SimplexGrinnell to mentor
SAN DIEGO, Calif.--In a deal that will increase business for both entities, SimplexGrinnell announced August 4 that it and Federal Construction Group had entered into a Mentor-Protege program, run by the U.S. Small Business Administration.
In place for about 30 years, the program is designed to enable both the mentor and the protege to secure government contracts while they assist and support each other. The mentor provides technical, management and financial help to small businesses, specifically 8(a) "small, disadvantaged and minority-owned government contractors."
"This program provides a vehicle that enables Federal Construction to pursue and capture federal contracts it didn't have the funding for, or where out of their core competency, and its gives them a national footprint," said Thomas Staves, SimplexGrinnell national business development manager for government programs. The agreement allows SimplexGrinnell to "go after projects on a non-compete basis for projects up to $3.5 million each," and up to $33.5 million annually, he said.
Mike Reynoso, president of Federal Construction, called the agreement "very unique and mutually beneficial." Federal Construction, based here, is a veteran-owned general contracting company whose specialities include fire work. It's been in business since 2005 and has 12 employees.
Asked about his revenue goals for the duration of the agreement, which starts at one year, but can be extended with different arrangements for up to nine years, Reynoso joked that he was "under a lot of pressure from his mentor." He said he hopes to grow his business from $6 million to $12 -$15 million within three years and "be at $30 million within nine years."