Company builds foundation for long-term contracting success.

Vicki Lee's family came to this country from Taiwan in 1980 because of the wealth of opportunity, and as owner of Old Philadelphia Associates Inc., Lee is making the most of her chances.

Since she bought into the West Chester, Pa., masonry and restoration contractor in 1989, it has grown from $30,000 in annual revenue to last year's $4.3 million. Lee credits ambition, a willingness to take risks--her biggest was putting her home up as collateral for a $650,000 line of credit--and a boost from the Small Business Administration and its 8(a) Business Development Program for small disadvantaged companies.

"My company was growing even before, but the program helped us to grow faster," Lee says.

Old Philadelphia graduated from the SBNs nine-year 8(a) program last year, and Lee is projecting a dip in revenue to $3.2 million this year. That's to be expected, however, and Lee considers that revenue goal to be "just fine." In fact, her optimism led her to buy out her partner's remaining 35 percent of the company in November.

The 8(a) program allows small businesses to apply for certification as disadvantaged. If they are accepted into the program, they can bid on government contracts set aside for certified companies. Old Philadelphia was approved for 8(a) in 1994 and got its first contract, with Dover Air Force Base in Delaware, in 1997. That job was followed by contracts for the U.S. Coast Guard in Cape May, N.J., and the Northeastern unit of the U.S. Army Corps of Engineers.

The big, steady contracts allowed Old Philadelphia to grow from eight employees when Lee took control of the company to the 45 workers she now employs in peak season. It is a union shop, which Lee says means her workers "are skilled and fully trained."

Old Philadelphia has also been able to invest in specialized equipment during the years, including a $45,000 lift that takes workers up to 80 feet in the air and a $25,000 "swing set" for when they're required to hang from the heights of skyscrapers.

Despite the contracting opportunities opened up by the SBA, Lee takes pride in the fact that she's always had a healthy amount of private-sector work. She says businesses are "like wild animals. If you feed them all the time, they don't know how to get their own food."

That's a philosophy James Corbett, a retired SBA business opportunity specialist who worked with Lee when her company was in the 8(a) program, likes to hear.

"That is exactly the purpose of the 8(a) program: growth and development," Corbett says. "It is not a program where a company can come in and put all their eggs in one place. If they do that, they will never be successful. We are only there to support the company to help them get where they want to go."

Corbett explains that small businesses in the 8(a) program are required to do a certain percentage of commercial work so they can remain competitive after graduation, starting in the fifth year with a minimum of 15 percent.

"It's what we call a competitive mix," Corbett says. "Each year it jumps up 10 percent until they get to the ninth year."

By the time it graduated from 8(a), Old Philadelphia was doing well enough for Lee to be named 2004 Minority Small Business Person of the Year by the SBA Philadelphia district office. Corbett nominated her.

Lee's first private-sector contract, in 1989, was with a condominium association. Worth about $200,000, the job required eight full-time masons to restore exterior brickwork.

Before long Lee realized that diversification of skills as well as clients would serve her company well, especially during the winter when masonry restoration work is unlikely. Old Philadelphia branched into interior and exterior caulking and waterproofing, which has led to two of the company's most significant contracts: one with REIT Management & Research for Mellon Bank Center, and the other with Cushman & Wakefield for One and Two Liberty Place. All three buildings are signature shapes of the Philadelphia skyline.

Old Philadelphia began its relationship with Cushman & Wakefield 10 years ago, successfully bidding for a three-year Liberty Place contract, which has been twice renewed. Old Philadelphia inspects the mammoth glass buildings annually to test caulk joints and replace any that need it.

Joe Ryan, operations manager for Cushman & Wakefield, says that price is a major factor in awarding a contract, but it's not the only one: "Experience is a big one. Old Philadelphia has a lot of experience."

Lee's company competed with three vendors for the Liberty Place work, and Ryan says that communications and character were key to Old Philadelphia landing the job: "They're very responsive, and when they're out on my gables it's kind of difficult to monitor what they do. It has to be a trust relationship."

Lee acknowledges the challenge ahead of her is winning contracts without the preferences the 8(a) program provided. But she's built a solid foundation.

Her goal for her company is to stay small so she can bring a personal touch to her work and do business with people she knows, while remaining profitable.

Old Philadelphia Associates Inc. * www.oldphila.com * 315 S. Bolmar St., P.O. Box 2286, West Chester, Pa. 19380 [phone] * Founded: 1986 * Employees: 45 in peak season * Revenue: $4.3 million * Principal owner: Vicki Lee