Dive summary:

• Small architectural firms have to take a big risk in competing for federal design-build contracts – they may bankrupt themselves in the process – and the American Institute of Architects (AIA) is urging Congress to change the process so they can afford to be in the process.
• The issue became especially acute during the recession, when federal work became more important as private-sector work dried up.
• AIA First Vice President Helene Combs Dreiling told a House committee that the average cost of participating in the second phase of the two-step design-build process for federal work is $260,000 at a time when 76% of firms make $1 million or less annually.

From the article:

“In almost 87 percent of federal design-build competitions, there are no stipends provided to the architectural firm,” she said. ...