Public Architects Committee

 View Only
Expand all | Collapse all

Can Small and Mid-Size Firms Compete Successfully for Public Sector Projects?

  • 1.  Can Small and Mid-Size Firms Compete Successfully for Public Sector Projects?

    Posted 10-03-2024 01:42 PM

    The Public Architecture Committee is presenting a live AIAU Course on November 5, 2024 at 2:00 - 2:30 pm EST on Leveraging Public Sector Projects for Small & Mid-Sized Firms.   We believe that there are significant opportunities to hire excellent design firms for publicly funded projects that improve the civic space.  But navigating the public procurement process can be daunting and time consuming, and the public sector design landscape is mostly dominated by large architectural and engineering firms.  To address that challenge we have assembled a group of experts to demystify the process and offer a road map for how to qualify for and succeed in winning public contracts.

    We are also interested in hearing from you - what has been your experience in responding to public requests for design services, at the federal, state, municipal or institutional level?  Have you had success - or experienced difficulty - when working with public agencies?  Please let us know - we would like to help.



    ------------------------------
    Ludmilla Pavlova-Gillham FAIA
    University of Massachusetts
    Amherst MA
    ------------------------------


  • 2.  RE: Can Small and Mid-Size Firms Compete Successfully for Public Sector Projects?

    Posted 10-04-2024 02:38 PM

    I worked for a couple of decades on the owner's side, large public higher ed institution, including the RFP's and selection process for project teams.

    This is an interesting discussion and common problem.  We often had small and medium firms come to us and complain that they couldn't compete for small and medium projects against the big firms, both because of the wider expertise and experience of the big firms, and more limited marketing and other resources in the small and medium firms. In a  pure sense, they were absolutely right.  A firm like our local SmithGroup or DLR offices easily could have been a top rated firm in nearly every project that we did.

    Our solution was to try to make some advantage adjustment in our scoring and ranking matrix when selecting firms.  We were very strongly a "select the best qualified firm to do the work" organization, but we were able to add a small amount of points that a small or medium firm could get (you decide- based upon personal? based upon revenue? You need to ask for that info in the RFP response) for what we considered to be small or medium size projects. We placed this under Other Criteria in our RFP's and scoring matrix, calling it "Firm Size Matching Project" and it was worth about 10 points maximum addition on a 175-200 point total.  We had a similar additional line for firms that had done projects for us recently (a small number of deductive points) to try to spread the work around to more firms, again, all other things being equal, we took a firm that hadn't done our projects recently.

    We had a total open book review system and discussion with our firms and never received serious objections to either of these added criteria. 

    In our minds, this created a situation that all other things being equal in other qualifications and criteria, a small or medium firm could get a very slight points and award advantage over the large firm. 



    ------------------------------
    Arlen Solochek, FAIA
    Owner/Principal/Founder
    Arlen Solochek FAIA, Consulting Architect
    Phoenix, AZ
    ArlenSolochek@gmail.com
    ------------------------------



  • 3.  RE: Can Small and Mid-Size Firms Compete Successfully for Public Sector Projects?

    Posted 10-05-2024 10:29 AM
    I was a public architect leading a county capital projects program.  We had many small community based projects for libraries, senior centers, aquatic centers, art centers, fire/EMS stations and more.  We simply would select small firms since they had examples of work better relating to the size of the projects we were developing.  For larger projects such as, health, courts and detention we would select medium or large architectural firms since those size firms could show better expertise and successful experience in those types of projects.

    In the city and county world, the leader of the capital program, hopefully a licensed, AIA member architect, should make an effort to advise and guide the other selection team members from other departments as to the appropriateness of the submitting team specific to the project size and type.

    Also, the city and county selection process and procedural guard rails can be very different to state and federal selection processes since you have the elected officials in the same building every day.

    ---------------------------------------------------------------------

    Michael L. Katzin, AIA

    e|  mlkatzin@gmail.com

    Member | City of Johns Creek Planning Commission

    ---------------------------------------------------------------------






  • 4.  RE: Can Small and Mid-Size Firms Compete Successfully for Public Sector Projects?

    Posted 10-07-2024 12:09 AM

    Great to know. This should encorage Small and Midium firms. 



    ------------------------------
    Mahbuba Nahid Khan AIA
    MnKhan Architects PLLC
    Coppell TX
    ------------------------------



  • 5.  RE: Can Small and Mid-Size Firms Compete Successfully for Public Sector Projects?

    Posted 10-07-2024 09:31 PM

    Excellent discussion everyone. For private firms reading the discussion, the place to start is a meeting and discussion with the person (s) who run the selection process. Public architects are bound by their procurement rules. Sometimes these are set locally, at the agency, and some come from on high out of state statutes. In some cases, "we can just select…" is allowed and in some cases, as I had to work in, there is a very regimented set of rules and format that we have to use.

    Another avenue that may be available is to see if the agencies that you would like to work for have an on-call, annual services, or pre-qualified list that you can qualify for. Once on this list , the selection for a project is very streamlined, and often can be "we just select one…" These types of lists often are oriented to smaller and medium projects because public architects understand the cost and effort involved with a larger, formal RFP process. These lists also often tilt to small and medium firms to give them experience in public work.



    ------------------------------
    Arlen Solochek, FAIA
    Owner/Principal/Founder
    Arlen Solochek FAIA, Consulting Architect
    Phoenix, AZ
    ArlenSolochek@gmail.com
    ------------------------------



  • 6.  RE: Can Small and Mid-Size Firms Compete Successfully for Public Sector Projects?

    Posted 10-08-2024 12:36 PM

    Arlen Solochek, FAIA mentions that some agencies offer pre-approved contract opportunities for on-call services.  The Commonwealth of Massachusetts has a process for qualifying "House Doctors" that can work with agencies as needed and the contracts can be active for multiple years.  

    Here is a link to the Designer Selection Board (DSB) FAQ for House Doctor contracts procurement: https://www.mass.gov/doc/dsb-house-doctor-faq/download

    And here is a link to a recent request for qualifications that the University of Massachusetts posted to the DSB for architectural services for Study and Design for Architectural Renovations and Modernizations:  https://www.mass.gov/doc/dsb-list-24-10-umass-amherst-architectural-house-doctor/download

    Firm principals often attend the DSB deliberations to research the process of awarding these contracts prior to deciding to respond to the solicitations.  And House Doctor contracts are a great pipeline for small and mid-size firms to work on manageable projects and establish a portfolio of state project work.   The evaluation factors are clearly stated, and there is a preference for firms with creative sustainable design portfolios as well as diversity factors.  



    ------------------------------
    Ludmilla Pavlova-Gillham FAIA
    University of Massachusetts
    Amherst MA
    ------------------------------



  • 7.  RE: Can Small and Mid-Size Firms Compete Successfully for Public Sector Projects?

    Posted 10-07-2024 12:07 AM

    Arlen, 

    Thanks for joining the discussion. I struggled with your points in my career. I had may Small Firm before becoming a project manager in City of Dallas then a Technical Lead in US Army Corps. With the use of advanced softwares I was able to pull togeter $5- $15M projects with contract staff out of my firm. I had hard time to proof my credential in SF 330. When I got to City of Dallas I was able to take out the question, " Have you done projects for us" when announcing a RFQ. Innitially there was addetive points for repeat firms. But a deductive point is a great idea. Project managers tend to get comfortable to with teh credentials of some firs and sometimes are skeptical of new firms.



    ------------------------------
    Mahbuba Nahid Khan AIA
    MnKhan Architects PLLC
    Coppell TX
    ------------------------------



  • 8.  RE: Can Small and Mid-Size Firms Compete Successfully for Public Sector Projects?

    Posted 10-07-2024 05:45 PM
    I also worked for the City of Dallas back in the dark ages.  It is where I learned about QBS.  We had an excellent system in the 1980s.  We regularly selected small firms for our projects.  It does not require the resources of a mega firm to design a branch library, division police station, or a neighborhood fire station.  

    We did hire a one-man firm where his wife ran the office and they had a drafter.  The architect and his wife had a serious family medical emergency during design development.  The crisis left our project at a standstill.  New rule:  No more one person firms.  There has to be at least one other design professional in the office.  

    One department wanted to reuse the same firms over and over.  They knew the project type and what the client department wanted and needed.  There is merit to the concept that an experienced firm has a familiarity with the client and the building type.  My client contact asked me about the selection process.  "So, if the archtect does a bad job, we will not hire them again."  "That's right."  "And if they do a good job, we won't hire them again either."  That's right too."  "OK, I think I've got it."





  • 9.  RE: Can Small and Mid-Size Firms Compete Successfully for Public Sector Projects?

    Posted 10-05-2024 02:18 PM

    This competition issue has been a big problem in the federal sector for many years. By avoiding the problem the federal government is missing design services from some truly excellent design firms, and is overpaying for design services from the 'same old firms' that have figured out how to manipulate the federal acquisition system. This issue, with elements embedded in the Federal Acquisition Regulation (FAR) the Small Business Administration (SBA) and a variety of other interlocking regulations, is a ripe opportunity for the AIA to address with the federal government at the task-force level:

    1. NAICS code definitions for design services haven't be adjusted to actual market conditions in years. (I think NAICS may be defined at the SBA level.)
    2. Contracting officers play games with NAICS codes. With NAICS 541310 I am a LARGE business but with NAICS 541330 I am a SMALL business. Same business - different NAICS. So if an agency is looking for a specific vendor they just change the NAICS in the RFP and - MAGIC - they get a different set of vendors competing for the EXACT SAME project.
    3. Since COVID, Contracting Officers by and large have been refusing to accept capability briefings or even answer their phone at most Denver area federal agencies. It drives us crazy to call a CO and not have them return a simple 1 minute call. Who do CO's work for? Taxpayers, maybe?
    4. By limiting a firm's "previous experience" on the SF 330 to the past 5 years and only to past federal projects with CPARS evaluations, federal CO's are eliminating many highly qualified firms. Tons of different design experiences can be very relevant to the project but very irrelevant to the selection criteria.
    5. The solution offered by agencies to design firms for the above issues is teaming, in other words a smaller firm or a firm that appears on paper to have less experience is teamed with a larger firm or a firm who appears on paper to be more experienced. "Shotgun teaming" often turns out to be a problem for both firms, for reasons too deep in the weeds to go into here.


    ------------------------------
    Mark Baker AIA Member Emeritus
    Lakewood CO
    ------------------------------



  • 10.  RE: Can Small and Mid-Size Firms Compete Successfully for Public Sector Projects?

    Posted 10-09-2024 07:36 PM

    As the State Architect for TN, I can tell you that we regularly use small and mid-sized firms and have a strong preference for regional firms. We currently have over $12B in over 1,300 active project and are currently utilizing over 250 unique firms. The TN Legislature has a strong desire to keep money locally and to use state work as an economic driver. When we make final selections, we actively strive to balance workload for design professional across the state. If your firm has no current state work and you are ranked in the top 3 for a project under $20M then you are very likely to be awarded the project. Additionally, I consider part of my job to be reducing barriers to entry for firms seeking to do state work and will meet with any firm who is interested in understanding the process and getting connected. 



    ------------------------------
    Ann McGauran AIA
    Department of Treasury
    Nashville TN
    ------------------------------



  • 11.  RE: Can Small and Mid-Size Firms Compete Successfully for Public Sector Projects?

    Posted 10-10-2024 06:50 PM

    I am an architect that specializes in working with municipalities that has Owned a small architectural firm (14 employees) in the past. It has been my experience that it takes time and persistence to become adept at winning municipal work. Just like in other areas of practice, one needs to be recognized in the project type to be successful. For example, we started working on recreation projects because of attending local recreation conferences consistently. It took some time to get to know people, but eventually, one agency took a chance on us. That led to more work. Interestingly enough, local governmental agencies often talk to others, so we were able to have enough public sector work to be able to win a very large state law enforcement project. Again, that led to more municipal law enforcement work, which led to fire service work, etc. How long did it take to become recognized? I would say that it took about 10 years, but after that time, municipal work, specifically public safety projects (police, fire, and emergency communication centers) became our specialty.

    After becoming specialists, my firm was acquired by a larger firm (at that time, 80 employees) because they wanted our portfolio to diversify their practice, which was mostly K-12 schools. I will say that it is easier with a larger firm to win projects in areas where you are not known, but that is a different topic.



    ------------------------------
    Raymond Lee AIA
    FGM Architects
    Oak Brook IL
    ------------------------------



  • 12.  RE: Can Small and Mid-Size Firms Compete Successfully for Public Sector Projects?

    Posted 10-11-2024 05:28 PM

    As a former public-sector (university) client, I would say don't be afraid to take on some very small projects (via an IDIQ contract or on-call architectural services list) at first to get your foot in the door and demonstrate your firm's expertise and capabilities. A number of successful small projects will lead to bigger ones, and then you will start competing (and hopefully winning!) big projects with the best of the big firms. Another way is to partner with a larger, more-established out of town/state firm as the local firm of record on a project (public agencies often look for that), to demonstrate your capabilities that way. One or two successful projects via that route can get you more highly recognized and well-thought of as well. My 2¢.



    ------------------------------
    Patrick Panetta, FAIA
    Senior Campus Planner
    SmithGroup
    ------------------------------



  • 13.  RE: Can Small and Mid-Size Firms Compete Successfully for Public Sector Projects?

    Posted 10-11-2024 06:12 PM

    Colleagues,

     

    In our segment of the Federal sector, due to a Supreme Court decision, we are required to hire Service Disabled, Veteran Owned, Small Business firms.  In most general cases, these SDVOSB firms must perform at least 51% of the work.  In my experience SDVOSB firms are predominantly small to medium sized.  This appears to be a good opportunity to build professional alliances to establish teams with the appropriate expertise and experience.  Don't know what other Fed agencies might have special provisions which target to small/midsized firms, but might be worth investigating.

     

    Donald L. Myers. AIA, NCARB, AAH, ASHE






  • 14.  RE: Can Small and Mid-Size Firms Compete Successfully for Public Sector Projects?

    Posted 10-11-2024 07:23 PM

    This raises a great point, particularly for Federal and other public work, but can expand to many other areas: having your firm qualify as a small business. I have not done this myself, but looking at the Federal Small Business Administration website and then looking at what would qualify as a small business in architecture (NAICS Code 541310), a firm could have up to $12.5 million in annual revenue and still be a small firm.  At that limit, there's a lot of small and medium firms that could qualify as a Small Business, which will open additional opportunities for them. 



    ------------------------------
    Arlen Solochek, FAIA
    Owner/Principal/Founder
    Arlen Solochek FAIA, Consulting Architect
    Phoenix, AZ
    ArlenSolochek@gmail.com
    ------------------------------