Government Business
Article | March 11, 2022
Artificial intelligence is the major buzzword in federal IT these days, the way that cloud once was. It’s easy to see why. There is booming investment in AI in the private sector, and various agencies across the government are experimenting with AI to achieve their missions. The National Oceanic and Atmospheric Administration is working with Microsoft to use AI and cloud technology to more easily and accurately identify animals and population counts of endangered species. NASA is ramping up the use of AI throughout its operations, from conducting basic financial operations to finding extra radio frequencies aboard the International Space Station. And the Defense Health Agency’s dermatologists are even using AI to better monitor patients’ skin.
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Article | May 27, 2021
The CARES ACT (Coronavirus Aid, Relief, and Economic Security) passed by Congress created a sprawling, multi-faceted plan to combat COVID-19 and its debilitating effects on the U.S. economy. Signed into law in March, the $2 trillion relief package allocated funding for preserving jobs, backfilling government budgets, helping school districts, providing assistance for the unemployed and establishing grant programs for various industry sectors such as transportation and telecommunications.
There are murmurs of a second stimulus bill which could be debated as soon as July, with the president on July 2 expressing his support for one. But, billions of dollars remain in the CARES Act funding for numerous programs. Much of that funding has reached recipients already, and more should start flowing at any time. All parties and stakeholders are eager, of course, for the funding to reach governmental entities. CARES Act funding programs include the following examples.
The Elementary and Secondary School Emergency Relief, or ESSER, program was established with approximately $13.2 billion. This funding is designated for public school districts through an application process that has oversight from each state’s centralized education agency. Texas school districts received $1.29 billion through the program, just behind the state of California, which received the highest allotment at $1.6 billion. Other states receiving a larger share of ESSER funding are New York ($1.03 billion), Florida ($770 million), Illinois ($569 million), and Georgia ($457 million).
The program requires that at least 90 percent of the grant funding must be awarded to schools that received Title I, Part A funding during the 2019-20 school year. That stipulation will result in only school systems with a high number of students from low-income families being eligible for the bulk of the revenue. Applications are to be submitted to the state education agency for review and approval. However, decisions about how the funding is used are to be made by local officials in the school districts.
Another part of the CARES Act provides billions more in funding for airports. The Airport Improvement Program (AIP) offers $10 billion in distributions through grants for capital projects. This revenue can also be used to fill funding gaps in fiscal year 2020 budgets, since airport systems throughout the nation sustained such heavy losses as a result of the pandemic. Previously, the grants required a local funding match, but the CARES Act increased the federal share to 100 percent.
The AIP program allocates $7.4 billion for commercial airports that serve more than 10,000 passengers annually. Another $2 billion is set aside for commercial airports and general aviation airports. Looking at the listed intended uses of these funds, it appears that many airports will have thousands of upcoming contracting opportunities. Millions will be spent on projects to extend and/or rehabilitate runways. Other airports plan to install new lighting, expand terminals, purchase additional safety equipment, reconfigure taxiways, conduct studies, and develop planning documents for future expansion.
Cities and counties are most eager to participate in the $5 billion in funding available for local government programs and projects through the Community Development Block Grant, or CDBG, program. This funding is intended for local governmental officials to use for corridor redevelopment, economic development initiatives and other projects. Every state received funding and some of the larger allocations were designated for Texas ($63.4 million), California ($113 million), Florida ($63 million), and New York ($70.5 million).
The U.S. Economic Development Organization continues to accept applications for projects that reinvigorate regional economic recovery, with $1.5 billion earmarked in the CARES Act for the Economic Adjustment Assistance Program. Through grants for projects that “leverage existing regional assets,” this program is designed to support economic development within distressed communities. Funding is available to states, counties, universities, and regional planning organizations, as well as for public-private partnerships.
Examples of funding allocated through the program include the award of a $400,000 in grant to the Kennebac Valley Council of Governments in Maine to update its economic development plans and provide COVID-19 services. In Texas, the Concho Valley Council of Governments in San Angelo received a $2.2 million grant to purchase a building for its regional headquarters.
The city of Odessa is using $927,708 in CDBG grant money for several social services programs and to supplement local nonprofits’ efforts during the pandemic. And the city of Lewisville recently received $5.8 million in CARES Act money, which includes $452,305 in CDBG grants.
The Federal Transit Administration is distributing $25 billion with approximately $22.7 billion earmarked for large and small urban areas and $2.2 billion set aside for rural areas. This funding does not require a local match of any kind, and it can be used for capital projects and for operations and/or planning purposes, as long as those activities relate in some way to COVID-19.
Transit agencies in urban areas with a population over one million --- such as Cap Metro, which received $104 million --- are getting $17.5 billion through the FTA. Transit agencies serving areas with populations fewer than one million --- such as Brownsville, Texas, which is receiving $7.6 million --- are getting $5.1 billion.
In the middle of the current, historic pandemic, the economy will significantly be stimulated by projects and initiatives that result from this funding. Public-private collaboration will not only create jobs and generate additional revenue flow, it will result in getting Americans working together again … and that will serve the country well.
Mary Scott Nabers is president and CEO of Strategic Partnerships Inc., a business development company specializing in government contracting and procurement consulting throughout the U.S. Her recently released book, Inside the Infrastructure Revolution: A Roadmap for Building America, is a handbook for contractors, investors and the public at large seeking to explore how public-private partnerships or joint ventures can help finance their infrastructure projects.
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Emerging Technology
Article | July 13, 2022
Bridges, a critical part of America’s infrastructure, need immediate attention. The U.S. Department of Transportation’s 2019 National Bridge Inventory database shows that 81,000 bridges should be replaced and more than 46,000 are structurally deficient. In spite of the data, millions of motorists cross these structurally deficient bridges every day.
The American Road & Transportation Builders Association estimates that the cost to repair the country’s bridges is approximately $164 billion. If that statistic appears startling, consider this - at the current pace of repair, construction could easily take more than a half-century.
Rhode Island currently has the highest percentage of structurally deficient bridges in the nation. Other bridges in disrepair include New York City’s Brooklyn Bridge, Washington, D.C.’s Theodore Roosevelt Bridge, and the San Mateo-Hayward Bridge that crosses San Francisco Bay.
Time and the environment will continue to play a huge role in the deterioration of America’s bridges. Repair and reconstruction needs will only become greater. Hundreds of immediate projects are available for construction and engineering firms that perform bridge work.
Illinois
The Illinois Department of Transportation approved a $21.3 billion highway program this month to improve 8 million square feet of bridges and more than 3,300 miles of roads over the next six years. Of this amount, $3.15 billion has been allocated for the current fiscal year. An Interstate 80 project, with a cost projection of $1.1 billion to replace two bridges, will have funding disbursements that span from 2021 to 2026. In 2021, $74.5 million is allocated for replacements, superstructures, widening, reconstruction, new construction engineering, and utility adjustments. Many additional projects are outlined in the state’s transportation plan.
North Carolina
Beaufort County will receive $120 million from the state to fund what is referred to as the U.S. 278 corridor project. This project will overhaul the only connection between Hilton Head Island and the mainland. Cost projections exceed $272 million. Components of the project include widening the entire corridor to six lanes, adding right-turn only exits off U.S. 278, and building an underpass on Pinckney Island. Another part of the project involves the construction of a multi-use pathway over the bridge.
Maryland
Prince George’s County has released its 2021-2026 Proposed Capital Improvement Program and Budget for the Department of Public Works and Transportation. One project is the replacement of a 30-foot concrete bridge in Clinton over Piscataway Creek at a cost of $5.7 million. Design of the bridge is scheduled for 2021, and construction will begin in 2022. The Livingston Road Bridge, another structure that crosses the Piscataway Creek, will be replaced at a cost of $8.4 million. A total of $29.6 million will be dispersed from 2021-2026 to fund the replacements or rehabilitation of county bridges in the state.
Maine
This state currently has 314 bridges in poor condition, the seventh-highest percentage in the country. Bridges in Maine are inspected every two years and receive posted warnings or become closed when there is danger to the public. Many of the state’s bridges are more than 90 years old. Approximately $38.1 million in federal funding has been secured, and seven bridges have been selected for repair as part of the National Highway Freight System program. The Maine Department of Transportation will contribute another $14 million and construction is expected to begin 2022. The bridges include Interstate 95 over Webb Road in Waterville, I-95 over Broadway in Bangor, Main Street Bridge in Solon, Red Bridge in Rumford, and the double bridge on Stillwater Avenue in Old Town.
Arkansas
The Fort Smith Board of Directors, Arkansas & Missouri Railroad, and the Western Arkansas Planning and Development District agreed July 21 to facilitate a $15 million project to repair a railroad line. The district will manage the procurement of engineering services, as well as procurement and supervision of the construction contract for the renovation of the Arkansas River railroad lift bridge and wooden trestles from Fort Smith to Missouri. The district also will manage other procurement responsibilities for two railroad bridges in Crawford County.
Louisiana
Funding has been approved through an agreement with the Louisiana Department of Transportation and Development (LDOTD) for the replacement of the Cheniere spillway and bridge. In 2019, the LDOTD announced it would contribute $4 million to replace the bridge and substitute a fix-crested weir for the parish-owned spillway. A weir is a low dam built across a river to raise the level of water upstream or regulate its flow. The bridge and spillway were damaged by floods and the LDOTD agreed to fund the repair. Procurements for the project will begin soon as construction is also slated for 2020.
In the city of Baton Rouge, planning will begin soon on a new Mississippi River bridge after LDOTD finalized an agreement July 7 with an engineering firm on a $5 million planning and advisory contract. The contractor will be responsible for developing a purpose and need statement, producing a navigational analysis, and analyzing various traffic models for this more than $1 billion project. The state has a backlog of road and bridge projects that totals more than $14 billion. The Capital Area Road and Bridge District will consider alternative funding methods for the new bridge, including tolls, public-private partnerships, and state funds. The project is moving rather rapidly.
There will be no shortage of opportunities for companies interested in bridge construction and repairs throughout the country.
Mary Scott Nabers is president and CEO of Strategic Partnerships Inc., a business development company specializing in government contracting and procurement consulting throughout the U.S. Her recently released book, Inside the Infrastructure Revolution: A Roadmap for Building America, is a handbook for contractors, investors and the public at large seeking to explore how public-private partnerships or joint ventures can help finance their infrastructure projects.
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Article | June 10, 2020
While Americans wait to see if Congress will pass an infrastructure bill, alternative funding and collaborative initiatives are becoming the norm. Even the recent announcement that the U.S. is now in a designated recession has not caused Congress to focus specifically on economic recovery. Economists, financial experts, industry leaders, and elected officials all know that funding large public projects stimulates the economy and creates jobs. They also know that throughout history, infrastructure reform has been a proven path to economic recovery.
Currently, private sector investors stand ready to fund infrastructure projects in America and local government leaders are moving forward to launch projects of all types. Soon, there may be little need for Congress to do anything. The opportunity to lead in this area may soon be usurped by visionary regional leaders and private sector partners.
Destruction brought on by climate change, the devastation resulting from COVID-19, cyber threats on public networks, lack of adequate broadband, and a desperate need for new sources of revenue – these are the problems that have forced visionary leaders to take action and not wait for Congress. Now, change is coming on strong, and that’s a very good thing!
Airports are not waiting to launch critical and long-overdue expansions. State leaders already are combating rising seas and finding ways to install broadband. Wastewater plants are being constructed or upgraded, and various transportation projects are being launched. Because local leaders lacked the luxury of waiting to see if Congress would endorse or partly fund infrastructure projects, they found alternative funding sources.
Congress could have, and should have, already passed an infrastructure bill, even if it only established guidelines or outlined best practices. The Canadian Council for Public Private Partnerships would have been a good model to follow. An endorsement or a statement of support from Congress related to public-private partnerships (P3s) would still be encouraging.
But, with or without encouragement, regional leaders throughout the country are working with industry, nonprofit organizations, academia, and investors to launch large infrastructure projects. And, as that happens, local economies benefit and jobs are created. Entire communities and numbers of citizens benefit from the good that emanates from public safety, quality of life, asset preservation, sustainability, and taxpayer relief.
But, to the surprise of no one, infrastructure projects are costly and many of them require a number of consolidated funding sources. Infrastructure projects also may be funded through a revenue repayment model that compensates private sector investors over a decade or two. Other projects are funded by bonds, grants, and federal programs such as the Tax Cuts and Jobs Act which incentivizes investment into designated Opportunity Zone regions of the country.
Additionally, funding is still available from federal programs that have been in existence for decades. The Federal Emergency Management Agency (FEMA), Army Corps of Engineers, Department of Housing and Urban Development (HUD), and Community Development Block Grant programs all have funding that may be merged with other alternative funding sources.
Many state legislatures have allocated funding for ‘rainy days’, emergencies and/or ‘resiliency’ efforts. Special Districts also may be created by cities, a process that authorizes citizens to tax themselves for critical infrastructure projects. Finding numerous funding sources is not difficult and not a hurdle that stops infrastructure reform.
Two rather important issues, however, have slowed public acceptance of alternative funding and public-private partnerships – a lack of understanding by citizens about the cost and danger of not doing anything and the fact that the public at large does not completely understand the history or the success of P3s. Too many citizens view private sector investment into public projects as a new or risky concept, which is not the case. Collaborative initiatives have been responsible for the building of America’s infrastructure for more than 100 years. And, the public-private partnership model is common throughout the world and has been tested over many decades.
Here are but a few examples of visionary infrastructure initiatives happening now in America.
In Virginia, the Greene County Board of Supervisors has approved guidelines for establishing strategic public-private partnerships to develop numerous types of P3 projects in the county. This action will enable the Greene County School Board to enter P3s for the purpose of building educational facilities. Other possible projects likely will include landfills, drinking water production, and distribution systems. Projects also may include fire department facilities, education construction including stadiums, public safety buildings, utility and telecommunications initiatives, and broadband infrastructure.
The University of California (UC) has provided a 2019-2025 Capital Finance Plan (CFP) that represents $52 billion of capital that will be required by the campuses and its medical centers. The CFP outlines plans for proposed capital projects, P3s and the acquisition of real property. UC has found the P3 model to be efficient, especially for campus housing. The Irvine campus has a long history of partnering with third-party entities to advance its strategic goals.
The Yuma, Arizona City Council has approved a $51.4 million increase from last year for a Capital Improvement Program (CIP) budget. The city expects 45 percent of the costs to be obtained through grants, reimbursements, and P3s. The plan outlines 54 projects and funding plans of $20.3 million for projects in the Yuma Crossing National Heritage Area. The city also plans to augment funding with a federal grant and possibly private sector investment. It has scheduled a regional fiber optic infrastructure project for 2021 and has announced interest in a P3 engagement as the delivery model.
Florida’s Palm Beach Town Council recently approved $316,380 for a water supply feasibility study. An engineering firm will address the town’s need to explore different ways to provide residents potable water. A plan to determine how to meet future water demand is the objective. One option under consideration is to enter into a public-private-partnership to accomplish this objective.
Iowa State University is taking steps to become coal-free and reduce greenhouse gas emissions by 35 percent over the next three years. A P3 is being considered for the operation of its utility system. The university’s Board of Regents this month gave approval for a planning process to begin.
The state of Nebraska is considering a public-private partnership to build a new 1,600-bed prison to deal with overcrowding and staffing issues. Cost of the new prison has been projected to be in the $200 million range or higher, and the state anticipates that a P3 will be the delivery method. The department announced that the project would potentially meet space needs for the next 100 years.
These projects offer just a sampling of what is happening throughout America. State and local leaders are moving forward and not waiting for guidance or encouragement. Instead, most have grabbed the reins of America’s race to the future, and started to address the country’s infrastructure needs. That’s comforting, because there is much to be done.
America’s global competitiveness truly hangs in the balance along with the well-being of millions of families impacted by unemployment. A recession is never good, but this one could be short. Here’s hoping the media, citizens at large, and others who understand the country’s critical infrastructure problems will find ways locally to step up and encourage other elected leaders to support this clear path out of the current recession.
Mary Scott Nabers is president and CEO of Strategic Partnerships Inc., a business development company specializing in government contracting and procurement consulting throughout the U.S. Her recently released book, Inside the Infrastructure Revolution: A Roadmap for Building America, is a handbook for contractors, investors and the public at large seeking to explore how public-private partnerships or joint ventures can help finance their infrastructure projects.
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