The U.S. construction industry market size is expected to grow by 3 percent annually over the next few years. There are currently 460,000 subcontractors in the construction industry, including subcontracted services such as electrical installation, HVAC, plumbing, concrete, masonry, and many others. As the construction industry grows, so do government initiatives to promote participation from diverse small businesses. Federally funded projects have clauses that require contractors to subcontract a portion of work to Disadvantaged Business Enterprises (DBEs), which are majority owned by women and/or people from minority communities. If DBEs are unavailable, bidding contractors often must demonstrate a “Good Faith Effort” proving they reached out for DBE firms.
Various state, county, and city agencies also have their own requirements for utilizing and showing outreach to diverse and local small business types, including disabled veteran-owned firms.
Many prime contractors face challenges with diversity issues, especially when it comes to outsourcing subcontracting work from small businesses. However, if these enterprises are denied the option to participate in federal and state funded projects, they will lose out on a huge source of revenue and growth.
GOOD FAITH EFFORT
Many awarding agencies have stipulations that require bidding contractors to find small or minority subcontractors operating locally or within a certain geographic area—and those subs must be properly licensed in the trade. Department of Transportation projects require that prime contractors show they have done “Good Faith Effort” outreach by documenting through emails, faxes, and/or phone calls that they have attempted to get DBEs to work on a project.
Not meeting participation or outreach criteria can lead to protests and disqualification from a bid. Yet, satisfying these government requirements can be confusing and time consuming. To beat these challenges and meet the requirements, one quick and inexpensive tool estimators and project managers can use is the online platform Compliance News.
Compliance News allows prime contractors to submit details of the government-funded project they are bidding on. It then proceeds to place bid notice advertisements, select certified small and diverse firms, send outreach emails and faxes, and then Compliance News’ staff make outreach phone calls and provide a PDF documenting the entire outreach effort. The documentation is created to meet the standards of federal, state, and local agencies.
Compliance News regularly updates its databases, so you don’t have to worry about out-of-date information. The platform, constantly updating its country-wide database, gathers hundreds of the latest federal, state, and local certified business directories, and reviews them in real-time. By using hi-tech tools, it makes the locating and contacting of DBEs and other certified small business types much quicker and more precise.
The platform also publishes a trade and focus journal, publishing bid notice advertisements that are often required for government outreach. Furthermore, it hosts a directory of certification programs nationwide where small business owners can find subcontracting and procurement opportunities. It also publishes public notices, RFPs, and events for government agencies.
Innovative solutions such as these offered by Compliance News are important for catering to the flexible demands of today’s construction industry, helping contractors secure government projects and executing them ethically, and profitably.
For more, visit www.compliancenews.com.