https://www.americancityandcounty.com/wp-content/themes/acc_child/assets/images/logo/footer-logo.png
  • Home
  • Co-op Solutions
  • Hybrid Work
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcast
    • Latest videos
    • Product Guides
  • Resources & Events
    • Back
    • Resources
    • Webinars
    • White Papers
    • IWCE 2022
    • How to Contribute
    • Municipal Cost Index – Archive
    • Equipment Watch Page
    • American City & County Awards
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Cookie Policy
    • Privacy Statement
    • Terms of Service
American City and County
  • NEWSLETTER
  • Home
  • Co-op Solutions
  • Hybrid Work
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcasts
    • Latest videos
    • Product Guides
  • Resources/Events
    • Back
    • Webinars
    • White Papers/eBooks
    • IWCE 2022
    • How to Contribute
    • American City & County Awards
    • Municipal Cost Index
    • Equipment Watch Page
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Cookie Policy
    • Privacy Stament
    • Terms of Service
  • newsletter
  • Administration
  • Economy & Finance
  • Procurement
  • Public Safety
  • Public Works & Utilities
  • Smart Cities & Technology
  • Magazine
acc.com

Commentaries


Morgan Von Gunten on Unsplash

Article

5 ways to increase construction contract opportunities for small businesses

5 ways to increase construction contract opportunities for small businesses

  • Written by Dwayne Pierre-Antoine
  • 15th October 2021

As city and county government agency leaders know, there is tremendous power in the procurement process. With that power comes responsibility to equitably invest funds through contracting opportunities for small businesses, which are the foundation of the American economy. This is especially true in the construction industry, which includes many small businesses vying for contracts against much larger companies.

Here are five practical steps public sector leaders at the city and local level can take to ensure they are allocating contracts in an equitable manner:

1. Listen to the community you serve.
It’s important for leaders in the public sector to align the values of their agencies and departments with the communities they serve. This includes going directly to the minority contractors and business owners in your area and learning their needs. Doing so will help establish trust and bring more contractors into the fold, which, in turn, will help agencies better engage with their local contractors, strengthen the economy of surrounding communities and meet their diversity, equity and inclusion (DE&I) goals.

2. Look at your vendor database and make sure it reflects the community.
Taking a hard look at your current list of vendors is an excellent way to start the process of improving your agency’s DE&I contracting efforts. Compare your database with the local population. If you find your vendor list does not proportionally reflect the population data, it’s time to add new construction contractors to the list.

Also, simplifying the process by which contractors can become part of your list will engage a more diverse contractor pool. Creating an easily accessible online application will enable more contractors to apply for consideration.

A disparity study analyzes data related to the contracting environment for minority businesses. A disparity study may pertain to a geographic region or specific entity at any level of government and evaluates the usage of minority firms that are “ready, willing, and able to bid on and perform the contract,” according to the Minority Business Development Agency (MBDA). Recent MBDA analysis of 100 disparity summaries found minority businesses specify access to capital and timely bid notifications as two of several barriers to participating in public contracting.

By referencing existing disparity studies or conducting one on their own, public procurement officials can utilize objective data to better understand the realities of minority contracting for your entity and course correct as needed.

3. Know the challenges small businesses have when contracting with state, city and county agencies.
Listening to the contracting community is often a learning experience. Small businesses, including women’s business enterprises (WBEs) or minority business enterprises (MBEs), often face barriers to entry, including resource constraints, language barriers, union obligations and the intimidation of bureaucracy. One overarching message from the contracting community is they have many issues economically that they need help with. For some agencies, it takes a while to pay contractors and small contractors can’t wait that long—they need help getting paid expeditiously. They need assistance with bonding and securing lines of credit. Contractors want to know how agencies and their partners can help them succeed and grow.

Further, bid documents are often lengthy and complex, with important details buried deep within their pages. A cover sheet or checklist that communicates what a contractor must include to have their bid considered makes the process less intimidating for the contractor and increases the likelihood of a quality bid and aid in getting project owners closer to their DE&I goals.

4. Create opportunities for small businesses with set-aside programs.
Set-aside contracts, as the name implies, are contracts that the government has set-aside or limited to certain businesses that have made the effort to comply with contracting requirements. Businesses that operate in disadvantaged locations, small businesses, MBEs or WBEs must be granted an official certification or award and registered with the System for Award Management (SAM) to qualify for a set-aside contract. Set-aside programs have a dual purpose to help small businesses gain footholds in markets where it can be difficult to compete against larger competitors and to assist government entities in meeting small business contracting goals.

5. Use tools such as job order contracting to provide opportunities for diversity, equity and inclusion.
Traditional construction procurement processes can hinder DE&I efforts. The size of bond requirements and the length of payment schedule are often a barrier for small, MWBE-owned businesses. But there are alternative construction procurement methods that can help increase government contract opportunities for small businesses by breaking down the traditional barriers.

Trusted third party partners can help agencies adjust their requirements to encourage construction bids from minority contractors for job order contracting (JOC) programs. JOC is an indefinite delivery indefinite quantity (IDIQ) construction delivery method that allows many projects to be completed through a single, competitively awarded contract. This single-bid process enables projects to start faster and creates partnerships between project owners and awarded contractors, resulting in higher quality work. Through their JOC program, agencies can adjust bonding requirements when it comes to individual projects or job orders and set-aside contracts.

Creating a win-win for agencies and small business
Agencies would be remiss to overlook small businesses as potential business partners simply because they may require some extra guidance to navigate government processes. Likewise, diverse contractors need more avenues to pursue public sector jobs. By working together, state and local government agencies and the contractors all stand to benefit—as does society as a whole. Today, more than ever, state and local government agencies’ responsibility to support their communities includes making sure that all members have a chance to literally build up their neighborhoods.

 

Dwayne Pierre-Antoine serves as Gordian’s vice president of operations for the central/south United States markets. He leads a team responsible for implementing and educating clients on all aspects of job order contracting (JOC) solutions. Gordian is the leader in facility and construction cost data, software and services for all phases of the building lifecycle.

 

Tags: homepage-featured-1 homepage-featured-3 homepage-featured-4 Administration Economy Procurement Commentaries Administration Commentaries Economy Procurement Article

Most Recent


  • Shifting city demographics present an opportunity to build coalitions, address inequality
    Minority-majority cities are driving American growth. New York City, Los Angeles, and Chicago, for example, combined for an estimated 16% of the nation’s total gross domestic product in 2021—future projections anticipate a continuation of this trend, and an opportunity to create coalitions to address injustices. Between 2015 and 2020, 22% of U.S. cities were majority-minority, […]
  • ARPA funds
    Spending American Rescue Plan Act funds: A primer for municipalities
    The American Rescue Plan Act (ARPA) of 2021 is a $1.9 trillion legislative package that includes funding for states, local governments and tribal nations to respond to the economic and public health impacts of the COVID-19 pandemic. While initially restricted, subsequent guidance from the federal government has expanded what those funds can be used for. […]
  • New York City, New York
    Report: While remote work is causing offices to empty out, walkable cities are still in high demand
    Given the reliance on vehicular transportation in the United States, some American cities historically haven’t prioritized being walkable in past planning and or design. But amid an unprecedented shift in the economy toward remote work, those that have are increasingly desirable for prospective residents. A new report from Smart Growth American and Places Platform, “Foot Traffic […]
  • recruit
    With a few strategies and tools, public procurement directors can recruit new, diverse staffers
    Yes, being a public purchasing professional is a much-coveted career that can have a big impact on a community, says Celeste Frye, principal and CEO of Public Works Partners, a WBE/DBE/SBE-certified urban planning and consulting firm. “From purchasing quality foods for school lunches or environmentally sustainable trucks for trash collection, procurement managers have a significant […]

Leave a comment Cancel reply

-or-

Log in with your American City and County account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Keep getting better: Cooperative procurement is evolving to meet government’s changing needs
  • Sustainability and resiliency are becoming embedded in municipal operations
  • Expert: Public purchasers’ dependence on cooperative contracts will grow as the pandemic crisis winds down
  • Procurement methods go to the head of the class in the Pennsylvania State System of Higher Education

WHITE PAPERS


Modernizing government services for today’s resident expectations

24th January 2023

Preparing Your Community Now for the Next Generation of Older Adults

18th October 2022

Helping Government Fleets Achieve Their Goals

30th September 2022
view all

Webinars


How To: Evaluate Digital Government Service Delivery Technologies

23rd January 2023

Using Technology to Enhance Communications

29th November 2022

Learn the benefits of transforming and automating your Contract Management process

4th November 2022
view all

Podcast


Young Leaders Episode 4 – Cyril Jefferson – City Councilman, High Point, North Carolina

13th October 2020

Young Leaders Episode 3 – Shannon Hardin – City Council President, Columbus, Ohio

27th July 2020

Young Leaders Episode 2 – Christian Williams – Development Services Planner, Goodyear, Ariz.

1st July 2020
view all

GALLERIES


Report: While remote work is causing offices to empty out, walkable cities are still in high demand

26th January 2023

10 American cities with a great downtown

24th January 2023

Miami leads the way in FT-Nikkei ranking of best U.S. cities for foreign companies

20th January 2023
view all

Twitter


AmerCityCounty

How 5G is making cities safer, smarter, and more efficient dlvr.it/ShYNcx

27th January 2023
AmerCityCounty

Shifting city demographics present an opportunity to build coalitions, address inequality dlvr.it/ShYMMm

27th January 2023
AmerCityCounty

Spending American Rescue Plan Act funds: A primer for municipalities dlvr.it/ShXzvl

27th January 2023
AmerCityCounty

Report: While remote work is causing offices to empty out, walkable cities are still in high demand dlvr.it/ShVhBW

26th January 2023
AmerCityCounty

Managing landslides along road corridors using remote sensing dlvr.it/ShTpL6

26th January 2023
AmerCityCounty

Report: Prioritizing neighborhood infill, expanding transit options increases neighborhood resilience dlvr.it/ShRrFM

25th January 2023
AmerCityCounty

10 American cities with a great downtown dlvr.it/ShNxXH

24th January 2023
AmerCityCounty

With a few strategies and tools, public procurement directors can recruit new, diverse staffers dlvr.it/ShNnj4

24th January 2023

Newsletters

Sign up for American City & County’s newsletters to receive regular news and information updates about local governments.

Resale Insights Dashboard

The Resale Insights Dashboard provides model-level data for the entire used equipment market to help you save time and money.

Municipal Cost Index

Updated monthly since 1978, our exclusive Municipal Cost Index shows the effects of inflation on the cost of providing municipal services

Media Kit and Advertising

Want to reach our digital audience? Learn more here.

DISCOVER MORE FROM INFORMA TECH

  • IWCE’s Urgent Communications
  • IWCE Expo

WORKING WITH US

  • About Us
  • Contact Us

FOLLOW American City and County ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2023 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.