Stimulus Funding for Construction: Keeping You Current

North Carolina will lead the nation in growth of stimulus-created jobs for the remainder of the year with a 121.5 percent increase, a new report says.

Seattle business-consulting firm Onvia reports that North Carolina also ranks highly - No. 2 in the nation - for per capita stimulus spending at $960.51. And that ranking could improve if Onvia is right about a coming surge in jobs created by the American Recovery and Reinvestment Act.
Read more of this article at the Triad Business Journal

WASHINGTON - Did the stimulus work or not? A year after Congress passed President Barack Obama's huge economic revival plan, the results are mixed - and hardly final.

Despite Obama's bold promises, unemployment remains stubbornly high. But job losses have slowed dramatically.
Read more of this article at Engineering News-Record.

Analysis of Stimulus Data Shows Program Delivering More Construction Jobs than Initially Estimated, Helping Boost Transportation Spending, Contractors Group Notes.

Stimulus funded infrastructure projects are saving and creating more direct construction jobs than initially estimated, according to a new analysis of federal data released today by the Associated General Contractors of America. The analysis also found that more contractors are likely to perform stimulus funded work this year as work starts on many of the non-transportation projects funded in the initial package.
Read more of this article at BDCNetwork.com.

Work will begin this spring on three Triad road projects funded by the federal stimulus act.
See the article from The Business Journal Service the Greater Triad Area for project specifics

The Interstate 85 bridge over the Yadkin River will get $10 million in funding from a $1.5 billion recovery-grants program.

U.S. Transportation Secretary Ray LaHood says the program is all about creating jobs.
Read more of this article at The Business Journal Serving the Greater Triad Area.

See the latest reports on clean water/drinking water projects receiving ARRA funds throught he Clean Water State Revolving Fund (CWSRF) and Drinking Water (DWSRF) programs. It appears as if most of the states met the February 17, 2010 deadline of having all their monies committed to projects "under contract" or "under construction" leaving little to be reallocated for issuance to additional projects.

• Clean Water Report
• Drinking Water Report

Gov. Bev Perdue announced today that more than $380,700 in federal Recovery Act funding for energy efficiency block grants will help six local agencies create jobs and save on utility and fuel bills. The six grants mark the first distribution of money from the Energy Efficiency and Conservation Block Grant program in North Carolina. Additional grants are expected to be announced in the coming weeks as funding applications are reviewed and acted upon. Read more of this article at NCRecovery.gov.

The EPA website now has an interactive U.S. map that shows state-by-state obligations and gross outlays (the amount of funding each state has received to date) of the $7.22 billion it received under the Recovery Act. Please see http://www.epa.gov/recovery/map.html.

It is worth noting that only a relatively small portion of the overall funding has yet to be received at the state level; and many states are still in the process of deciding which projects to fund. So now is the time to reach out to state and local water and wastewater officials to acquaint them with your company’s products and services. PSA Group offers two directories to help facilitate your outreach to this critical market:

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Compensation Reporting Not Required on Stimulus Funded Highway/Transit Contracts

 The US Department of Transportation has informed AGC that contractors working on federally assisted contracts for projects funded through the American Recovery and Reinvestment Act (ARRA) are not required to meet executive compensation reporting requirements. Provisions in the ARRA law require direct recipients and their subrecipients of stimulus funds to report the total annual compensation of the five most highly compensated officers of the company. AGC questioned whether this was intended to apply to contractors working on federally-assisted projects funded with ARRA funds. As a result, DOT asked the Office of Management and Budget (OMB) to clarify the application of these provisions. OMB, which is charged with issuing guidance for federally assisted contracts under this program, advised DOT that for federally-assisted projects, the reporting requirements on executive compensation apply only to direct recipients and their subrecipients. The executive compensation requirements do not apply to contractors working for either the recipient of Federal financial assistance or its subrecipient. FHWA and FTA will be sending out guidance to their division offices clarifying these requirements.

Contractors working on direct contracts with the Federal government are covered under guidance issued by the Federal Acquisition Regulatory (FAR) Council which calls for reporting of this information.

Call for Interest in AGC Highway and Transportation Division Task Forces

The Highway and Transportation Division has established two new task forces to address a variety of issues that are currently or will soon impact transportation construction activities. The Division established a project delivery task force to look at various contracting methods and contract requirements and to develop AGC recommendations and response. A regulatory task force was also established to look at new and existing regulatory requirements and how they uniquely impact transportation contractors and to recommend AGC actions.

The Division is seeking participation on these task forces. Much of the work will be handled through conference calls and email, however, a live meeting may be required at some point. Please let me know if you would be interested in participating by email at deeryb@agc.org

Now scheduled for June 25, this webinar will explore the green incentives and sustainability provisions contained in the American Recovery and Reinvestment Act (ARRA) of 2009. Understand the details of these provisions as well as the potential impact on construction project financing and lending standards. http://newsmanager.commpartners.com/agcmmq/issues/2009-06-15/1.html

Due to the changing landscape in Federal Contracting, it is more important than ever that contractors -- those experienced in Federal work or those looking to move into the this market -- are aware of the ramifications of the new administration, rule and regulation updates, and the impact of the American Recovery and Reinvestment Act on the Federal contracting process. This webinar series will provide an overview of the existing process and walk attendees through the evolution Federal contracting.

To view the webinar continue to the following website: http://newsmanager.commpartners.com/agcmmq/issues/2009-05-04/2.html

The Army Corps of Engineers has released its list of Civil Works projects to be funded by the American Recovery and Reinvestment Act of 2009.

The $4.6 billion is distributed in the following program accounts: Operation and Maintenance, Construction, Mississippi River and Tributaries, Formerly Utilized Sites Remedial Action Program, and Investigations.

The full list of projects can be accessed via the following website: http://www.usace.army.mil/recovery/Pages/Projects.aspx

The SC Energy Office is set to receive over $50 million in federal stimulus funds for Energy Efficiency Improvements in South Carolina. Below is a link to their website. http://www.energy.sc.gov/index.aspx.

Tax incentives for meeting specific energy efficiency requirements on commercial buildings are available to the owners of those buildings. For information on Energy Saving Systems our members can install in commercial buildings and the tax deductions they may offer to the owners go to this link: http://www.energy.sc.gov/index.aspx?m=1&t=5&h=16

The Energy Office will be receiving federal energy money in several different phases and our members are encouraged to monitor this site closely as information is being added daily.

Federal Stimulus Funds for NC: North Carolina faces a big challenge in efficiency handling the $6.1 billion in direct appropriations from the American Recovery and Reinvestment Act, a state official said recently. “This will be a major challenge in how we handle all this,” said Dempsey Benton, director of the newly created N.C. Office of Economic Recovery and Investment. “The governor wants to do it right and we will have transparency.”
Benton's comments came in a meeting with business lobbyists in Raleigh. It was noted that the $6.1 billion in direct appropriations does not include tax cuts, federal agencies must still finalize their funding formulas, and a large portion of the funds will be in the form of competitive grants that have yet to be awarded. For construction, part of the $6.1 billion will be distributed as follows:

Benton said that of the approximately $136 million for the state’s water and sewer funds, there will be a cap of $3 million per project so that construction work can be spread across the state. He said the funds will involve shovel-ready projects.
Concerning education, Benton said $670 million will go to Local Education Agencies to stabilize their budgets. He noted that some of those funds can be used for infrastructure improvements related to classroom learning.
“The legislation is very prescriptive in terms of getting projects under way,” Benton said. “We will have a lot of oversight on these projects.”
 
To stay abreast of related developments, go to: http://www.ncrecovery.gov/.

Related Links:
First Transportation Projects Announced
The American Recovery & Reinvestment Act
How the recovery plan will impact North Carolina

New National Guard Headquarters to be Built: Gov. Bev Perdue announced last week that work will begin shortly on a $56 million new North Carolina National Guard Joint Force Headquarters facility that will also house offices of the state Division of Emergency Management, the State Highway Patrol and the Department of Transportation in Raleigh.  The project, which is expected to create up to 4,200 jobs, was to be open to bids this week with work to start as soon as early summer and to be finished within two years.
In addition to the National Guard, the facility will provide the main offices for North Carolina’s Emergency Management division, communications for the state Department of Transportation and the triangle area communications center of the Highway Patrol.  About $41.5 million in federal funding for the facility was included in the American Recovery and Reinvestment Act.  The remaining money comes from state general and highway trust funds that had previously been set aside for the project.
“This project is a big win for North Carolina. It provides a state of the art facility that will better coordinate key state services and is ready to put people to work in much needed jobs,” Perdue said in a news release

Federal stimulus money headed to South Carolina for highway and bridge projects totals $463 million. So far, state transportation officials have released $200 million of that total for “shovel-ready” projects, including $100 million for resurfacing projects.

Links on the SCDOT site will outline projects that will be funded and where they are located. Among the types of work slated to be funded are a, resurfacing and sidewalk program, Interstate maintenance, bridge and safety/traffic projects.

See stimulus monies approved, maps of locations of the work being funded: http://www.scdot.org/inside/stimulus.shtml
see an easy to read chart of resurfacing projects by county.

As reported here on Tuesday, the federal stimulus bill requires the state to obligate half of the transportation money within 120 days of receiving it.  With the remaining projects to be obligated within a year.  North Carolinas Gov. Beverly Perdue’s office has allocated more than $400 million dollars in funding to about 70 projects in counties across the state to be let to contract between March and June 2009.  The remaining half of the economic stimulus money will be identified by April 2009.  NCDOT also reports that the same process of selection and allocation is under way for transit and will reportedly be completed within the next 30 days.

See the NCDOT web site for the entire report
See the March – June Stimulus Projects
See the overall March – June 2009 Letting list

To follow the American Recovery and Reinvestment Act, which will impact construction opportunities go to www.recovery.org.
Specifically, to view a tentative timeline and follow where resources are going and when, visit http://www.recovery.gov/?q=content/timeline.

The first $466 million of federal transportation money heading to North Carolina will go toward 70 highway and bridge projects across the state and create an estimated 14,000 jobs, Gov. Beverly Perdue said Tuesday. As much as $93 million in the projects should be open to bidding next month, a state Department of Transportation official said. Others will follow. "Our overriding goal is to get North Carolina's economy moving by funding transportation projects that will create jobs from the mountains to the coast," Perdue said in a statement released as she was visiting three roads that will benefit from the cash injection.

The projects will receive the first round of money from at least $838 million in transportation-related funds coming to North Carolina as part of the $787 billion federal stimulus package. Perdue said the 70 projects were selected for the first round of funds primarily because they can be under contract by June. Perdue said the list of the next round of road and bridge projects should be released by early April. Among the priciest projects announced Tuesday was a $64.3 million road and bridge replacement on Crescent Road in Lenoir County that will complete interstate-grade road access between U.S. 70 and the Global TransPark, DOT spokesman Ernie Seneca said. The project could begin construction as early as July, he said. Another $63.4 million will be spent on extending the Interstate 295 project loop project around Fayetteville, northwest of the city's center.

The federal stimulus bill requires the state to obligate half of the transportation money within 120 days of receiving it. The remaining projects must be obligated within a year, Perdue's office said. Perdue scheduled visits Tuesday to the Global TransPark, suburban Charlotte and a rest area on the Alamance-Guilford county border to highlight the kinds of projects that will be accelerated with the federal money. North Carolina is expected to receive about $6.1 billion from the stimulus project. The Perdue administration believes it can tap into $3.7 billion of it through mid-2011 to narrow a state's budget shortfall, and she said Tuesday the state will apply for discretionary funds from the stimulus package to help pay for a $300 million replacement of the Yadkin River bridge on Interstate 85.

On Friday, February 20, the UNC Environmental Finance Center conducted and recorded a webinar on the Implementation of Stimulus Funding for Drinking Water in NC.  To view the recorded webinar or access other information/resources associated with it, please click on the desired link(s) below.

Implementation of Stimulus Funding for Drinking Water in North Carolina
Environmental Finance Center Webinar Series
February 20, 2009, 11:00 AM

Sid Harrell and Jessica Miles from the NC Department of Environment and Natural Resources Public Water Supply Section presented on how to apply for economic stimulus money and how funds will be allocated for drinking water infrastructure projects. Click to view the recording, or to see the powerpoint slides, or to read a transcript of the questions that were answered by text.

The final version of the $787.2 billion economic stimulus bill approved by Congress is good news for the construction industry, though certainly not a cure-all for infrastructure needs for the Carolinas. HR 1, The American Recovery and Reinvestment Act of 2009, includes both spending and tax cuts. Here is a breakdown of some what it means for the construction industry:

Transportation: The bill includes $47.8 billion in transportation funding:
$27.5 billion for high & bridge formula funding
$1.5 billion for discretionary competitive grant program for surface transportation
$8.4 billion public transportation
$850 million Amtrak capital grants
$450 million Amtrak security upgrades
$8 billion for construction of high speed and intercity rail projects
$1.1 billion Airport Improvement Grants

The House Transportation and Infrastructure Committee provided the attached chart which shows a state by state and metro-area breakdown of the highway, transit and clean water state revolving funds included in the bill.

Other Public Infrastructure Funding, Tax Provisions: There are numerous tax provisions to encourage development, capital investment, and increasing certain bonding opportunities on public buildings, schools and other public works.  See the attached overviewof the specific tax provisions that AGC has worked to have included in this bill.  A top AGC objective has been full repeal of the 3% withholding on contractor payments by public agencies. AGC was successful in having a one-year delay included in this bill and will continue to work for total repeal.

AGC was also successful in having a House bill requirement removed from the final bill that would have only allowed companies that use E-verify to be eligible to compete for projects funded under the bill.

The bill applies Davis Bacon to all funds in the bill and applies a new Buy American provision to all funds in the bill.

The bill does not apply the Federal Acquisition Regulations beyond the federal projects to all of the funding in the bill even though earlier versions of the bill did apply the FAR to even state and local projects. We were successful in clarifying that the FAR should only apply to direct federal contracts.

There is also a long chart attached that details about $140 billion in construction spending in the bill. Much of the money will be distributed to state governments to be spent.   Unfortunately the bill did not make the significant commitment to school construction that AGC had advocated. School renovation, modernization and repairs will be eligible to compete for a portion of an $8.8 billion pot of money that will be distributed to the Governors and designated for education, safety and other critical services. 

We are also adding information to our Economic Stimulus web site www.agc.org/stimulus on funding for programs that are distributed through a formula. There may be a lag on some of that information as the analysis of the bill is still being done.

For more information contact AGC of America at 1/800/242-1766. Stay tuned to www.cagc.org for continuing updates.