Masonry Magazine February 2012 Page. 52
INDUSTRY NEWS
The House Armed Services Committee addressed the unique challenges that small and midsize contractors face in doing business with the Department of Defense (DOD). Schubert told the panel that many DOD contracts are just too big for small and emerging contractors to perform.
Schubert noted that all federal construction projects should be subject to the existing anti-bundling rules applicable to other types of procurement. In its testimony, SFAA recommended that federal agencies should be required to award 5 percent of their total construction budget in contracts of no more than $5 million.
SFAA's testimony also cited federal procurement rules and programs that create obstacles for small and emerging contractors. In evaluating these relationships and determining whether or not to write a bond, it should be clear that a surety can consider the financial strength and indemnity of the larger contractor and not jeopardize the status of the small contractor. Under current rules, contractors cannot take advantage of set-aside opportunities if they no longer qualify as a small contractor. This also creates a problem for the federal agency letting the construction project as it cannot count the small and emerging contractor's participation towards its small business participation goals.
Schubert also urged Congress to maintain the Miller Act bond threshold because payment bonds protect workers, subcontractors, and suppliers on federal projects. In one of the annual appropriations bills in 2008, an inflation adjustment was required for all acquisition-related thresholds every five years. Each increase in the bond threshold means that more subcontractors and suppliers work on bigger projects without the protection of a payment bond. Small and emerging contractors are most likely to be working on DOD projects as subcontractors and their payment protection should not be compromised with inflation adjustments.
More information about SFAA is available at www.surety.org. IMAS
MCAA
New Members
The Mason Contractors Association of America is proud to welcome the following new members to the Association. MCAA would like to take this opportunity to thank them for joining their fellow mason contractors nationwide in helping to build a stronger masonry industry. MCAAs members look forward to a long affiliation with their firms.
Dow Building Solutions
200 Larkin Center
Midland, MI 48674
(519) 541-0336
National Supplier
WAL Masonry
83 Case Hill Road
Claremont, NH 03743
(603) 542-4646
Class A Contractor
If your company is interested in becoming a member of the Mason Contractors Association of America as a contraction supplier or instructor, please contact MCAA at (800) 536-2225 or complete an application at www.masoncontractors.org.
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