To make small business more profitable to handle as clients the cost of administering the surety program for small contractors must be reduced to attract the support of surety brokers and surety markets. 

The significant time and expense saving of electronic surety bonds, with the additional benefit of digital administration, will significantly impact the small contractor with limited premiums.

2.  Caltrans should modernize their progress payment

     transparency platform by providing project progress

     data in a federally recognized  open data standard

     like XBRL or FIBO.

Recommendations

Caltrans transitions to electronic surety bonds for all surety bond requirements, as outlined in July 17th comments to USDOT.

Caltrans modernizes the progress payment information to be available in XBRL


Caltrans participate in an XBRL-CET meeting at in DC or Sacramento for modernizing transportation infrastructure.


Caltrans participation on an XBRL-CET pilot project with AGC and the City of Tracy for highway interchanges to western Tracy business parks.

On December 11th Caltrans held an education and outreach Partnership Forum for the implantation of SB1, the gas tax that will generate $52B for transportation projects, for maximum public benefit, and for reaching out with respect to seeking collaboration on how to meet the challenge SB103 presents.  Getting to 25% small business participation on that volume of work will take serious collaboration, and will require marshalling emerging technologies to achieve success.

XBRL-CET advocacy over the years has been towards such collaborations to improve access to surety credit for small business, and to encourage public and private efforts to adopt policies and procedures that rely on, and promote open data standards as a way to leverage new technologies, enable innovation and create new generations of products and services.

Often we refer to the leadership already provided by Caltrans, from electronic bid bonds to transparency in progress payments.

During the Caltrans meeting XBRL-CET offered the following suggestions for Caltrans consideration on two items

Landmark Road Fix Tops List of New Laws

December 8, 2017


The Road Repair and Accountability Act of 2017

Senate Bill (SB) 1

Senate Bill (SB) 103


Construction contract payments:

    Internet Web site posting

Assembly Bill (AB) 1223

1. Caltrans should expand the use of electronic bonds

    to include all bonds, including performance /payment,

    permit and encroachment, along with any others

XBRL-CET Working Group 

San Francisco

Creating the Catalyst
For Data Interoperability Implementation

November 6, 2017


XBRL-CET / SGIP PAP25 Working Group
Washington DC
Data Interoperability to Promote Clean Energy and Small Business
Office of Congressman Darrell Issa

May 3, 2017


Orange Button for Building the Smart Grid
The Balance Between Data Interoperability, IoT and Cyber Risk

Wells Fargo Penthouse - San Francisco

July 20, 2016


Link to other Working Group Meetings

Comments to California Department of Transportation 

Reducing Burdens for Construction of Infrastructure
Data Interoperability as Innovation Enabler
Impact


CALTRANS SB1 / SB103 SMALL BUSINESS


Comments to US Department of Commerce 

   Cross- Agency Priority Goal:

Leveraging Data as a Strategic Asset

Reducing Burdens for Construction of Infrastructure
Data Interoperability as Innovation Enabler
Impact

Comments to US Department of Transportation 
Transportation Infrastructure:

Notice of Review of Policy, Guidance and Regulation

Reducing Burdens for Construction of Infrastructure
Data Interoperability as Innovation Enabler
Impact

Summary
Collectively the improved administration and risk management at reduced expense will not only streamline the construction process, it will improve access to surety and bank credit for small business to expand opportunities for everyone.

Data interoperability enables streamlined administration, and supports innovations in data analytics.

Enabling the financial markets to monitor risk, and apply predictive analytics for risk mitigation, will benefit all stakeholders plus lead to competitive pricing and flexibility for bank, surety and insurance products.  The current manual hunt and peck, with cut and paste was an excellent proof of concept that financial markets would utilize the resource, now its time to make it powerful.

Compliance with the DATA Act is one of many benefits to Caltrans.

Digital communication with surety markets on performance monitoring by surety markets will not only improve small business access to prime contracts, it can be utilized by prime contractors to increase the pool of bonded small business subcontractors.

Caltrans can be a model for other California agencies that need to comply with and AB-1223 (Construction contract payments: Internet Web site posting)