April 10th, 2009

Federal agencies using IDIQ delivery method to speed projects

Driven to speed projects to market, federal agencies are using accelerated delivery methods to move stimulus-funded work into the express lane, according to ENR.

Most federal agencies have drawn up long lists of small to medium-sized projects that are prime for design and construction firms that already have indefinite-delivery/indefinite-quantity (IDIQ) contracts with the government.

IDIQ is a federal procurement method for a range of architecture, engineering and contracting services. Unlike a stand-alone contract for a single project, an IDIQ approach allows the contract holder to perform specific services within the limits of the contract, which include the location where the tasks can be performed and a limit on the total value of work that can be awarded within a specific contract period.

Agencies often use these contracts for easily defined, low-risk projects that they need to mobilize quickly. Contract holders are essentially pre-approved to execute the task.

Although some in the industry are concerned this may limit competitiveness, agencies vow there are many opportunities ahead. The stimulus law is providing such unprecedented levels of funding that it will push existing IDIQ capacity to the limit. The US Forest Service and the Department of Defense both expect to exceed their IDIQ capacities. DOD won’t increase limits on existing IDIQ contracts and expects to advertise for new IDIQ contracts.

Source: ENR

April 10th, 2009

Construction unemployment stats

The construction industry lost another 126,000 jobs in March, bringing the total construction job losses to 466,000 since November, the Labor Dept. reported on April 3. That pushed construction’s March unemployment rate in March to 21.1%, from 12.0% a year earlier.

Source: ENR

April 10th, 2009

Free seminar on accessing economic stimulus funds for construction

The American Recover and Reinvestment Act (ARRA) is pumping billions of dollars into construction infrastructure projects. But if your firm has not done much government work, you may find it challenging to quickly break into the public sector.
AGC St. Louis is hosting a free seminar on “Working for the Government” on Thursday, April 23, 4 p.m. to 5 p.m. at the Marriott Union Station.

Michael Feldmann, assistant chief of engineering and construction for the St. Louis District Corps of Engineers, and Stephanie Witt, contracting officer for the General Services Administration, will give an overview of what contractors and specialty contractors need to know to navigate the public sector.

The seminar will be held just prior to the AGC Annual Reception. For details, visit AGC St. Louis  or contact Katie Mason at (314) 480-3178 or kmason@agcstl.org.

April 9th, 2009

Tips for winning government stimulus contracts

Kelly Spors, a Wall Street Journal reporter who recently quoted Walton Construction CEO Dan Frisbee in an article on small businesses accessing economic stimulus funds, offers tips for winning government contracts on her WSJ blog Independent Street. She offers links for networking with government contractors, accessing lists of projects and getting low-cost or free technical assistance. She also gives a link to the Central Contractor Registration site. All government contractors must be registered in this database prior to award of a contract.

April 9th, 2009

Missouri, other states move on ARRA transportation construction projects

A report on how states are using American Recovery and Reinvestment Act (ARRA) funds is in Engineering News Record today.

In the Midwest, Missouri was one of the first ready-to-go states, starting four projects on the day President Obama signed ARRA into law. Missouri DOT says more than 200 other projects are shovel-ready. Illinois also is moving rapidly, letting almost $700 million of projects in April, with work expected to start in May or June.

MoDOT says construction on three other recovery act projects also started immediately:

Button New passing lanes on Route 60 in Barry, Lawrence, Christian and Greene counties

Button Resurfacing on Interstate 35 in Clinton County

Button Improving pavement on Interstate 55 in Pemiscot and New Madrid counties

Additional Missouri road, bridge, air, rail, transit, pedestrian and bicycle projects will be under way in the coming weeks and months. For details, visit the MoDOT website.

March 27th, 2009

Missouri legislators propose $500 million in education construction through stimulus funds

The Missouri Senate approved a bill this week that would allow use of federal stimulus funds for school construction.

As we reported last month, $20 billion was cut from the final version of the federal American Recovery and Reinvestment Act. Although the legislation does not include a specific line item for school construction, $39.5 billion of the act’s $53.6-billion state fiscal stabilization fund would go to local school districts, and school modernization would be one of several eligible uses for those funds.

SB 291 would create a new state fund for new construction or repairs to school buildings. The state would distribute the stimulus money to districts based on their average daily attendance.

Senate President Pro Tem Charlie Shields said he hopes to put roughly $500 million from the stimulus package into the fund. He estimated that Missouri schools have roughly $4 billion in infrastructure needs.

Also, Missouri House  Budget Chairman Allen Icet will propose a special stimulus spending package that likely will include money for repairs, maintenance or construction at state-owned buildings and public universities.

Source: Associated Press