05/21/2009 GAAS:254:09 FOR IMMEDIATE RELEASE Print Version |
Small Businesses Gain Increased Opportunity to Compete for Caltrans Contracts
California
Partners with U.S. Small Business Administration on First-In-The-Nation
Initiative
In an effort to increase contracting opportunities for
California's small businesses, the California Department of Transportation
(Caltrans) has partnered with the U.S. Small Business Administration (SBA) to
help California small businesses bid on construction projects. The first such
partnership in the nation and one of the top ten recommendations from
participants at Governor's Conference on Small Business & Entrepreneurship,
the joint Bonding Assistance Initiative helps qualified small businesses access bond guarantees - which are required on Caltrans construction contracts and
are currently difficult for small businesses to
attain.
"Small businesses are the backbone of our economy and
California's new partnership with the U.S. Small Business Administration
relieves what was previously a huge challenge for these organizations in
bidding on Caltrans projects," said Governor Schwarzenegger. "Helping
California's small businesses helps our economy, helps our state - and in this
case helps level the playing field for these small business contractors."
Under the joint Bonding Assistance Initiative, qualified
small businesses can more easily obtain the necessary bond guarantees required
on Caltrans construction contracts. Prior to this partnership, California-based
small businesses faced a limited number of companies issuing SBA surety bond
guarantees. California's new partnership with the SBA will increase the number
of surety bond companies statewide so small businesses will have easier
access to bond guarantees and applications, which are required on Caltrans
construction contracts.
With better access to bond guarantees, this initiative
will help increase small business bid participation as Caltrans advertises its
projects, including those funded by the American Recovery and Reinvestment Act
(Recovery Act). California has received nearly $2.6 billion in Recovery Act funding
for highway and local streets, and Caltrans is advertising projects for
contractors, including small businesses.
The SBA helps eligible small businesses obtain the surety
and performance bonds needed to work on state highway projects through its Surety
Bond Guarantee Program, a public-private partnership between the federal
government and the bond-issuing surety industry. Caltrans, through its Office
of Business and Economic Opportunity, will work in conjunction with the SBA to
provide free education and technical assistance statewide through Caltrans and
SBA district offices.
