Businesses looking to position themselves for federal construction contracts need to be aware of the potential pitfalls, as well as the key role of surety bonding. These topics will be addressed at a pair of
fall educational conferences held by NASBP and law firm of Smith Currie & Hancock, said NASBP General Counsel Martha Perkins.
The November 12-13, 2014, program will be of interest to a broad audience, including surety professionals, attorneys, general contractors, construction managers and risk managers, Perkins said. It will cover such topics as False Claims Act liability, public-private partnerships, and best-value contracting.
The November event will include a discussion of False Claims Act liability, which is present at the federal contracting level as well as for state projects that receive federal funds, and show how firms can reduce such liability. One of the most common False Claims Act infractions is overbilling, along with billing for work before it has been done, Perkins said.
False Claims Act liability presents “landmines” in the form of violations that can ruin a business, and “every contractor and subcontractor wants to know how to stay out of False Claims Act liability trouble,” Perkins said.
The discussion also will examine joint ventures, mentor-protégé arrangements, and teaming agreements, as well as the need for accuracy in determining whether a contractor or subcontractor qualifies for the Small Business Administration's 8(a) Business Development Program, or for programs that benefit women-owned or veteran-owned small-businesses.
Another major area of infractions involves misrepresentations by contractors or subcontractors in the certification process for such programs, Perkins said. “Small businesses need to know how to position themselves properly to be part of those programs,” she said.
A panel exploring the hot topic of public-private partnerships, or P3s, will convene during the second day of the November conferences. It will feature a range of P3 experts, including representatives from sureties, a large national construction firm and a rating organization, Perkins said.
The role of the surety is key in federal construction contracting. The Miller Act mandates that prime contractors on federal construction projects obtain performance and payment bonds on projects worth $150,000 or more, and prime contractors may also require subcontractors to have bonds as well, Perkins said. Several resources are available to help small firms with qualifying for surety credit, including NASBP's www.SuretyLearn.org website and the SBA's Surety Bond Guarantee Program, she said.
The November event also will explore best value contracting, which although not a brand-new concept, is a topic of increasing importance in federal contracting, Perkins said. Under this method, the government would not simply choose the lowest responsible bidder based on price, but instead award a contract based on a variety of factors outlined in the proposal. Those factors allow “room for subjectivity and evaluation,” she said.
Criteria in a best-value proposal can include a firm's experience, project personnel, technical qualifications, past performance, subcontracting plans, quality control and financial capability, Perkins said.
The presentation on best-value contracting will examine how the process is conducted and how to protest an award made via that process, she said.
Special discounted rates are available for attending both days of conferences and for registering with a colleague. The hotel deadline is Friday, October 10. For more information and to register for the conferences,
visit NASBP.org.