Past The Red Tape
IAP Government Services Group finds success in bringing together government projects and contractors
For many companies, the red tape that comes with government contracts is too great an obstacle to overcome. For IAP Government Services Group (IAP), that same tape marks out a path to success.
The company was initially founded as TG Banks & Associates in 1990, a private construction company that did special state and local projects. In 2004, President and CEO Thomas Banks decided to restructure, forming IAP Government Services Group as an active third-party administrator (TPA) and focusing on pursuing work utilizing his veteran or minority status.
Today, IAP is a full-service construction management, design-build and general contracting firm based in Ohio but with more than 30 certifications across multiple states, ranging from New York to Florida to Texas. To complement that range and expand its business, IAP is planning to open additional offices in Georgia, Florida and Washington, D.C.
“We’re focusing on expanding our TPA program to several other states,” Thomas says. “Sometime in 2019, I expect to begin that process.”
A Powerful Network
While most such firms have a small pool of preferred subcontractors, IAP casts a much wider net to recruit veteran-owned and minority-owned contractors to its stable of vendors.
“The backbone of our success is the ability to rely on great subcontractors,” Thomas says. “All of our subcontractors go through a comprehensive prequalification process before we bring them on. They’re evaluated on bonding, previous experience and capabilities.”
As the TPA for facility maintenance, repair and minor construction projects for the state of Ohio, IAP oversees daily construction management of state agencies and contractors and manages efforts between field operations, administration, accounting, contractors and government representatives to ensure timely completion of projects.
“We’re still actively recruiting new subcontractors,” says Jennifer Schneider, Senior Vice President of IAP. “We’re now up to over 300. The project sizes are increasing, and we’re looking for contractors capable of providing bigger bonds. What’s coming in now are project sizes in value of up to several million dollars, as opposed to several hundred thousand.”
New Growth
That recent growth made 2018 the best year in IAP history, with promises of even greater growth to come in 2019.
“We had about $35 million gross revenue in projects that closed last year,” Jennifer says. “That’s up from $30 million in 2017 and up from $1 million in 2004. We have about $80 million in the pipeline–projects for which we haven’t received purchase orders. These are projects entered into our program and we’re designing the scope of work, getting contractors, bidding on them.” She adds, “There’s lots of work waiting to be done. Our sales team has really been out there working with the cooperatives, pushing jobs all over the state in coordination with state and local government, including parks and recreation departments, local libraries, schools, townships and more. This year should be our biggest year ever.”
IAP’s expertise in navigating the red tape of government contracts has put the company in a position to find success—and help its large pool of qualified subcontractors along the way.
“Sometimes it’s very difficult to go through the paperwork the government requires if you don’t have the staff to support it,” Thomas says. “We try to assist the contractors and streamline the approach. We’ve also had great success finding qualified subcontractors through The Blue Book Building & Construction Network. When we needed more certified contractors in Florida, The Blue Book found them for us. It’s a great tool for us to use on the federal and state sides of business. If we need more plumbers than we have in our system, we can use The Blue Book to find the additional contractors who meet the requirements.”
“One of the best parts of our business plan is we’re not reliant on a single entity—whether it’s federal, state, municipal or private.” Jennifer Schneider, Senior Vice President, IAP Government Services Group
Commitment to Excellence
At home in Ohio, IAP has worked with several different administrations, and Thomas is excited to work with the new administration of Governor Mike DeWine, who was elected last year. The administration’s stated support for working with minority-owned, veteran-owned and women-owned businesses echoes IAP’s own record of actively recruiting such businesses into its contractor network.
“Our commitment to our contractors and agencies is critical to our success,” Thomas says. “I want to applaud the commitment of the new governor’s administration. I know how committed they are to small business and minority business. We currently have 20 to 30 percent minority contractors in our network. We try to keep them in the loop and work with them. We’ve had great success. Across the board, we welcome veteran-owned, women-owned and minority-owned businesses.”
In 2015, IAP won the contract as the TPA for the state of Ohio. Thomas calls the achievement a “great steppingstone” for the company. The current contract runs through the end of this year and has three contract renewal options, which could make it effective for up to another 10 years. A year ago, IAP had completed more than 250 projects within the umbrella of this contract; in January, that number was up to 427 closed projects, with an additional 1,200 projects submitted.
“We’ll have even more coming in when the weather starts getting better,” Jennifer says, referring to the frigid Ohio winter. “In the past, the average size of any one project was $150,000 to $200,000. The ones coming in now are significantly larger.”
Staying Busy
Some of IAP’s recent and ongoing work includes a six-state U.S. General Services Administration (GSA) project working in Ohio, Illinois, Wisconsin, Michigan, Indiana and Minnesota, which Thomas estimates could exceed $30 million to $40 million per year. The company has also just bid on a $25 million project at Eglin Air Force Base in Florida and a $10 million project at Wright-Patterson Air Force Base in Ohio. Additionally, IAP has multiple TPA projects going on throughout the state of Ohio, for everything from library construction to roofing to paving work.
“Our project manager for paving has $25 million in projects lined up for when the weather improves,” Thomas says. “Much of this work is spread across the state, which makes it good for our contractors who like to just work in certain regions.”
Jennifer adds, “One of the best parts of our business plan is we’re not reliant on a single entity—whether it’s federal, state, municipal or private.”
IAP has been refining its business plan for 15 years, and it’s continuing to bear more fruit. Based on the three pillars of managing growth, customer service and contractor satisfaction, IAP anticipates this coming year to be its best yet, by a wide margin.
“We’ve got the model up,” Thomas says. “It’s efficient and doing well. It’s repetitive. We continue to bring in more efficiencies, find ways for our managers to expedite projects better. Our sales staff has done a remarkable job. We’ve got over 70 letters of recommendation. We’ll continue to service our clients, manage our efficiencies and grow. In 2019, I expect sales to exceed $100 million. Our contractors and our people are the keys to our success. We support each other. It’s a partnership leading to a great future.”