In my last blog I mentioned pursuing a project for the V.A. data center in Austin, Texas, but because of failure to receive answers to my questions in a timely manner, I was forced to rethink my strategy. I want to go into a little more detail in how Frontline changed its approach here because it may still result in a bid being awarded.
My team and I held a meeting to decide the best approach to take since it was obvious the feasibility of being awarded as the prime or general contractor was no longer a healthy idea. Furthermore, approaching it from the prime standpoint would have required all of my bonding capacity, and I lacked some of the electrical requirements which would have resulted in heavy reliance on one of my sub-contractors. When all this was added together, and after we discussed the pros and cons of pursuing this project, the best thing I could do was pull the bid.
The solution we developed involved pursuing two of the large components necessary for the job’s success. The first was rental equipment, and I have ready access to rentals. The second component was the installation of the uninterruptible power sources. I involved the manufacturer of those rentals with my Tier One supplier/team member, a company called Sunbelt Rentals. We discussed this with them, and put together a technical approach to sell or provide to the prime subcontractors who might be awarded the project.
By revamping our approach, I multiplied my capability to pursue this project. Of course, it is a smaller portion than what was originally planned for, but still large enough to recognize a good profit. A good reason to take this avenue is the fact that we were ready to execute immediately, which eliminates a large amount of competition. Now it’s a matter of waiting to see if the prime contractor accepts our bid and we go to work.
As always, I welcome discussion and questions on any of these processes and ideas.