Organization

Firms seek government work

Contracts can help companies diversify

Monday, July 06, 2009
By Caitlin Schneider
cschneider@citpat.com—768-4923

Government contracts are one way local businesses are looking to bridge the revenue gap in a down economy. It’s an avenue that has proved worthwhile for many: Since the beginning of 2007, close to $7 million has come to Jackson via state and federal deals.

Businesses with experience pursuing government contracts and those just starting to get involved often look to the Procurement Technical Assistance Center of South Central Michigan, a part of the Enterprise Group of Jackson. The PTAC helps local businesses secure government contracts by matching them with state and federal contracts looking for bidders.

Pennie Southwell, program director for the PTAC, said demand for the service has been up as a result of the economy.

More than $2 million in government contracts have gone to Jackson businesses as of June 24 this year.

Scott Fleming, CEO of the Enterprise Group of Jackson, said local manufacturers are trying to recoup losses from the ailing auto industry. In sink-or-swim times, businesses look for ways to diversify, he said.

“If they’re not diversifying right now, then they’ll be closing soon,” he said.

Southwell agreed.

“Government contracting is a good way to diversify. It’s not like a commercial company because the government’s never going to go away,” she said.

With the PTAC’s assistance, Garcia Clinical Laboratory, 2195 Spring Arbor Road, recently garnered a three-year, $250,000 service contract with the Louisiana National Guard.

Owner Mary Garcia said Garcia Lab, which specializes in laboratory medicine, has been working with the PTAC about 6 years.

Garcia said the PTAC helps identify contracts within the scope of the Garcia Lab as well as answer questions related to bidding.

Fleming said successfully bidding on government contracts is a process. The first contract a business secures often is small, and the size and scope of jobs often increase with each project.

Another high-profile government contract was awarded to a Jackson business last year when RTD Manufacturing Inc., 1150 S. Elm St., penned an $800,000 deal with the military to partner with inventor Ken Henes of Dexter. RTD’s involvement in developing a high-pressure water delivery system with Henes was part of a shift from an auto industry focus to a high-tech industry focus.

Southwell said President Obama’s election has impacted the industry slightly.

“The contracts are going down a bit. That tends to happen with a new administration because a new president means a new budget,” she said.

Southwell said many of the contracts the PTAC assists on come from the Department of Defense, which recently underwent a budget cut. In her experience, Southwell said, the contracts start going up again about six months into a new president’s term.