Small Firm Exchange

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  • 1.  Small Business Size Standards: AIA Seeks Input

    Posted 04-08-2011 12:57 PM

    The following article was posted in a special edition The Angle.  I encourage all of you to participate in the discussion, and submit comments to both the SBA and the AIA.

    The U.S. Small Business Administration (SBA) has proposed new size standards for what defines an architecture small business, leading to potentially large impacts on many design firms across the country.

    The SBA has said that they are trying to simplify the regulatory process and combine what they consider to be similar professions into a single standard. The SBA is proposing to change the size standards for architecture firms from $4.5 million in annual net revenue to $19 million. As of 2009, just over 90 percent of architecture firms qualified as an SBA small business under the $4.5 million threshold based on their billings. Under a $19 million standard, that percentage would rise to nearly 98 percent.

    The SBA is accepting public comments on their proposed rule until May 16.The AIA also seeks input from its members about the impact of these proposed changes. Members can comment at the AIA's LinkedIn or Facebook sites to get the conversation started. The AIA also has launched a resource page on the SBA proposal, on which you can find additional information, data, and instructions on submitting comments directly to the SBA.



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    Adam Melis
    Director, Advocacy Outreach
    The American Institute of Architects
    Washington DC
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  • 2.  Architectural Services SBA data

    Posted 04-06-2011 09:05 AM

    Please find attached some quick data on the size of the profession in terms of sales/receipt/revenue and billings. One major source of the data is from the U.S. Census Bureau Survey of Business Owners. The other from the 2009 AIA Firm Survey (the next report will be conducted in 2012).

    If there are any quesiton, please do not hesitate to contact me at jchu@aia.org or (202) 626-8045.


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    James Chu
    Director, Research
    The American Institute of Architects
    Washington DC
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  • 3.  RE:Small Business Size Standards: AIA Seeks Input

    Posted 04-15-2011 10:16 AM
    I have done a quick condensation of the statistics in James Chu's table of firm size and gross income to focus on the impact of raising the SBA definition of a small practice to $19 million. While about 8% more firms under 20 would gain eligibility, almost 200% more firms of 20 or more employees would be eligible for set-asides! As suggested in Dallas it may be that the biggest difference between small firms and big firms (no mid-size firms!) is their administrative overhead, making it easy for them to do the paperwork to establish eligibility and aggressively out-market "real" small firms. I would hope this Round Table could convince AIA National to oppose these rules revisions.

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    Allan Baer AIA
    Associate
    Lloyd & Associates Architects
    Santa Fe NM
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  • 4.  Small Firm determination

    Posted 04-18-2011 04:08 PM


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    Fred Underwood AIA
    Underwood Associates Architects
    Decatur AL
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    I wholeheartily agree with Alan Baer: the 20 mill. firms with 20 employees, ASMEP inhouse and a marketing department can completely "snow" most small clients, who do not realize that a firm of 4 can easily become a team of 20 with SMEP consultants selected for their experience with the client's specific project. Of course, this line of reasoning gets close to the Master Architect/CAD discussion.----------------------------------------


  • 5.  SBA

    Posted 04-20-2011 08:29 AM
    I understand that the Small Business Administration is considering raising the qualifying ceiling for Small Business set asides to $19million.  This is crazy and will effectively eliminate the possibility of any small architecture firm to compete.  What is the AIA's position?

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    Victoria David AIA
    S&T Practice Leader
    Iron Horse Architects
    Conifer CO
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  • 6.  RE:SBA

    Posted 04-20-2011 11:17 AM
    Victoria,

    The AIA is gathering input from members. Take a look at the Small Firm Roundtable Discussion Forum thread on the issue at http://network.aia.org/AIA/AIA/Discussions/ViewThread/Default.aspx?GroupId=175&MID=2916.

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    Kathleen Simpson
    Manager, Knowledge Communities
    The American Institute of Architects
    Washington DC
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