Because most government transportation contracts are large, small businesses often don’t have the resources to compete for the work. A new federal initiative is exploring ways to change this situation.
Beginning tomorrow in Chicago, (June 1, 2010) business owners can participate in a new program to help small companies get government contracts for transportation projects around the country. About 30 small firms are expected to begin a 10-week course in the new Pilot Bonding Education Program offered by the U.S. Department of Transportation.
In order to be eligible for bonding, companies must have sufficient cash flow, capital, lines of credit, staff and equipment. As a result, many small businesses don’t qualify to compete on large federal projects because they don’t have the resources to be considered bondable. The new program is designed to help small companies navigate the process and assist them in qualifying for a bond.
The 10-week course covers many of the business issues required to become bondable. At the completion of the course work, business owners are paired with local bond producers to work side-by-side in the bonding process.
In addition to the classes beginning in Chicago, there are programs starting in Dallas and Atlanta on June 10 and June 24 respectively. If the pilot program is successful, more cities are expected to be added for the bonding education program.