Oct. 3, 2006

  

A Publication of the Economic Development Corporation of Utah
CEO Jeff Edwards

PRESIDENT'S  

MESSAGE

Helping Utah Businesses Grow Through Government Contracting

The U.S. government is the world’s largest buyer of products and services. Each year, our government spends billions of dollars in goods and services purchased from private firms, including everything from complex automated vehicles to janitorial services.
Under the Small Business Act, agencies must offer a variety of procurements that are reserved exclusively for small business participation. These “small business set-asides” account for a minimum of 23% of government contracts.

Selling goods and services to the government, is in some ways, similar to sales in the private sector. However, there are many unique features to the government’s procurement process. Today’s feature article focuses on that process and what the Governor’s Office of Economic Development is doing to help grow Utah businesses working with the public sector.

Today’s issue also includes links to many of the ED-related news stories from the past week. As always, if you have comments, suggestions or topics you’d like to see in the Economic Review, please contact us by clicking the “Comments” link on the bottom of this page.

Enjoy!

Jeff Edwards
Jeff Edwards
President and CEO

FEATURE

Governor’s Office of Economic Development Will Host
First-Ever Procurement Symposium


Every year the federal government spends billions of dollars purchasing everything from weapons systems and information technology to uniforms and custodial work. State and local governments also spend millions of dollars purchasing goods and services each year. Are Utah companies getting their share of those contracting dollars?

According to Fred Lange, director of the Procurement Technical Assistance Center (PTAC) in the Governor’s Office of Economic Development (GOED), there are billions of dollars in contracts issued each year for which Utah businesses could compete. However, many of those contracts go to out-of-state vendors because Utah companies aren’t in the game. For example, he says catering services for the last air show at Hill Air Force Base went to an out-of-state vendor, despite the fact that numerous Utah caterers could probably have provided the services, had they competed for the bid.

Potential for $3 Billion More

In total, Utah prime and subcontracting companies are currently selling $1.9 billion per year in government and military contracts and Lange says the potential is there to add in excess of $3 billion more. Last year Utah small businesses garnered well over $50 million in government contracts, which equates to approximately 2,000 new or retained jobs. “But we think that can be surpassed,” Lange says.

If a Utah company sells a product or service to the general population, it is likely that same product or service can be sold to a federal government agency or state government. From lawn maintenance, catering and asphalt services to paper products, aircraft engine parts and high technology support, the opportunities are huge and Lange says becoming an approved supplier is easier than many Utah businesses believe.
Even businesses that believe they are too small can become sub-contractors to larger prime contractors. For example, Lange says prime contractors in Utah are currently looking for sub-contracting companies in electro-mechanical assembly, custom molded rubber products and sheet metal fabrication shops.

“I’m convinced the real success comes from helping smaller companies team up with the large government contractors. The mentor/protégé relationship between a large contractor and a subcontractor can help the small business develop the confidence, cash flow, and track record necessary to become a viable government contractor,” he says.

Furthermore, many federal contracts require that the prime contractors outsource a portion of the work to small businesses, so the state is becoming very proactive in working with large contractors to develop mentoring or teaming relationships with small Utah businesses.

Procurement Symposium

Consequently, garnering more government contracting dollars for Utah companies is the objective of Utah’s first-ever Procurement Symposium, hosted by GOED October 19, 2006. Utah companies interested in government contracting opportunities should plan to attend the symposium at the SouthTowne Exposition Center (9575 S. State Street, Sandy) from 7:45 a.m. to 4 p.m. Lange says businesses, whether large or small, will have the opportunity to meet senior officials from Air Force and Army purchasing, Veterans Affairs, State purchasing and local government purchasing offices.

The symposium will also feature a keynote address by former U.S. Senator Jake Garn, and a luncheon address by GOED Executive Director Jason Perry. Breakout sessions will be conducted to teach Utah companies the processes, pitfalls and successes that are possible via government contracting. Breakout session topics include:
Click here for symposium information and links to sponsor exhibits and breakout sessions. Assistance will be available from the financial community, interested businesses, small business associations, economic development offices, chambers of commerce, as well as military contractors and government offices.

Attendees can register for the symposium online or email their registration information to PTAC@utah.gov. For more information call Myrna Hill, (801) 538-8775.

Getting in the Contracting Game

Lange says getting in the contracting game requires four steps and the PTAC program is there to help Utah companies through the process:
  1. Obtain a DUNS number.
  2. Register on CCR.gov—a prerequisite to doing business with the federal government.
  3. Use GOED’s proprietary software to find contracting opportunities—PTAC will help you define your business services with key words that the software uses to match what you do with available contracting opportunities. Once set up, you can view bidding opportunities via the Internet.
  4. Submit your bids.
GOED operates nine regional PTAC offices at various locations around the state and small businesses are invited to contact any of them for assistance. “Our help is free, it’s quick, and it’s to the point,” says Lange.

Top of Utah Business Expo

EDCUTAH CEO Jeff Edwards
to Speak at N. Utah Business Ignitor


Jeff Edwards, President and CEO of the Economic Development Corporation of Utah (EDCUTAH), will share his story and take questions from the audience during the Northern Utah Business Ignitor Series, which is being held in conjunction with the Top of Utah Business Expo.

 

Dubbed "Education and Encouragement for Entrepreneurial Minds," the Business Ignitor event will be held October 12, from 3:30 to 5 p.m. at the Business Depot Ogden (BDO),550 South Depot Drive, Ogden. Registration is $10. For more info and to register, go to http://events.connect-utah.com or http://www.echamber.cc/expo.html.

Sponsored by Grow Utah Ventures, Snell & Wilmer and Connect Magazine, The Northern Utah Business Ignitor Series is an excellent opportunity for entrepreneurs to mingle and ask questions of people in the venture capital field.


No Vacancy

Industrial Market Tight for Small Space in Salt Lake County


No good news for small industrial businesses seeking space, according to the third quarter research report from Commerce CRG. Space of 5,000 square feet and under is nearly impossible to find. The vacancy rate in this size category is .22%.

Lease rates are headed up in all segments of the industrial market, the largest jump impacting businesses seeking bigger spaces (larger than 50,000 square feet), according to Commerce CRG.

Overall vacancy rates rose slightly in the 3rd quarter to 6.83%, but nothing compared to the 7.39% in the third quarter of 2005.

EDCUTAH PARTNERS


Current Partners
Why Be a Partner?
 Board of Trustees

IN THE NEWS

Economic Development Headlines

2006 Set to Be Banner Year for Hospitality in SL County

- 2006 isn't over quite yet, but the Salt Lake Convention and Visitors Bureau is projecting a banner year in hospitality revenues. The numbers have tourism officials harking back to 2002 Winter Olympic glory. (KCPW)

Cedar City Wants to Ride the Rails to Development

- The future of Cedar City's economic vitality could roll into town on a rail. The southwestern Utah community of 25,000 residents has about 6,500 rail cars a year stop to service businesses along spurs built off Union Pacific's Salt Lake City-to-Los Angeles freight line. In the future, Cedar City sees that number soaring to 45,000 cars annually. (SL Tribune)

Feds Boost St. George Airport

- Plans for a new airport for this southwestern Utah community soared higher on Monday when the project received a $17.2-million federal grant. (SL Tribune)

Agencies Back Salt Lake-Paris Flight

- Visitors from surrounding states taking in Utah attractions before flying to Europe. Europeans boarding a nonstop flight to Utah in order to get to the state's national parks. Folks from Africa and other continents using Europe as a springboard for visiting Utah. All those scenarios prompted the Utah Board of Travel Development on Tuesday to put $250,000 from its Tourism Marketing Performance Fund in a kitty along with money from two other agencies to promote possible Delta Air Lines nonstop flights between Salt Lake City and Paris. (Morning News here and here)   (Miami Herald) (SL Tribune)

Half of Skiers Choose Salt Lake County Hotels

- Half of all skiers and snowboarders who come to Utah make Salt Lake County hotels their vacation base. That's up from 43 percent back in 2003, according to a new report from Ski Utah. (KCPW)

LDS Church Will Unveil Elaborate Mall Design on Live TV Today

- The LDS Church is about to break its silence on its commercial plans for 20 prime acres in downtown Salt Lake City. Three years after announcing it would overhaul the aging Crossroads Plaza and ZCMI Center malls on Main Street between South Temple and 100 South, the church will reveal the new design next week. Presiding Bishop H. David Burton, who oversees the church's facilities, will publicly brief City Council members Tuesday at 5:30 p.m. (SL Tribune here and here) (KSL)

Nucor to Add Utah Site

- Steel company Nucor Corp. will forge an even stronger relationship with Box Elder County, announcing Thursday it will build a $27 million plant there that employs more than 200 workers. The new facility in Brigham City will produce metal products used in the construction industry and will join three other Nucor operations in the county: a 340-employee Vulcraft joist plant and connected 30-worker cold finish operation also in Brigham City, plus a bar steel mill in Plymouth. (Morning News) (Utah Business Magazine) (Business Journal) (SL Tribune) (Standard Examiner) (Morning News)

Access to SLC a Top Priority

- Council of Governments members in Davis County are lending their signatures to a letter that requests easier access to Salt Lake City from the Top of Utah.

(Standard Examiner)

Planners Promote 'Coopetition'

- Hoping to erase municipal boundaries and unify economic development efforts in northern Utah, Cindy Bilskie and other economic planners are promoting what they call "coopetition." The term was coined to describe the notion of cooperating with those who were once your competition. (SL Tribune)

Utah Skiing's Top Marketer Celebrates 21 Years on the Job

- For someone who has always been in the background, Ski Utah's Raelene Davis is a familiar figure throughout the international ski community. As well she should be. Ski Utah's marketing and sales director, Davis just finished putting together the state's "Winter Vacation Planner" for the 21st year in a row. Roughly 500,000 copies of this year's 104-page edition - including detailed information about Utah resorts, lodging, retail outlets, transportation services and dining - have gone out worldwide. (SL Tribune)

Millionaire Club Eyes Old Ski Area

- A southern Utah ski area that shut down four years ago could be transformed into a private club for the rich and famous. A developer who said he holds rights to buy the once-bankrupt Elk Meadows ski area has plans for 1,200 trophy homes and condominiums, a Jack Nicklaus-commissioned golf course and other development totaling $3.5 billion -- in a county where the total property value is less than $500 million. (Star Tribune)

Chevron, Los Alamos Team Up to Develop Oil Shale

- Thirty years after quitting one of the nation's most promising yet costly energy resources, Chevron Corp. wants to take another crack at unlocking shale oil from difficult rock formations in Colorado, Utah and Wyoming. (My West Texas)

Report Promotes Wind Power in Utah

- Wind power could be a new cash crop for farmers and ranchers in Utah, say researchers who were awarded a federal grant to promote small, independent wind farms. (KUTV)

Annual Chamber Luncheon Announces Plans for Next Year

- A roll of drums from the West Jordan High School band kicked off the 104th annual Salt Lake Chamber luncheon, which was the forum not only to honor this year’s Chamber Champions but also to reveal the chamber’s game plan for next year. (Utah Business Magazine)

Utah Manufacturing Jobs Up 3.7 Percent

- Utah's manufacturing employment rose 3.7 percent over the past 12 months, according to the 2007 Utah Manufacturers Directory, an industrial guide published annually by Manufacturers' News, Inc. (MNI) of Evanston, Ill. MNI reports Utah has gained 6,294 jobs and 54 plants since September of 2005, ranking it among the top U.S. manufacturing states in terms of job increases over one year. (Utah Business Magazine)

Construction Industry Optimistic About 2007

- Utah’s construction industry is setting record levels again this year, although the multi-family section of the market has declined. Construction of single-family homes in Utah during the first half of this year broke last year’s six-month record, with 10,412 units approved through June of 2006, according to the Utah Construction Report, by the Bureau of Economic and Business Research (BEBR) at the David Eccles School of Business at the University of Utah.

(Utah Business Magazine)

Tech Tuesdays: U of U Event Mingles Researchers with Industry

- White coats and business suits have a chance to mingle at a new event sponsored by the University of Utah’s Technology Commercialization Office. (Utah Business Magazine)

California-based chain of educational products stores to enter Utah

- (Enterprise)

Lewis Bros. Stages sold to Park City's All Resort Group

- (Enterprise)

Ardell Brown RV moves from 12 acres to new 20-acre facility

- (Enterprise)


CALENDAR

Oct. 5:

nanoUtah - at the University of Utah (south of Merrill Engineering Building in EMCB 104). (Register here.)

Oct. 18:

21st Century Entrepreneur: Building a Business Plan that Can Raise Money - Workshop sponsored by the Wayne Brown Institute, 5:30 PM - 8:00 PM, Neumont University, 10701 S. River Front Pkwy, Suite 300, South Jordan. Admission fee: $25. For additional information please go online or call us at 801-595-1141.

Oct. 19:

PTAC Procurement Symposium - hosted by GOED October 19, 2006. Utah companies interested in government contracting opportunities should plan to attend the symposium at the SouthTowne Exposition Center (9575 S. State Street, Sandy) from 7:45 a.m. to 4 p.m. Register online or email registration information to PTAC@utah.gov. For more information call Myrna Hill, (801) 538-8775.

Nov. 12-15:

CoreNet Global Summit (Orlando, FL.)

Jan. 10, 2007:

Washington County Economic Summit (St. George)
7:30 a.m. - 2:30 p.m., for more information contact:
Dixie Business Alliance, 225 South 700 East, St. George, 84770. Call (435) 652-7724 or email; website:
http://www.whatsupdownsouth.com

Feb. 8, 2007:

23rd Annual Investors Choice® Venture Capital Conference (Salt Lake City)
Learn the venture process, build a fundraising presentation and meet with venture, corporate and angel investors. If your company has or is near sales and/or has previous investment, a strong management team, proprietary technology, and has a credible expectation of doing $30-$100 million USD a year in sales in 3-7 years, you should submit an expanded executive summary and one-page fact sheet to this conference.
Submission deadline is October 30th. For more information visit: www.venturecapital.org/utah.