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Airport Expanding Contractor Pool for ‘The Green Build’

GOVERNMENT: Outreach Helps Increase Bonding Capacity for Small Firms

San Diego Business Journal Staff

As a 20-year contractor, Mark Atefi was already qualified to be bonded and bid on public works projects, but his bidding capacity tripled thanks to an innovative outreach program aimed at small contractors at San Diego International Airport.

Atefi, president of Atlas Development, previously had a bonding capacity of $1 million. After going through the airport’s contract financing assistance program, his maximum bond capacity grew to $3 million, he says.

As one of the first local businesses to complete the program, Atefi succeeded in winning an $800,000 contract from the San Diego County Regional Airport Authority to install insulated windows and doors in homes in the flight path of Lindbergh Field to reduce jet noise.

“(Participating) helped increase my bonding capacity to $3 million and by having it, I’ll be able to bid on other contracts,” said Atefi, who operates the business with his son Ali.

Steven Shultz, an airport authority spokesman, said the goal of the bonding assistance program is to expand the pool of local contractors bidding for contracts.

“The board is committed to doing what it can to provide opportunities to expand local business participation because it’s aware of what the direct benefits are to the regional economy,” Shultz said.

This year, the airport began working on a $1 billion terminal improvement project that involves expanding gates at Terminal 2, adding a two-level road to the terminal and doing other improvements.

The two prime contractors have been selected, some work is under way, and the project is expected to be completed by late 2012 or early 2013.

‘The Green Build’ Project

While reaching out to contractors to give them a chance to bid on “The Green Build” project, officials are aware of the limitations these businesses face.

“A lot of small contractors never have had to establish a bonding relationship,” said Bob Silvas, the airport authority’s director of small-business development.

Many contractors work on private construction projects that don’t require obtaining a bond from an insurer. Public works projects require posting a performance bond to ensure the work is completed in case a contractor defaults or goes out of business.

Under the bond program, contractors obtain individual counseling and technical assistance, along with bond and loan guarantees. The airport authority guarantees up to 40 percent of the necessary bond and up to 50 percent of a loan, up to $750,000 for each component.

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  February 8-14, 2010
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