Transportation Secretary Ray LaHood reminded the nation’s governors and state secretaries of transportation today that any money they save on transportation projects paid for with American Recovery and Reinvestment Act (ARRA) dollars must be used for additional transportation projects.
Across the country, reports are showing that contractor bids to build and repair transportation networks are coming in substantially below the original engineering estimates. In some cases, thanks to fierce competition for the work and the low price of petroleum, bids are 10, 20 and even 30% lower than expected.
In a letter, Secretary LaHood urged the governors and transportation secretaries to take those cost savings and use the money for additional projects that will put more people to work.
“We will work with you to ensure that your state benefits from your frugality,” LaHood wrote. “Savings you accrue from awarding low bids, and from reduced construction costs due to your oversight and project management, should remain in your state to be spent on other eligible transportation projects.”
In just seven weeks, the Department of Transportation has approved over 2,400 requests worth $7.5 billion for highway, road, bridge and airport construction and repairs nationwide. Projects have been approved in every state. DOT economists estimate that over 39,000 job-years will be created just from the projects approved so far.
The Obama Administration is committed to getting ARRA dollars into the economy as quickly as possible in order to get the economy back on track. A group of senior officials from across the Department of Transportation, known as the Transportation Investment Generating Economic Recovery (TIGER) team is monitoring the program to make sure the money is rapidly made available and that the spending is closely monitored and transparent to the public.
