Under contract: minority businesses have found success securing work with the federal government, but it takes organization and tenacity.

• Author: Hoback, Jane
• Position: COVER STORY

Billions of dollars in federal stimulus money for a dizzying array of projects must seem like manna from heaven to minority-owned businesses in Colorado laid low by the recession. And for some, that's virtually what it is.

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Companies with all the requirements in place that already do work for the government have a good chance of winning stimulus project contracts. Their businesses are likely to flourish.

But because of a complicated and time-consuming certification process required for government contractors coupled with tight deadlines to get the projects going, Colorado government and business leaders worry many minority-owned businesses could be shut out if they aren't prepared.

"These stimulus projects represent excellent opportunities for minority business owners to keep their doors open and build their capacity," says Eric Lee, president and CEO of the Colorado Black Chamber of Commerce. "But they also represent a lot of challenges. I'm not sure if the opportunity will broaden the number of bidders. It's like building an airplane in the air."

Of the $787 billion provided in the American Recovery and Reinvestment Act to create jobs, aid people in need and invest in infrastructure and new industries, Colorado expects to receive about $3 billion in direct funding, benefits and services.

Here's what's included in Colorado's funding (according to a 32-page state report titled "What it means for Colorado"):

* $500 million for transportation projects.

* $103 million for transit projects.

* $37.3 million for work at six airports.

* $49.2 million for energy efficiency and conservation projects.

* $79.5 million for a low-income weatherization program.

* $66 million for water projects.

* Up to $30 million for Superfund site cleanups.

* $68 million for a variety of housing programs, including construction of affordable housing.

Some of the money will pay for contracts that already have been awarded but were shelved because of lack of funds.

"We've received several million dollars in work for contracts we had won previously," says Ding Hsu, co-founder and president of Wheat Ridge-based Pacific Western Technologies. The company provides environmental, information technology, geospatial and facility support services for the Environmental Protection Agency, Department of Energy, General Services Administration, Federal Highway Administration, Department of Interior, Department of Homeland Security, Geological Survey and the Army and Air Force.

The company won an EPA contract three years ago for work on Superfund sites but couldn't start until now because of funding problems, Hsu says. The company also has a contract for work at a data center at the Western Area Power Administration's corporate offices in Lakewood.

"Our work has more than doubled," Hsu says. She expects Pacific Western Technologies revenue to increase at least 30 percent to 40 percent this year.

"We have to gear up quickly for the work," Hsu says. "The time period is very short. Once (the government agencies) get the money, they have to obligate it within six months. It usually takes six months just to get the contract in place."

Many Colorado Department of Transportation projects, for example, were well under way in the spring, shortly after funding was dispersed.

American Automation Building Solutions, based in Denver, is bidding on projects in Iowa as well as Colorado, President Lisa Buckley says. The company does government contract work in security, information technology support, technical services, building automation and energy management for the Department of Defense, Homeland Security, Army, Air Force and the city and county of Denver.

The stimulus money will add work to existing contracts Buckley's company has. "And we are definitely going after a variety of (stimulus) projects, some different than what we've been doing," Buckley says.

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She predicts explosive growth for the company this year. "Depending on how things shake out, we could very easily double our business," she says.

The majority of 9-year-old American Automation Building Solutions' business is contract work with the federal government, Buckley says. "But the requirements are stringent. And these projects have to be done quickly. It's challenging to do business with the government. If you're a new company trying to break in, it's tough."

INCREASING MARKET SHARE

Denver-based office products company Caddo Solutions also aims to go after stimulus projects, and President and CEO Don Kelin sees the recession as an "excellent opportunity" for the company to increase its market share.

"A lot of companies are downsizing, but we're being very aggressive," says Kelin, who is a member of the Oklahoma-based Caddo Nation.

Kelin says about one-third of the company's work is a General Services Administration schedule, which government agencies can check to select the products they want to buy. Caddo, which has been in business 19 years and has about 25...