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February 17, 2010, marked the 1-year anniversary of the American Recovery and Reinvestment Act (ARRA). Now, almost a year and half after ARRA was passed, contractors may be wondering if any ARRA funded projects remain and where those projects are located. The answer to whether ARRA projects still exist is a resounding “Yes!” To find those jobs, however, savvy contractors should track federal and state procurements and be familiar with where the government posts ARRA contracting opportunities.

A direct response to the economic crisis, ARRA had three main goals: (1) create new jobs and save existing ones; (2) spur economic activity and long-term growth; and (3) foster a heightened level of accountability and transparency in government spending. To achieve these goals, ARRA provided $275 billion in funding for federal contracts, grants, and loans. A large portion of the funding was to be used for infrastructure development including construction and repair of roads and bridges, as well as the repair and modernization of government owned facilities.

Construction projects funded by ARRA fall into two categories: (1) direct federal projects supported by ARRA funding; and (2) state projects funded by ARRA either directly or through grants. As of June 18, 2010, only $118 billion of the $275 billion dollars set aside for contracts, grants, and loans had been distributed. Thus, after more than a year of funding construction projects under ARRA, state and federal funds remain available for construction projects and opportunities still exist for contractors seeking ARRA work with federal and state governments.

TRACKING PREVIOUSLY OBLIGATED ARRA FUNDS

ARRA required the first 50 percent of all funding to be obligated within 120 days from the date states received their apportionments. The remaining 50 percent was required to be allocated within 12 months of that date. “Obligating” funds, however, does not necessarily mean that the project was awarded to a contractor. In some circumstances, the funding was obligated to a project that will not be awarded for several months, perhaps even well into the future. Thus, many opportunities still remain for contractors to bid on recovery related construction work.

Tracking ARRA funding and obligations is not as elusive as some may think. The best way for contractors to track how ARRA funds are spent is to simply visit recovery.gov. Hosted by the Recovery Accountability and Transparency Board (RATB), the recovery.gov Web site provides visitors with detailed accounting of how ARRA funds have been distributed by federal agencies and to individual states. Visitors can even review whether their city has received ARRA funding and track spending in their own locality. The Web site is updated frequently and, therefore, provides an excellent source for following and tracking ARRA funds.

Clearly, since February 2009, numerous construction contracts have been awarded by states and the federal government. For example, Florida, Texas, and Indiana have each zealously implemented their ARRA funds. At Eglin Air Force Base in Florida, contracts have been awarded for the design/build of antiterrorism force protection improvements, maintenance and repairs of runways, and the repair of military family housing. In Indiana, multiple contracts have been awarded by the U.S. Department of Agriculture for road maintenance. The U.S. Department of Labor also recently awarded a contract for general repairs to the Atterbury Job Corps Center in Edinburgh, Indiana. In Texas, the Texas Department of Transportation and the U.S. Air Force have each awarded contracts for road repair and replacement, while the U.S. Department of Commerce has awarded a contract for the design/build of an Aqua Cell Building in Galveston as part of the Marine Mammal Stranding Network. Finally, the International Boundary and Water Commission was awarded a contract for construction of the Banker Floodway North Levee in Hidalgo County, Texas. These few examples are only a minor representation of the various construction contracts issued with ARRA funds in the past year.

ARRA GRANTS – STILL A SOURCE OF CONSTRUCTION PROJECTS

To find new construction opportunities, contractors should not only track direct ARRA funding, but should also review the grants applied for by their state. In addition to the direct funding that many states received under the stimulus package, almost every state has applied for construction project grants. Among the most popular grants under ARRA was the Transportation Investment Generating Economic Recovery (TIGER). The U.S. Department of Transportation created TIGER to identify and prioritize key highway, bridge, transit, rail, aviation, and intermodal spending. TIGER was a competitive program which provided $1.2 billion in construction funds. Currently, USDOT is developing “TIGER II,” which consists of a $600 million in competitive transportation grants. At least $140 million of the new grants are required to go to rural areas, and localities selected to receive federal funding must provide a 20 percent match. Undoubtedly, contractors should watch their states as they apply for TIGER II grants to determine if any opportunities exist for which they may want to bid.  

FINDING ARRA PROJECTS

As stated above, ARRA-funded construction projects fall into two primary categories: 1) direct federal projects supported with ARRA funding; and 2) state projects constructed ARRA funds. Finding remaining ARRA construction opportunities therefore requires a contractor to watch for federal and state procurement opportunities. Below are a few recommendations for tracking ARRA construction opportunities:  

Long the staple for federal contract solicitations, FedBizOpps (www.fbo.gov), remains the primary source for locating and bidding on federal construction projects. As of June 2010, almost 2,000 solicitations were posted to FedBizOpps for contracting opportunities using ARRA funds. The Web site permits a visitor to search by category, agency, location, state, and keyword. It also allows contractors to search by NAICS code, thereby permitting contractors to avoid reviewing solicitations for which they are not interested or do not qualify. As solicitations are updated or amended the agency will make changes to the posting on the Web site. The site also permits interested vendors to post to a solicitation, permitting contractors to view other interested bidders for subcontracting or joint venture opportunities.

For state procurements, almost every state has created Web sites similar to recovery.gov. For  example, in Florida, contractors should visit the Florida Office of Economic Recovery (http://flarecovery.com). Texas posts its ARRA contracting opportunities on its Electronic State Business Daily Web site (http://esbd.cpa.state.tx.us). Finally, Indiana identifies its ARRA activities by county (http://www.in.gov/gov/countyarra.htm). Whether a contractor is searching for federal or state ARRA projects, opportunities clearly still exist for contractors. So, track the funds and don’t forget to watch the grants!

The information or opinion provided in this article is the author's own and not necessarily that of Watt, Tieder, Hoffar & Fitzgerald, LLP. The author is solely responsible for the information and opinion that he or she has provided. The information contained herein does not replace seeking specific legal counsel to directly address individual client needs.