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

February 20th, 2009

AGC outlines how economic stimulus funds for construction will be distributed

The Associated General Contractors has created a web page Rebuild America’s Future which outlines how the money will be distributed, which is typically through state governments, as well as specific policy provisions and AGC’s efforts on the stimulus.

February 20th, 2009

Tracking economic stimulus funds for construction

To keep track of how the stimulus package is progressing, check out www.recovery.gov, the federal website set up to monitor the distribution of funds and results from the stimulus package.

Right now, the site offers an overview of the American Recovery and Reinvestment Act and an explanation of what it hopes to accomplish. Eventually, you’ll have access to data on how Federal Agencies plan to allocate the money — which states and sectors of the economy are due to receive what proportion of the funds. As money starts to flow, more data will become available.

February 19th, 2009

Economic stimulus package includes significant infrastructure construction funds

Stephen Sandherr, the CEO of the Associated General Contractors, calls the economic stimulus package “the most significant investment in infrastructure in my lifetime,” according to Engineering News Record.

With $130 billion set aside for highways, buildings and other public works projects, the $787.2-billion American Recovery and Reinvestment Act of 2009 is good news for the construction industry.

The biggest surprise in the package was the $8 billion for a new high-speed rail corridor. The biggest disappointment was the $20 billion proposed funding for school construction cut from the final package. School modernization is permitted in the $39 billion set aside for educational purposes, and some of that is likely to be spent on uprading buildings. New school construction is not eligible.

About $35 billion or 11% of the bill’s total funds for actual appropriations outlays will be spent by September 2009. The construction portion of that will go to “shovel-ready” projects. The pace will pick up in 2010, with $110.7 billion in appropriations-related outlays spent (not all construction-related).

The federal DOT has 21 days to formally apportion  highway stimulus funds to the states, but industry officials are hearing that the funds could clear to the states in seven days. States could then put projects out to bid.

For infrastructure funds, the bill set a goal of using at least 50% of the funds on work that can start within 120 days, with “use-it-or-lose-it” mandates in place.

Defense and Veterans Affairs must report to Congress within 30 days on how they plan to spend allocations. The GSA has 45 days to produce its spending report.

For a detailed list of allocations, visit ENR.

Source: ENR

February 18th, 2009

Missouri starts first construction project in the country using stimulus funds

The ink was barely dry on the economic stimulus bill signed by President Barack Obama when Missouri began work on the first transportation project in the country funded with the federal dollars, according to MissouriNet.

State transportation officials and construction officials gathered in Tuscumbia, Missouri yesterday to start construction on a new bridge across the Osage River.

The bridge project, approved within minutes of the President signing the federal stimulus bill, is one of four Missouri projects to be funded with federal stimulus money. Missouri Transportation Director Pete Rahn proclaimed it the first construction project anywhere in the country awarded with stimulus funds.

The 1,000-foot-long bridge spans a Missouri River tributary about 30 miles southwest of the state Capitol in Jefferson City. Built in 1933, it was closed to large trucks in 2007 because of structural concerns.

Rahn expects to receive $637 million in transportation funds through the stimulus package, with $525-million targeted for MoDOT-controlled projects. These funds don’t need to go through the regular legislative appropriations process if approved by the state Transportation Commission, which they are.

Missouri plans to begin work Tuesday on three other highway projects.

Source: MissouriNet