Making the Cut

The role of reputation, relationships, and self-promotion in winning government contracts

MANAGEMENT By Tracy Bennett

When the U.S. Congress passed the Infrastructure Investment and Jobs Act in 2021, it committed to an investment in the nation’s infrastructure that will fuel future work for contractors—reportedly adding 1.5 million jobs per year over the next 10 years. For subcontractors like steel erectors, good relationships with GCs are key to getting hired for government contract work. But it is also important to maintain visibility on government committees and lobby groups.

“Generally, inside the materials office of a DOT is its tactical arm in the sense that all specifications that revolve around projects come specifically from that office. Getting ahead of the curve by having positive relationships with people working in those offices is very valuable because it helps you stand out from being just another contractor,” said Richard Krolewski, Founder, Regulatory Resources LLC, in an article published by the Association of Equipment Manufacturers.

While this strategy is specifically geared for companies that would be bidding as primary contractors, it can also be true for subcontractors, explains Jack Nix, Chief Operations Officer for Shelby Erectors, Inc., a Florida-based rebar contractor.

“I regularly attend the Structures Committee meetings held by the FDOT,” said Nix. “Even though the government entity won’t directly contract with me, this puts me in the same room as the GCs and the DOT-decision makers. When something comes up in our specialty area, we are aware and can participate in the discussion,” he said.

Likewise, Jennifer Nix, President of Shelby Erectors, is active in the Florida Transportation Builders Association. She sits on the Small Business and Disadvantaged Business Enterprise committees. “This enables us to hear what other small businesses are dealing with and gives us visibility in our industry,” she said.

“Most bids are still price driven, but there’s also consideration for quality, technique, and safety records,” said Nix. He explained that on Design-Build projects in Florida, technical proposals are scored beforeany cost proposals are reviewed. The price proposal is opened only if technical proposal is above the minimum technical score.

Glen Pisani, Steel Division Manager for MAS Building and Bridge believes contractors that are involved in advocacy ultimately see greater success in winning bids. “The owner of our company has been active in Construction Industries of Massachusetts (CIM), which promotes allocation of funds for infrastructure projects in our state,” he said. These lobby groups also open doors to specific state and federal committees, like those Jack and Jennifer Nix attend. “Even if you are not able to be on the committee, it’s good to attend meetings and listen in,” said Jack Nix.

Michael Socci, president of MAS Building & Bridge and former president of Construction Industries of Massachusetts, at a CIM meeting. Involvement in lobby groups opens doors for subcontractors.

Get on the list

From the GC’s perspective, quality is an important factor in establishing relationships with project owners, and that trickles down to the subcontractors and suppliers. “You want to be known in the industry as a quality producer or supplier who works with quality vendors. And then you need to be able to back that up with first-class service,” said Krolewski.

MAS Building and Bridge, Inc., has the unique perspective of being both a GC and Subcontractor. Its Heavy Civil Division is a general contractor, and directly pursues Federal, DOT, or Municipal contracts. “Our steel construction division, as a subcontractor, is primarily engaged in government contracts through other Small Business General Contractors that act as construction managers,” said Gaelen Magee, Heavy Civil Estimating Manager. Although not a large part of the company’s portfolio, the contracts they do get this way are either because the company has a good relationship with the GC or they were the low bid from a national solicitor seeking local subcontractors, she explained.

Pisani gave an example of a project they did at the Newport Naval Shipyard. “We have a good reputation for safety on the base,” he said. “We are affiliated with the American Institute of Constructors, which validates construction excellence through individual certifications. We employ full-time safety professionals, and we have adopted more stringent 6 ft fall protection requirements,” he said.

Just as government agencies have approved lists of suppliers/vendors they use for various projects, so do General Contractors. “Past performance is critical – most federal agencies have a post-project evaluation process that is formal and tracked,” said Magee. Otherwise, we focus on relationships with Contractors that are part of a Multiple Award Construction Contract (MACC) for different agencies,” said Magee.

The major general contractors in their region maintain databases of subcontractors. Magee advises: “Make sure your company info and safety data stays up-to-date on the different vendor portals. This has ensured that our company continues to get invitations to bid.”

Gaelen Magee, Heavy Civil Estimating Manager for MAS Building and Bridge advises contractors to keep their company and safety data current on vendor portals.

Connecting with Decision Makers

The Florida Department of Transportation Structures Committee deals with specifications, processes, and improvements. Two years ago, Shelby Erectors started exploring the use of a new rebar tying robot called TyBOT, which self-locates, self-positions, and ties up to 1,100 intersections per hour. The technology has delivered significant savings in costs and time. But two years ago, the FDOT specs were written in a way that would have excluded Shelby Erectors from using the technology.

“The spec required that double strand wires be tied every third intersection. TyBOT can only tie single wire,” explained Jack Nix. He proposed that using this technology to tie rods every other intersection instead of every third would be just as effective. Because of his involvement on the Structures Committee, he was able to work with the FDOT to develop new language which opened the door to using TyBOt on future projects.

The second challenge was in selling the concept to general contractors. In an article published on ForConstructionPros.com in July, Nix explained that TyBOT requires certain steps in the project to be re-ordered. “Tie bot runs on the screed rail. The general has to have that up prior to doing rebar installation—and this changes the schedule and how the work flows. It does not change the project cost, just the sequencing.”

It’s in these kinds of situations where relationships and self-promotion can really make the difference when it comes to bidding. The Association of Equipment Manufacturers (AEM) offers these additional best practices.

1. Speak at conferences. People at DOTs and other agencies attend conferences and trade shows to gain a greater understanding of topics that affect infrastructure. By presenting at a conference, you demonstrate your company employs experts and that you want to share that knowledge.

2. Get involved, particularly with organizations and trade associations that support specification development, product approval, and product demonstration.

“It’s critical to be in the know in terms of what are the upcoming technologies and what is the latest and greatest,” says Richard Krolewski. “For example, DOTs are moving in the direction of replacing traditional materials like steel reinforcement with non-corrosive materials, such as fiber-reinforced polymers. Getting ahead of that curve will help you stand out.”

3. Your website should communicate with words, pictures, and video your company’s experience, expertise, values, and commitments to safety and quality. “You don’t have the opportunity to develop interpersonal relationships the way you could have 5-10 years ago, so having a sophisticated website with a clear message is critical because more business is being done electronically than ever before,” says Krolewski.

4. While a website gives decision makers a snapshot of your company, social media has become the greatest means for regularly connecting with people.

No matter the size of business, winning government contracts can be essential for long-term success. While these are not easy to secure, particularly in the beginning, building relationships is the best way to get a foot in the door. •

By being proactive, Shelby Erectors was able to work with FDOT Structures Committee to revise specs that allowed the use of robotic rod tying technology on projects, including the award-winning Wekiva 6 project in Central Florida. (Read more in the Summer 2022 edition of Connector.)