We just hope that these new parents don't lose sight of market reality. Other industries are getting similar treatment but construction is the only one that is divided up into three market categories and nine regions. Each is measured against so-called industry benchmarks measuring utilization of small disadvantaged businesses against capacity of those firms to perform contracts. Those measurements are being made by the government. But there is little detail on exactly how they are made or how frequently they will be updated.
Capacity is a poor way of measuring a contractor's ability to do business.
It is an elusive measure limited mostly by bonding and financing. Construction firms tend to be more like accordions, expanding and contracting with the notorious cycles of the industry. The measurements of utilization and capacity almost certainly will be an ongoing contentious process involving a new and cumbersome bureaucracy. It is aimed at prime contracts. By definition, small disadvantaged businesses would tend not to be prime candidates for prime contracts because of their size and financial assets.