White Paper: Analysis of CMGC Efficiencies in Caltrans Projects

CPM Logistics and Granite Construction | April 2023

There are ongoing negative perception issues about the value of using the CMGC project delivery method on Caltrans projects: 1) They are more expensive than DBB projects, 2) They don’t meet DBE goals, and 3) Caltrans awards them to a small number of companies with prior experience.

Compiled by CPM Logistics and Granite Construction Company, this paper analyzes CMGC and DBB projects based on six criteria (cost, schedule, quality, risk, innovation, partnering) and substantiates that through innovation, collaboration and communication, the CMGC projects discussed are more efficient than traditional DBB projects by a significant margin.

Surviving as a Small Business During a Pandemic

Like the rest of the world, we have spent the past few months trying to figure out how we navigate these new business channels while keeping our doors open and our employees working.  Our hope in resurrecting our monthly newsletter is to consolidate some of the information that we receive, as well as providing efficient resources for Small Businesses, to help support you through this time.  

Since March, my inbox has been blowing up with unsolicited advertisements, the likes of which I have never seen before.  These solicitations range from debt collections services to applying for a PPP Loan to QR codes. Do you know what a QR code is and why you would need one? The downside for the increase in unsolicited emails is that they are getting in the way of us responding to our small business partners as quickly as we should be.  The upside is that we have been invited to many interesting and productive online meetings and webinars that have shown us how to pivot into a socially distant company that provides assistance to small contractors. 

We have noticed an increase in attendance at our webinars.  We get it.  You have unlimited time right now and want to remain productive. You’re wisely using the uninterrupted time you have to study and research how to make your company better, more viable and profitable.  We are doing the same thing.

We have included many Small Business resources in this newsletter to help you.  The Paycheck Protection Program (PPP) is a great example of funding that will help you to bridge the financial gap you might be experiencing.  Another is the Small Business Administration’s Economic Injury Disaster Loan (EIDL).  

We have also created online office hours on our Contact Us page.  You can schedule a time to talk to me about your business, business planning, business goals or anything you’d like.  Like you, we are doing our best to stay connected while we are working from home.

Please stay safe and sane during these difficult times.  This will all be over soon enough! 

President's Message - June 2019

Happy June!

We are frequently asked for information on technical and supportive services that help small businesses to grow their companies.  There are many resources available on all levels for businesses that want to realize their goals – that amount of available support can be overwhelming.  You might not know where to start.

Our advice is to pick one program that appeals to you and start there. If it is a good fit, then great! If not, then move onto the next program until you find one that works and supports the professional path you have chosen. Our approach is to research and interview these programs before committing to them.  It will save you a lot of time in the long run. 

Some programs are also online and self-administered.  You can learn as you go at your own pace. SBA’s Business Plan program is a great example of this:

https://www.sba.gov/tools/business-plan/1

You can work through writing your business plan when you have time.  Knowing that you are juggling many hats, you might not have the time to spend hours working on your business plan all at once. I also like to take my time thinking through how my company will get from Point A to Point B. 

If you are looking for a business mentor, SBA’s SCORE provides resources through retired executives. They can provide as much or as little support that you might need to grow your business. 

https://www.score.org/us-small-business-administration-sba

If you want support at a more local level, most cities and counties have assistance centers, Small Business Development Centers (SBDC) or Procurement Technical Assistance Centers (PTAC).  A quick online search can help you to connect with any of these. 

 If you have specific questions, please continue to reach out to us at 510-978-4300 or information@cpmlogistics.net.  We are here to help you to both connect with these resources and to succeed!

Klamath River Dam Outreach Meetings

With Granite Construction at their side, the CPM Logistics Team hit the road for an amazing set of informative outreach events for the Klamath River Renewal Project (KRRP). On Tuesday, January 29, 2019, CPM Logistics and Granite Construction hosted two outreach meetings in in Klamath Falls, CA and Yreka, OR. The purpose of the meetings was to inform local and tribal contracting entities of the Klamath River Renewal Project and Granite’s commitment to engaging local and small businesses on the Project.

Attendance at both meetings exceeded expectations; this being many attendees first KRRP outreach meeting. Although most attendees had general knowledge of KRRP, they appreciated the additional project details as well as the discussion on job opportunities that Granite and CPM provided.

The wide-range of capabilities collectively among companies attending reflect the vast scope of the project: there were trucking companies, concrete crushers and dirt movers, fish biologists, water labs, and native plant species experts. Also in attendance were union representatives and members of the local Tribal Employment Resource Ordinance (TERO) offices.

"It makes good economic and time sense to fully engage the unique expertise the local contracting community already has,” said Dave Niess, Project Executive. He went on to detail the various facets of the project and many of the challenges involved with the scope of work. He concluded by emphasizing Granite Construction's commitment to utilizing local knowledge, know-how and labor stating. "If I see available local, skilled laborers sitting out this project, then that's a failure on my part."

CPM Logistics is serving as the project team's Small Business Program consultant. Our mission is to help remove barriers between primes and local and tribal contractors.

Putting Together an Effective Good Faith Effort (GFE)

Putting together a viable Good Faith Effort (GFE) that meets all of the USDOT criteria under 49 CFR 26 may seem like an insurmountable task. However, at CPM Logistics, we approach our GFE documentation as a stand-alone narrative that tells the story of how we connect with small contractors and small businesses.  We strive to document the sincerity of our efforts in engaging companies on our projects.  We literally leave no stone unturned.  If a company does not provide a service that aligns with the project needs, we let them know.  If we know about an opportunity for that particular service being needed on another project, we connect that company with the opportunity. 

What steps should you take to setup your GFE documentation? 

Step 1

Have your approach and framework in place from Day 1. It’s significantly less effort to maintain a GFE baseline then to have to go back and recreate conversations, search for sign-in sheets and follow-up emails.  Create a project specific GFE email that your team can use to collect all GFE documentation: emails, reports, meeting minutes, etc.

Step 2

Implement a project-wide inclusion approach to engage all project staff and have them working together towards engagement and participation.  Change the narrative so that everyone is mindful about connecting with small businesses for opportunities.  You’d be surprised at how quickly your office supplies add up and contribute to your project goal. 

Step 3

Create a transparent participation plan that you can share with all project stakeholders: the owner, your team and any subs working on the project. This plan should include local business resources, certification assistance, schedule milestones, targeted bid packages, communication protocols and engagement approach . Ask yourself: How will you attract small businesses and get them interested in bidding on your work?

Step 4

Identify subcontractor on-boarding protocol and drop-down requirements.  Your project small business goal is 25%?  Their project small business goal should be 25%. Each should be evaluated on a case-by-case basis as you might be contracting with owner-operators that have no opportunity to subcontract. 

Step 5

Tracking your progress through simple reporting protocol and milestone dates.  Sometimes, owners have reporting mediums that are a requirement of a project contract.  If not, generate your own project reporting protocol that works for you and your team – whether it be through an excel spreadsheet or B2B program application. You need something to track your progress that isn’t too cumbersome or hard to learn.

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If you need any advice or feedback on how to create your own GFE system, please feel free to call us at 510.978.4300 or email at information@cpmlogistics.net. We are happy to help!

Small Business Spotlight: Silveira Consulting, Labor Compliance Services

Jamie Silveira, President of Silveira, and Abbigail Brown, President of CPM Logistics

Silveira Consulting is owned and operated by Jamie Silveira. As a woman owned/DBE firm, Jamie and her team specialize in providing Labor Compliance Servicesto businesses throughout Northern California and beyond. Jamie and her team, collectively, have 45 years of construction experience and they go above and beyond in providing their clients the quality services they expect. Jamie fully understands the California construction labor environment and the complicated funding processes including the state, federal and local requirements as related to labor compliance. Their services include the following:

• State and Federal Prevailing Wage Monitoring and Support

• Retroactive Audit and Quarterly Audit Services

• Program/Funding Specific Tracking and Reporting

A sample of recent jobs that Silveira Consulting worked on, include: City of Fresno, City of Dixon, Napa County and California Department of Parks and Recreation. 

Jamie has spent years building relationships both on and off the jobsite gaining trust and respect from not only her clients but from the workers as well. She and her team provides training and support to the client and can also perform all comprehensive compliance paperwork requirements. Jamie considers herself to be the problem solver and not just an enforcer of the requirements, thus mitigating any risk. Her dynamic team brings all resources to their projects to assure success for everyone. 

For more information on Silveira Consulting: 
Email: Jamie.silveira@live.com
Visit: www.silveiraconsulting.org
Phone: 209-744-2872

White Paper: Addressing the Dynamics Between Prime and DBE Contractors

To deliver well-built projects, and to avoid cost overruns and schedule delays, prime contractors need a qualified, experienced and diverse pool of subcontractors. Prime contractors, seeking work on USDOT projects, must work toward meeting Disadvantaged Business Enterprises (DBE’s) inclusion goals as set forth by the State. Prime contractors find it difficult to find and engage experienced DBE subcontractors.

Small Business Spotlight: C&S Publishing

Catherine Wood, C&S Publishing Owner, Launching New Service In January To Help Contractors Find New Jobs

In 2019, C&S Publishing will celebrate its 30th year in business serving California’s small business contractors.

Catherine Wood has been the owner and operator of C&S Publishing for the last two years. Under her leadership, the company connects small businesses and contractors through their three weekly editions of The Daily Reporter, or TDR.

Building on what they already offer to construction contractors, Catherine is very excited to launch a brand new service in January, TDR Plus. It is a subscription software service that enables busy estimators and owners of construction companies who spend too much time looking for new jobs to feel relief when the perfect new jobs arrive to them just like magic. With TDR Plus, construction estimators will always know when there's a new job to bid on in their area and industry without having to spend hours searching websites or spend a lot of money on other sites or organizations for bidding information.

A free, preview version of TDR Plusis available right now for people who would like to check it out and provide their feedback on the service before the full, paid version launches in January. You can sign up at thedailyreporter.net/register.

“I hope to continue connecting California’s small business contractors to construction bidding leads and change the way bidding opportunities are delivered to contractors, making it easier to do business when you are the little guy,” said Catherine. “I also seek to work with other woman-owned business and I am grateful when I can connect professionally with other strong women.”

Catherine is a member of the National Association of Women Business Owners, and C&S Publishing is a certified Minority Business Enterprise (MBE), Women Business Enterprise (WBE), Disadvantaged Business Enterprise (DBE), and a Small Business Enterprise (SBE).

C&S Publishing is based out of Antelope, Calif., and can be reached at CandSPublishing@gmail.com.

Letter from the President, December 2018

Dispute Resolution Services

Over the years, we have had the privilege to work with our small contractor friends by providing support and resources for a myriad of obstacles that have ranged from cash flow issues to dispute resolution with agencies and primes.  Often, many of these issues are resolved by education and communication between the parties.  Occasionally, those issues are more contentious and are addressed through third party support such as arbitration and mediation. 

Most recently, a friend approached us about subcontractor listing issues and wanted to know their rights as a listed subcontractor on a bid/build project.  In that particular instance, the prime that was found responsive and awarded the project had listed this subcontractor and, after the award, decided not to use the services on the project. Our friend wanted to know their rights for recompense and how to avoid this situation in the future.

When a subcontractor is listed on bid for a publicly funded project, and the prime is awarded the contract, the prime must submit a substation request based on the following criteria.

The subcontractor:

• Refuses to execute the contract

• Becomes insolent or applies for bankruptcy

• Refuses to perform their contractual scope of work

• Fails or refuses to meet bonding requirements

• Does not have the proper license

Or The Prime:

• Proves to the awarding authority that the sub was listed as a clerical error

“Prior to the approval of the prime contractor’s request for substitution, the awarding authority shall give notice in writing to the listed subcontractor and the reasons for the request.”

— California Public Contract Code Section 4107 

Knowing your rights as a small contractor are imperative to protecting your company and minimizing your company’s risks.  This holds true for all listed subs, regardless if you are small business certified or not.

If you have any questions or want additional information, please feel free to send me an email at abbigail@cpmlogistics.net.

Happy bidding!

Small Business Spotlight: Merriwether & Williams

Bonding is often cited as the primary barrier to small business participation in public works construction. One of the primary reasons bonding is so difficult to obtain is that the surety companies are writing bonds with the expectation of no defaults, which means the companies seeking bonding must be able to demonstrate capacity, strong financials and good character. Merriwether & Williams Insurance Services has administered contractor development and bonding programs throughout the state for over 21 years and we encourage small businesses to utilize our free services to grow their businesses.

Merriwether-administered programs conduct vigorous outreach in line with sponsor opportunities and priorities and engage targeted businesses in assessment, education, technical assistance and matchmaking with prime partners. Current sponsors include the City and County of San Francisco (including the Airport, Port, Muni, S.F. Public Utilities Commission and public works), City of Los Angeles (including the Airport, Port, Water and Power and public works), L.A. County Metro (with $125 Billion in development and construction projected over the next twenty years) and Alameda County, which has a $580 Million Affordable Housing Bond with a 20% small business inclusion requirement. Each of these sponsors has established a $4 - $8 Million collateral pool, which guarantees any losses from defaults on the bonds issues.

In over 21 years, with over $900 Million in bonding made available to small, women, minority and veteran-owned businesses, all programs combined have experienced less than 1% default rate in an industry with a steady default rate over 20%. Merriwether is proud to be able to assist small and emerging firms who create jobs and economic prosperity in their communities and thank our sponsors who understand the social and economic benefit of inclusion and equity.  

Letter from the President, October 2018

After every Small Business event we’ve coordinated recently, we tell ourselves that our work volume will slow down, that we are at our peak.  Because of all of the new federal and state infrastructure funding, it is beginning to finally sink in that this work pace may be the new norm for our company.  We have 4 events, and 6 statewide trips, in the next 30 days. 

Why, in our 6th year, are we now in line with demand for our services?

This may be because of several reasons.

1. We target only a handful of clients that represent our values of integrity, communication and responsiveness, instead of remaining open to any and all in the industry.

2. We are forecasting work earlier and planning for short and long term goals each year.

3. Empowering and supporting our staff is, and always will be, a priority to CPM. 

These three points may sound overly simplistic but they are extremely effective.  Business planning, setting goals and understanding what value you bring to the professional table are the cornerstones of any successful business.  

Small Business Spotlight: Deep Foundations Drilling

Name of business/owner?

Deep Foundations Drilling - Lynn Perry

What type of business is this and what services do you offer?

We offer CIDH, Shoring, CiSS Pile, Soil Nail Walls, Driven Pile -- these are our main services. We also will help with project management and consulting on difficult projects. Our team combined has over 80 years experience.

How long in business?

We have been in business since 2014, with that said did not receive our DBE till 2017.

What are some recent jobs you've done?

My most recent job has been learning how to navigate the Caltrans system in effort to work with them. We did get our first substantial break with Flatiron West on the I-5 Elk Grove project, which we are very excited about. We will be working on 4 soil nail walls.

Anything else you'd like to add?

Currently, I am working on ways to tackle the market by working with my DBE competitors and larger competitors to create a positive outcome for all.

Letter from the President, September 19, 2018

When we started CPM, long before hiring our first employee, we realized that Small Contractors struggle because they do not have enough resources.  Whether it be office staff, field workers, cash flow, equipment or a culmination of each, Small Contractors needed better resources support.  

Because of this, we recently began coordinating relevant, educational industry specific workshops to provide valuable information to our Small Business community.  These topics include Labor Compliance & Prevailing Wage Requirements, the importance of filing a Preliminary Lien notice to protect your profits, Prompt Payment provisions and your right to get paid in a timely manner and The Everything Contractor (and why you should narrow down your scope of services).  All of the Prime Sponsors for these events are donating their time because they want to provide the small contracting community access to their potential contracts as well as industry knowledge.

These workshops can be found on our events page.

Our office is pretty small so don’t wait to sign up! 

Letter from the President, August 14, 2018

How lucky are we that we get to do something we love for work?  Helping others is a core value that every CPM employee possesses and is something that drives us all to better serve our Small Contractor community.  Like many other Small Businesses, we started CPM not because of money, but to develop and maintain a better quality of life for ourselves and our families.

In July, we hosted several industry events to better inform Small Contractors about available contracting opportunities with both primes andagencies.  One such event with Granite-Teichert, JV, was so well attended by potential subcontractors that there was standing room only. Not only do we listen to you, we put together action plans and events based on your feedback to improve small businesses odds of contracting on large programs. 

This past June and July, we sent out a Small Contracting survey asking for feedback on what obstacles your company encounters when searching for relevant, public works projects. Not surprisingly, out of the 254 respondents, 24% reported that bonding was the single most challenging issue faced as a Small Contractor; 22.5% said prompt payment; and 11% responded that estimating assistance and competitive pricing were prohibitive for winning contracts.

Our response to the survey feedback is to schedule time to connect you, the Small Business contractor, with those that want to provide both technical assistance as well as potential contract opportunities. In addition, we will be hosting an Estimating Workshop with Teichert on August 24; a Labor Compliance Workshop on September 27; and a Prompt Payment Workshop with Ferrovial on October 12.  We are also currently working with the LAOC Building Trades on coordinating these workshops in Southern California, so make sure to check our events page for more information!

Small Business Spotlight: Rupert Construction Supply

Karen Wonneberg, owner

Karen Wonnenberg started Rupert Construction Supply in 2002 – providing material supplies to contractors building bridge, highway and other civil engineering transportation projects. Rupert Construction Supply is a Disadvantaged Business Enterprise (DBE), a Woman-Owned Business Enterprise (WBE), and a Small Business Enterprise (SBE). 

Rupert Construction Supply has concentrated on bridges for much of the business, but Karen reports that she wanted to find a stronger niche, taking bridge concepts and finding more business in highway and rail, and water/wastewater treatment projects.

Karen believes her success comes for the following mindset: As a DBE, be prepared to do the work. Don’t wait to be handed something by the contract. You need to be successful with or without the DBE certification, so operate as a business, not as a DBE business. The certification is just an added incentive to the contractor. 

For more information about Rupert Construction Supply, visit their website at www.rupertsupply.com

Letter from the President, July 13, 2018

June was a hectic month for our small staff at CPM.  

We hosted 9 Small Contractor events; nominated not 1, but 2, well deserving industry friends for service awards; attended countless meetings and conference calls in support of Small Business; continued our quest for data supporting Senate Bill 1 (SB-1 aka, the Gas Tax); all while running a business and addressing our everyday duties. 

We recently sent out a short, non-political 5-minute survey asking for information about your knowledge of SB-1 and the bill’s provisions.  We have been monitoring the hundreds of responses.  Not surprising, many Californians feel stretched thin by how much they pay in taxes to our federal, state and local governments; many are offended by not being offered the choice to vote on SB-1; most, if not all, would like to have open dialogue with those administering how the funds are managed.  

This survey will remain open until July 31 and the results will be made available to anyone that is interested in reviewing the data collected. All who have completed the survey to date have been respectful and civil – dialogue that we appreciate and encourage to help us all better understand how to move forward with supporting the repair of our highways, bridges and infrastructure. 

June 20, 2018 BART Mechanical Outreach Event in San Francisco

We will also begin hosting monthly educational workshops for Small Businesses that want to increase their capacity through industry best practices.  Our response to this need is to engage agencies and primes to help us provide that knowledge to these companies on a regular basis.  Keep an eye out on our events page.

We hope that you are having a great summer!

Small Business Construction Expo

Mark Your Calendars: March 22, 2019

Make Connections, Grow Your SBE & Capitalize Resources at: