American Recovery and Reinvestment Act

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American Recovery and Reinvestment Act In South
Carolina
John White - SCOSE
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Things to Remember

• This presentation is a summary of general
  requirements
• Source of funds matter
• Specific requirements of federal program
  providing funds may vary You MUST review and
  follow specific guidance provided by federal
  agency distributing funds
• Federal agency distributing funds must issue
  supplemental guidance on jobs reporting for funds
  they distribute

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For more detailed information regarding general
requirements see

• Implementing Guidance for the Reports on Use of
  Funds Pursuant to ARRA of 2009, OMB June 22, 2009
• http//www.whitehouse.gov/omb/assets/memoranda_fy2
  009/m09-21.pdf
• http//www.whitehouse.gov/omb/recovery_faqs/
• http//www.recovery.gov/

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Updated Guidance to Agencies for Implementing the
American Recovery and Reinvestment Act of 2009-
OMB April 3, 2009

• http//www.recovery.gov/sites/default/files/m09-15
  .pdf
• Remember this is guidance to Federal Agencies but
  provides valuable information and insight

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Each Federal agency required to establish website
that includes program specific requirements

• Domain name format www.agency.gov/recovery

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Each federal agency is required to provide
program specific requirements with each grant

• This includes ARRA requirements

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SC Comptroller General Site

• http//www.stimulus.sc.gov/
• SC Comptroller General directives to Agency
  Finance Directors on tracking funds
• http//stimulus.sc.gov/Reports.htm

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Key Concepts Terms
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Determining Who You Are
Federal Agency
Prime Recipient (e.g. State Energy Office)
Sub-recipient (e.g. Trident Tech)
Vendor (e.g. Acme Energy Auditing)
Vendor (Ajax Energy Services)
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Terms and Abbreviations

• CCR Central Contractor Registration. All prime
  recipients must be registered in the CCR database
  www.ccr.gov/FAQ.aspx
• DUNS 9 digit identification number issued by
  Dun Bradstreet for each physical location of a
  business organization http//fedgov.dnb.com/webfor
  m
• CFDA Catalogue of Federal Domestic Assistance
  https//www.cfda.gov/index?smainmodelisttabli
  st

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Terms and Abbreviations Cont.

• Prime recipient non-Federal entity that
  receives ARRA funds as a Federal award in the
  form of a grant, loan, or cooperative agreement
  directly from the Federal Government
• Sub-recipient non-Federal entity that expends
  Federal awards received from another entity to
  carry out a Federal program but does not include
  an individual who is a beneficiary of such
  program
• See OMB Circular A-133 for additional information
• See OMB Circular A-110, Uniform Administrative
  Requirements for Grant and Agreements with
  Institutions of Higher Education, Hospitals, and
  other Non-profit Organizations, as codified in 2
  CFR 215
• http//www.whitehouse.gov/OMB/circulars/

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Terms and Abbreviations Cont.

• Vendor a dealer, distributor, merchant, or
  other seller providing goods or services that are
  required for the conduct of a Federal program.
  Characteristics of a Vendor that distinguish it
  from a sub-recipient are
• Provides the goods and services within normal
  business operations
• Provides similar goods or services to many
  different purchasers
• Operates in a competitive environment
• Provides goods or services that are ancillary to
  the operation of the Federal program and
• Is not subject to compliance requirements of the
  Federal program

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ARRA General Provisions

• Preference for quick-start activities ARRA Sec.
  1602
• Recipients shall give preference to activities
  that can be started and completed expeditiously
• Recipients shall use funds in a manner that
  maximizes job creation and economic benefit
• Funds remain available for obligation until
  September 30, 2010, unless otherwise provided in
  Act ARRA Sec. 1603
• See specific guidance from Federal Agency or
  Prime Recipient for possibility of shorter time
  frame
• Funds may not be used for any casino or other
  gambling establishment, aquarium, zoo, golf
  course, or swimming pool ARRA Sect. 1604

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• Buy AMERICAN ARRA Section 1605
• Applies to only construction, alteration,
  maintenance, or repair of a public building or
  public work
• All iron, steel, and manufactured goods used in
  project must be produced in US
• Applies regardless of size of projects
• Exceptions
• Anyone seeking an exception must obtain
  determination of appropriateness and approval
  from the granting federal agency
• Federal Agency may have granted blanket exception
  (e.g. see DOE website for exception on projects
  contracted prior to ARRA)
• Federally approved exception possible were
  requirement will increase cost of overall project
  by 25
• International Treaty exception does not apply to
  South Carolina

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• Iron Steel - all manufacturing processes must
  take place in the United States, except
  metallurgical processes involving refinement of
  steel additives.
• Manufactured Goods - A good brought to the
  construction site for incorporation into the
  building or work that has been processed into a
  specific form and shape, or combined with other
  raw material to create a material that has
  different properties than the properties of the
  individual raw materials
• no requirement with regard to the origin of
  components or subcomponents in manufactured goods
  used in the project, as long as the manufacturing
  occurs in the United States.
• e.g. iron or steel used as components or
  subcomponents of manufactured goods used in the
  project does not need to be produced in the
  United States.

Updated Implementing Guidance for the ARRA of
2009 OMB April 3, 2009
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• Considerations regarding ARRA Buy American
  Provision may not apply where the Recovery Act
  requires the application of alternative Buy
  American requirements for iron, steel, and
  manufactured goods.
• What should you put in your solicitation?
• Require contractor to certify compliance with Buy
  American provision of ARRA or, if required in
  guidance documents provided by federal agency,
  other applicable Buy American provision(s)

Updated Implementing Guidance for the ARRA of
2009 OMB April 3, 2009
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• Prevailing Wages Fringe Benefits ARRA Sect.
  1606
• http//www.dol.gov/esa/WHD/contracts/dbra.htm
• Applies to only construction, alteration, or
  repair (including painting and decorating) of
  public buildings or public works
• Contract greater than 2,000
• Applies to Contractors and Subcontractors
• Reports submitted on Form WH-347
• Protecting State and Local Government and
  Contractor Whistleblowers ARRA Sect. 1553
• Post Notice of Rights and Remedies -
  http//www.procurementlaw.sc.gov/MMO/legal/DDP/ter
  ms/MMO-legal-proc-docs.phtm
• http//www.recovery.gov/sites/default/files/Whistl
  eblowerPoster.pdf
• US Comptroller General or Appropriate Inspector
  General ARRA Sect. 902 Sect. 1515
• Examine records related to contract
• Interview officers and employees

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SPECIAL CONTRACTING PROVISIONS ARRA SECT. 1554

• To the maximum extent possible, contracts shall
  be awarded as fixed-price contracts through the
  use of competitive procedures.
• A summary of any contract awarded that is not
  fixed-price and not awarded using competitive
  procedures shall be posted in a special section
  of the federal website established under Section
  1526 of ARRA
• Sole Source
• Emergency
• Procurements exempt from Consolidate Procurement
  Code?
• Indefinite Delivery Contracts?
• Interagency agreements?

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Guidance on Competitive Fixed Price Contracts
Unable to find Guidance for Non-Federal Recipients

• FAR not applicable to Non-Federal recipients but
  provides insight
• FAR Subpart 5.7Publicizing Requirements Under
  the American Recovery and Reinvestment Act of
  2009
• http//www.arnet.gov/far/current/html/Subpart205_
  7.htmlwp1084394
• Will Federal Agency apply downstream to
  Non-Federal recipients?

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FAR 5.705 Publicizing-post-award.

• (b) Regardless of dollar value, if the contract
  action, including all modifications and orders
  under task or delivery order contracts, is not
  both fixed-price and competitively awarded,
  publicize the award notice and include in the
  description the rationale for using other than a
  fixed-priced and/or competitive approach. These
  notices and the rationale will be available to
  the public at the GPE, so do not include any
  proprietary information or information that would
  compromise national security. The following table
  provides examples for when a rationale is
  required.

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(No Transcript)
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This suggests the following regarding ARRA
Sections 1554 1526(c)(4)

• 1. Applies regardless of value.
• 2. Applies to indefinite delivery contracts
  (statewide or construction IDCs) depending on how
  it was awarded - see FAR table mentioned above.

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Definition of phrase Competitive Procedures in
ARRA Section 1554

• Did not find anything that elaborates on
  whether that phrase includes any type of
  competition, e.g., two bids on a large emergency
  contract, or is limited to "competitive
  procedures" proscribed by law.

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ARRA REPORTING ARRA Sect. 1526

• State Local Government Recipients Implementing
  Guidance for the Reports on Use of Funds Pursuant
  to ARRA of 2009, OMB June 22, 2009
• Do not confuse your requirements with
  requirements placed on federal vendors
• Federal Contractor Reporting Requirements
  Interim FAR 52.204-11

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Reporting Continued

• Reporting Data entered at www.FederalReporting.gov
  
• Recipients and Sub-recipients begin reporting the
  quarter in which they receive an award
• Those receiving an award prior to Sept. 30, 2009
  must enter data for 1st report no later than
  October 10th
• includes funding from February 17, 2009
• Data must be entered within 10 days after the end
  each subsequent quarter
• Corrections to reports must be made within 21
  days after end of each quarter
• Each subsequent report is cumulative

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Prime Recipient Ultimately Responsible for ARRA
Sect. 1512 Reporting Requirements

• Federal Guidelines allow delegation of reporting
  requirements to Sub-recipients. However, the SC
  Stimulus Oversight, Accountability, and
  Coordination Task Force has determined not to
  allow SC Prime Recipients to delegate reporting
  requirements.

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Prime Recipient (e.g. SC Energy Office)

• Federal funding agency
• Award identification
• Recipient DUNS
• Parent DUNS
• Recipient CCR information
• CFDA number if applicable
• Recipient account number
• Project/grant period
• Award type, date, description, and amount
• Amount of ARRA funds expended to
  projects/activities
• Activity Code and description
• Project Description and status
• Job creation narrative and number
• Infrastructure expenditures and rationale, if
  applicable
• Recipient primary place of performance
• Recipient area of benefit
• Recipient officer names and compensation (Top 5)
• Total number and amount of small sub-awards
  less than 25,000

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Recipient Vendor (e.g. Acme Energy Auditing)
Payment exceeds 25,000/Qtr.

• DUNS or Name and zip code of Headquarters
• Expenditure Amount
• Expenditure description

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Sub-recipient (e.g. Trident Tech.)

• Sub-recipient DUNS
• Sub-recipient CCR information
• Sub-recipient type
• Amount received by sub-recipient
• Sub-award date
• Sub-award period
• Sub-recipient place of performance
• Sub-recipient area of benefit
• Sub-recipient officer names and compensation (top
  5)

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Sub-recipient Vendor (e.g. Ajax Energy Services)
Payment exceeds 25,000/Qtr.

• DUNS or Name and zip code of HQ

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JOB REPORTING

• Report an aggregate number for the cumulative
  jobs created or retained
• Job created is a new position or an existing
  unfilled position that is filled
• Job retained is an existing position that would
  have been cut but for ARRA
• Estimates should be expressed as full time
  equivalents
• Provide a narrative description of employment
  impact
• Do not attempt to report on employment impact on
  materials suppliers and central service providers
  (indirect jobs) or local community induced jobs

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Job Creation Formula

• Cumulative ARRA funded hours worked (Qtr)
• Cumulative hours in a full-time schedule (Qtr)

FTE
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QUESTIONS?