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New York State
eligible for unused ARRA highway money
On May 28th, New York State Governor David Paterson announced that the state has
spent $392 million – 50 percent – of its American Recovery and Reinvestment Act
(ARRA) highway dollars, making New York eligible to receive other states' unused
ARRA highway funds. According to the provisions of ARRA, states must obligate
half of their stimulus highway money by June 29, 2009, a deadline which New York
has beat by a month.
"From the time the President and Congress made these funds available, I pledged
to use the money as intended: to get people back to work quickly and
efficiently, which will stimulate our economy and reduce the severe unemployment
we face. New York has expeditiously allocated its transportation funding to
projects in every region of this State, and will continue to use these funds to
get New Yorkers working again," said Governor Paterson.
New York State is receiving approximately $1.1 billion from the ARRA to repair
and expand its highways and bridges, and a total of $4.1 billion for general
infrastructure and energy projects. While the state's
www.recovery.ny.gov website announces
which projects are receiving stimulus funds, it takes a little digging to find
the information.
In order to simplify the stimulus-funded project search, DBE Goodfaith, Inc. has
created its own web portal that aggregates and distills stimulus project
information publicized by the New York State Economic Recovery and Reinvestment
Cabinet. DBE Goodfaith, Inc. invites you to take a look for yourself at
www.dbegoodfaith.com.
Remember, many stimulus projects require that small and/or disadvantaged
businesses participate or be solicited to participate in good faith for the job.
Prime contractors are required to submit documentation of their good faith
effort with their bid documents.
With the public works market becoming more competitive by the day, it is
essential that firms meet contracts’ small and disadvantaged business
participation requirements and/or fulfill their good faith obligations.
With the help of DBE Goodfaith, Inc., prime bidders can save time and find the
small and disadvantaged businesses interested in subcontracting and supplying
opportunities on their potential projects. Learn more about DBE Goodfaith, Inc.
and its services at www.dbegoodfaith.com.
To read Governor Paterson's
press release announcing New York State's eligibility for stimulus money, visit:
http://www.recovery.ny.gov/News/press052809.htm
SBA raises surety bond
limit for small businesses
Since the passage of the American Recovery and Reinvestment Act (ARRA) in
February, contractors of all shapes and sizes have tried to win public works
projects funded by the stimulus package. However, it is often difficult for
small businesses to obtain the bonding required to bid a project. To ensure that
small businesses remain competitive in the procurement market, the ARRA set
aside funds to increase the limit of United States Small Business Administration
(SBA)-backed surety bonds for small businesses from $2 million to $5 million.
“During these difficult economic times these changes are particularly helpful to
small and emerging contractors who need access to surety bonds so they can bid
on public construction and service projects,” said Acting SBA Administrator
Darryl K. Hairston. “These changes will support small and emerging businesses
nationwide, particularly construction contractors who have seen their markets
hurt by a poor economy and lagging construction environment.”
A surety bond is a written three-party agreement between a bonding company,
prime contractor, and the project owner that holds the prime contractor
monetarily responsible if it fails to uphold the terms of the contract. Without
a contract surety bond, it is virtually impossible for a prime contractor to win
a construction contract, unless they bond themselves.
Under the SBA Surety Bond Guarantee (SBG) program, the agency does not directly
bond a contractor. The SBA has partnered with members of the surety industry to
guarantee to the insurance companies 70 to 90 percent of the bond, up to $5
million. To apply for the SBA guarantee, a contractor must complete a standard
surety application and required SBA forms. It is at the bonding agent’s
discretion whether or not to execute the bond with an SBA guarantee.
Additionally, small business wishing to take advantage of the SBG program must
meet certain size requirements. To be classified as a small business concern by
the SBA, a businesses average annual receipts, including those of their
affiliates, for the last three fiscal years cannot exceed $6.5 million.
Companies that receive the SBA surety bond guarantees are subject to certain
fees and expenses. First, the contractor is required to pay a guarantee fee
equal to a certain percentage of the contract amount. At the present time,
contractors are charged $7.29 per thousand dollars of a contract’s worth. Also,
when the bond is issued, the business is responsible for the surety company’s
bond premium. Small businesses, though, do not have to pay an application fee to
the SBA.
For more information on the SBA surety bond
guarantee increase, visit:
http://www.sba.gov/idc/groups/public/documents/sba_homepage/
sba_rcvry_act_surety_bonds.pdf
To learn how to apply for an SBA Surety Bond Guarantee, visit:
http://www.sba.gov/aboutsba/sbaprograms/osg/
OSG_HOWTOAPPLY_SBOND_GUARANTEE.html
To view a list of participating Surety Companies and Agents, visit:
http://www.sba.gov/idc/groups/public/documents/sba_program_office/
osg_bond_agency_list.pdf
To learn more about the SBA Surety Bond Guarantee Program, visit:
http://www.sba.gov/idc/groups/public/documents/sd_sioux_falls/
sd_suretybonds.pdf
What is DBE Goodfaith?
DBE Goodfaith, Inc. is an outreach assistance firm
dedicated to providing a reliable web-based service solution for construction
and other firms seeking socially and economically disadvantaged business (DBE/DVBE/WBE/SBE/MBE/HUB)
participation on government funded projects.
With the help of our services, businesses can comply with the Good Faith Effort
requirements of state and local government disadvantaged business programs. By
placing subcontracting opportunity ads on our website and directly soliciting
disadvantaged business firms via email, fax, and telephone, we help take the
stress out of the Good Faith Process and allow firms to concentrate on building
quality, competitive bids. To ensure that all disadvantaged businesses are
included in our outreach procedures, we maintain an up-to-date database of all
registered disadvantaged firms in California, Nevada, New York, and soon Texas.
When customers search our online database, they can easily find disadvantaged
businesses by their location and/or the type of goods and services or work they
provide.
Also, in an effort to inform and educate the community on procurement,
construction, and other pertinent topics, we publish electronic newsletters
throughout the year. In our e-newsletter, businesses can find in-depth
discussions on procedures and regulations effecting disadvantaged business
programs, analysis of current events, and other valuable resources such as
events listings. We also offer construction trade and focus information on our
website related to DVBE, DBE, MBE, WBE, and other programs.
For more information on our
services, please visit our website at:
http://www.dbegoodfaith.com
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