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
| Sep 13, 2010
World's busiest land port also to be its greenest
A larger, more efficient, and supergreen border crossing facility is planned for the San Ysidro (Calif.) Port of Entry to better handle the more than 100,000 people who cross the U.S.-Mexico border there each day.
| Sep 13, 2010
Triple-LEED for Engineering Firm's HQ
With more than 250 LEED projects in the works, Enermodal Engineering is Canada's most prolific green building consulting firm. In 2007, with the firm outgrowing its home office in Kitchener, Ont., the decision was made go all out with a new green building. The goal: triple Platinum for New Construction, Commercial Interiors, and Existing Buildings: O&M.
| Sep 13, 2010
Stadium Scores Big with Cowboys' Fans
Jerry Jones, controversial billionaire owner of the Dallas Cowboys, wanted the team's new stadium in Arlington, Texas, to really amp up the fan experience. The organization spent $1.2 billion building a massive three-million-sf arena that seats 80,000 (with room for another 20,000) and has more than 300 private suites, some at field level-a first for an NFL stadium.
| Sep 13, 2010
'A Model for the Entire Industry'
How a university and its Building Team forged a relationship with 'the toughest building authority in the country' to bring a replacement hospital in early and under budget.
| Sep 13, 2010
Committed to the Core
How a forward-looking city government, a growth-minded university, a developer with vision, and a determined Building Team are breathing life into downtown Phoenix.
| Sep 13, 2010
Conquering a Mountain of Construction Challenges
Brutal winter weather, shortages of materials, escalating costs, occasional visits from the local bear population-all these were joys this Building Team experienced working a new resort high up in the Sierra Nevada.
| Sep 13, 2010
Data Centers Keeping Energy, Security in Check
Power consumption for data centers doubled from 2000 and 2006, and it is anticipated to double again by 2011, making these mission-critical facilities the nation's largest commercial user of electric power. With major technology companies investing heavily in new data centers, it's no wonder Building Teams see these mission-critical facilities as a golden opportunity, and why they are working hard to keep energy costs at data centers in check.
| Sep 13, 2010
3D Prototyping Goes Low-cost
Today’s less costly 3D color printers are attracting the attention of AEC firms looking to rapidly prototype designs and communicate design intent to clients.
| Aug 11, 2010
Cubellis principals reorganize as CI design
Former principals of Cubellis Inc. have formed ci design "with a stellar group of projects in the United States and internationally," states John Larsen who, with Richard Rankin and Christopher Ladd, is leading the architecture and planning firm.
| Aug 11, 2010
Leo A Daly changes name of STH, completes acquisition
LEO A DALY has changed the name of STH Architectural Group to the name of its parent company, Leo A Daly. STH was acquired in February 2009 as a strategic move to accelerate growth in its core business sectors and to strengthen the firm's presence in the Florida market.
