Last month, AGC surveyed its members on contracts preference programs. Contracts preference programs are federal and federal-aid programs that were created with the intent to help socially and economically disadvantaged businesses. These programs include, Disadvantaged Business Enterprise program, 8(a) Business Development program, Women-Owned Small Business Federal Contract program, Service-Disabled Veteran-Owned Small Business program, and HUBZone program. Some key highlights were:
- 2:1 ratio of General Contractors to Subcontractor/Specialty Contractor
- 72% of respondents have less than 250 employees
- Close distribution of total dollar of work performed in the last year, except for work over $500 million
- 28.43% – $10 million or less
- 32.84% – $10.1 million – $50 million
- 26.96% – $50.1 million – $500 million
- 11.76% – Over $500 million
- 2:1 ratio of non-DBE/Set-Aside (65%) to DBE/Set-Aside firms (29.85%), including graduated (3.48%) or eligible but chooses not to be certified (1.49%)
- The top three responses about what was successful about these programs were:
(1) Promotes diversity in construction,
(2) Increases competitiveness for federal contractors, and
(3) Access to resources and networking opportunities
- The top three responses about what was unsuccessful about these programs were:
(1) Potential penalties for noncompliance,
(2) Cumbersome certification and recertification process, and
(3) Lack of transparency and guidance on program eligibility and business readiness
- Meeting contract goals, understanding and navigating program rules, and maintaining compliance were the hardest about these programs.
- Almost half (49%) of respondents say the DBE or Set-Aside program compliance complexity creates tension between prime contractors and subcontractors
- 43% of respondents say the administrative burden to submit initial certification and/or classification is hard.
For more information, contact Jordan Howard.