Overview

DOT BONDING EDUCATION PROGRAM (BEP) – (Location)

A Program of

US DEPARTMENT OF TRANSPORTATION/OFFICE OF SMALL AND DISADVANTAGED BUSINESS UTILIZATION (OSDBU)

THE SURETY & FIDELITY ASSOCIATION OF AMERICA (SFAA)

SMALL BUSINESS TRANSPORTATION RESOURCE CENTER (SBTRC) – (LOCATION)


Implementation Plan (SAMPLE)

Overview

The DOT Bonding Education Program (BEP) is composed of two major components.  The Educational Workshops Component offers a set of up to ten workshops, including an introductory workshop on intake and logistics; eight comprehensive workshops in areas ranging from construction accounting to estimating to project management, each of which is designed to provide information to the contractors related to improving their company’s operations and thereby making it easier to be bonded or to increase their bonding capacity; and a closing workshop focused on networking and next steps.  The Bond Readiness Component consists of one-on-one interactions with surety bond producers, underwriters and other professionals who work with the contractors on a case-by-case basis in assembling the materials necessary for a complete bond application, in conducting bond readiness assessments, and in developing tailored prescriptive measures to address any omissions and/or deficiencies that might deter the successful underwriting of a bond.  The Educational Workshops and Bond Readiness components are integrated in that they run concurrent and therefore, beginning with the outset of implementation of the Bonding Initiative, the contractors participate in one-on-one sessions with bonding professionals held at the beginning of each workshop, work on assembling the necessary documents for bond readiness assessments, and initiate the steps for prequalification for actual contracting opportunities that require bonding.

Program Implementation

The (Location) initiative of the DOT Bonding Education Program will be implemented, beginning (Date), for contractors in the greater (Location) area who are involved with or interested in bidding on transportation-related projects in the area. The pilot program will undertake the following steps:

  • Meeting of Stakeholders – At the outset of the program, SFAA and SBTRC will hold a meeting of all stakeholders in the area to review the parameters of the program, to determine resource requirements and to ascertain the role that each stakeholder will play in ensuring program success.  Stakeholders would include local governmental officials, key agency representatives, owners/developers of large projects already or about to be underway, various assistance providers, bankers and other members of the financial sector, and representatives of the contractor community, including the large prime contractors doing business in the region.  Out of the meeting, an Advisory Committee will be formed to provide advice and on-going support for the program, as needed.
  • Contractor Outreach and Identification – This step consists of outreaching to contractors and informing them about the program, its benefits and how they might participate.   SBTRC and other relevant stakeholders will conduct on-going outreach to inform the small, minority, and women contractor community of the Bonding Education Program. The objective of this outreach is to identify and recruit companies that can best benefit from participating in the program.  In addition, SBTRC will conduct on-going activities to network M/WBE contractors with the banking and financial industry through sponsoring periodic receptions and other events that bring these entities together. Under the program pilot, 30 contractors doing transportation-related business in (Location) and the surrounding areas will be identified for participation in the initial group.
  • Initial Contractor Interviews and Intake – This step consists of interviews with contractors in order to assist them in completing the Contractor’s Questionnaire and a discussion of what additional information and materials are required for bond readiness assessments.  This step will take place during designated interview dates early on in the workshop cycle.
  • Educational Workshops – Contractors will participate in a series of weekly workshops organized by SFAA and SBTRC.
  • Assembling Company Profiles and Supportive Documentation – This step consists of assembling information on each participating company, including business plans, financials, work histories, letters of recommendations, etc.
  • Assessing Company Bondability – Local surety bonding specialists, identified through SFAA, will assess each contractor package, identifying any potential bond denial factors that might exist.
  • Prescribing Remedies for Bondability – Where potential denial factors might exist, the bonding specialists will prescribe action that should be completed by the contractor.  In order to facilitate this prescriptive stage, a technical assistance strategy will be developed for the contractor.  This step will be undertaken jointly by the surety specialists and SBTRC.
  • Providing Technical Assistance – For the pilot, SBTRC will coordinate and monitor the provision of technical assistance to the contractor, following the strategy that has been developed.  Such assistance may include business plan development, marketing, project management, etc.  At the same time, SBTRC will provide the contractor with lists of experienced construction accountants and attorneys.  Should additional assistance be required in these areas, the contractor will engage those services directly with the relevant assistance professional.
  • Providing Bond Application Support – This step includes assisting the contractor in identifying contracting opportunities, as well as supporting and facilitating the actual bond application and approval process.  Although the surety industry volunteers will work with the contractor throughout this process, the contractor has the right to utilize any bonding agent he or she chooses to package and submit bond applications.
  • Continued Contractor Growth and Development - In addition to the technical assistance and bonding support described above, the effort will go beyond these initial steps and provide access management assistance that a contractor still might need after achieving bondability.  This access management assistance focuses on increasing the contractor’s capacity to enhance growth and development, and the resources and positioning required to exploit expanded contracting opportunities and increase his/her bondability.
  • Monitoring Outcomes - A last step in the process will be the monitoring of outcomes, as measured by the extent of initial bonding of the participating contractors and the enhancement of these contractors’ ability to sustain and grow their bonding capacity.  SFAA and SBTRC will document program participation and the type and frequency of assistance provided, and will track the results in terms of the contractors that obtained bonds and those that did not.

Contractor Eligibility

To be eligible to participate in this Bonding Education Program the business must be a small, disadvantaged, and/or women-owned business within the definition established by the federal or state DOT, must be certified as such by the State, must have been in business for a minimum of two years, and must be interested in securing initial bonding or a bonding limit increase.  In addition, the business owner must demonstrate commitment to follow through with the entire initiative, including personally attending the education and training workshops and assembling the necessary documentation needed for a bond readiness assessment and subsequent assistance. 

SFAA Member Company Participation

SFAA has already received commitments from several member companies to participate in this program effort and they are instructing their regional offices and appointed broker/agents to aggressively seek to identify, support and ultimately underwrite participants in the Bonding Education Program.  Furthermore, these underwriters and broker/agents throughout the region will be voluntarily participating in the educational workshops and bond readiness activities of this program.  In addition to contacting individual member companies, we are coordinating our activities with the National Association of Surety Bond Producers (NASBP) and will be contacting the (Name of Local Surety Association) to obtain their participation.

Program Oversight and Coordination 

In order to implement this effort, SBTRC will identify a program coordinator for the Bonding Education Program and will provide oversight for all program tasks in its area. 

Administrative Resources/Support

SBTRC will be responsible for providing office space and administrative support for the local program coordinator.