With the American Recovery & Reinvestment Act (ARRA) signed into law, state, county, and city officials are beginning to receive additional information on the rules, programs, and how to take advantage of the ARRA funds in a sensible way.
As the state and local agencies are finalizing the details of their targeted projects, now is the time to connect with the decision makers to offer your support and begin to position your company.
Did you know?
Because these projects are financed with federal funds, the Federal Acquisitions Regulations (FAR) apply. As you start pursuing the state and local agencies for different ARRA projects, keep in mind:
- FAR requires funds be set aside for small business, businesses owned by minorities, women, and the disadvantaged. As you talk to the state and local agencies, try to learn more about the available set asides.
- Prevailing wage requirements apply to the ARRA funded projects. Prevailing wage is defined as the hourly wage, usual benefits and overtime, paid in the largest city in each county, to the majority of workers, laborers, and mechanics. As a contractor you will have to pay at least the prevailing wage to your employees. You can locate the prevailing wage rates for your area at www.access.gpo.gov/davisbacon
- Finally there is a provision to encourage the use of American iron, steel and manufactured goods. As a contractor, most probably you will have to implement aggressive steps to be fully compliant with this provision.
How much ARRA funds are under way?
One aspect of the Recovery Act will result in approximately $300 billion dollars in additional federal funds for state and local agencies as well as institutions of higher education. These federal funds are intended to either:
- Supplement existing federal programs (existing block grants for states)
- Create new programs
- Provide more broad fiscal relief
In some cases, the funds will be passed directly to states and institutions of higher education. In other cases, direct recipients of the Recovery Act federal funds will pass the funds through to sub-recipients such as local governments or not-for-profit organizations.
Continuously Monitor ARRA Project Availability
You can now see the ARRA funded projects in your states, counties and cities. While not all cities and counties have identified projects yet, all states have identified funded projects. If you go to www.recovery.org you can drill into different projects by selecting the state, county, and city of your interest.
Get ready
As a contractor, ARRA will mandate from you an unprecedented amount of oversight around the spending of all funds associated with the law. Prepare yourself for extensive reporting and more transparency.
Stay tuned as we continue to communicate more information on ARRA control procedures, funds tracking requirements, and new reporting responsibilities.