The Journey to Success: Insights from Mercedes of CMS Corporation
Where It All Began
Mercedes of CMS Corporation started her journey driven by ambition and a vision. After acquiring the assets of a company in 2004, CMS embarked on a quest to navigate the complexities of government contracting. With a focus on being a federal contractor, the early years involved overcoming significant challenges. The journey accelerated after attending an impactful conference, where a speaker, Tracy Pinson from the Army Small Business Office, ignited a spark of inspiration. She introduced the concept of the Mentor-Protege Program, leading Mercedes to forge vital connections that would change everything.
The Mentor-Protege Program
Six months later, CMS became the first SBA Mentor-Protege Program approved in Indiana. This significant accomplishment laid the groundwork for future successes: doubling past performance and expanding bonding capacity. The program established a foundational relationship that encouraged growth and learning. Mercedes emphasized a key insight from her experience: “If I’m a mentor, I’m not creating a competitor; I’m building a committed partner.”
The Birth of CMS Corporation
CMS started with a core focus on mechanical piping construction. Under Mercedes’s leadership and with her partner Kush, the company transformed into a general contractor. They targeted federal contracts, leveraging the SBA’s 8(a) certification for minority-owned businesses. As the business evolved, so did its opportunities — expanding from a $250,000 bonding capacity to a robust multi-million-dollar enterprise, ultimately achieving $500 million.
The Strategic Path Forward
Mercedes’s journey wasn’t without its complexities, especially when it came to navigating the federal contracting landscape. The transition from being a small business to a mid-market player presented its own challenges. She highlighted the importance of creating and maintaining a pipeline of work, emphasizing that "if you’re not winning unrestricted contracts, you’re not building that future."
The continuous need for strategic planning became clear — bid on idiq (indefinite delivery, indefinite quantity) contracts while engaging in joint ventures with other businesses. This collaboration allowed CMS to access larger contracts, increasing the average size of projects, thereby generating significant revenue without the need for scaling personnel.
Developing a Thriving Coalition
Recognizing the challenges mid-market businesses face, Mercedes, along with her colleagues, formed a coalition to advocate for change. The "Pilot Coalition" was born out of a desire to support mid-market companies navigating the transition from small to larger entities. It turned into a collaborative effort to address the legislative gaps that hindered growth in the federal contracting space.
The coalition included a diverse range of companies including disabled veteran-owned, woman-owned, and other small businesses, all of whom shared the common goal of ensuring sustainable growth within the federal marketplace. This unity presented a powerful voice in discussions with Congress, especially on the "Success Act" introduced in late 2022, aimed at creating frameworks for mid-market businesses.
Sustainable Business Growth and Legislative Efforts
During this period, strategic discussions with various congressional stakeholders underscored the necessity for a medium-sized business administration to create pathways for growth. The coalition’s efforts reinforced the idea that mid-market businesses must not be stifled by size standards that do not account for the realities of entering the government contracting space.
"Why would a small business have to remain small for its entire life?" Mercedes asked, emphasizing the coalition’s mission to create avenues for successful transitions beyond small business status. The shrinking industrial base was highlighted as a significant concern, especially regarding national security implications.
Emphasizing Collaboration
Throughout her journey, Mercedes has remained a staunch advocate for fostering collaborative relationships in the industry. She believes that creating strong partnerships within the contracting community not only benefits individual companies but also enriches the entire marketplace. "Today’s competitor could be tomorrow’s ally," she remarked, underlining the importance of a mindset focused on abundance rather than scarcity.
Final Reflections on Lessons Learned
As Mercedes continues to lead CMS Corporation and contribute to the coalition, her experiences bring critical lessons to the forefront. From leveraging mentor-protege relationships to outlining successful strategies for navigating the complexities of federal contracting, her insights resonate strongly within the entrepreneurial community.
Seizing opportunities for collaboration, understanding the critical importance of a pipeline for future projects, and actively engaging with legislative efforts remain crucial for mid-market companies striving for success. Mercedes’s story is not just one of leadership in construction but also of transformative advocacy in the federal contracting landscape, paving the way for sustainable growth in the industry.
