Producers Report on their Participation in U.S. DOT Bonding Education Programs

In the final quarter of 2012, NASBP producers assisted small, emerging contractors who participated in DOT Bonding Education Programs in Alaska, Hawaii, California, Michigan and Portland. Many also presented and assisted the DOT Directors organizing the Programs (See pictures below).

Some of these were: Stuart O’Farrell and Christine Hubbell of Parker, Smith & Feek presented and participated in the Alaska DOT BEP held last week. Don Burden and Angelo Zervos both of the Zervos Group presented at a DOT BEP held this fall in Michigan. Paul Kennedy presented at at the Hawaii DOT BEP. Patty Zenizo of Preferred Bonding & Insurance Services participated in the Los Angeles DOT BEP.

Success stories about small business owners who participated in the U.S. DOT Bonding Education Programs continue to be reported. These success stories are a result of combined efforts of DOT Directors, bonds producers, surety underwriters, & CPA’s and others who helped small businesses become bond-ready and better able to compete for transportation contracts.

NASBP is a participant for a second year in a row in the Program that represents a partnership between the Surety and Fidelity Association of America and DOT’s Office of Small and Disadvantaged Business Utilization (OSDBU). Below NASBP bond producers share information about their participation and the business owners who are seeking bonding and surety credit.

NASBP Producer Patty Zenizo of Preferred Bonding and Insurance Services reported that she participated in the DOT BEP held in Los Angeles and continues working with a contractor who has participated and graduated from the Program. “Because of her participation in Los Angeles Bonding Education Program (BEP), Bianca Vobecky, President of Vobecky Enterprises, Inc., increased her existing bonding limit from $500,000 to $800,000,” Zenizo said.

“We at Preferred Bonding & Insurance Services were her assigned broker and helped to facilitate the increase,” Zenizo said. “This is giving Ms. Vobecky the ability to pursue larger projects. One thing noticeable about Bianca was her cooperative nature and her desire to work on improving her bonding threshold. She displayed her commitment by attending all five sessions. She told me that she is highly committed to her education/training on new technology and information; these skills have given her construction company an edge.” Zenizo said, “You can always find her standing out in the crowd because of her open, friendly, and go-getter attitude; we are extremely proud of what Ms. Vobecky has achieved!!!”

DOT Director Scott Leslie said Bianca runs both a shipping operation (called Ship DTS) and a construction management operation and her company is certified 8a, DBE, WOSB, SDB, MBE. “Bianca was referred to the BEP by our stakeholders, the MBDC and the City of Los Angeles,” Leslie said. “When she started the program, her bonding line was for 500K.” Leslie said that Vobecky was able to work with Zenizo to increase her capacity, which has allowed her to bid on larger jobs.

Vobecky said, “I appreciate the efforts of the Small Business Transportation Resource Center to hold the BEP in Los Angeles last year.  The workshops and resources provided were a big part of getting me going to bid on larger projects.”

In fact,  Vobecky’s company received two awards last year, the Contractor of the Year 2011 from National Association of Minority Contractors and the Professional Firm of the Year 2011 from the Minority Business Development Agency and the City of Los Angeles. Bianca Vobecky is pictured below with Los Angeles Mayor Villaraigosa.

“I encourage all bond agents/brokers  to get involved in future sessions because it’s a win win situation, Zenizo said.

Some NASBP producers regularly provide presentations about bonding at local and state small, emerging contractor assistance programs. Don Burden of the Zervos Group gives these kind of presentations at least twice a year. This fall, Burden gave a presentation with Angelo Zervos, also of the Zervos Group, during the Michigan DOT BEP. Burden said he has been giving seminars for about seven years to the local Michigan Contractors Assistance Program, this is a minority business enterprise centered, state funded group that offers services to emerging contractors. His presentation to the Michigan DOT BEP described assistance in how to put together a business plan, acquire financing, record keeping ,etc.

“These are all small, emerging contractors that are looking to get set up for bonds. My talk is very basic (what bonds cover, different types of bonds, etc.) I can say that I have really enjoyed doing these, it is always a pleasure to promote our product, which can be so misunderstood. Many of the contractors may have applied for surety credit before and have been turned down, and they don’t know where to turn.”

“I try to always stress the importance of our product, how we protect taxpayers’ money, the added value a professional surety agent can provide, how having bond credit can set you apart from the competition, etc. Most of these small contractors are very eager to learn and want to grow their businesses.”

“One of our largest contractor clients first attended one of these seminars in 2005. They were just getting into construction, had very little capital and experience, and I got them their first bond for $ 180,000 to work in downtown Detroit in preparation for the 2006 Super Bowl held here that year. Six years later, they have received numerous awards both statewide and nationally, as one of the fast growing minority owned contractors in the U.S. and were recognized by the White House in 2010 as the Minority entrepreneur of the year. Sales in 2012 are expected to be in the $ 60 million area. Not to mention the two spin-off contractor clients I write currently that were former employees. So, you just never know!”

Presenters Stuart O’Farrell (right) and Jake Williams (left) of NAS Surety Group Seattle at the Alaska DOT BEP		Paul Kennedy of King and Neel presented at Hawaii DOT BEP. DOT Director of SBTRC Scott Leslie said King and Neel was a valuable partner in the DOT BEP Hawaii Program.
Contractor Bianca Vobecky with the Mayor of Los Angeles. Vobecky is a graduate of the LA DOT BEP.		Patty Zenizo of Preferred Bonding & Insurance Services was the agent that was assigned to Bianca Vobecky, President of Vobecky Enterprises, Inc.
Don Burden, right, and Angelo Zervos (left) at Michigan DOT BEP		Don Burden and Angelo Zervos (standing) present the basics of bonding
About 50 graduated from the DOT BEP held in Portland, Oregon