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ARRA Contracting Provisions

Recipients of American Recovery and Reinvestment Act (ARRA) of 2009 funds must comply with applicable state and federal contracting laws and regulations.

In addition, there are specific ARRA requirements that must be adhered to by all contractors and subcontractors on projects funded directly by or assisted in whole or in part with funds under ARRA. Below are selected contracting provisions from the Additional Accountability and Transparency Requirements section of the Act. Please refer to the American Recovery and Reinvestment Act Legislation External link opens in new window or tab. for other provisions and details relating to contracting requirements under the Act.

Competitive Procedures (Section 1554)
To the maximum extent possible, contracts funded under this Act shall be awarded as fixed-price contracts through the use of competitive procedures. A summary of any contract awarded with such funds that is not fixed-price and not awarded using competitive procedures shall be posted in a special section of the Web site established in Section 1526.

Quick-start Activities (Section 1602)
In using funds made available in this Act for infrastructure investment, recipients shall give preference to activities that can be started and completed expeditiously, including a goal of using at least 50 percent of the funds for activities that can be initiated not later than 120 days after the date of the this act. Recipients shall also use grant funds in a manner that maximizes job creation and economic benefit.

Buy American (Section 1605)
None of the funds appropriated or otherwise made available by this Act may be used for a project for the construction, alteration, maintenance, or repair of a public building or public work unless all of the iron, steel, and manufactured goods used in the project are produced in the United States.

Wage Requirements (Section 1606)
Notwithstanding any other provision of law, and in a manner consistent with the other provisions of the Act, all laborers and mechanics employed by contractors and subcontractors on projects funded directly by or assisted in whole or in part by and through the Federal Government pursuant to this Act shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with Subchapter IV of Chapter 31 of Title 40, Unites States Code.

Questions:   Government Affairs | ARRA@cde.ca.gov | 916-319-0821