Caltrans Payments to Contractors at Risk

Without a state budget in place, Caltrans may not be able to pay contractors for work performed and roadwork and other projects will likely be delayed or stopped. Caltrans issued a news release to alert contractors and the media.  Sacramento’s KCRA News reported on the situation.

DBE 2010 Challenges and Changes-Are you ready?

The American Public Transportation Association announced a workshop they are having this fall entitled “DBE 2010 Challenges and Changes-Are you ready?”

October 4, 2010

Description: Is your agency keeping up-to-date with the challenges that have been made to transit DBE programs? How do FTA’s new DBE proposals affect your agency? Do you involve your DBE’s in your agency’s goal setting process? This session will provide you with the latest information on DBE issues and best practices as well as new resources that transit agencies can draw upon to strengthen and improve their DBE efforts.

Learn more here.

$897M Allocated To Expand CA’s Economy & Improve Transportation

Caltrans issued a press release detailing new funding to help stimulate California’s economy and improve the state’s transportation.

The California Transportation Commission (CTC) has allocated $897 million to 170 transportation projects statewide, including $157 million from Proposition 1B, a transportation bond approved by voters in 2006, and $49 million from President Obama’s American Recovery and Reinvestment Act of 2009 (Recovery Act). The remaining $691 million in allocations came from assorted transportation accounts funded by state and federal dollars.

“The Recovery Act and Proposition 1B are paying for vital transportation projects that help relieve traffic congestion and improve the quality of life for all Californians,” said Governor Arnold Schwarzenegger. “Investing in our infrastructure is strengthening our economy and creating jobs throughout the state at a time when we need them most.”

Since its passage, approximately $5.9 billion in Proposition 1B funding has been allocated. California has obligated nearly $2.5 billion from the Recovery Act to 931 highway, local street, and job training transportation projects statewide.

Continue reading the press release here.

FAR Final Rule on Payments Under Fixed-Price A&E Contracts

On March 19, 2010, the Federal Register posted their final rule on retention for federal fixed-price architectural and engineering (A&E) firms. This new rule gives the option of retaining up to 10% of payment due, but takes into consideration past performance of the firm. It also includes language requiring any unpaid balances be paid upon successful completion of the work and submission of the final invoice.

Read the Federal Register rule here.

AGC Traffic & Highway Bill

AGC has issued a press release on a traffic congestion survey and the impact on the transportation construction industry.

Industry–Wide Survey Reveals “Staggering” Costs of Congestion while Lack of a Traffic–Relieving Federal Transportation Bill Forces Firms to Cut Staff, Reduce Equipment Purchases

Brooklyn Park, MN – Traffic congestion and the delays it causes are costing the nation’s construction firms an estimated $23 billion each year according to a new analysis released today by the Associated General Contractors of America. There is no relief from traffic in sight, association officials warned however, as Congress is months late in passing six–year federal transportation legislation, prompting more pain for the hard–hit construction industry.

“Traffic tie ups nationwide are sapping productivity, delaying construction projects and raising costs for construction firms of all types,” said Stephen E. Sandherr, the association’s chief executive officer. “Given the hardships they are facing, the last thing contractors need is to burn time, fuel and money stuck in traffic.”

Continue reading the press release here.

Participate in Caltrans and Construction Industry Survey

Caltrans, AGC, EUCA and SCCA are looking for information to help them improve Small Business, DVBE and DBE participation on construction projects. Please take a few minutes to give your valuable insight on this survey.

Governor Names New Caltrans Director

Governor Arnold Schwarzenegger today announced the appointment of Cindy McKim as director of the California Department of Transportation (Caltrans).

“Cindy McKim is committed to improving our roads and infrastructure to meet the needs of future generations,” said Governor Schwarzenegger. “With many years of experience with Caltrans, she understands the impact that our transportation system has on businesses and job creation. Cindy shares my desire to see California grow and change to meet the needs of an ever growing population.”

C0ntinue reading the Governor’s Press Release.

$668M To Upgrade CA’s Transportation System

Caltrans issued a press release detailing the allocation of $668 million to 79 transportation projects statewide.

Sacramento – The California Transportation Commission (CTC) today allocated $668 million to 79 transportation projects statewide. The funding includes $152 million for nine projects from Proposition 1B, a $19.9 billion transportation bond championed by Governor Arnold Schwarzenegger and approved by voters in 2006. The remaining  $516 million in allocations came from assorted state and federal transportation accounts, including $2.9 million from the American Recovery and Reinvestment Act of 2009.

Continue reading the press release here.

FTA Comments On Latest US DOT Press Release

The FTA website posted a letter from FTA Administrator Peter Rogoff in response to the recent US DOT Press Release. In it, Rogoff emphasizes the important of small businesses and the impact on local agencies.

Read the FTA letter here.

US DOT Seeks Changes in DBE Requirements

The US DOT released information regarding Proposed Rule Broadens DBE Program Inclusions, Requires Greater Accountability from Administering Agencies.

The proposed rule would require greater accountability from state and local transportation agencies. Those that fail to meet established goals to include disadvantaged business enterprises in their spending plans must analyze the reasons for the short-fall and offer corrective actions.

In addition, the proposed rule would prevent DBEs from being removed from the program prematurely. It would raise the personal net worth limit for DBE owners from the present $750,000, to an inflation-adjusted $1.3 million. This personal net worth limit was set in 1989 and has not been adjusted since.

The proposed rule would also add safeguards to make sure that prime contractors fulfill commitments to use DBE subcontractors. State and local agencies would have to conduct post-award monitoring of each contract for this purpose, and prime contractors could not dismiss DBE subcontractors without good cause.

Read the entire press release here.

By Edward Salcedo
Mr. Salcedo is the President of GCAP Services, a California based business consulting firm that services both public and private sector clients. For more information about Mr Salcedo and GCAP Services, reference the ABOUT and DBE SERVICES pages.