President Obama signed into law the American Recovery and Reinvestment Act on Feb. 18, which potentially creates nearly $68 billion in construction projects.
According to the procurement code governing the projects, states will have the choice to use design-build.
The bill includes as much as $5.8 billion for water/wastewater projects, $8.2 billion for military construction and an additional $43.9 billion for transportation projects.
Many questions remain about distribution of stimulus dollars to states and which ones will benefit the most.
Formulas considering each state’s tax contributions, highway miles and usage will determine some of the distribution.
In addition, states can potentially lose or gain funds according to how quickly they obligate the grants they are awarded.
DBIA President Lee Evey continues to meet with federal legislators and to travel to states such as Oklahoma, where he recently met with state legislators and local officials to discuss design-build projects, both past and future. Evey will continue to travel extensively in coming weeks, promoting design-build to owners, practitioners and other interested groups.
Currently, 28 states are considering legislation affecting design-builders so far in 2009.
Iowa
Thanks to the efforts of many DBIA-affiliated individuals and the Mid-America Region, Iowa is now considering a comprehensive design-build bill that will greatly expand the authority of agencies to use design-build.
With the continued combined efforts of DBIA individual members and the regional office we hope to see this legislation become law before Iowa adjourns in April. Iowa, like many states, is facing significant budgeting challenges and design-build can help the state can meet its construction goals.
Missouri
Missouri is also considering multiple pieces of legislation that have the potential to greatly expand the reach of design-build in that state, for both transportation and educational facility projects.
Interest in design-build in both Missouri and Iowa has been encouraged by the hard work of DBIA’s Mid-America region. After a hearing was held before the State House Committee on Infrastructure and Transportation, the committee recommended the bill be passed; a vote is currently pending.
Illinois
Illinois aspires to end the sunset clause of its Design-Build Procurement Act, a reflection of the good things design-build has accomplished for the state in the past. Other legislation under consideration in the state’s capital would allow design-build for additional transportation and public works projects.
New Mexico
In New Mexico, legislation is under consideration that would authorize design-build procurement for transportation projects over $50 million, potentially allowing major design-build projects to be undertaken.
The bill, introduced in February, has received a favorable recommendation from the State Senate and Corporations Committee but has not yet come to a vote.
There is great potential in state capitals across the country this year to make significant positive change to state procurement procedures.
DBIA looks forward to 2009 as a year to promote design-build procurement at both the state and federal level to the benefit of its members and American taxpayers.
For the latest updates on design-build in your state, its impact at the national level and the progress of stimulus spending, please visit www.dbia.org.