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| Web Brief (Oct 07) |
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Getting Small
ODOT supports small businesses with streamlined contracting process
Here at ODOT, we’re used to big numbers. More than 4,500 of us work here; we are responsible for maintaining and upgrading more than 8,000 miles of state facilities. With the addition of projects in the OTIA programs in the past few years, we’ve doubled the budget and the work that the agency performs, to more than $1 billion per year.
But besides maintaining highway safety and mobility, ODOT is also charged by the Legislature and the governor with stimulating Oregon’s economy, and to do that, we had to get small.
In 2005, the Small Business Administration reported that of the nearly 26 million firms in the United States, most are very small—97.5 percent have fewer than 20 employees. Nonetheless, these firms account for half of the United States’ nonfarm real gross domestic product. They’ve generated 60 percent to 80 percent of the net new jobs during the past decade. Similar statistics come from the Oregon Economic and Community Development Department: Currently 90 percent of all Oregon business enterprises employ 20 or fewer people.
Such compelling numbers provided impetus for ODOT’s Small Business Initiative, part of a comprehensive plan to increase economic opportunities for Oregon’s workers and businesses. This initiative includes the Small Contracting Program for Professional and Technical Services.
The new program works like this: For contracts valued at $74,990 or less, ODOT has a new, simplified procurement process for firms to register and have the opportunity to be selected as prime consultants. The Small Contracting Program was initially implemented in Region 1 and proved successful enough to go statewide in September.
To date, 10 firms are under contract, with a total dollar value of nearly $750,000. Five more contracts are in development that will boost the contracted value over $1 million.
“Awarding contracts of this size—which are relatively small for us but relatively significant for small businesses—involved a new way of thinking for ODOT,” said Director Matt Garrett.
In the first month—October 2006—the agency registered 117 firms in a wide range of disciplines. Of the more than 160 companies now registered, approximately two-thirds are disadvantaged, minority-owned, women-owned or emerging small businesses.
Tom Nelson and Associates LLC is a 17-person specialty surveying firm whose recent work includes staking the landmark Portland Aerial Tram. Through the Small Contracting Program, the firm has also just signed its first contract with ODOT.
“We’re excited about the chance to work directly for ODOT,” said Tom Nelson, P.L.S., the firm’s owner. “As an emerging small business, we really appreciate the commitment that ODOT managers have made to finding innovative ways to get us contracted and providing services.”
The program benefits ODOT employees as well as the consultants. The potential to hire or to work locally is convenient for both, as is the quick and easy procurement process—in less than a month, a project can go from concept to execution.
“The new program gives project managers more control,” said Lis Cooper, strategic development coordinator for ODOT’s Major Projects Branch. “Content experts still determine the nature of the work, deliverables and time frame, but have access to a bigger bench of consultants and enjoy a much simpler interview and paperwork process.”
ODOT’s efforts to simplify its contracting processes were based on input from the small business community. With the help of such feedback, the agency can now work quickly to draw up the contracts, get people working and get companies paid.
“All across Oregon, small businesses will have opportunities to work directly with ODOT in a way that wasn’t possible in the past,” Garrett said. With the Small Contracting Program statewide rollout, ODOT will be getting small to help businesses grow.
Early reaction to the program has been positive—more than 20 newspapers from Hells Canyon to Hillsboro covered the announcement of its statewide expansion—so encourage small businesses and consultants in your communities to register, and plan to use this program on one of your own projects. If you need help, contact Cooper or Gail Samura, in ODOT’s Procurement Office, and either will be happy to walk you through the process. Cooper and Samura say they’ll know that the program is a success when 100 percent of the consultants registered have work and there’s one more contract to let.
Based on the success of the Small Contracting Program, ODOT will roll out a similar program early in 2008 to include construction contractors with contract values up to $100,000.
To learn more about ODOT’s Small Contracting Program, visit the Web site at www.oregon.gov/ODOT/smallcontractingprogram.shtml.
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