Georgia Tech Procurement Assistance Center

Startups should try to win city and school district contracts. Here’s why.

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I’ve noticed an intriguing — and profitable — trend in startup positioning.

Lately, I’ve been seeing on a company’s proposed timeline that they plan on providing their services to local governmental agencies and schools at some point in the mid-to-distant future.  Schools and cities are huge potential customers and, for a lot of startups, a single big city or school district contract could completely change the trajectory of the company.

Unfortunately, however, procuring a school district or city as a client is often a long process with a lot of uncertainty.  It is not unreasonable to think that a startup could take a lot of time pitching 10 of these entities and win none of them.  With that in mind, here are some of the insights I’ve learned during my career as a VC and legal advisor that might make it easier to earn these customers.

Continue reading at:  Builtin

GTPAC hosts Atlanta Government Contracting Day event

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On Tuesday, May 21, 2019, the Georgia Tech Procurement Assistance Center (“GTPAC”) hosted an event called Atlanta Government Contracting Day.  The purpose of the event was to provide general information and education on how to be a successful government contractor in Georgia.  The event also served as a platform to provide attendees with awareness of resources that could provide assistance to small businesses looking to participate in the government market.

Over 60 small businesses attended the event from a wide variety of industries.  GTPAC wants to thank everyone who attended the event, and our resources partners (SBA, SBDC, SCORE, State of Georgia Purchasing Division) who participated.  The event was a huge success and we could not have done it without the help of our resource partners and the great support that was also provided by our friends at The Contracting Education Academy at Georgia Tech.

For those who did not attend, you can download and review the event slideshow presentations below:

How To Win Government Contracts – Andrew Smith

GTPAC Community Launch Presentation – Khai Edouard

Overview of the Small Business Development Centers (SBDC) – Bart Njoku-Obi

Overview of SCORE Atlanta – Nancy Cleveland 

Doing Business with the State of Georgia – Julian Bailey

Contractors and advocacy groups push back on states’ efforts to mandate surveillance software

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A broad coalition of 14 organizations representing state contractors and issue advocacy groups released an open letter last week opposing legislation that has cropped up in over 30 state legislatures that, if passed, would require government contractors to purchase and install monitoring software.

While varying somewhat from state-to-state, the bills typically require the software to take very specific actions, such as screenshots of all “state-funded activity at least once every three (3) minutes” and logging of “keystroke and mouse event frequency.”  The legislation also demands contractors store that data for years to come.

The groups that signed onto the letter represent contractors in wide-ranging professions, including accountants, technologists and engineers, as well as the health industry and an association representing state legislators. In the letter, they state that the requirements in the bills carry “significant” privacy and data security risks.

“At a time when most states and businesses have worked together to implement stronger data protection standards, this legislation would undermine existing progress, raise costs, and needlessly expose public and private information to new threat vectors,” they wrote.

Keep reading this article at: https://www.nextgov.com/policy/2019/03/contractors-and-advocacy-groups-push-back-state-efforts-mandate-surveillance-software/155818/

Preparing to bid in a new state

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If you’re expanding your business, you’ve got to put together a game plan — especially if you’re expending into other jurisdictions.

When a client is so pleased with your work on one project that they offer up more business, sometimes the invitation is sweeping, with the potential to dramatically expand your company’s footprint. No one wants to turn away work, particularly from a valued client.

But, if those projects are in jurisdictions that are new to the company, there will be some regulatory homework to do before making a commitment.

What licenses, paperwork, agreements, etc. will you need to do the work? Are exams required? Depending on the answers to these questions, and the processing times of the various jurisdictions, the licensing process can take anywhere from 1 to 6 months. So, how can you answer a client’s request confidently when opportunity comes knocking?

Consider using a business licensing provider with experience dealing with architecture, engineering and construction (AEC) firms. They can provide accurate time estimates for specific licenses and jurisdictions and have the knowledge to ensure timely file preparation, review and approval. Another option is to hit the books and research licensing requirements within the project’s jurisdiction(s).

Keep reading this article at: https://www.constructionbusinessowner.com/law/regulations/preparing-bid-new-state

Atlanta businessman indicted on 51 counts including bribery, tax evasion, and money laundering

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City of Atlanta contractor Lohrasb “Jeff” Jafari has been charged in a 51 count federal indictment with conspiratorial bribery, bribery, tampering with a witness, tax evasion, money laundering, and structuring.

“Jeff Jafari allegedly paid multiple bribes to two local officials over a period of years and then attempted to obstruct the federal investigation into his misconduct,” said U.S. Attorney Byung J. “BJay” Pak. “He also failed to pay income taxes on millions of dollars he earned from city contracts.  Instead, he used the funds to live a lavish lifestyle.  Whether you bribe, take a bribe, or otherwise misuse the public’s money to enrich yourself – it’s all corruption. We will vigorously pursue any such cases.”

According to U.S. Attorney Pak, the charges, and other information presented in court on March 6, 2019:

  • Beginning at least in 2014 to January 2017, Jafari allegedly paid thousands of dollars in bribe payments to Adam Smith, the then-Chief Procurement Officer of the City of Atlanta.
  • At the time, Jafari was the Executive Vice-President of PRAD Group and did millions of dollars in work with the City of Atlanta, primarily under the City’s Architectural and Engineering contracts.
  • Jafari and Smith met at Atlanta-area restaurants where they discussed City business, among other things, and Jafari would generally pay Smith $1,000 in cash in the restaurant bathroom.
  • Jafari similarly paid bribes to a local official in DeKalb County in April and August of 2014.

According to the U.S. Attorney’s office, in exchange for Jafari’s payments to Smith, Smith provided Jafari with information and counsel regarding the City of Atlanta’s procurement processes, among other information. When PRAD Group or a joint venture in which PRAD Group was a partner became a successful proponent on a City of Atlanta contract or Request for Proposal, Smith approved and submitted the award of those projects. Smith also approved task and/or purchase orders for those projects.

In February 2017, Jafari became aware of the federal investigation into his payments to Smith, at which time he confronted Smith in an effort to intimidate and persuade Smith to provide false information to federal law enforcement about the payments, instructing Smith to deny taking bribe money from Jafari.

Between 2014 through 2016, Jafari also willfully failed to pay income taxes to the IRS. During those years, Jafari withdrew large amounts of cash from corporate bank accounts and used corporate funds for personal expenses, among other things, to avoid the assessment of income tax. In 2014, Jafari owed at least $150,000; in 2015, at least $300,000; and in 2017, at least $700,000 to the IRS. Jafari is additionally charged with numerous counts of money laundering for engaging in financial transactions with funds earned from City of Atlanta work he obtained while he was paying bribes to Adam Smith.

Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.  This case is being investigated by the FBI and IRS Criminal Investigation.

Source: https://www.justice.gov/usao-ndga/pr/lohrasb-jeff-jafari-indicted-51-counts-including-bribery-tax-evasion-and-money

See federal indictment here: Jeff Jafari-Indictment-03.06.2019

See September 28, 2017 article about guilty plea by City of Atlanta purchasing chief here: https://gtpac.org/2017/09/28/city-purchasing-head-pleads-guilty-to-conspiracy-charge

String of infrastructure investments underway hints at big 2019

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Infrastructure work may be heating up again with whisperings of President Donald Trump’s administration reinitiating the $1 trillion infrastructure plan promised during his 2016 presidential campaign. The administration claims to be willing to increase the federal share of the infrastructure program significantly from the 20% referenced in previous iterations — a move that may draw Democrats back into negotiations.

Whether federal legislation will come to fruition or not in 2019, investments nonetheless are being made in the space. A December Wall Street Journal analysis of state and local revenue collection and spending found that public agencies are increasing their infrastructure investments and making headway on long-delayed projects. Much of that money is tax revenue stemming from increased consumer spending.

Although it’s hard to predict what 2019 may bring, Construction Dive has rounded up some of the biggest infrastructure initiatives already underway across North America as the year begins.

Keep reading this article at: https://www.constructiondive.com/news/string-of-infrastructure-investments-underway-hints-at-big-2019/545131/

State, local governments using higher revenues to increase infrastructure spending

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According to a Wall Street Journal analysis of state and local revenue collection and spending, public agencies are increasing their infrastructure investments and making a dent in projects that have been on back burners for many years.

A strong economy has resulted in an increase in consumer spending, and all that new tax revenue is helping to drive not only infrastructure spending but municipal borrowing as well. In fact, according to October 2018 data, the latest available from the Commerce Department, total state and local construction spending — based on a seasonal adjusted annual rate — was up 9.7% from October 2017 to more than $288 billion. Commercial construction was up the most year over year at 62%, followed by amusement and recreation (30%), water supply (22%), public safety (18%) and transportation infrastructure (15%). Tax revenue, adjusted for inflation, grew by 6% in the second quarter of 2018 from the second quarter of 2017, according to a Tax Policy Center report.

Year-to-date state and local government borrowing through October 2018 was up 19% from the same period in 2017, driven in part by a desire to take advantage of current interest rates in case they continue to increase. The pipeline of publicly funded construction projects, including those much-needed upgrades and repairs that have been shelved due to a previous lack of money, according to the newspaper, could make up for potential industry slowdowns.

Keep reading this article at: https://www.constructiondive.com/news/state-local-governments-using-higher-revenues-to-increase-infrastructure-s/544741/

Infrastructure spending: Which state is falling apart the worst?

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In the Donald Trump era, the United States appears to be more politically divided than it has been in decades. Still, there are matters of public policy that most Americans can agree on — chief among them is investment in infrastructure. According to a recent non-partisan Gallup poll, three out of four Americans support the president’s plan of spending more federal money on infrastructure.

The president proposed a $1 trillion plan to improve aging roads, bridges, and tunnels across the country. While funding the project has proven to be a political challenge, broad public support for the plan is rooted in necessity.

About seven out of every 100 miles of roadway nationwide are in poor condition; 9 percent of bridges nationwide are structurally deficient, meaning that they are in need of some repair; and 17 percent of dams in the country have a high hazard potential — meaning a functional failure would result in the loss of life.

Keep reading this article at: https://www.usatoday.com/story/money/economy/2018/08/13/infrastructure-spending-states-that-are-falling-apart/37270513/

Want to do business with the State of Georgia? You better know the rules!

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Click on image above to see Georgia Procurement Manual.

Every unit of government has rules about how it purchases goods and services.  As a vendor, your success in doing business with government agencies is dependent upon your knowledge of those rules.

The federal government follows the Federal Acquisition Regulation (FAR), and many federal agencies also issue FAR supplements.  Similarly, each state government has its own purchasing procedures.

In the State of Georgia, the Department of Administrative Services, through its State Purchasing Division (SPD), maintains the Georgia Procurement Manual (GPM).  The GPM governs how state government entities purchase needed goods and supplies.  It also provides information to suppliers about how to conduct business with the State of Georgia.  SPD periodically revises the GPM to incorporate legislative changes, new automated processes and best practices.

In May of this year, the GPM was updated in several important ways, including the supplier protest process as well as internal procedural updates, such as new automated processes for state procurement staff to submit certain reports and requests to SPD.  You can see a summary of the changes here.   A brief overview of the new supplier protest process follows.

What is the supplier protest process?

GPM Section 6.5 defines how suppliers may challenge certain purchasing actions by state entities, such as: solicitations, proposed sole source contracts, proposed purchases through consortia or cooperative purchasing agreements, the results of a Request for Qualified Contractors and the state’s proposed or actual award of a contract.

How has the supplier protest process changed?

SPD has updated the supplier protest process to:

  • Define general principles that govern SPD’s review of supplier protests;
  • Address review of a supplier’s protest that a system error prevented timely submission of an electronic bid or proposal;
  • Identify certain procurements that are exempt from SPD’s protest process;
  • Define how sole source protests will be reviewed, including the option for discussions between the state entity and the protesting supplier prior to SPD issuing a protest decision;
  • Require a supplier to file a protest within 10 calendar days of the date the supplier knows or should have known of the action which is being protested or the other applicable protest filing deadlines, whichever is sooner;
  • Update the submission process to remove the fax number (protests may continue to be either mailed or sent via email to the addresses noted in the GPM); and
  • Provide other clarifications.
When are these changes effective?

Changes became effective May 18, 2018.  You can listen to a recorded webinar on the changes to the Georgia Procurement Manual here: GPM changes.  (Presentation begins at the 9:55 mark.)

State, local governments could spend $275 billion on construction this year: Where the money will go

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According to the latest U.S. Census Bureau figures on the annual rate of construction spending, the country’s state and local governments are on track to spend more than $275 billion on nonresidential, taxpayer-funded construction initiatives this year, with highway and street ($93.5 billion), education ($72.5 billion) and transportation projects ($31.7 billion) together garnering the lion’s share of funds.

State and local airport spending has ramped up to an annual rate of $14.5 billion from a November 2011 low of $9.16 billion, according to additional data provided by Governing. Construction of corrections facilities declined the most of any other major spending category in the last decade, from an $8 billion peak in November 2008 to its current level of $4.6 billion, although some of that decline is likely related to the trend toward privatization of prisons and jails.

Highway and street spending, currently $93.5 billion, has remained relatively flat with only a small peak of $105 billion in January 2016. Spending on primary and secondary schools, which now stands at $46.7 billion, has never returned to its pre-recession highs.

Keep reading this article at: https://www.constructiondive.com/news/state-local-governments-could-spend-275b-on-commercial-construction-this/527585/

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