On Thursday, March 5, 2009, the Texas Transportation Commission approved $1.2 billion worth of funding for "shovel ready" projects under the
American Recovery and Reinvestment Act of 2009. These funds will help the state proceed with
29 construction projects, with the
state leveraging the $1.2 billion in stimulus spending to build more than $2.6 billion in new transportation projects throughout the state, which
will result in ground breaking this spring. The Commission also renewed its support for
roadway and bridge maintenance and
rehabilitation projects valued at more than $500 million. Contracts are expected to begin being awarded in April 2009, with all contracts being
awarded prior to May 2010.
Given this opportunity for companies involved in transportation related projects, businesses certified as minority (MBE) and women-owned
businesses (WBE) are likely to see substantial growth due to the preference in the bidding process, access to capital, management, and technical
assistance. There are many different certifications available to companies where the majority owners and parties controlling the management of
the firm are an individual or group of individuals who are the member of a minority group or women, but the certifications expected to be most
beneficial for these projects are the following:
Federal Certifications
Federal certifications include certification under the 8(a) program, certification as an Small Disadvantage Business (SDB) or certification as a
HUBZone business (dependent on the geographic location of the business). For further information, see:
SBA 8(a) Business Development Program
SBA Small Disadvantaged Business
SBA HUBZone
Additionally, disabled veteran certifications are
also opening doors. Federal Supply Service Schedules, Government-wide Acquisition Contracts (GWACs), and PBS Construction and Service Contracts
are all avenues that service-disable veteran-owned small businesses can use to work with the General Services Administration and the rest of the
federal government. More information is available
HERE. These certifications are helpful if your target customer base is a federal agency
or a prime contractor that serves federal agencies.
It should be noted, the recent decision of Rothe Development Corporation vs. US Department of Defense may impact some federal preferential
programs, which result in federal contracts being awarded to minority-owned businesses.
State Certifications
Each state has its own certification program which generally applies only to contracting opportunities with the issuing state. In Texas, this is
referred to as obtaining a HUB Certification from the General Service Commission. For further information,
CLICK HERE. Additionally, you can receive
automatic HUB certification through the Texas Unified Certification Program through a process coordinated by one of HUB's certification partners:
Central & South Texas Minority Business Council, City of Houston, Dallas/Fort Worth Minority Business Dev. Council, Houston Minority Business
Council, Texas Department of Transportation, Women’s Business Council – Southwest, or Women's Business Enterprise Alliance.
Of the foregoing, the federal certifications are typically the most challenging and time consuming to obtain, with the state HUB and regional
private industry certifications typically being the quickest and simplest to apply for and receive. We have substantial experience assisting
clients in structuring ventures to meet the requirements of these certifications. If you are a woman or minority owned-business that has not
been certified, you should confirm that your entity’s organizational documents are in order and apply to receive your certification. If you are
a larger organization and believe that a member of your staff is ready to take on a more significant leadership role in an organization that could
stand on its own, certification may result in great partnering opportunities.
Stephanie Chandler is a partner in the Corporate section of Jackson Walker
L.L.P., assisting businesses with formation and structuring, contract negotiation, acquisitions and sales of their venture, joint venture
development, and other issues for growing companies. You can contact her at
schandler@jw.com or 210.978.7704.
Jackson Walker is excited to announce its Opportunity in Economic Crisis Task Force, which provides coordinated and comprehensive support and
advice to clients with regard to opportunities contained in the American Recovery and Reinvestment Act of 2009. Please
CLICK HERE to learn more about the experience Jackson Walker
can bring to bear in this area and CLICK HERE to go directly
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