A/E/C Industry 101: Essentials Overview

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A/E/C Industry 101Essentials Overview
www.cofebuz.com
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Agenda

• The Marketing Coordinator
• Marketing / BD Roles
• Understanding the Industry
• The Brooks Act
• The Team
• Delivery Methods
• GSA Schedules
• Average Design Costs
• Minority Participation
• Terminology
• Forms
• Marketing Communications
• CPSM Exam

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The Marketing Coordinator

• Plans, conducts and coordinates a range of
  marketing support activities from concept to
  completion
• The glue that holds the marketing effort together
• Jack of all trades

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Your Job
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Marketing vs. Business Development Roles

• Marketing
• In-office
• Proposals
• Public relations
• Marketing collateral
• Award submissions
• Photography

• Business Development
• Out-of-office
• Lead generators
• Sales
• Networking/ conferences/trade shows
• Client contact

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Marketing vs. Business Development Roles

• Marketing
• Chief Marketing Officer
• Principal, Marketing Strategist
• Marketing Director
• Marketing Manager
• Proposal Manager
• Marketing Coordinator
• Marketing Assistant

• Business Development
• VP Business Development
• Director of Business Development
• Business Development Manager
• Business Development Coordinator

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Understanding the Industry

• Reading
• Newsletters (Bisnow)
• Trade magazines (ENR)
• Newspapers (Washington Business Journal)
• The Marketer (SMPS)
• Networking
• SMPS, SAME, CREW, NAIOP, DCBIA, WBC
• Identify Industry Mentors

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Understanding the Industry

• Competitor research
• Book of Lists (WBJ)
• Websites
• Conferences, seminars, and courses
• Your firms marketing materials

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The Brooks Act

• The Brooks Act (Public Law 92-582), also known as
  Qualifications Based Selection (QBS)
• Enacted on October 8, 1972
• Establishes procurement process for A/E selection
  for design contracts with federal design and
  construction agencies

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The Brooks Act

• Pursuing federal design work under QBS
• Public solicitation for A/E services
• Submission of SOQs and supplemental statements of
  ability to design specific projects via public
  announcement
• Evaluation of submitted materials
• Development of a short-list of at least three
  submitting firms in order to conduct interviews
• Interviews with the firms
• Ranking of the top three firms
• Negotiation with the top ranked firm

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The Who Does What of Design Teams

• Architect
• MEP Engineer
• Structural Engineer
• Civil Engineer
• Surveyors
• Geotechnical Engineer
• Environmental Engineer
• Cost Estimator

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The Who Does What of Design Teams

• Construction industry includes three parties
• Owner, designer and builder
• Two contracts among three parties to plan,
  design, and construct the project
• First contract is owner-designer contract,
  involving planning, design, and aspects of
  construction
• Second contract is owner-contractor contract
  involving construction
• An indirect, third-party relationship exists
  between the designer and the contractor due to
  these two contracts

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Design Bid - Build

• Design-Bid-Build project delivery method in
  which the agency or owner contracts with separate
  entities for each the design and construction of
  a project.

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DesignBuild

• Design-Build design and construction aspects are
  contracted with the D-B
• Usually GC, but may be the design professional
• Used to minimize project risk for the owner and
  to reduce delivery schedule by overlapping design
  and construction phases
• When D-B is contractor, design professionals are
  retained directly by the contractor

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Construction Management

• Construction Management construction consultant
  providing design/construction advice
• Fee-based service responsible exclusively to the
  owner and acts in the owner's interests
• CM offers advice uncolored by any conflicting
  interest

CM
Design
Bid
Build
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Construction Management At-Risk

• Construction Management At-Risk commitment by CM
  to deliver the project within a Guaranteed
  Maximum Price (GMP)
• CM acts as consultant to the owner in the
  development and design phases but as the
  equivalent of a GC during the construction phase

Design
CM
Sub-Contractors
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Integrated Design-Bid-Build
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GSA Schedules

• GSA Schedules Multiple Award Schedules and
  Federal Supply Schedules
• Pre-negotiated, long-term government-wide
  contracts with commercial firms to provide
  supplies and services that can be ordered
  directly from GSA Schedule
• Offer customers direct delivery of millions of
  state-of-the-art, high-quality commercial
  supplies/services at volume discount pricing
• Fee Based Solicitations
• A/E services covered by the Brooks Act cannot be
  processed under GSA Schedule
• www.gsa.gov/schedules

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GSA Schedules

• Environmental Services
• Environmental Planning Services and Documentation
  
• Mission Oriented Business Integrated Services
  (MOBIS)
• Consulting Services
• Facilitation Services
• Survey Services
• Training Services
• Support Products
• Privatization Support Services and Documentation
• Program Integration and Project Management
  Services
• Introduction of New Services

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GSA Schedules

• Professional Engineering Services (PES)
• Strategic Planning for Technology
  Programs/Activities
• Concept Development and Requirements Analysis
• System Design, Engineering and Integration
• Test and Evaluation
• Integrated Logistics Support
• Acquisition and Life Cycle Management

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Average Design Costs

• Total design costs average 6½ to 7½ of the total
  construction cost
• Variance depending on size
• Example
• 1,000,000 (Construction Cost) 12 120,000
  Design Cost
• 100,000,000 (Construction Cost) 6
  6,000,000 Design Cost
• Complexity of New Construction vs. Renovation

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Average Design Team Costs

• Architect 35 - 65
• MEP Engineer 20 - 30
• Civil Engineer 10 - 20
• Structural Engineer 10 - 15
• Misc. 0 - 10

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Minority Participation

• North American Industry Classification Codes
  (NAICS) set what a small business is
• http//www.census.gov/epcd/www/naics.html
• 541310 Architecture
• 541330 Engineering
• Qualify for minority status
• 51 minority, disadvantage or woman owned, and a
  small business

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Minority Participation

• Commonwealth of VirginiaDepartment of Minority
  Business Enterprisewww.dmbe.state.va.us
• State of MarylandDepartment of
  TransportationMinority Business
  Enterprisewww.mdot.state.md.us
• District of ColumbiaSmall and Local Business
  Developmentolbd.dc.gov/olbd
• General Services AdministrationOffice of Small
  Business Utilizationwww.gsa.gov/sbu
• US Small Business Administrationwww.sba.gov

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Terminology

• 8(a) Business small business owned by socially
  and economically disadvantaged citizens
• DBE - Disadvantaged Business Enterprise
• LSDBE Local, Small and Disadvantaged Business
  Enterprise
• MBE Minority Business Enterprise
• LBE - Local Business Enterprise
• CBE - Certified Business Enterprise
• SBE - Small Business Enterprise
• WOB Women-Owned Business
• SDB Small Disadvantaged Business
• VOSB Veteran-Owned Small Business
• SDVOSB Service-Disabled Veteran-Owned Small
  Business
• HUBZone Historically Underutilized Business Zone

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Forms

• SF 330
• Federal government
• SF 255/254
• State and local government
• VA AE1-6
• Commonwealth of Virginia
• Solicitation, Offer and Award, SF 33
• GSA Request for Proposal (usually CM work)
• Online Representations Certifications
  Application (ORCA)
• Central Contractor Registration (CCR)

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Marketing Communications

• Photography
• Identify projects to photograph
• Photo library
• Work with photographers
• Awards Competitions
• Identify awards programs
• Create yearly submittal calendar
• Requires a lot of time and research (similar to a
  proposal)
• Special photography

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Marketing Communications

• Brochures
• Identify target audience
• Manage and produce
• Newsletters
• Internal and external
• Printed and Electronic
• Direct Mail
• Postcards announcing projects, new people and
  awards

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Marketing Communications

• Mailing List
• Buy it or keep updated database
• Maintain regularly
• Record who in the firm is responsible for the
  contact
• Trade Shows
• Exhibit booth design
• Pre-show mailer
• Collateral materials and giveaways
• Special Events
• Company parties
• Open house
• Make it memorable!

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Consultant/Client Etiquette

• Know what you want before you call
• Introduce yourself and the project
• Dont assume familiarity
• Represent your firm
• Be professional
• Follow up with email request

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Certified Professional Services Marketer (CPSM)

• 150 multiple-choice online exam
• Six Domains of Practice
• Marketing Research
• Marketing Plan
• Client and Business Development
• SOQs / Proposals
• Promotional Activity
• Information, Resource, and Organizational
  Management
• Cost
• Application Fee 195
• Examination Fee 250 online
• Books 345 for recommended full set
• Eligibility bachelors degree or advanced degree
  plus 4 years experience in marketing or business
  development for firms providing professional
  services