Ten years ago, Advanced Pro Construction, a demolition company, was used to doing small jobs in the valley — fixing fire damage, overflowed toilets and broken pipes. The company wasn’t unionized, bonded or expecting big gigs anytime soon.
Then in 2006, it landed a contract with Nellis Air Force Base after participating in a government program for small businesses.
Today, Advanced Pro, a woman-owned business, works on big projects, large-scale remodels and additions, subcontracting under the larger, more experienced Burke Construction and expanding its skill set.
“Nellis likes encouraging larger companies to work with smaller ones,” Advanced Pro owner Racquel Toyozaki said. “It can help build your profile and lead to more work.”
Douglas Allen, CEO of PowerChoice Construction, poses in the company offices Monday, Feb. 9, 2015. PowerChoice has been working federal contracts at Nellis Air Force Base for many years. Photo by: Steve Marcus
Nellis Air Force Base, 8 miles northeast of Las Vegas, is home to 40,000 service members, families and military retirees. It has been a valley landmark since 1941, when it was a training field for B-17 gunnery during the height of World War II. Today, Nellis provides training for every type of aircraft in the U.S. Air Force inventory, the air units of allied nations and air and ground units of the Army, Navy and Marine Corps.
Nellis also employs about 9,500 military members and civilians, making it one of the largest employers in Southern Nevada. It has an annual budget of $150 million for civilian contracts, many of which go to local and small businesses.
“Supporting local business brings about economic growth,” said Lt. Col. Chris Kay, commander of Nellis’ contracting squadron. “We’re able to give back to the community. We are creating jobs and development. And we’re strengthening the relationship between the Vegas valley and Nellis Air Force Base.”
In 2014, $1 of every $5 spent on contracts at Nellis went to local businesses. From constructing new dorms to staffing the on-base chapel, Nellis opens bids for contracts all year. Its goal is to award 20 percent of contracts to local businesses and 60 percent to small businesses.
The federal government reserves a percentage of every budget for small-business contracts, and any contract under $3,000 is set aside for small businesses. Nellis must adhere to federal mandates designed to keep competition fair so larger companies don’t walk away with the lion’s share of federal work. There are hundreds of rules and regulations that inform how the government awards contracts, and surprisingly often, they favor the underdogs.
3 steps to prep for a federal contract
• Register with SAM: Businesses must to register with the System of Award Management (SAM) before they can apply for a government contract. Visit SAM.gov to start the process.
• Get certified: If you’re eligible for a small-business certification, get one. It will give you an advantage in landing a contract. Learn more about certification at SBA.gov.
• Ask for help: Visit the Small Business Administration or Diversify Nevada to learn more about the logistics of government contracting. For dates and times of training sessions at Diversify Nevada, visit diversifynevada.com.
Federal contracts are desirable because they often include big work orders and employers who know what they want. Businesses that do federal work have peace of mind that an employer won’t skip out on a check.
“With commercial work, you always have to worry about pay,” said Douglas Allen, owner of Nellis contractor PowerChoice Construction. “But with the government, the paycheck always comes.”
Allen has worked federal contracts since 1994. He started as a construction manager on a Navy job, and in 1997, his staffing agency, Power Services, landed a contract doing general staffing with Nellis. Allen has been working with Nellis ever since, now in construction with his second company, PowerChoice.
Allen used HUBZone (historically underutilized business zone) certification to give his company an edge in landing the federal deals. The HUBZone program helps small businesses in economically disadvantaged urban and rural areas access federal contracts.
Other federal certifications include the Service-Disabled Veteran-Owned Small Business Certification, Woman-Owned Small Business Certification and Small Disadvantaged Business Certification. Each has its own set of criteria dictated by the Small Business Administration.
Getting certified can make all the difference when it comes to landing a contract. Federal dollars are tightly scrutinized, and bases such as Nellis most often opt for the lowest bidders for contracts. Smaller companies with certifications can get a leg up with smaller bid pools.
The federal government aims to contract 3 percent of its annual budget to HUBZone businesses and 3 percent to Service-Disabled Veteran-Owned businesses. In 2014, contracts awarded to businesses with such certifications were worth $226.8 billion.
Allen rarely works in the private sector anymore because he has been so successful getting federal work. He said it’s not wise to try to operate in both private and public sectors.
“There’s too many times that I’ve seen other guys fail when they get a federal contract,” Allen said. “They just don’t realize how much is required doing federal work. It’s a totally different beast.”
The road to landing a federal contract and maintaining it is crowded with competition, and it demands lots of research and paperwork. Allen said he hired a technical writer to wade through documentation.
“Even if you’re the best guy for the job, if you don’t communicate in the way (the federal government) wants, or if you don’t meet all the specifics and standards they ask for, then you won’t get the job,” Allen said.
Lyndee Cichon, director of Diversify Nevada’s procurement outreach program, described what goes into the federal bidding process.
“There’s employee experience, certifications of businesses, record-keeping standards, wage rate requirements, employee benefit requirements and levels of compliance,” Cichon said. “Before you even bid, there’s plenty of stuff to know.”
Diversify Nevada, an arm of the Governor’s Office of Economic Development, and the Small Business Administration help Nevada businesses prepare to seek federal contracts. They offer classes, one-on-one training and access to free bid matching software that saves hours of time combing through government contracts looking for ones that match a business’s capabilities and interests.
They also give businesses a chance to meet federal contractors face to face and discuss the details of what they’re looking for.
“Don’t overcomplicate it; you’re already in business,” Kay said. “Just learn how to do it with Nellis.”