Positive Change Stemming from ԹϺ Legislative Action
The U.S. Small Business Administration (SBA) released a proposed rule that would allow prime contractors to count lower-tier, small business subcontracts towards their small business subcontracting goals. Currently, prime contractors can only take credit for their small business subcontracts at the first tier. This proposed rule will allow prime contractors to take credit for such subcontracts—above $650,000—at any tier to meet such goals.
ԹϺ Legislative Success Begins Implementation Process
The FAR Council released a proposed rule that would help limit the number of short-listed design-build teams to no more than five during a two-step design-build procurement through federal agencies. The proposed rule takes a two-pronged approach to implementing this policy. First, for contracts at or below $4 million, contracting officers will have to document their reasons for including more than five teams on the short-list. Second, for contracts above $4 million, contracting officers will not only have to provide such documentation to include more than five teams, but also have approval from the head of the contracting agency—i.e., Chief of Engineers at U.S. Army Corps of Engineers—to include more than five teams on the short-list.
Prohibits Reverse Auctions for Construction Services Contracts
This week, Sens. David Vitter (R-Louisiana) and Jeanne Shaheen (D-N.H.) introduced and passed legislation out of the Senate Small Business and Entrepreneurship Committee that would help prohibit federal agencies from conducting reverse auctions for construction services contracts. A reverse auction is a procurement process through which contractors bid down price—and can see others’ bids—for a good or service contract in real time. Many federal agencies use reverse auctions to procure non-variable commodities like pens and paper. However, several federal agencies also use reverse auctions to procure construction services, which are inherently variable based on the project, site location and construction professionals.
On Sept. 10, ԹϺ participated in a business community roundtable discussion on the “Fair Pay and Safe Work Places” Executive Order– commonly referred to as the Blacklisting Executive Order – with Republican members of the House Small Business Committee. ԹϺ General Counsel Mike Kennedy discussed the myriad legal and practical difficulties this executive order will present construction contractors when bidding and performing work on federal contracts.
Federal Contractors Again the Focus of Executive Action
On Labor Day, President Obama signed an executive order that would mandate direct-federal prime contractors and subcontractors to issue paid sick leave. The executive order mandates paid sick leave at a rate of no less than 1 hour earned for every 30 hours worked, setting a minimum of 56 hours a year of paid sick leave—about seven days—covering not only employee illness, but also caring for a child, parent, spouse, domestic partner “or any other individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship.”
On Aug. 26, ԹϺ submitted its comments to the Federal Acquisition Regulation Council and the U.S. Department of Labor on their proposed rule and guidance, respectively. The rule and guidance implement the president’s “Fair Pay and Safe Workplaces” Executive Order 13673, commonly called the Blacklisting Executive Order.
At the request of the U.S. Department of Veterans Affairs, ԹϺ recently led several workshops with Department resident engineers from around the country on the value of project-level partnering. Over the course of two days, ԹϺ discussed the need for contractors and owner representatives to not only establish trust at the front end of the project, but to maintain it throughout project delivery—whether through formal or informal partnering means. Several ԹϺ contractor members participated in the workshops and stressed the need for honest, consistent communication and the establishment of decision escalation processes as a means to deliver projects on time and on budget. The workshops included brief presentations from contractors, interactive team-building exercises and back and forth questions and answers between the Department engineers and ԹϺ contractors. The Department held this workshop as part of a broader training initiative, the theme of which was “turning the page” on the old ways and looking towards improvement ahead.
Teri Jones, SUNDT
As a professional working in the Business Development world, you are probably acutely aware that the reason for your existence is to Develop Business and that entails more than fine dining and golf! Pre-Winning plays a large role in your company’s ability to secure the type of work, and build the type of relationships, that will produce the desired results.
Colleen Kelly, Beacon Occupational Health & Safety Services
Has all of the romance drained out of your business proposals? You used to spend hours thinking about the client’s needs and wants. What would their ideal contractor look like? How could I show that we’re the perfect match? But lately, things have become stale. You’re less interested in them and would much rather talk about yourself. If your win rate is going down the tubes, now’s the time to rethink your proposal writing strategy.
Jon O'Brien, Master Builders Association
LinkedIn has been called Facebook for professionals, the virtual rolodex, and the headhunter’s haven to name a few. Regardless of what you call this online network, LinkedIn can be important for business development. Before delving into LinkedIn business development advice, let’s look at why LinkedIn is beneficial for the construction industry.