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American Recovery and Reinvestment Act (ARRA) of 2009 May 27, 2009. Overview . The Recovery Act (P.L. 111-5) provides supplemental appropriations to stimulate the U.S. economy, create and save jobs, and build the foundation for long-term economic growth.
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Overview • The Recovery Act (P.L. 111-5) provides supplemental appropriations to stimulate the U.S. economy, create and save jobs, and build the foundation for long-term economic growth. • Gives preference to activities that can be started and completed expeditiously, with 50 percent (goal) initiated not later than 120 days after enactment. • Provides for unprecedented levels of transparency and accountability. • Enacted on February 17, 2009.
DoD and the ARRA DON $1.2B FSRM $866M Milcon $280M R&D $75M
Recovery Act Planning Objectives • Funds are awarded and distributed in a prompt, fair and reasonable manner. • The recipients and uses of all funds are transparent to the public, and the public benefits of these funds are reported clearly, accurately and in a timely manner. • Funds are used for authorized purposes and instances of fraud, waste, error and abuse are mitigated. • Projects funded under this Act avoid unnecessary delays and cost overruns. • Program goals are achieved, including specific program outcomes and improved results on broader economic indicators.
Recovery Act Program Goals • Invest in construction, facility maintenance, and energy efficiency projects which improve the quality of life for our troops and their families, and/or improve readiness. • Reduce Child Development Center shortages • Reduce energy consumption • Accelerate, “shovel ready”, barrack renovations and priority base maintenance projects
Recovery Act Project Summary • Military Construction ($280M): • Troop Housing - $100M • Child Development Centers - $80M • Energy Conservation/Alternative Energy - $100M • Facilities Sustainment, Restoration, and Modernization ($866M): • Navy - $712M • Marine Corps - $154M • Research and Development ($75M): • Fuel Optimization for Mobility Platforms - $53M • Facility Energy Initiatives - $3.5M • Domestic Energy Supply/Distribution - $16M • Tactical Power Systems/Generators - $2.5M
DON Recovery Act Impact - 27 States, DC & Guam 3 5 2 2 2 2 2 2 2 3 2 7 2 16 3 2 6 3 6 4 2 2 5 2 4 3 4
Transparency in Government • OMB Memo M-09-10 - Requirements • Weekly financial reports provide allocations, obligations, expenditures, and other financial data. They are posted to the Recovery.gov website. • Will be replaced by monthly reports and will include contract information, by vendor and project. • Additionally the following reports are required and will be posted on-line. • DoD Recovery Plan & Program Recovery Plans • DON input provided to OSD mid-April • DoD working to finalize tracking of plans with OMB • Recipient’s Report • In July vendors / contractors will begin reporting directly to Recovery.gov • Report will include status of projects and employment
Department-Wide Recovery Plan (General) Program Recovery Plan (Specific) 5 DoD “Programs” MILCON FSRM ECIP HAP Near Term Energy R&D Plans Include Objectives Measures Schedules/Milestones Project Descriptions Accountability/Oversight/Management Award Information Recipient’s Report on Employment Recovery Act Award Data Will feed USASpending.gov All contracts and assistance transactions Conclusion: DON management would benefit from a single repository for ARRA information that consolidates financial and contract elements into a single report. Other Plans/Reports
Recovery Act Link on the PBIS Web Page Click Here
Obligations To Date – Component Comparison As of 8 May the funds distribution for the total government is $36.8B (5%)
DON Execution to date $85.7M • For the DON’s $1,220.9M allocation, a total of 8.2% ($99.9M) has been executed, specifically Military Construction $2.3M (1.0%) • Child Development Centers – None • Energy Conservation & Alternative Energy - $2.3M • Housing - None Facility Sustainment $87.1M (9.3%) • Navy • $61.8M in contract awards • $20.5M for pre/post award support work • Marine Corps • $4.7M in contract awards • $0.1M for pre/post award support work R&D Projects $10.5M (2.7%) • Fuel Optimization $9.8M • Facility Energy Initiatives - None • Domestic Energy Supply / Distribution - $0.7M • Tactical Power Systems/Generators - None
Remaining Challenges • Reprogramming Guidance • Needed to ensure project completion • Between appropriations • From baseline program • Risk Assessment • Assure protection of resources and successful/timely execution • Utilize existing resources and tools • Local Manager’s Internal Control (MIC) program • Established acquisition program controls • Initiatives, such as the Financial Improvement Program (FIP) • Identify additional/unique risks associated with ARRA
Websites • OMB Public Site Regarding the American Recovery and Reinvestment Act of 2009 http://www.recovery.gov/ • OSD Department of Defense Specific Information http://www.defenselink.mil/recovery/ • Department of the Navy Recovery Act page https://fmbweb1.nmci.navy.mil/ARRA/RecoveryAct.htm/