Georgia Tech Procurement Assistance Center

SBA makes changes to its surety bond program

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The U.S. Small Business Administration (SBA) has noted two important changes to its Surety Bond Guarantee (SBG) Program that will increase contract opportunities for small contractors, supporting them to grow their business operations.  The changes became effective on September 20, 2017.

The changes have the effect of increasing the guarantee percentage in the Preferred Surety Bond Program from no more than 70 percent to no more than 90 percent.  The SBA’s guarantee is now 90 percent if the original contract amount is $100,000 or less, or if the bond is issued to a small business that is owned and controlled by socially or economically disadvantaged individuals, veterans, service disabled veterans, or certified HUBZone and 8(a) businesses.  All other guarantees are 80 percent.

In addition, the eligible contract amount for the Quick Bond Application (Quick Bond) increased to $400,000 from $250,000.  The Quick Bond is a streamlined application process, with reduced paperwork requirements, that is used in the Prior Approval Program for smaller contract amounts.  SBA’s review and approval requires minimal time, allowing small businesses to bid on and compete for contracting opportunities without delay.

Through its SBG Program, consisting of the Prior Approval and the Preferred Surety Bond Programs, the SBA guarantees bid, payment and performance bonds for contracts that do not exceed $6.5 million, and up to $10 million with a federal contracting officer’s certification.  The SBA’s guarantee encourages the surety company to issue a bond that it would not otherwise provide for a small business.

For more information on the SBA’s Surety Bond Guarantee Program, visit www.sba.gov/surety-bonds.

“Reverse” False Claims Act liability extended to bonding companies

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On Monday, the U.S. District Court for the District of Columbia ruled that bonding companies can be held liable for treble damages under the False Claims Act for issuing surety bonds to construction companies that falsely claim to be a Service-Disabled Veteran-Owned Small Business (SDVOSB).

In a novel reverse False Claims Act case, whistleblower Andrew Scollick alleged that the bonding companies “knew or should have known” the construction companies were shell companies acting as a front for larger non-veteran owned entities violating the government’s contracting requirements.

A reverse false claim action can occur when defendants knowingly make a false statement in order to avoid having to pay the government when payment is otherwise due in violation of 31 U.S.C. § 3729(a)(1)(G) (reverse false claims).  See United States ex. rel. Scollick v. Narula, Case No: 14-cv-01339-RCL (District Court, District of Columbia. July 31, 2017).

Under the Miller Act, government construction contractors must post bid bonds, performance bonds, and payment bonds that guarantee that the contractor will perform the work according to the terms of the contract. In this case, the contract terms required that the construction be performed by a SDVOSB entity.  Michael Kohn, of Kohn, Kohn & Colapinto, who represents the whistleblower, argued that given their role in providing a surety bond to the contractor the bonding companies would know whether the invoicing being billed against the contract is being performed by a SDVOSB.  The district court agreed and found that a “reverse false claims” violation occurred because the bonding company knew or should have known that the construction organization was not a SDVOSB and the act of issuing surety bonds furthered the fraud.  As a result, the bonding companies were held legally obligated to return to the government funds the bonding company knew to be paid to contractor firms fraudulently posing as SDVOSBs. Being held liable under the False Claims Act means that treble damages will be awarded for every dollar up to the amount of the bond that the government paid out under each contract.

Because of the substantial dollar amounts involved, it is not all that uncommon for contractors to falsify service-disabled veteran status. Holding bonding companies liable when they have reason to know of the fraud could have an immense impact on stamping out such contract fraud. “Holding bonding companies liable for treble damages in these types of case will have a huge impact on preventing fraud in government contracts and will help ensure these contracts go to disabled veteran-owned companies as intended,” said Kohn.

The Scollick case alleges that two of the largest surety bonding companies, Hanover Insurance Company and Hudson Insurance Company, knowingly bonded dozens of Veteran Administration construction contracts totaling more than $12.5 million with the knowledge that the bonded contractors did not qualify as service-disabled, veteran-owned small businesses.

 

Source: http://www.webwire.com/ViewPressRel.asp?aId=211708

The dotted line: How to navigate ‘the 3 Cs’ of construction bonding

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“Payment and performance bonds required.”  Those words can signal a giant dead end for some contractors who would like to bid on public work or large private projects but haven’t yet waded into the bonding world. However, the bonding process doesn’t have to be mysterious or sweat-inducing as long as companies are equipped with the right information.

SuretyThe most common types of construction bonds are performance and payment bonds, which are kinds of surety bonds. A payment bond guarantees the owner that the contractor will pay all the supplier and subcontractor bills associated with the project, and the performance bond is the owner’s assurance the project will be completed in a timely manner and with high quality.

Those who have bumped into bonding requirements on past jobs might have seen a “bid bond” requirement. This is a bond that guarantees the owner that the contractor will be able to meet the requirements of the contract for the amount of the submitted bid.  But if a company has bonding capability for performance and payment bonds, these aren’t usually a problem to secure.

Keep reading this article at: http://www.constructiondive.com/news/the-dotted-line-how-to-navigate-the-3-cs-of-construction-bonding/413514/

Webinar on surety bonds to be presented April 17th

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The U.S. Small Business Administration’s Surety Bond Guarantee Program helps small business get bonded.  If you wish to learn about this program, you are invited to participate in a free, live webinar on Thursday, April 17, 2014 from 10:00 to 11:00 am EDT.

This webinar is ideal for  small businesses with:

  • Limited financial resources
  • No prior bonded work experience
  • Been in business less than three years
  • Desire to increase your current bonding capacity

The webinar will cover Contract Bonds, including:

  • What they are and why they are required
  • How to get pre-qualified
  • Working capital and bank support

The webinar also will provide complete information about SBA’s Surety Bond Guarantee Program, including:

  • Program eligibility
  • Required information
  • Application process and fees

Advance registration is required.  Please register online at http://events.sba.gov/eventmanagement/EventRegistration.aspx?id=9a6d088f-24b1-e311-abc5-02bfa56e2a24 

Date:                    Thursday, April 17, 2014

Time:                    10:00 am – 11 am

Internet:        https://connect16.uc.att.com/sba/meet/?ExEventID=87462470 (copy the link into your browser to attend).

Phone:            888-858-2144 and then enter meeting code 7462470# to connect by phone.

Prepare in advance for the conference at: https://connect16.uc.att.com/sba/Prepare

For more information please contact Ms. Melanie Bryant at 404-331-0100, ext. 603 or melanie.bryant@sba.gov.

SBA issues final rule on surety bond guarantee program

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In a rule (79 Fed. Reg. 2084) scheduled to go into effect on Feb. 12, 2014, the Small Business Administration (SBA) is modifying its Surety Bond Guarantee Program to incorporate certain provisions of the National Defense Authorization Act of Fiscal Year 2013 (NDAA).  This includes provisions that increase the contract amounts for which SBA is authorized to guarantee bonds, grant SBA the authority to partially deny liability under its bond guarantee, and prohibit SBA from denying liability based on material information that was provided as part of the guarantee application in the Prior Approval Program.

The rule also makes changes to the Quick Bond Guarantee Application and Agreement, the timeframes for taking certain actions related to claims, and the dollar threshold for determining when a change in the Contract or bond amounts meets certain criteria or requires certain action. Finally, the final rule eliminates references to the provisions of the American Recovery and Reinvestment Act of 2009 (Recovery Act) that has expired.

The new rule can be downloaded here: 79 Fed. Reg. 2084

SBA introduces ‘Quick Bond’ application

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SBA has developed a new streamlined application to help small business owners bid and compete for contracting opportunities.

The Quick Bond Guarantee Application Agreement is for contracts less than $250,000 and combines the contractor application and SBA’s agreement with the surety to guarantee the bond into one easy-to-use form. The new form, the Quick Bond Guarantee Application and Agreement (SBA Form 990A) is available here.

The streamlined application reduces paperwork for both contractors and surety companies participating in SBA’s Prior Approval Program. The Quick Bond Guarantee Application Agreement helps:

  • Reduce processing time,
  • Streamline application requirements,
  • Speed up the application approval process.

For more information on surety bonds and SBA’s Surety Bond Guarantee Programs, visit SBA.gov/Surety-Bonds.

SBA opens its review of small business regulations

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Are you a small business owner frustrated with outdated and often cumbersome regulations from the Small Business Administration? Then SBA wants to hear your suggestions on whether those rules should be streamlined, expanded, or possibly withdrawn altogether.

On Monday, SBA published a notice in the Federal Register asking the public to weigh in on the impact of its regulations and the best way to improve them.

“The primary objectives of this review are to make SBA’s regulatory program more cost-effective and less burdensome on participants in the agency’s programs while continuing to promote economic growth, innovation and job creation,” the notice said. “SBA seeks public input on the design of a plan to use for periodic retrospective review of its regulations and an initial list of the rules to be reviewed under the plan.”

The proposal comes on the heels of President Obama’s January executive order calling for a governmentwide review of all federal regulations. The order said inefficient, out-of-date and burdensome regulations could be repealed if they were stifling private sector job growth.

The order instructs agencies to develop a plan for reviewing their regulations by mid-May. The plan, along with any supporting data, would then be made public, Obama wrote.

While the SBA notice did not cite specific regulations, it did say the retrospective review would focus on small business investment companies, surety bond guarantee, business loans, disaster loans, government contracting and Historically Underutilized Business Zones.

SBA recently concluded an exhaustive review of its 8(a) Business Development Program and now is examining size regulations. Neither will be subject to the new review.

The agency wants the public to comment not only on specific regulations, but also on how it should devise its preliminary plan “with a defined method and schedule for identifying certain significant rules that may be obsolete, unnecessary, unjustified, excessively burdensome, or counterproductive.” Comments also should address how SBA can best evaluate and analyze its regulations and obtain accurate and objective cost data.

Commenters should consider the economic burden the regulation imposes on small business entities and whether the rule is duplicative or overlapping; paperwork could be reduced by allowing electronic submissions; the regulation has been discredited by new scientific information; and the issue could be better handled by trade organizations without federal involvement.

“Comments should focus on regulations that have demonstrated deficiencies,” the notice said. “Comments that rehash debates over recently issued rules will be less useful. The public should focus on rule changes that will achieve a broad public impact, rather than an individual, personal, or corporate benefit.”

Sen. Olympia Snowe, R-Maine, ranking member of the Senate Committee on Small Business and Entrepreneurship, encouraged the public to participate in the review.

“Excessive regulations are suffocating the entrepreneurial spirit of America’s almost 30 million small businesses and, regrettably, small firms with fewer than 20 employees bear a disproportionate burden of complying with these rules,” Snowe said in a statement. “To spur job creation and economic growth, it is incumbent upon every level of government to simultaneously pursue sound incentives and eliminate the laws and policies already on the books that are proven impediments to these objectives.”

Earlier this month, Snowe and Sen. Tom Coburn, R-Okla., introduced the Small Business Regulatory Freedom Act, which would require agencies to calculate the direct and indirect economic impact of federal regulations. Small business review panels would be installed at all agencies and small businesses also would be allowed to challenge proposed regulations in court.

Comments for the SBA notice must be submitted by April 13. Comments can be submitted electronically at regulations.gov, or mailed to the SBA Office of the General Counsel, 409 Third Street SW., Washington, D.C., 20416.

The review plan, along with an initial list of regulations that will be evaluated, is expected to be complete by late May or early June and will be available on SBA’s Open Government Web page.

—  by Robert Brodsky – GovExec.com -March 15, 2011

Minority engineering firm grows business with assistance from GMBEC

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In 1998, the outcome of a legal case changed the course of Barry Bennett’s life. Bennett, who was working for a geotechnical and environmental engineering firm in Atlanta at the time, had provided expert testimony for a family-owned company that was suing a large manufacturer for non-payment.

“After several months, the small company finally prevailed and we celebrated that evening in Buckhead. The owner of the company said I did a great job and asked why I didn’t do this for myself,” recalled Bennett, now president of Metals & Materials Engineers, LLC (MME). “I told him I had a one-income family with four small children, and I couldn’t afford to start a business and put all of these people at risk. He looked at me and said, ‘Barry, all of the reasons you just gave me for not starting a business are the reasons you should.’ I went home that night and couldn’t sleep.”

It was at that pivotal moment that the idea started for MME, an Atlanta-based, minority-owned engineering firm that has been providing technical experience in metallurgy, civil engineering, engineering sciences and utility services since 2001. Today the company has two major divisions – materials engineering/metallurgy studies and civil engineering/infrastructure analysis – and employs 70 people across three locations. MME’s customers run the gamut from law firms to municipalities to large manufacturers.

“Over the past five years, the emphasis has been on the infrastructure side because that’s where the growth was. Approximately 75 percent of our company is focused on the civil and infrastructure arena,” Bennett noted. “Part of my business plan and long-term goal is to create a 50-50 split between the two operations. Currently, the growth is on the metallurgy side because municipalities are struggling with lost revenues and a decreased tax base.”

Because of the company’s relatively young age and shift in focus, Bennett was intent on taking advantage of any and all opportunities available to his SBA 8(a) certified company, a designation that means the company meets the requirements of being a small business, is unconditionally owned and controlled by one or more socially and economically disadvantaged people who are U.S. citizens, and demonstrates potential for success. Most importantly, having 8(a) certification means a business can bid on government projects not available to uncertified companies.

“About two years ago, we had an opportunity to enter into a mentor-protégé relationship with Atlanta Gas Light, and through that relationship, the Georgia Minority Business Enterprise Center was brought in to provide some guidance and counseling to the minority businesses that participated in that program,” said Bennett. “I had some one-on-one conversations with Donna Ennis, the project director, and Maria Mar Hill, a business advisor, and I realized they provided additional services.”

The Georgia Minority Business Enterprise Center (GMBEC) is operated by the Georgia Tech Enterprise Innovation Institute, providing business and technical assistance that helps emerging and existing minority business enterprises (MBEs) experience significant growth and sustainability, and have long-term economic impact through the creation of jobs and revenue. Part of a national network of centers established to increase the number of MBEs and strengthen existing ones, GMBEC provides services in business assessment, access to capital and finance management, access to markets, strategic business consulting and business process improvement. Bennett says that his interactions with GMBEC have proven to be invaluable to his business.

“I’m an engineer by training. Prior to that I had limited management training, so I knew that was one of the areas I could use some help in, certainly on the accounting side. They started talking to me, showing me how I could improve on this shortcoming,” he said. “We entered into a contractual agreement for them to just give me guidance on some of my procurement or banking issues, how to improve on our certification packages – just a full array of executive business counseling that I never had before.”

Working with Hill, Bennett began to examine MME’s banking issues and re-structured some of the company’s loans for a monthly savings of $30,000. She also encouraged him to purchase the company’s 10,500-square-foot headquarters building in Suwanee – which he had been renting since 2001 – resulting in a more lucrative credit line and a savings of $4,000 a month.

“There’s not a single major transaction that I undertake without Maria’s counseling, guidance and support,” Bennett said. “I really believe that if I hadn’t had this service from Georgia Tech, it would have been very difficult to survive under these terrible economic circumstances.”

Hill also assisted Bennett with his application to the Governor’s Mentor Protégé Connection program, a unique opportunity for a select group of Georgia’s emerging businesses to improve business practices, develop relationships and promote business growth. The program partners a small business with a leading Georgia-based corporation to focus on areas such as new markets and global expansion; professional development, business training and networking; business operations improvements; and cutting-edge business practices and mentoring. In February, MME was partnered with Southern Company for the year-long program.

“Barry and his staff are extremely talented professionals,” said Melissa Evans, Georgia Power’s staff supplier diversity consultant. “It is always exciting and rewarding for us at Georgia Power to identify a top performing minority-owned business.”

Currently, Bennett is in the process of putting together a master service agreement with Southern Company to provide non-destructive testing and metallurgical services throughout all Southern Company plants. MME will begin with the Georgia and Alabama plants, and then take advantage of other opportunities in Florida and Mississippi as the project progresses, giving them tremendous opportunities to grow. Hill, described by Bennett as someone he “trusts exclusively,” agrees that MME is well-poised for growth and long-term success.

“MME is the type of company that allows the GMBEC to fulfill its mission of successfully growing businesses and creating employment in the state of Georgia. The company has been very successful leveraging internal and external resources and relationships resulting in significant growth,” she said. “MME has the capacity, capability and dedicated staff to continue to achieve great business success.”

GMBEC celebrated its sixth year at Georgia Tech in 2009, and over that time it helped clients secure more than $232 million in procurement contracts, financing, and sales; assisted minority companies with creating more than 3,000 jobs; and provided one-on-one technical assistance to some 450 firms and advice, guidance, and resources to thousands of others. The program received the 2010 Special Recognition Award from the Georgia Hispanic Chamber of Commerce, 2006 Institution Award from the Greater Atlanta Economic Alliance and has been recognized by its federal sponsor as an outstanding performance center since 2005.

GMBEC works with existing high-impact firms in manufacturing, construction, warehousing, transportation, technology and professional services. Assistance ranges from identification of funding sources to process and infrastructure improvement to securing new business. To qualify for GMBEC assistance, companies must have 51 percent minority ownership and minimum annual revenues of $500,000.

About Enterprise Innovation Institute:

The Georgia Tech Enterprise Innovation Institute helps companies, entrepreneurs, economic developers and communities improve their competitiveness through the application of science, technology and innovation. It is one of the most comprehensive university-based programs of business and industry assistance, technology commercialization and economic development in the nation.

Research News & Publications Office

Enterprise Innovation Institute

Georgia Institute of Technology

75 Fifth Street, N.W., Suite 314

Atlanta, Georgia 30308 USA

Media Relations Contacts: Nancy Fullbright (912-963-2509); E-mail: (nancy.fullbright@innovate.gatech.edu) or John Toon (404-894-6986); E-mail (john.toon@innovate.gatech.edu).

Writer: Nancy Fullbright

US DOT Kicks Off 10-Week Bonding Education Program in Atlanta, Chicago, & Dallas

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The U.S. Dept. of Transportation just released details on a new Pilot Bonding Education Program to get small businesses bond-ready.

The program is a collaboration between U.S. DOT’s Office of Small and Disadvantaged Business Utilization (OSDBU) and the Surety and Fidelity Association of America (SFAA) . Becoming bondable is a major obstacle for many disadvantaged businesses, and this pilot program aims to address the issue and help these businesses grow by qualifying for a bond.

The Pilot Bonding Education Program includes a 10-week course covering an array of topics small businesses need to become bondable. At the end of 10 weeks, businesses are paired with local bond producers to work side by side in the bonding process. The three pilot cities and start dates will be:

  • Chicago – May 27, 2010
  • Dallas – June 10, 2010
  • Atlanta – June 24, 2010

For more information about the program to be conducted in Atlanta, please contact:

Atlanta:
Joseph (Joe) Jackson, Jr.
Executive Director, SBTRC
Greater Atlanta Economic Alliance
230 Peachtree Street, N.W.
Suite 530
Atlanta, GA 30303
Ph: (404) 827-9677
Fax: (404) 681-1035
Email: joe.jackson@alliance4u.org

Gwen Coleman Winston
Project Director, SBTRC
Greater Atlanta Economic Alliance
230 Peachtree Street, N.W.
Suite 530
Atlanta, GA 30303
Ph: (404) 827-9677
Fax: (404) 681-1035
Email: gwen.winston@twd-inc.net

The Bonding Education Program (BEP) is composed of two interrelated components:

  1. The Educational Workshops Component offers a set of ten workshops: 1) an introductory workshop on intake and logistics; 2) eight comprehensive workshops, each of which is designed to provide information to the contractors related to improving their company’s operations and thereby making it easier to be bonded or to increase their bonding capacity; and 3) a closing workshop focused on networking and next steps. 
    • Kick-Off: Program Description and Initial IntakeThis workshop includes an overview of the Bonding Education Program and its implementation; a presentation of current procurement opportunities; and the scheduling of initial intake interviews with a local surety bond professionals.
    • Business Planning and Management for ConstructionThis workshop focuses on such areas as assessing or reassessing the legal form of the company, developing a succession/business continuation plan, managing and controlling growth, and assembling a business team. Subjects covered include legal and corporate structures, certifications, licenses, permits, establishment of goals and objectives for a business plan, and issues related to company management, policies and procedures, and staffing. The team-building portion of the workshop describes: 1) the importance of choosing the right construction lawyer, accountant, banker, insurance agent, and producer; 2) how to identify them; 3) why they are important; 4) what role these individuals will play and how they interrelate, 5) what they will expect from the small business; and 6) how their involvement contributes to the small business’ overall success.
    • Construction Accounting and Financial ManagementThis workshop focuses on basic construction accounting concepts and will provide an overview, from job costing to financial reporting, as well as construction-specific practices that introduce the small businesses to construction accounting fundamentals. These fundamentals include: 1) debits and credits and how they work; 2) accounting for job cost; 3) work-in-progress (WIP) schedules; 4) percentage-of-completion revenue recognition; and 5) development of financial statements.
    • Banking and Financing for Transportation-Related Small BusinessesThis workshop addresses the need for capital equipment financing, how to determine working capital requirements, the use of lines of credit, and the need to establish a banking relationship.
    • Bonding and Insurance for New and Emerging Transportation-Related Small BusinessesThis workshop focuses on: 1) the definition of surety bonds and the various types of surety bonds; 2) how to begin the process of obtaining a bond; 3) the role of the agent/producer and the underwriter; 4) the prequalification process; 5) the 3 “C’s”, capital, capacity and character; 6) the costs of bonding; and 7) how to develop a surety bond relationship. The workshop also covers the various types of insurances required (commercial general liability, Workers Compensation, etc.) and what to look for in an insurance agent relationship. In addition, the workshop covers other bonding assistance programs, such as the SBA Bond Guarantee and Loan Programs, relevant state bond guarantee and loan programs, and any local bonding or financial support programs that might be available for emerging transportation-related small businesses.
    • Marketing, Estimating and BiddingThe marketing portion of this workshop focuses on: 1) identifying core company capabilities and determining company capacity; 2) developing a marketing plan; 3) identifying targets of opportunity; and 4) making sales calls and visits. The estimating and bidding portion of the workshop covers: 1) methods of computing measurements, including off-the-shelf estimating software, metric conversions, and essential mathematical formulas for estimating; 2) planning construction projects; and 3) preparation of bid documents.
    • Project Management and Field OperationsThis workshop focuses on project-specific activities, including hands-on advice at the job site. The project management portion of this workshop covers: 1) plan reading; 2) types of contracts (lump sum, cost plus fee, etc.); 3) common contract forms; 4) project planning methods; 5) job costing and scheduling; 6) management of subcontractors; 7) the proper expedition of change orders; and 8 measuring project performance. The field operations portion of this workshop covers setting up the job site and on-going job site operations.
    • Claims and Dispute ResolutionThis module focuses on: 1) mechanic’s liens; 2) the claims process under Miller Act payment bonds; 3) the various mediation services and approaches available to a contractor in a dispute; 4) the arbitration provision in standard form construction contracts and what it means; and 5) when and under what circumstances is litigation considered.
    • Managing Growth: – Why Some Contractors Succeed and Others FailThis workshop identifies the most common reasons why contractors, especially small contractors, fail. The workshop also provides suggestions and approaches as to how to avoid these situations and various management approaches and techniques that will help to ensure the small business’s success. In conducting this workshop, the instructor will present “real world” examples of contractors who have succeeded, what pitfalls they were able to avoid and how.
    • Conclusion of Workshop Component and Opportunity NetworkingThis workshop is the conclusion of the educational component of the program and focuses on solidifying the bondability of the contractor and exploiting contracting opportunities through contacts and networking.

     

  2. The Bond Readiness Component consists of one-on-one interactions with surety bond producers, underwriters and other professionals. The surety bond professionals will work with the small businesses on a case-by-case basis to assemble the materials necessary for a complete bond application and address any omissions and/or deficiencies that might impede the successful underwriting of a bond. To deliver this component, SFAA will join with the designated Small Business Transportation Resource Centers (SBTRCs) and use the network of local surety associations (LSAs) to identify surety professionals in each local area who will volunteer to assist the small businesses to become bondable or increase their bonding capacity. In addition, the SBTRC is encouraged to assign a full-time staff person with surety experience or contract with a surety consultant to coordinate the program at the local level. Under this component, the local surety association member(s) will work with the SBTRC to establish a bond readiness team ideally comprised of a surety agent, an underwriter, and other professionals as needed. Other professionals may be an accountant, banker, attorney, or technical assistance provider. The team will first develop procedures for the review of the small businesses bonding applications and establish protocols to ensure the confidentiality of their business information. Next, the team or a team member will meet with each small business on an individual basis to assemble a profile of the company, including financials and job performance history. In the event this information is incomplete, the team or the team member will assist the small business to assemble a more thorough package for assessment. The team or the team member will then review the small business’s financials and/or performance history to identify issues that may lead to the denial of bonding. After this step, the team or the team member will identify those factors that would potentially make the small business bondable and develop a strategy to address each of these factors, including referring the small business to specialized project management, accounting, or financing assistance. Lastly, the team or the team member will help the small business to identify and secure bonding for subsequent projects. A similar approach will be taken for those small businesses that need an increase in bonding capacity in order to bid as prime contractors or to take advantage of larger subcontracting opportunities.To recap of the specific steps of this bond readiness component:
    • Initial Intake Interview
    • Assembling the Company Profile and Bonding Package
    • Assessing Company Bondability
    • Prescribing Remedies for Bondability
    • Referrals and Technical Assistance
    • Support in the Bond Application Process

Source: US DOT OSDBU http://www.osdbu.dot.gov/bap/bep_main.cfm published Apr. 27, 2010.

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