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
| Oct 14, 2011
AIA Continuing Education: optimizing moisture protection and air barrier systems
Earn 1.0 AIA/CES learning units by studying this article and passing the online exam.
| Oct 12, 2011
BIM Clarification and Codification in a Louisiana Sports Museum
The Louisiana State Sports Hall of Fame celebrates the sporting past, but it took innovative 3D planning and coordination of the future to deliver its contemporary design.
| Oct 12, 2011
Vertical Transportation Systems Reach New Heights
Elevators and escalators have been re-engineered to help building owners reduce energy consumption and move people more efficiently.
| Oct 12, 2011
Building a Double Wall
An aged federal building gets wrapped in a new double wall glass skin.
Office Buildings | Oct 12, 2011
8 Must-know Trends in Office Fitouts
Office designs are adjusting to dramatic changes in employee work habits. Goodbye, cube farm. Hello, bright, open offices with plenty of collaborative space.
| Oct 12, 2011
FMI’s Construction Outlook: Third Quarter 2011 Report
Construction Market Forecast: The general economy is seeing mixed signs.
| Oct 12, 2011
Bulley & Andrews celebrates 120 years of construction
The family-owned and operated general contractor attributes this significant milestone to the strong foundation built decades ago on honesty, integrity, and service in construction.
| Oct 12, 2011
Consigli Construction breaks ground for Bigelow Laboratory Center for Ocean Health
Consigli to build third phase of 64-acre Ocean Science and Education Campus, design by WBRC Architects , engineers in association with Perkins + Will
| Oct 11, 2011
AIA introduces five new documents for use on sustainable projects
These new documents will be available in the first quarter of 2012 as part of the new AIA Contract Documents service and AIA Documents on Demand.
| Oct 11, 2011
Pink light bulbs donated to Society of Memorial Sloan-Kettering Cancer Center
For every Bulbrite Pink Light Bulb that is purchased through the Cancer Center Thrift Shop, 100% of the proceeds will be donated to help support breast cancer research, education, screening, and treatment.