Emerging Technology
Article | July 16, 2022
The COVID-19 crisis has highlighted the importance of constant innovation—as well as the need to respond quickly, agilely, and on a large scale.
During the early stages of the pandemic, governments increased mask production, facilitated data sharing among pharmaceutical companies, relaxed regulatory requirements for certain tests and drugs, and accelerated vaccine production. These were the critical first steps in what turned out to be a highly successful collaboration with the private sector, non-profit organizations, and research institutions.
Governments have served as catalysts throughout the pandemic, assembling and enabling multi-sector efforts to deal with the flood of cases and develop vaccines. Even before the pandemic, the government's role as a solution catalyst was expanding in scope and complexity, with a focus on how to harness innovation across sectors for public benefit.
Governments have gone beyond repairing market failures as commercial and cross-sector innovation has accelerated. Governments are fostering cross-sector solutions for a variety of societal challenges, including public health, climate change, and cybersecurity, in addition to assisting in the strengthening of strategic sectors such as defence and space.
Utilizing outside innovation to drive mission delivery
Many technologies have been developed by the commercial sectorthat can be used to address complex societal problems. Governments are looking into ways to use these capabilities to improve mission delivery in ways other than contracting, in order to develop a broader set of partners and solutions.
It is not always easy to implement such technologies in the public sector. Governments, unlike commercial entities with access to legal and financial structures such as joint ventures and mergers and acquisitions, must find more creative ways to capitalize on external innovation based on mutual interest and advantage across sectors.
Government action and innovation
State and local government leaders face shrinking resources, demanding constituents, complex policy environments, and constant pressure to deliver results on time.
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Article | May 27, 2021
People often believe that bond elections only fund construction projects. Although it’s true that construction opportunities do occur when bond packages are approved, sales of certificates of obligation or general obligation spawn hundreds of other contracting opportunities. Companies that provide services related to technology, energy systems, furniture, landscaping, and security also benefit. Voters already have approved an abundance of bond packages this year, and more are pending in November elections.
Although it’s true that construction opportunities do occur when bond packages are approved, sales of certificates of obligation or general obligation spawn hundreds of other contracting opportunities.
Georgia
The state of Georgia has funding of $1.133 billion that will be used for new projects, the purchasing of equipment, repairs and renovations to existing facilities. Some of it will also be used to launch new construction projects. School districts have been allocated approximately $378 million and $302 million is available for projects at the University System of Georgia. The Department of Transportation will receive over $152 million for roads, bridges, and rail projects, and the Technical College System of Georgia will receive approximately $99 million for various projects. The state also allocated $20 million for a new conference center at Lake Lanier Island and $12 million for infrastructure improvements at the Georgia World Congress Center in Atlanta.
West Virginia
The Cabell County Board of Education authorized the issuance of $87.5 million in public school bonds after it was approved by voters in August. Architectural firms and design teams will be in high demand soon as construction is planned for early 2021. Projects include rebuilding Meadows Elementary and Milton Elementary and construction of a new Davis Creek Elementary facility. Other school buildings will receive major renovations including new windows, doors, roofing, HVAC systems, sprinkler systems, and security upgrades.
New York
Bond funds were approved in Lewis County for a $33 million capital project to construct a new surgical pavilion and renovation of the existing Medical-Surgical floor. Bidding will be solicited in January and February 2021 with construction to begin immediately. The project includes construction of a 36,224 square-foot surgical pavilion as well as the renovation of about 18,889 square feet of the existing Medical-Surgical inpatient floor.
California
The state of California recently announced the sale of $2.65 billion of revenue bonds to benefit various projects at the University of California (UC). About $1.15 billion will be spent on campus projects. Regents for the university system announced that about than 50 construction projects at all 10 UC campuses are planned. Projects include improvements to the Agriculture and Natural Resources Research and Extension Center and Franz Hall. Seismic upgrades are planned for the Irvine Campus, the engineering tower, four gateway quad buildings, and the social sciences buildings. More earthquake-resistant improvements will be made at a number of additional facilities.
Louisiana
In August, $140 million in bonds were approved for construction of a new high school and the completion of 13 other construction and improvement projects for Ascension Parish Public Schools. Approximately $79.5 million has been set aside for a new high school which will be located in Prairieville. Solicitation documents for contractors will be released in 2021. Other projects that have been approved include $27 million in renovations at East Ascension High School, $7.5 million for artificial turf at four high school stadiums plus the stadium at the new high school, $4.4 million for a classroom addition at St. Amant Primary, and $2.3 million for improvements at Donaldsonville High School.
Texas
Voters recently approved $76.6 million for the Plainview Independent School District and this funding will be used to consolidate and restructure elementary and middle school facilities. Some of the revenue will also be used to update security and technology. The proposed building plan consolidates six elementary campuses into three with pre-K programs and increased capacity at each campus. Some solicitation documents are expected in November, and others are planned for early 2021.
Hawaii
The state of Hawaii successfully sold $995 million of general obligation bonds, and the funding will be used to finance capital improvements for various public buildings, elementary and secondary schools, community college and university facilities, public libraries, and parks.
As 2020 draws to a close over the next few months, millions more in funding for all types of projects will result as November bond packages are placed on the ballot for voter approval. Even in the midst of a pandemic, public assets must be maintained, expanded, and made safe for citizens. The activity generated by the bond elections stimulates local economies, and the projects that result create thousands of jobs as 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
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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Government Business
Article | July 14, 2022
The pandemic has blown up entrepreneurs and start-up ecosystems, so government support for start-ups has become critical.
The majority of them faced cash shortages and a lack of venture capital. For start-ups, cash is the most pressing issue. Furthermore, start-ups experienced a slow fundraising process accompanied by investor indifference.
Furthermore, the global workforce was not left untouched by the spillover. Start-ups began to lay off employees and reduce pay. According to StartupGenome research, three out of every four employees were letting their employer down.
While 39% of them laid off 20% or more of their workforce, two-thirds admitted to laying off 60% or more of their full-time employees. In the United States, the economy experienced the sharpest decline in employment, with 20.5 million people losing their jobs.
Following that, in order to address this and reduce the pandemic's impact on start-ups, the governments of many countries have stepped in to save their country's start-up ecosystem.
We've listed a few of the government's initiatives to help start-ups during the current cash crunch.
Direct grants and zero-interest loans:
Right now, cash is the most important concern for new businesses. Grants are regarded as the most beneficial policy instrument (29%), followed by loans (12%).
Access to venture capital investment:
If history is any guide, venture capital activity will likely decline in 2020 as well. This creates a quandary for the 18% of start-ups that require access to financing tools to increase investment.
Employment support schemes:
COVID-19 has had an impact on workforces all over the world. The US lost a record 20.5 million jobs in April, the fastest and sharpest drop since the government began tracking the data. Given these circumstances, it's no surprise that 17 percent of start-ups rank immediate employee protection as one of their top priorities.
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