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ARRA Grants & Procurements

ARRA Grants & Procurements. American Recovery Reinvestment Act Training. ARRA Background.

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ARRA Grants & Procurements

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  1. ARRA Grants & Procurements American Recovery Reinvestment Act Training

  2. ARRA Background • President Barack Obama signed the American Recovery and Reinvestment Act (ARRA) into law on February 17, 2009. The ARRA provides $787 billion of federal tax reductions and federal spending increases to accelerate the nations economic recovery and preserve and create jobs. The Congressional Joint Committee on Taxation estimates the act contains $334 billion in tax relief between now and the close of the 2011 federal fiscal year. Individual filers receive a tax reduction of $174 billion; businesses, $90 billion. The alternative minimum tax is also reduced for tax year 2009 at a cost of $70 billion. • The ARRA also provides for $453 billion in additional federal spending. About 20 percent of the additional federal spending goes directly to individuals through increases in spending on programs such as food stamps. The remainder goes to pay for federal projects and to state and local governments.

  3. Utah’s Portion • Utah expects to receive $1.6 billion in direct funding from the federal stimulus bill. Some of this funding can be used to fill state budget gaps but other funds are to be spent on specific programs identified by Congress. Total funding may grow depending on the States success in receiving competitive grants for which there are no specific state allocations.

  4. Why do we have to use the funding so fast? • The federal stimulus package is intended to provide an immediate boost to the economy. It is important to get the money out as quickly as possible to create jobs and help families that have been hit hard by the current recession. To make sure that this happens, Congress has set clear time limits for some pots of money with the requirement that the funds be spent within 90 to 180 days.

  5. How will the federal stimulus bill affect Utah's budget deficit ? • State and local governments in Utah are estimated to be eligible to receive a substantial amount of one-time assistance under the ARRA. Most of the funding that is being provided by ARRA is being distributed by existing funding programs. In some cases, this allows the State to reallocate funds to balance budget shortfalls as long as it is receiving ARRA funds.

  6. Requirements Associated with ARRA Funds Received by the State Include: • Proper accounting and tracking of expenditures • Compliance with state and federal procurement laws • Compliance with antitrust regulations • Accurate and compliant reporting under Section 1512

  7. ARRA PURCHASING Grant Process

  8. However, in a memorandum dated August 11, 2009 from the Governor’s Office of Planning and Budget (GOPB), it was recommended that state agencies advertise grants involving ARRA funds through the Department of Administrative Services, Division of Purchasing. Grants are not typically processed through State Purchasing

  9. WHY? • State Purchasing has agreed to post ARRA grant notifications on the electronic bidding system in order to promote competition and help ensure full and complete transparency. This service should be of particular interest and use for new programs and grants funded by ARRA. • Trained state purchasing agents will perform a high-level review of each procurement and grant. The electronic bid notification system for the Division of Purchasing has thousands of registered vendors. Advertising grants on this system will help promote fair and open competition. • You can access the memorandum from GOPB on the State Purchasing website at www.purchasing.utah.gov

  10. Does the grant require you to sign an agreement with a specific company? • If the answer is yes, you can enter into the agreement without the involvement of Purchasing. The agreement must identify all specific requirements of the ARRA funding.

  11. If the grant does not indicate a specific company; • Request for grant application (RGA) document should be submitted to purchasing in an e-mail. • Clearly indicate ARRA funding. Only ARRA funded grants come through state purchasing. • Indicate any special requirements that must be included such as “Buy American” or “Wage/Rate Requirements”. • Attach complete and detailed specifications in the form of a “Request for Grant Application (RGA), including specific details regarding time frame for completion of project or delivery of product. • Work with State Purchasing Agent to determine amount of time bid should be posted. • Agencies are required to announce the grant by e-mail to potential applicants. The e-mail should provide instructions on how to access BidSync and how to review the grant information. Purchasing will assist the agency with this language.

  12. ARRA Funded Procurement’s • ARRA funded purchases must follow the normal procurement process. • Agency must enter an RQS/RQM into the state finet system. • Clearly indicate ARRA funding • Indicate any special requirements that must be included such as “Buy American” or “Wage/Rate Requirements”. • Send Purchasing complete and detailed specifications, including specific details regarding time frame for completion of project or delivery of product. • Work with State Purchasing Agent to determine amount of time bid should be posted

  13. State Purchasing Commitment Regarding ARRA Funding • To assist agencies with ARRA funded grants and procurements. • Make all ARRA procurements a priority. • Ensure transparency by advertising procurements on the State’s electronic bid notification system. • For details regarding your specific purchase, contact the appropriate purchasing agent at the following link: http://purchasing.utah.gov/directories/documents/agentlist.pdf

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