For Timothy Martin, P.E., the ends justify the new means. "I became an engineer because I wanted to see things get built," said Martin, national director, U.S. Highways and Bridges, AECOM Transportation. "But the days of single-source funding are over. And as good engineers, if we want to get the project built, we'll help."

Historically, engineering firms have assisted clients in loan and grant application processes to secure funding. But the value of these services depended on a consistent stream of dollars from government models that have become outdated and can't fully support the rebuilding of America's infrastructure. Instability begets re-invention.

From public-private partnerships (PPPs) to new federal and state projects and programs, a diverse and often complex set of new funding methods is now available. Mastering the ins-and-outs of these alternative methods, as well as reaffirming a commitment to fundamental business strategies, should be priorities for engineering firms looking to stabilize or grow their businesses. Start with Martin's favorite "terms of endearment":

Of the alternatives on Martin's list, Build America Bonds (BABs) are the flavor of the month. Made available as part of the American Recovery and Reinvestment Act (ARRA), Martin said people were on pins and needles waiting to see how and when BABs would be applied, until the New Jersey Turnpike Authority (with which AECOM is working as the lead on a new JV) broke the seal in mid-April 2009.

Infrastructure banks, particularly on a national level, are also a hot topic right now. Such a bank was formally proposed in mid-May in the National Infrastructure Development Bank Act of 2009, authored by Reps. Rosa DeLauro (D-Conn.) and Keith Ellison (D-Minn.). According to a report by Isaiah J. Poole with Campaign for America's Future, the bank would "provide financing for projects that have regional or national impact, such as high-speed rail, interstate highways or major water projects."

All told, it's a lot to digest, and firms are moving quickly to adjust themselves so they can capitalize on what Jacob Lipa, P.E., president of design firm Psomas, described as a moment of opportunity made clear by the openness of agencies and politicians to consider alternative funding methods.

Alternatives become standards
In California, where Psomas performs the bulk of its transportation work, the company is adapting to become not only a resource to do the work, but a resource for knowledge about the new options for design-build projects and public-private partnerships. Lipa said Psomas participated in a meeting recently with the mayor of Los Angeles and other consulting firms to talk about getting things done faster and leveraging money. "In the past, these agencies had processes in place, and now they are asking us to participate," said Lipa.

Lipa estimated that 20 percent to 30 percent of Psomas's transportation business is getting accomplished thanks to alternative funding methods. Looking five years out, Lipa believes that more than half of work will utilize these approaches. "A lot of it, really, is that we don't have a choice," Lipa said. "We have to sit down and say, ‘We don't have enough money [for the project] but we still have the need — how are we going to do this?'"

For Doug Failing, District 7 director of the California Department of Transportation (Caltrans), all signs in The Golden State — and probably the nation as a whole — are pointing toward public-private partnerships. "It's the only way we'll get anything done under the existing models," said Failing.

"The base of our transportation funding for years was the excise tax [on gasoline], but now people are getting more miles for less gas purchased, which is creating more congestion," Failing said. "We are definitely in a position of having to do more with less resources." This dilemma exists for many engineering firms, big and small, as well. While Psomas has been able to recruit and hire new employees with expertise in these areas, other firms must identify creative ways to gain the necessary education, particularly if they are looking to transition into the public arena, which, though rewarding, can be a tough pillar to place. Enter Caltrans, which offers opportunities for firms to expand their skillsets, and gain some connections in the process.

Through the Calmentor program, Caltrans has helped smaller firms improve their capabilities and adjust their business plans so state contracts are accessible. Similar firms are also joining the small-business council — something they would have never considered doing before, according to Failing, who added that many of these firms were started by people who are highly competent, but need broader business sense.

The right partnerships
"In the quest to be perfect technically, a lot of times [engineering firms] overlook best practices and client management, and put it all on the backburner," said Elaine Howley, associate with AEC consultant ZweigWhite's research division. "But if you don't maintain relationships, there may not be a next project." Howley is a lead researcher and book writer with ZweigWhite, and based on her work she recognized three areas engineering firms should consider strengthening:

1. Contact management: Whether they are old clients, or firms you've teamed with, mine your contacts and find new information.
2. Education: Curious how the stimulus package could help your business? Research the bill as it relates to your specific community, and extrapolate from there.
3. Be creative: "Why don't I approach someone directly, and pick their brains?" asked Howley, playing the part of engineer. A lot of firms are cold-calling, and using the direct connection to sell the agency representative on their company's strengths. "There's nothing that says you can't call someone — you might end up getting a project out of it."

When it comes to pursuing government projects, Diana Dibble Kurcfeld, president & co-founder of Design To Delivery Inc., a consulting firm that specializes in the government procurement process, emphasized caution and attention to detail. "It's really hard to come in and just start working with the government right off-the-bat," said Kurcfeld, who recommended finding a teaming partner that has already worked with the government. If you do pursue such work, be sure to: read the solicitation documents thoroughly; turn everything in on time (lateness is a no-no); take care of all your bonding and insurance requirements in advance; and go in beforehand to build relationships with agency staff. Kurcfeld said to initiate relationships with the contract office, and most importantly, the program office.

If your efforts to secure a contract are rewarded by the government — which is a good customer known to pay net-30 — be sure to maintain your detail-oriented approach through the invoice stage. Kurcfeld said the smallest things, from punctuation to the wrong paper-size, can keep you from the paycheck you worked so hard to receive.