Sixteen pages of recommendations offer ways for lawmakers to cut spending

The Joint Select Committee on Deficit Reduction has received a document that includes numerous recommendations for its deliberations. The joint committee is charged with identifying between $1.2 trillion and $1.5 trillion in federal spending cuts over 10 years. The recommendations, some of which propose cuts that will impact contractors, were presented by the GOP side of the Senate Committee on Homeland Security and Governmental Affairs' Subcommittee on Oversight of Government Management, the Federal Workforce and the District of Columbia.

The subcommittee's 16-page report identifies ways to save $1.4 trillion. Among the recommendations that would affect contractors is a proposal to cut the contractor workforce by 15 percent, resulting in an anticipated savings of $233 billion over 10 years. The majority of spending for contractors is for services and the document and the recommendation would entail providing an annual report on the number of employees working on federal contracts.

Another recommendation would create more contracting opportunities for contractors by expanding the use of public-private partnerships for infrastructure projects. Savings figures estimate that in 10 years, $180 billion could be saved.

Finally, by reforming federal information technology management and closing computer data centers, the government could realize major cost savings in the management of its IT workforce. Because of advances in technology, work can be done with fewer computers and data centers, so the closure of data centers could reasonably lead to increased efficiencies and savings. To view the full report and recommendations, click here.

System creating $800 million fund to provide funding for highways, bridges, ports

Rob Feckner

The California Public Employees' Retirement System (CalPERS) is creating an $800 million fund to invest in California infrastructure projects. CalPERS provides retirement and health benefit services to more than 1.6 million public employees, retirees and their families and more than 3,000 public employers. The system is now ready to invest in the state's highways, bridges, ports and other infrastructure by providing financing for some new projects. State and local officials, many of whom are facing ever-growing budget deficits and an increasingly deteriorating public infrastructure, see the CalPERS fund as a possible new source of revenue for much-needed infrastructure projects.

 The retirement fund's investment committee voted to support the program, which is part of a $5 billion global infrastructure effort. The full board is expected to approve the proposal today, Wednesday. 

Even though the new revenue source is good news for public entities, CalPERS officials say it could be two to three years before there is an effect on the local economy. Environmental review alone will slow down construction.

One type of project the pension fund will stay away from is investment in privatization projects that would put current public sector assets in the hands of the private sector, said CalPERS president Rob Feckner, which could jeopardize pubic sector jobs. Most of those job holders are CalPERS members. 

Ruled unconstitutional, it was aimed at more awards to minority-owned companies

A federal contracting program that has twice been deemed unconstitutional is being proposed for elimination. The Obama administration is suggesting that the program, which benefits ethnic minority-owned businesses, be ended.

The program was ruled unconstitutional in 2008 and 2009. Prior to those rulings, the Defense Department and other federal agencies added 10 percent to low bids from non-minority firms and awarded contracts to the minority-owned company that was the best bid that came in under the new bid amount. The program was aimed at helping agencies meet their goal of awarding 5 percent of contracts to minority-owned firms.

The program's end should have little impact on small, minority-owned and women-owned businesses because the Small Business Administration's 8(a) certification program already offers preferences to such companies, but using different procedures. At least one group - the American Small Business League in California - has indicated it will seek an injunction to preserve the program, but it appears to be an uphill battle.

New ruling went into effect Sept. 16 for all doing business with agency

Contractors doing business with the U.S. Department of Defense (DOD) with contracts and subcontracts that exceed $5 million will have a new placard to post in common work areas. DOD is now requiring its contractors to post the DOD inspector general's fraud hotline posters in those areas. Old rules allowed contractors to not post any other agency's hotline number except the Homeland Security Department if that company had its own business ethics program for reporting fraud or waste. DOD officials felt that might limit the use of its hotline, since without a poster, no one would know the number for the hotline. The office of the inspector general is also revising its poster to list information regarding federal whistleblower protections. The new rule does not apply to purchases of commercial items or for work that will be performed entirely outside the United States if the contract exceeds $5 million.

Remodeling, renovation, construction projects planned for University of Iowa

The University of Iowa Hospital and Clinics (UIHC) plans to spend $176.7 million on remodeling and renovation projects over the next five fiscal years. UIHC officials were to relay their plans to the state Board of Regents this week. UIHC hopes to spend $90 million to construct an Adult Critical Care Bed Tower at a cost of $489 million. Over the upcoming five fiscal years, the University of Iowa expects to spend $323.8 million on campus capital improvements, including a new $54 million residence hall and a $90 million Pharmacy Building.

Maryland university plans $65 million communications, IT center

Jonathan Gibralter

A new $65 million Center for Communications and Information Technology should be under construction this summer at Frostburg State University, Maryland. Officials are shooting for a January 2014 opening date for the facility that will house the university's mass communications, computer science and math departments, its radio and TV stations, a distance learning center and a new planetarium. President Jonathan Gibralter noted that 90 percent of the buildings on the FSU campus were built before 1978, and the new communications center is one of many capital improvement projects on the university's to-do list. He said new buildings must be built. "We can't stand still and let our facilities deteriorate," he said. Other projects on the drawing board for this year include a new Sustainable Energy Research Facility, the remodeling of the Leake Room in the Cordts Physical Education Center and the renovation of Simpson Hall. The university has invested $1 million in each of the last five years to renovate some of its older residence halls with new windows, carpet, HVAC systems and new bathrooms.

 

University of Alabama approves building of second phase of residence hall

Trustees with the University of Alabama recently approved resolutions to build the second phase of a new residence hall, tear down an older hall and add on to the student center and main library. Phase two of the North Bluff Residential Community will be a seven-story, 864-bed dorm and is expected to be open in the fall of 2014. The demolition that was approved is the aging Rose Towers, a 13-story residence hall built in 1969. The demolition, set for 2012, carriers a $2.5 million price tag. The approved budget for Phase two is $62.5 million.

  

Wyoming college gives approval of design for new music building

Walt Nolte

The initial design of a proposed new music building for Casper (Wyoming) College has been approved by the Board of Trustees. The facility will include both a large and small performance area, a large auditorium, a smaller theater and numerous rooms of varying sizes for instruction, practice and performance. The facility will be built under a design-bid-build method. Once the design is complete and approved, bids will be sought. The lowest bidder will be awarded the project. However, a 5 percent preference for Wyoming firms will be instituted. Officials expect that in spite of a possible rise in commodity prices, the project should stay on budget and construction costs and materials could be cheaper. Officials say the building incorporates traditional and modern materials on the exterior. School officials hope to begin construction in spring 2012. The facility will take a year to build. College President Walter Nolte pointed to last year when the college was moving into two new buildings at the same time. He said it was a little stressful for college officials who opened two new residence halls in the middle of August.

 

Collaborative effort leads to mixed-use village involving university

University of North Carolina, Greensboro has joined forced with residents of the Glenwood neighborhood and the city of Greensboro in a collaborative effort that has led to approval to start the first phase of a mixed-use village along West Lee Street Corridor this fall. The first phase of the development includes an 800-bed residence hall and mixed-use spaces that will be used for offices and retail. Construction is expected to be completed in time for the 2013-14 academic year. In addition to living quarters for campus residents, the cooperative effort will also link up with the city's revitalization plan for the main entry point and thoroughfare into the city. Officials are also hopeful the project will be an economic development shot in the arm, as they expect it to generate more than $590 million in new spending from 2014 to 2023, create 945 new jobs and add $7.5 million to the property tax revenues.

 

Education briefs:

• LARGE GIFT: A $32 million gift from the school's namesake, Henry W. Bloch (co-founder of the H&R Block tax preparation company), will help the University of Missouri-Kansas City expand its business school. The gift will pay for a state-of-the art expansion and will house the graduate and executive programs.
• $10 MILLION DONATION: Baltimore developer Edward St. John has donated $10 million toward construction of a new $63 million high-tech classroom building on the University of Maryland, College Park campus. Construction will depend on approval of almost $48 million in funding from the state in its 2013 budget. The Edward St. John Teaching and Learning Center will include 2,000 classroom seats and will be used by one-third of the campus' undergraduates.
• OKLAHOMA BOND PASSES: Oklahoma residents of the Midwest City-Del City School District have approved a $90.5 million bond package, a year after turning down a much larger proposal. The bond will pay for new schools at East Side and Soldier Creek elementary schools and an addition at Del City Elementary. Other funds from the bonds will be used for repairs and renovations district-wide.
• NEBRASKA PASSES SCHOOOL BOND: The third time was the charm in Broken Bow, Nebraska, where voters in the Broken Bow School District passed a bond issue for $5.83 million. The funds will be used for renovations to North Park Elementary School. 

New Mexico Dispatch Authority seeking new $9.7 million central dispatch center

Doloros Connor

Facing cramped quarters, aging technology and an overloaded electric system, officials of the Mesilla Valley (New Mexico) Regional Dispatch Authority is exploring the possibility of a new central dispatch center for its fire and police departments. The authority is currently housed in a former bank building circa 1961. City councilors in Las Cruces are looking at a conceptual floor plan of a proposed new 30,000-square-foot facility for dispatchers, fire and police. The total cost of the facility would be approximately $9.7 million. Officials are looking at the proposed facility as a central facility. "We're looking at how we regionally can serve this area," said City Councilor Dolores Connor. "So that's also a focus at the MVRDA Center, is that we wanted it to not be a stand alone property." Authority officials say the center will have to expand both its technology and personnel to meet the increase in call volume throughout the area. The project also would include a backup satellite system so that communications could continue when phones are down.

Contractors have variety of bid opportunities available in Texas

A number of bid opportunities are currently available in Texas. They include:

• Beaumont Army Medical Center is seeking bids for health care housekeeping services. Set aside is total small business;
• The Texas Historical Society is requesting bids for a new parking lot for the Magoffin Home State Historic Site;
• The city of Laredo is requesting bids for international bridge system refrigerated inspection facilities;
• The Texas Department of Transportation, Culberson County, is requesting bids for state-let construction contracts, overlay;
• The city of El Paso is requesting bids for fiber-optic maintenance-repair services (rebid);
• El Paso County is requesting bids for operations for the sheriff's cafeteria; and
• The El Paso Independent School District is requesting bids for district computers and laptops. 

Funding approved for construction of University Medical Center project

Proposed University Medical Center

The Louisiana Legislature's Joint Budget Committee has given its approval for the State Facilities Office to begin construction of the 424-bed University Medical Center, which will be the successor to the Charity Hospital. The governing board of the University Medical Center recently approved a $1.088 billion financing plan for the facility, which was under scrutiny by state lawmakers. The state contribution, once calculated to be as much as $100 million in general fund appropriations by 2020, was reduced to about $60 million. State Treasurer John Kennedy, who has criticized the project, said he was pleased with the new financing plan, which lowered the state's financial obligations. House Budget Chair Jim Fannin also said the refigured finance plan, which eliminates several hundred million dollars in direct University Medical Center debt, now warrants his support. The facility is expected to open in 2015.

 

Upgrades on tap for Las Cruces International Airport

Some $5.48 million in upgrades are on tap for the Las Cruces (New Mexico) International Airport thanks to federal funding administered by the Federal Aviation Administration (FAA). The FAA has announced it will release $5.33 million for taxiway rehabilitation and repair and then later announced an additional $150,000 in funding for the project.  

 

Numerous contracting opportunities reported open in New Mexico

A variety of contracting opportunities are available for contractors in New Mexico. They include:

• U.S. Army, White Sands Missile Range, is requesting bids for a victim advocate coordinator with set aside: total small business;
• NASA White Sands Test Facility, Las Cruces, is requesting bids for multiple award IDIQ architect and engineering services; and
• Las Cruces Public Schools is requesting bids for addition and renovations to Picacho Middle School.

Ron Madigan

Massachusetts town moving forward with plans for new police station

Plans for a new police station in Swampscott, Massachusetts, have been approved by the Swampscott Conservation Commission. Police Chief Ron Madigan said he is ready to move ahead with the project after gaining approval from the commission that usually reviews wetland, setback and drainage items. The state highway department must now sign off on the project. Bids to construct the station are due Sept. 30. Officials are looking at the project taking a full year, with police personnel expected to move into the new facility by December of next year. An order of conditions will be issued now so that work can begin.

  

Ruidoso Downs prioritizes projects; water improvements at top

Officials with the city of Ruidoso Downs (New Mexico) have put a $1.09 million water system improvement project in the Agua Fria subdivision at the top of its Infrastructure Capital Improvement Plan for the coming five years. Officials hope to replace the water lines in the 126-acre subdivision in four phases, each phase including 6,000 linear fee of six-inch water lines, 20 fire hydrants and 10 valves. The current system has aging two- and three-inch lines and no hydrants or operable valves. Other capital projects in the plan address drainage needs, paved streets, emergency services, parks and expanded sewer services. The next highest rank project planned for 2013 is a $900,000 wastewater collection system for the subdivision and sewer coverage extension to LaCanada Drive. The final three major projects would be a $150,000 ramp for persons with disabilities at the Hubbard Museum, $280,727 in street reconstruction and drainage work along Nevada Lane and $350,000 for a DiPaolo Hill fire substation.

 

 

UNLV planning on public-private partnership to build new stadium on campus

Proposed UNLV Stadium

Officials at the University of Nevada Las Vegas are planning on a public-private partnership to build a new on-campus stadium without raising local taxes. The State Legislature said no to a special district that could have levied taxes to help fund the $2 billion stadium/dormitory/retail project and since then, UNLV has been working with developers to move the project forward. A representative of the developer has offered one solution as being UNLV issuing but not underwriting bonds to pay for the construction. Another proposal is for the developer to finance the project. The stadium would be built on public land and the developer would lease the land from UNLV and the two would split profits from the stadium at 50 percent each. Since talks began, the size of the stadium has been reduced from 60,000 to 40,000 seats. The Thomas and Mack Center would be renovated and a promenade of retail businesses would be located between the basketball arena and the stadium. And some 3,000 to 5,000 units of student housing would be constructed.

Partnerships for infrastructure work being considered in Minnesota

The State of Minnesota has infrastructure that needs immediate attention, but the dollars are just not there. So officials are considering new ways to help pay for construction and maintenance of state infrastructure. So a 28-member task force is looking for ways to figure out how the state can participate in public-private partnerships to get some of the needed projects completed. By the end of the year, the task force hopes to make recommendations with alternative public-private financing methods. Public-private partnerships, or P3s, involve a private partner joining with a public partner to complete a project. The task force will be looking at some successful P3s in other countries on which they might model their plans. With the state facing more than 200 bridges that need to be repaired and a backlog of state-owned roads that need repairs and maintenance, Minnesota officials are having to look past traditional funding sources that are drying up. The state has a leg up on the process as it already is involved in a P3 that is expected to be successful - reconstruction of the Highway 169 and Bren Road interchange. On this project, the private company provides part of the funding, but does not own the project. 

 

Atlanta neighborhoods to get park facilities thanks to public-private partnerships

A four-way partnership that includes the City of Atlanta, Georgia, and three nonprofits means new park facilities for the city. Two new fields opened recently that are built on city land with private money raised by the nonprofits. Additionally, a new foundation has been created that will create four and a half miles of trails along the Georgia 400 corridor.  

 

P3 solar project expected to result in big savings for California community college

Willy Duncan

A public-private partnership between the Sierra Community College District in California and a private sector solar energy system company has resulted in completion of the first phase of a pair of solar photovoltaic systems being installed on the college's Rocklin campus. Sierra President Willy Duncan said the project not only will reduce utility costs, but also "will allow for more dollars to stay in the classroom, and it is a step in the right direction toward using a clean, efficient energy source." The Rocklin campus system is 971 kilowatts and the second phase, a 282-kilowatt system, will be installed at the Grass Valley campus. The systems are expected to save millions in energy costs, not to mention the anticipated 72 million pounds of greenhouse gas emissions that will be curbed over 20 years.

 

California port authorities approve resolution supporting P3 for port expansion

Officials of the Port of Calexico in California have approved a resolution in support of a public-private partnership to construct an expanded port. The new port would be built next to the current old commercial port and will expand the number of traffic lanes into the United States. Security measures would also be added to make it safer for the traveling public. Under a proposal recently presented, private investors would put up more than $180 million and construct the port, which would then be paid back through a lease arrangement. The private investment would be paid back with interest through lease payments. The private investors say they have already talked with officials from the U.S. Department of Homeland Security, who they described as receptive to the idea. If such an agreement is put in place, the expanded port could be constructed in 2013.

 

New Hampshire city approves private firm's building of ice arena addition

An addition to the city's ice arena in Dover, New Hampshire, will be built by a private firm in the hockey industry at no cost to the city. The firm will donate it back to the city and then it can be rented by the hockey firm for the company's business. The private firm will build a 2,100-square-foot addition to the ice arena to house a hockey training facility. It is expected to be open in August 2012. City officials feel the new addition to the facility will result in hockey players from surrounding communities to travel to Dover for the services the private hockey company can offer. And at no cost to the city.

 

Want to know who your competition is? Who was awarded the contract on a particular project? Below are listed some recent winners of major government contracts:  

Folsom, California, Assistant City Manager Evert Palmer (top left), who has worked for the cit for more than 15 years, has been named as the city's new city manager, replacing Kerry Miller, who will retire Oct. 14. Miami Police Chief Miguel Exposito (top center), a 37-year law enforcement professional, was fired by city officials after being suspended for insubordination the previous week. Stefan Pryor (top right), Newark deputy mayor ad former president of the Lower Manhattan Development Corp. after the Sept. 11 terrorist attacks, is expected to become Connecticut's education commissioner. Florida Gov. Rick Scott has appointed Michael Daigle of Lithia, a 36-year veteran in the Florida phosphate industry, to the Bartow-based Florida Institute of Phosphate Research, to replace Karen Swager. Bob Ballard, deputy secretary of the Florida Department of Environmental Protection land and recreation division and a veteran of 12 years with the department, resigned last week. Former St. Joe Timberland Co. president Clay Smallwood will take over as director of the Division of State Lands at the Florida Department of Environmental Protection, replacing Deborah Poppell, who resigned in January. The California Coastal Commission has named Charles Lester (middle right), former senior deputy director of the commission who has worked there since 1997, as the agency's new executive director. Hayden Dempsey (middle center), who helped steer Florida Gov. Rick Scott's legislative agenda that included a Medicaid rewrite, is leaving government to return to his former law firm to head up the government affairs practice there. The Broward (Florida) School Board has chosen Robert Runcie (middle left), a computer consultant and chief of staff to the Chicago Board of Education, as the district's superintendent. Charleston, South Carolina, Fire Chief Thomas W. Carr, Jr., who last year won the Career Fire Chief of the Year award from the International Association of Fire Chiefs, has announced he will retire March 1 of next year. Santa Cruz, California, Fire Chief Hollis "Ron" Oliver and Finance Director Jack Dilles have announced they will leave their positions at the end of the year. Paul Gasparro, a higher education administrator from Oklahoma who most recently was vice president of academic affairs at Seminole State College in Shawnee, Oklahoma, is the new president of Cuyahoga Community College's Eastern Campus in Highland Hills. James Kvaal (bottom left), a former White House aide who became the Education Department's top political appointee on higher education a little over a year ago, is leaving his job to become legislative director for President Obama's re-election campaign. Chris Clement (bottom center), former state Office of Economic Stimulus director and deputy commissioner and COO at DOT, has been named New Hampshire's commissioner of the Department of Transportation. Toledo, Ohio, Police Chief Mike Navarre (bottom right), who began working for the police department in 1977 and was named chief in 1998, has announced he will retire on Oct. 21 after 34 years of service. The City of Sturgis, South Dakota, has hired Daniel Ainsle, former development manager for the city of Merced, California, as its new city manager, effective Nov. 1. Police Commander Robert Handy of the Phoenix Police Department has been chosen to become the next police chief in San Bernardino, California. Florida Department of Economic Opportunity Executive Director Doug Darling has announced numerous appointees, including Agency for Workforce Innovation Director Cynthia Lorenzo as COO; Michelle Dennard as director of the Division of Strategic Development; Tom Beck as director of the Division of Community Development; Tom Clendenning as director of the Division of Workforce Services; Kevin Thompson will be the new department's chief financial officer; Michael Ayers as chief of staff; Debby Kearney as general counsel; James Mathews as inspector general; Darrick D. McGhee as legislative and Cabinet affairs director; and Dean Izzo as chief information officer. Denton County (Texas) sheriff's Chief Deputy Lee Howell, a career officer and captain with the City of Denton Police Department before going to work for the Denton County Sheriff's Office, is the sole finalist for Denton police chief, replacing former Police Chief Roy Minter, who resigned in February to become chief of police in Peoria, Arizona.

PPPs for the federal government to highlight upcoming workshop

PPPs for the Federal Government: Real Estate and Energy Projects, a workshop sponsored by the National Council for Public-Private Partnerships, will be held Nov. 9-10 in Arlington, VA. The federal budget, aging administrative infra­structures and new energy policies are all creating a dynamic climate for the use of public-private partnerships in several major federal agencies. Senior Administration and industry representatives will outline what can and should be done. Sponsorships are available. For more information, click here. 

Many of our subscribers forward this newsletter to co-workers and associates. If you are not a subscriber, but would like to continue receiving this free newsletter each week, please click HERE to subscribe.