Public projects encourage economy.

There is little doubt that the real estate and construction industries are amongst those that are hardest hit by the nation's recession. By some estimates, unemployment runs as high as 70 percent in some construsion trades. Financial institutions have all but stopped lending, and skiddish developers are hesitant to initiate new projects.

At Linpro, we made the decision several years ago mat publicly-sponsored projects would be a wise area to focus on. These projects are often viewed as time-consuming and at best, marginally profitable. However, such projects have provided a lion's share of the positive economic activity in the region. Therefore, we decided to not only pursue such opportunities, but also to implement them in a way that maximizes benefit to the construction trades.

This differs from traditional practices of the past, when tough times meant me closing of ranks in many industries, including construction. With a shortage of work, major firms tended to distribute sub-contracting work within a small circle -- hoping that the favor would someday be returned.

In many cases, the size of the few available projects in the market led small owners to conclude they simply didn't have a chance. And even more strikingly, minority-ownedfirms, which on average have the least amount of experience, were hardest hit.

Even before being selected as the federal government's prime contractor for the construction of me $276 million Federal Office Building at Foley Square, Linpro New York Realty, Inc. (LNYRI) placed apre-award priority on ensuring that me broadest possible cross section of business would benefit from this project.

Later, working with the General Services Administration, Linpro set an admittedly ambitious benchmark, $66.6 million of a total $276 million budget, for contracts to be awarded to construction firms meeting the criteria as Small and Small Disadvantaged Business (SSDB) enterprises. As we became aware of the dimensions of the problems faced by small firms, it became apparent that we'd need to be more aggressive in our pro-active approach to encourage the entry- of SSDB bidders.

Along me way, we think we've developed a program that will set me standard against which all future public projects will be measured. At its core, this innovative bid-letting effort. was built around a three pronged approach-- outreach, information, and bid segmentation. Key elements within the program were:

* Sponsoring and attending business opportunity workshops, minority enterprise seminars and trade fairs

* Developing an expanded "bidders list" of SSDB firms

* Dividing bid packages into separate elements (thereby making it more viable for smaller firms to gain necessary bonding and also have relevant experience) to permit maximum SSDB participation

* Assuring inclusion of eligible SSDB firms in all solicitations for products or services they could reasonable provide

* Reviewing solicitations to remove statements or clauses that tended to restrict or preclude SSDB participation

* Requiring all large businesses at lower contras tiers to adopt their own small business opportunity plans.

The experience, however, has proved most rewarding. Wire less than half the total budgeted dollars awarded in contracts, we've already awarded over $64 million in contracts to muse firms -- thereby meeting 96 percent of the $66.6 million goal. And among the most satisfying results, we've brought firms to the contract table who were at the point of giving up and closing their doors.

An added benefit of our outreach efforts is the composition of the work force on the Foley Square project. Over 60 percent of the total on-site workforce is composed of minority, women and disabled workers.

Some day, the construction industry will emerge from the recession. Even men, me problems facing SSDB contractors will remain. And for project managers, the growing efforts of governments, at me federal, state and municipal levels, to encourage set-aside programs will present increasing challenges.

Today at Linpro, we think we've found a way not only to satisfy the objectives of public works planners, but to secure quality work, at competitive prices. By doing me right thing, we are helping an important segment of the construction industry reach maturity born in terms of experience and profitability.