Sometimes, performing well on the job site is not enough for a business to thrive; entrepreneurial diligence off-site is also required.
Recently, there was no better example than work by Watson Services of Newburgh to save their long-term, multimillion-dollar contract with West Point after Army officials improperly switched the contract to a Maryland-based company.
CEO of Watson Services Fred Watson last week detailed how hey had worked, with assistance from U.S. Rep. Maurice Hinchey, to return a seven-year, $70 million contract to Watson, saving the jobs of nearly 200 workers, most of whom are Newburgh residents.
Watson Services has provided mess hall services to West Point for 18 years but late in 2008, the contract was put up for re-bidding and Watson submitted a detailed bid in keeping with their successful service at the military academy. However, after two years of silence they learned early this year the contract was awarded to Son”™s Quality Food Co. of Silver Spring, Md., whose bid was supported by food services giant Sodexo.
“That made my competitor other than a small business,” said Watson, who noted that the competing company also was no longer legally enrolled in the HUBzone program, an acronym for historically underutilized business zones. The program is overseen by the U.S. Small Business Administration.
The new contract violated federal guidelines on two counts; the contract was designated for small business and steered toward those located in HUBzones.
Watson Services is in a renovated historic building on Grand Street in Newburgh.
“Small business people need to be proactive,” said Watson, who had made himself familiar with the rules of the federal contracting process and was aware that Son”™s Quality Food did not qualify as either a small business or a HUBzone business. “We kept tabs on our competition. We had to stay on top of it.”
Legal action was initiated as well as political action. Watson called Hinchey”™s office to alert him to the problem. He praised Hinchey”™s staff for devoting effort to learning the intricacies of small business contracting and HUBzone regulations. Hinchey, who represents Newburgh as part of his sprawling 22nd Congressional District, is on the House Appropriations committee and also on the West Point Board of Visitors. In February he wrote to Lt. Gen. Franklin L. Hagenbeck, superintendent of West Point, expressing his concern about the process and requesting it be reviewed. In March he followed up with a phone call to the general about the same time that Watson Services filed a formal protest with the U.S. Government Accountability Office.
The contract award to Son”™s Quality Food was revoked for review and on June 11, Watson said, he received an email from officials at West Point informing him he had been awarded a new seven-year contract to continue providing mess hall services. “It was a hard fought battle,” said Watson. “This is a win for the city of Newburgh.”
