As 2012 approaches, economic unrest is still rampant. Government contractors may wonder about the robustness of public sector marketplaces in the coming year.

Congress has reached consensus for $1.5 trillion in spending cuts. Governors throughout the country have reduced budgets and slashed spending. Most cities and counties, as well as healthcare districts, are dealing with serious funding issues. However, government spending with private sector firms is expected to be greater than ever in the coming year. Here's why:  

• Technology spending will increase. Members of Congress who approved funding cuts have publicly affirmed their commitment to investment in new and improved technology. They, as well as other elected officials, understand that to increase efficiencies and to provide services with fewer full-time employees, technology is essential.

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Road, pipelines, airport runways, light rail, street car projects among those funded

Transportation projects including pipelines, roads, airport runways and more will be funded by TIGER grant money nationwide.

Only 46 transportation projects from 848 applications have qualified for funding from the U.S. Department of Transportation's Transportation Investments Generating Economic Recovery (TIGER) grants. Those projects - in 33 states and Puerto Rico - will share the $511 million in TIGER funds. Of that amount, more than $150 million will be allocated for projects in rural areas and close to 48 percent of the funds will be used for road and bridge projects.

The nearly 850 applications requested a total of $14.29 billion in funding, $13 billion more in requests than the $511 million that was available.

A further breakdown shows that:

• 29 percent will be used for transit projects such as the Westside Multimodal Transit Center in San Antonio;
• 12 percent will help build port projects such as rail yard improvements at the Port of New Orleans;
• 10 percent will benefit freight rail projects such as the Muldraugh Bridge replacement in Kentucky;
• Three grants will provide better multimodal access to airports such as DFW in Texas; and
• Three grants are headed to tribal governments to address transportation projects in Indian country.

The largest grants were $20 million each for projects such as I-95 High-Occupancy Tolling (HOT) lanes in Virginia. The project will provide leverage for a Transportation Infrastructure Finance and Innovation Act (TIFA) loan to help finance the construction of 29 miles of HOT lanes in Northern Virginia, from Fairfax to Stafford Counties. The northern portion of the new HOT lanes will connect with the Capital Beltway HOT lanes that are currently under construction. The revitalization of the St. Louis CityArchRiver in Missouri also earned a $20 million grant. The project consists of roadway improvements along the I-70 corridor road system in St. Louis. The current roadway configuration creates a safety hazard to pedestrians and vehicles trying to access the Arch Grounds, and results in inefficient traffic flow. The project will complement the completion of other projects in the area, including the new Mississippi River bridge. 

To view the complete list of the funding, projects and a description of each project, click here and look under "Recent Reports." 

The Government Contracting Pipeline will not publish next week as our staff will be observing the Christmas and New Year's holidays. We will return to our regular Wednesday publication date on Wednesday, Jan. 4, 2012. The offices of Strategic Partnerships, Inc. will be closed on Friday, Dec. 23, Monday, Dec. 26, and Monday, Jan. 2. Have a safe and happy holiday!

Governor's proposal would cut Department of Transportation funding by $1.2B

Rick Scott

Florida could see its state road budget drop by $1.2 billion under a spending bill Gov. Rick Scott has sent to members of the State Legislature. Downward spiraling fuel tax receipts are eating a hole in the state's road budget.

Scott's proposal, if adopted, would continue the steady drop in state transportation funding of recent years, and officials say it could get worse before it gets better.

Scott's proposal calls for a decrease in the state Department of Transportation's funding of about 15 percent - from the current $7.86 billion to $6.7 billion. In the last five years, declining fuel tax receipts and the recession have knocked $8.7 billion in funding from state road projects. Officials say another $1 billion in reductions are likely over the next seven years. Some of the fuel tax losses are a result of gas prices at over $3 per gallon, forcing many not to drive unless necessary. More fuel-efficient vehicles also are contributing to tax losses.

Scott's proposal includes not only a $388 million cut in highway construction funds, but also a $156 million drop in new bridge construction monies and a $117 million decline in funding for the Florida Turnpike system. 

Large Cornell University gift could help with new campus in New York

David Skorton

Officials at Cornell University say they have received a $350 million gift from an anonymous donor that will help the university toward its goal of an applied sciences campus in New York. The gift comes on the heels of Stanford University's recent announcement that it was dropping out of the competition for the proposed campus. Cornell President David J. Skorton said the gift represents the largest in the university's history. "Our vision is to build a truly twenty-first century campus that will fuel the city's growing tech sector and spur the creation of new businesses and new industries for decades to come," he said. Cornell is partnering with Technion-Israel Institute of Technology on a proposal to open a campus by 2012 in existing space. Cornell is one of seven universities and consortiums that sought to bid on construction of a science campus in New York. Cornell says if it is chosen, it will offer degrees in computer science, electrical and computer engineering and information science.

New York State voters approve $34.5M capital plan for schools

A total of $34.5 million in capital improvement projects in the Green Central School District in New York State will begin in 2013. Voters approved the projects recently. Most of the work includes replacing aging equipment and old building components and bringing schools up to code. Long-term facility maintenance needs will now be addressed. Included in the projects are partial roof replacements, installing fire-rated classroom doors with Americans with Disabilities Act-compliant hardware, upgrading exit and emergency lighting, adding fire alarm systems with strobe lights and replacing ventilation and building exhaust equipment. Softball fields will also get new dugouts. A survey was conducted recently that showed a backlog of more than $12 million in maintenance work that needs to be done among the district's 20 schools.

Ohio school district to solicit bids for new high school

Tim Tarvin

Officials in the Shelby (Ohio) schools recently approved construction designs for a new high school and are about to solicit bids for building it. The construction phase of the project is estimated at $19.2 million. Superintendent Tim Tarvin said the community has always been supportive of a good education for its children, adding, "We want to continue to earn their support by being good stewards of their money." Bids are expected to be sought before Christmas and contracts awarded shortly after the new year. Already, $2.3 million in contracts were approved in October for site work, which must be completed by March 30, 2012. Work on utilities, road and infrastructure is already under way. The $28 million, three-year building project was approved by voters last August.

 

Colorado State approves $124.5 million bond package for upgrades

Colorado State University's Board of Governors recently approved a $124.5 million bond package that will provide upgrades in classrooms and agriculture facilities, while also providing a new undergraduate housing facility that will house 600-plus students. The bond package also will pay for renovations at the Lory Student Center. Student fees will pay for most of the Student Center renovations while rent from students in the new housing facility will defray the costs of that project. The bond issue includes $7.5 million for a partial renovation of the Animal Sciences Building so it can be expanded and enhanced in the future, $60 million for the student center renovation and $57 million for the new housing development and renovation of the existing Durrell Center. Design work is currently under way and construction on the Animal Science projects will begin in May. The student center renovations will begin in May of next 2013. The Animal Science project will include $7.5 million to replace the plumbing, mechanical, electrical and telecommunications system in the more than 41,000-square-foot building. A new and modern audio-visual system will be installed in the renovated teaching labs and classrooms. The College of Agricultural Sciences is hoping to build a 170-seat auditorium from private donations. 

 

Vermont could be in line for new state hospital construction

Pete Shumlin

Virginia Gov. Peter Shumlin has offered a plan for replacing the Vermont State Hospital that was heavily damaged by Tropical Storm Irene. His plans include building a new 15-bed facility in Berlin and expanding existing facilities in Brattleboro and Rutland. The expansion would include another 20 beds for state psychiatric patients who need intensive care. Part of the minimum security state prison in Windsor would be transformed to securely hold five patients who don't need that level of care. Total cost of the proposed new and renovated facilities would be approximately $42.6 million. The new construction in Berlin would likely cost $15 million and would be a state-of-the-art facility. The 14 beds sought at the Brattleboro Retreat would cost approximately $4 million in capital improvement funds. Changes at Rutland Regional Medical Center would cost approximately $6 million. "We have an opportunity in Vermont as a result of Irene to ensure that we rebuild this state better than the way Irene found us," Shumlin said. "We also have a golden opportunity to deliver to Vermont's most vulnerable citizens - our mental health patients in Vermont - the best quality care of any state in the country."

New Mexico town to hold first-ever bond election

Voters in Mesilla, New Mexico, will go to the polls for the first time in the town's history on March 6, 2012, to decide the fate of a $1.5 million general obligation bond referendum. The proceeds from the bond sale would be used for improvements to the town's Public Safety Building, headquarters for the marshal's office and volunteer fire departments. A successful bond vote would mean a tax increase for property owners in the town. The tax increase would only be in place until the debt is paid off.

 

New San Francisco 49ers stadium becoming closer to reality

Jamie Matthews

The Santa Clara (California) City Council recently approved plans to develop and pay for a new stadium for the San Francisco 49ers. The 68,500-seat venue will move the 49ers from their home since 1946 in San Francisco to their new home and new moniker as the Santa Clara 49ers."We got a virtual shovel in the ground," said Mayor Jamie Matthews after the vote. The team and the city still need for the NFL to say it will throw in at least $150 million to help secure the necessary loan. The loan is expected to be paid back through ticket sales, rent from the 49ers and naming rights. The stadium carries a $1 billion price tag. If approved by the 49ers, the team will leave its longtime home of Candlestick Park and spend the next 40 years playing in the new stadium in Santa Clara. Construction on the new facility could begin early next year and be completed in time for the 2014 season. City officials approved an $850 million loan to help build the facility. The team would pay $30 million annual rent on the stadium.

 

Port authority releases information on several airport projects

A $42 million runway surfacing and construction of a new Continental Airlines maintenance hangar at Newark Liberty International Airport are among a number of airport projects recently announced by the Port Authority of New York and New Jersey. Some $25 million will be spent to build the maintenance facility at Newark Liberty. These projects are among some $200 million in announced airport projects. Another $76 million will be spent on the World Trade Center site and $39 million will go to improve the flow of truck traffic on Corbin Street, the main road at the Port Newark/Elizabeth Marine Terminal container complex. 

 

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: 

• Kiewit Corp., Stacy and Witbeck, Inc., Stacy and Witbeck, Reyes Group Ltd. and Parsons Corp. as a joint venture have been awarded a $149.7 million design-build contract by the Dallas Area Rapid Transit Board of Directors for the extension of the Orange Line to Terminal A of the Dallas/Fort Worth International Airport.
• Ben M. Radcliff Construction has been awarded the $15.7 million contract by Jackson County (Mississippi) for construction of the maritime school at Ingalls shipbuilding.
• Granite Construction Inc. has been issued a notice to proceed on a $181 million contract by the North Texas Tollway Authority to construct Section 6 of the new Chisholm Trail Parkway.
• HP Enterprise Services has been selected by the U.S. General Services Administration as one of 21 vendors to provide federal agency sponsored buildings and campuses with telecommunications infrastructure services and products under the Connections II contract. The Connections II multiple-award contract offers comprehensive network services that support the integration of telecommunications, networking and applications to meet equipment, labor, building and campus infrastructure needs. The indefinite delivery, indefinite quantity (IDIQ) contract has a $5 billion ceiling and a base of three years and three months, with six one-year options.
• Paragon Systems won a $51.2 million contract from the Department of Homeland Security for utilities and housekeeping.
• Steurt-Chase Investments won a $10.8 million contract from the General Services Administration for lease or rental of facilities.
• Deval won a $49.3 million contract from the Department of Housing and Urban Development for professional, administrative and management support services.

Public-private partnership to aid West Virginia county schools

Earl Ray Tomblin

A covenant has been signed by West Virginia Gov. Earl Ray Tomblin, officials of the American Federation of Teachers (ATF) and other public and union representatives along with private sector partners to help launch a program expected to turn around the long-troubled McDowell County schools. The goal of the partnership is to identify the needs, come up with a strategy and costs. The first phase of the partnership has garnered a $150,000 donation from the ATF's Educational Foundation and $100,000 from the Benedum Foundation. Called "Reconnecting McDowell," the partnership aims at improving the schools, which have long been under at least partial state control for 10 years. Among the target problems are unemployment, substance abuse, inadequate housing and a fragmented infrastructure. "Countless communities across the country have been suffering due to the global recession," the governor said. "McDowell has been trying to counteract deeply embedded and difficult problems for many years." Partners are not expecting an overnight turnaround in the schools, but they are putting together a five-year plan that will be aided by providing funding, goods, services and expertise.

Sacramento still trying to develop P3 to build new downtown arena

Still looking for partners to help provide public-private financing, officials in Sacramento are aiming at building a downtown arena to replace the Power Balance Pavilion. The estimated cost of the stadium, which would be used for National Basketball Association games, is $406 million. Sacramento Mayor Kevin Johnson said the negotiations have been productive and said there is progress on the arena project. The possible partners are scheduled to meet again in January. A Los Angeles-based firm is interested in operating the facility. The one bump in the road that is causing the most headaches is a potential deal to privatize downtown city parking garages - a deal worth $200 million. The city will now seek statements of interest from private parking companies regarding leasing downtown parking operations in return for up-front contributions.

Some contracting opportunities from across the country

Robert Berdahl (top left), former president of The University of Texas at Austin and former chancellor of the University of California at Berkeley and former president of the Association of American Universities, has been named interim president of the University of Oregon. Stephen Crosby (top middle), former CEO, secretary of Administration and Finance and former gubernatorial chief of staff who currently serves as dean of the McCormack Graduate School of Policy and Global Studies at UMass Boston, has been chosen by Gov. Deval Patrick as chair of the Massachusetts Gaming Commission. Kim Schatzel (top right), dean of the College of Business at the University of Michigan-Dearborn since 2008, has been chosen as the new provost and vice president of Eastern Michigan University. Estelle G. Matthews, the Philadelphia School District's top human resources administrator has stepped down amid allegations of nepotism relating to pay raises to certain individuals while the district was laying off employees. Don Capener, a Monmouth College professor who co-founded Above the Rim, an athletic apparel company later sold to Reebok, will be the new dean of business at Jacksonville University. Peter Scheets of the Bryan (Texas) Police Department has been named chief of the Hutto Police Department, effective in January. Michele Flournoy (middle right), the most senior female Pentagon official in history, will step down from her post as chief policy advisor to Defense Secretary Leon Panetta, effective in February of next year. Richard Berner (middle center), a senior counselor to Treasury Secretary Timothy Geithner, has been nominated by President Barack Obama to become the first director of the Office of Financial Research within the Treasury Department, subject to Senate confirmation. Interim Chief Manuel Orosa (middle left) of the Miami Police Department has been announced by City Manager Johnny Martinez as the agency's permanent police chief. Kevin Carruth, former city manager in Daingerfield, Hillsboro, Brownwood and Prosper, Texas, has been chosen as the next city manager for the city of Rockport. Ron Gorland, an assistant city manager who has been with the city of Miami Springs, Florida, since 2004 and has been a resident of the city for more than 50 years, was recently named the new city manager there. Elizabeth "Betsy" Roy will be sworn in Jan. 3 as the new city clerk in Crestview, Florida, replacing former city clerk Janice Young, who resigned in July. Randy Hemann (bottom left), who served 15 years as executive director of Downtown Salisbury Inc., a nonprofit whose role is to lead revitalization efforts and economic growth of the city of Salisbury, North Carolina, has been named city manager of Red Bank, Tennessee. Dr. Debra Daniels (bottom center), president of San Bernardino Valley College in California has been chosen the next president of he Joliet Junior College in Illinois, the college's eight president, effective next March. Interim Fire Rescue Chief Carl A. Shank (bottom right), who has been involved with the St. Johns County emergency services for more than 25 years, has been named chief of the Fire Rescue Department. Dr. John A. Fahey, Jr., former assistant superintendent of Surry County Public Schools in Virginia, and in the Newport News City Schools, is the new superintendent of city schools in Hopewell, Virginia. Crawfordsville, Indiana, Assistant Police Chief Mike Norman, who was chosen as assistant chief in 2009 and is a former detective lieutenant, was recently chosen as Crawfordsville's new police chief. Ivan Langford, town manager in Little Elm, Texas, since 2006, has announced his resignation after accepting a general manager position in Texas City with the Gulf Coast Water Authority.