SFAA & U.S. DOT Bonding Program Helps Hundreds of Small and Emerging Contractors
Friday, July 13, 2012
FOR RELEASE ON JULY 13, 2012
Phone: (202) 778-3629
SFAA & U.S. DOT Bonding Program Helps Hundreds of Small and
JULY 13, 2012, WASHINGTON, D.C. — Since
the July 2010 inception of the Bonding Education Program—a joint effort of the U.S.
Department of Transportation (DOT) and The Surety & Fidelity Association of
America (SFAA)— hundreds of small, women, and minority contractors have completed
the workshops and many have obtained bonding or are set to receive bonds
totaling over $123 million combined. The program, based on SFAA’s Model
Contractor Development Program (MCDP)®, helps small and
disadvantaged businesses qualify for surety bonding so they can participate in
public transportation-related contracts.
During the summer of 2010, the DOT
kicked off the program in three locations. Fifty contractors completed the
workshops in Chicago, Atlanta, and Dallas, and total bonding in Dallas alone is
over $37 million to date.
In 2011, over two hundred
contractors completed the Bonding Education Program in 10 cities throughout the
country, resulting in $69.4 million in total bonding. Nine of the 14 programs
planned for 2012 have been completed with impressive results—$17 million in
bonding to date.
One of the highlights of the Bonding
Education Program has been the successful outcome for participating Denver
contractors, with bond amounts totaling $21 million in 2011 and $14 million in
2012. The program participants are benefitting from the area’s job boom. The
Association of General Contractors reported that from February 2011 to February
2012 the Denver-Aurora-Bloomfield metropolitan area had the most construction
job gains out of 171 metro areas in the U.S that added jobs during that time.
The Bonding Education Program
features a series of educational workshops in which participants learn
how surety bonding relates to all aspects of
their business operations and specific approaches and techniques that result in
a successful bond application.
The program also employs a bond
readiness component consisting of one-on-one interactions with surety bond
producers, underwriters, and other professionals who help participants assemble
the materials and information necessary for the bond application.
Preparing small and emerging contractors for
surety bonding or increased bonding capacity is necessary for these contractors
to play a significant role in government contracting. For many small
companies, bonding signals an important step toward greater independence and
opens the door to new opportunities for growth and expansion. Visit http://www.surety.org/?page=MCDP
to learn more about the MCDP® and Bonding Education Program.
The Surety & Fidelity Association of America
(SFAA) is a trade association of more than 450 insurance
companies that write the vast majority of surety and fidelity bonds in the U.S., is a licensed rating or advisory organization in all states,
including the District of Columbia and Puerto Rico, and is designated by state
insurance departments as a statistical agent for the reporting of surety and
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