Dec 4, 2012
Sto Corp. announces new distributor in the Carolinas
Company will now have coverage in several parts of North Carolina.
| Dec 4, 2012
Wirtz Beverage Illinois’ corporate headquarters completed
WBI Center, a new state-of-the-art facility, is designed by Ware Malcomb.
| Dec 4, 2012
Wagner joins Ghafari as Manager of Structural Engineering
Wagner comes to Ghafari from Walter P Moore, where he served as a principal, chaired the construction administration task force and led the design of numerous projects ranging in size from $10 million to $70 million.
| Dec 4, 2012
City of Gainesville to break ground on $33 million bus fleet maintenance and ops facility
The 140,000-sf facility will include dispatch, administrative and maintenance facilities.
| Nov 28, 2012
Project team to showcase design for first mixed-use retail center of its kind in Mexico City
Project reaching construction milestone, offering national model for urban development in Mexico.
| Nov 28, 2012
Cummins announces ratings classification for data center power systems
The Data Center Continuous ratings span the range of Cummins Power Generation’s high horsepower diesel generator sets, from 1 MW up to 2.5 MW, and will apply to both 50 Hz and 60 Hz configurations.
| Nov 28, 2012
Francis Cauffman appoints Stainbrook Director of Higher Education
Stainbrook has 16 years of experience as a strategic planner and urban designer working on complex projects on- and off-campus.
| Nov 27, 2012
SFIA releases technical guide for cold-formed steel framing products
The 114-page book covers both structural and non-structural applications, including section properties of SFIA member product profiles, and complete load and span tables for most applications.
| Nov 21, 2012
Architecture Billings Index positive for third straight month
All regions reporting positive business conditions
| Nov 20, 2012
PC Construction completes Juniper Hall at Champlain College
Juniper Hall is on track for LEED Gold certification from the U.S. Green Building Council.