Obama Administration Selects Recovery Accountability and Transparency Board Members
In the midst of public furor surrounding American International Group’s distribution of $165 million in corporate bonuses using funds received through Troubled Asset Relief Program (TARP), the Obama administration is working hard to ensure both transparency and accountability in spending the $787 billion in economic stimulus funds.
On March 18, the Obama administration announced the membership of the Recovery Accountability and Transparency Board, created under the Recovery Act in order to prevent the potential waste, fraud, and abuse of ARRA funding through rigorous oversight. The board has been tasked with providing both quarterly and annual reports on the use of ARRA funding, establishing and maintaining the recovery website, and sending reports to the President and Congress on mismanagement issues requiring immediate attention. The board consists of the following members:
- Earl E. Devaney, Chairman
- Phyllis K. Fong, Inspector General Department of Agriculture
- Todd J. Zinser, Inspector General Department of Commerce
- Gregory H. Friedman, Inspector General Department of Energy
- Daniel Levinson, Inspector General Department of Health and Human Services
- Richard L. Skinner, Inspector General Department of Homeland Security
- Glenn A. Fine, Inspector General Department of Justice
- Calvin L. Scovel, Inspector General Department of Transportation
- Eric M. Thorson, Inspector General Department of Treasury
- J. Russel George, Treasury Inspector General for Tax Administration
- Mary Mitchelson, Acting Inspector General Department of Education
Additionally, on the same day, the Inspector General of the Department of Justice Office issued a report entitled “Improving the Grant Management Process,” which provides best practices for grant agencies to consider when implementing oversight polices.
Below is a summary of department-wide ARRA activity during March 13-20:
Department of Agriculture (USDA)
Agriculture Secretary Tom Vilsack announced the next in a series of public meetings on the Broadband Technology Program of the Recovery Act. The meetings will be held at 10 a.m. on March 19, 23 and 24 at the U.S. Department of Commerce in Washington, D.C., 1401 Constitution Ave, N.W.
These meetings will provide the public with an opportunity to comment on the most effective way for USDA to provide grants and loans for broadband systems. Congress authorized $2.5 billion to USDA and $4.7 billion to the Department of Commerce for broadband access.
Additionally, the USDA has:
- Obligated over $18 million of the $20 million provided by ARRA for Farm Operating Direct Loans.
- Obligated over $22 million of the $150 million provided by ARRA for the Commodity Assistant Program.
- Obligated nearly $7 million of the $650 million provided by ARRA for Capital Improvement and Maintenance.
The Department of Commerce’s National Telecommunications and Information Administration (NTIA) hosted a series of public meetings, in conjunction with the Department of Agriculture’s Rural Utility Service, to explore the most effective way to distribute the $4.7 billion dollars appropriated to the DOC for broadband development. A schedule of the remaining meetings can be seen above.
The DOC also obligated almost $48 million of the $650 million appropriated to the NTIA for analog-to-digital converter boxes this week.
According to the U.S. Army Corps of Engineers (USACE)—who received $4.6 billion under the Recovery Act for its Civil Works Program ($2.0 billion for construction, $2.075 billion for operations and maintenance and $375 million for the Mississippi River and tributaries account—the OMB is still in the review process for potential projects, with the release of a final list estimated for the end of March.
The USACE also expects to receive $1.4 billion from the Department of Defense. In a recent press release, the USACE said it anticipates awarding contracts for Child Development Centers, Warrior in Transition Complexes, family housing, troop billeting, and military hospitals.
Department of reported the following major actions:
- Agency leadership provided Recovery Act guidance and technical assistance with key educational organizations including Governors’ Liaisons and State Superintendents, Local Superintendents and Associations, and Chief State School Officers.
- The Department presented its Recovery Act plans to state implementation “czars” at the White House Conference on ARRA Implementation.
- Program Teams drafted detailed Terms & Conditions and application documents required for targeted end of March distribution of Phase I of Recovery Act funds totaling $44 billion.
On March 17 the Department of Energy released its allocation of formula block grant funds. These funds are given to state governments to help them finance programs such as increased building energy efficiency initiatives.
Department of Health Human Services (HHS)
The HHS Administration on Aging released $100 million in funding for programs that serve meals to senior citizens in need. The funds will be distributed through three programs:
- the Congregate Nutrition Services at senior center and other community sites will receive $65 million,
- the Home Delivery Nutrition Services program will receive $32 million, and
- Native American Nutrition Programs will receive $3 million.
HHS also announced that OMB has completed a review of several HHS spending plans, and once the necessary documents are prepared, funds will be released or funding opportunities will be made public. HHS’ARRA implementation team has also submitted additional spending plans for OMB review.
Department of Homeland Security (DHS)
DHS reported the following activities have now been completed:
- The United States Coast Guard has completed bidding documents for the Mobile and Elgin, Joliet, and Eastern (EJ&E) Railway Co. bridges, along with planning documentation and outlay projections for 7-8 shore infrastructure projects. Solicitation advertisements for the Mobile and EJ&E bridges are currently being planned.
- The Bureau of Customs and Border Protection (CBP) has allocated its $980 million in ARRA funding to program offices. CBP plans to issue RFPs by June 25, 2009 for multiple design/build projects and also expects to award contracts for non-intrusive inspection systems by May 29, 2009.
- U.S. Immigration and Customs Enforcement (ICE) has developed a draft project expenditure plan and has completed requirement assessments.
Additionally, FEMA’s grant timeline remains the same, as the agency plans to issue grant guidance in June-July of 2009 and award grants between September-December of 2009.
Department of the Interior (DOI)
Interior named Chris Henderson to the post of Recovery Act Coordinator. Henderson will oversee the more than $3 billion in stimulus funding that Interior will be investing in projects in communities, parks, and public lands across the country.
On March 20, Interior hosted an outreach seminar for tribes, architecture and engineering firms, and other contractors and vendors, regarding business opportunities under the Recovery Act .
The Bureau of Reclamation and National Park Service has posted synopses of new competitive grants on www.grants.gov.
On Monday, the DOJ announced that Community Oriented Policing Services (COPS) Hiring Recovery Program applications are now being accepted. According to the Department, the $1 billion in ARRA funding will create or save approximately 5,500 law enforcement officer jobs in law enforcement agencies across the country. Applications for the CHRP grants will be accepted online via the COPS Office website beginning March 16, 2009 through April 14, 2009.
Additionally, on March 19, the DOJ’s Office of Justice Programs (OJP) announce competitive solicitations for the following programs:
- Edward Byrne Memorial Competitive Grant Program
- Combating Criminal Narcotics Activity Stemming from the Southern Border of the U.S
- Assistance to Rural Law Enforcement to Combat Crime and Drugs
- Correctional Facilities on Tribal Lands Program.
On Wednesday, the Department of Labor issued policy guidance to states and outlying areas for the implementation of ARRA investments in core employment and training programs. This investment of $3,514,500,000 in the nation’s workforce system and network of One-Stop Career Centers is intended to help unemployed Americans upgrade their skills and get back to work. The training and employment guidance letter provides policy and direction regarding activities authorized under the Workforce Investment Act of 1998 and the Wagner Peyser Act, as funded through ARRA. The letter also provides specific instructions to states on how they can use funding under the Recovery Act to serve adults, dislocated workers and youth, and provide labor exchange services to all who need them. The workforce investment system will use Recovery Act funds to increase service levels, address immediate employment needs and spur future economic growth.
Additionally, the department will issue Notices of Obligation to the states for WIA Adult, Dislocated Worker, Youth, Wagner-Peyser, and Senior Community Service Employment Program Planning funds, notifying them that the funds are available and ready to be obligated by the states next week.
Department of Transportation (DOT)
On Tuesday, Secretary Ray LaHood stated that DOT is keeping its promise to use its economic recovery funding to invest in the nation’s transportation system and create jobs during remarks to the National League of Cities in Washington. True to his word, in addition to the $1.8 billion already allocated by DOT, the Federal Highway Administration announced that it will initiate allocations for Federal Lands Highway Program funding including $550 million for Indian Reservation Roads, Park Roads, Forest Highways, and Refuge Roads.
- The Federal Transit Administration will soon publish announcements for two ARRA competitive programs (Energy and Tribal Transit).
- The Federal Highway Administration announced that the agency intends to finalize risk management plans for implementation and oversight of ARRA projects and funding by the end of March.
- The Federal Railroad Administration will finalize its draft strategic plan for high-speed rail and intercity passenger rail grant programs.
Department of the Treasury (DTR)
On Monday, Treasury announced a commitment of $15 billion authorized under the Emergency Economic Stabilization Act to help unfreeze the secondary market for small-business loans, by allowing the DTR to purchase securities pooled from the Small Business Administration (SBA) Community Development Loan Program. The DTR is also using $730 million in ARRA funding in order to eliminate certain fees on loans approved through December 31, 2009 (fee eliminations will also be retroactive for all eligible loans approved on or after February 17, 2009) and raise guarantee levels on certain SBA loans up to 90 percent.
Additionally, the Internal Revenue Service (IRS) issued guidance this week to implement an ARRA “carry back” provision that allows businesses with gross receipts of up to $15 million to write-off their losses for up to five years. The Joint Committee on Taxation estimates that liquidity for small businesses will increase by $4.7 billion under this measure.
Environmental Protection Agency (EPA)
- Under the State Clean Diesel Grant program, the EPA informed all 50 states and the District of Columbia that each can receive $1.73 million. The total amount to be divided among the states and D.C. is $88 million.
- On March 12, the EPA conducted a widely attended webcast on the Clean Water and Drinking Water State Revolving Fund programs' green project reserve and answered questions from state program managers on the new 604(b) guidance (PDF).
- Under the Brownfields program, the EPA developed measures to track progress on Brownfields sites using stimulus resources which will allow the EPA to quantify jobs created and retained through this new funding.
- Under the Leaking Underground Storage Tanks program, the EPA continued discussion and collaboration with state officials to assist them in meeting their responsibilities for cleaning up leaking underground tanks using stimulus resources.
- Under the Superfund program, the EPA received authority to modify existing state Superfund contracts, thus easing financial burdens on states that accept Recovery Act funding.
General Services Administration (GSA)
The GSA reported that:
- The Federal Acquisition Service (FAS) is finalizing an Agency plan for the Energy-Efficient Federal Motor Vehicle Fleet Procurement appropriation and is working with the Office of Governmentwide Policy to finalize ordering procedures, financial processes, vehicle sales processes, and meeting Recovery Act reporting requirements.
- GSA is currently taking actions to establish an Office of Federal High-Performance Green Buildings.
Notice: The purpose of this newsletter is to identify select developments that may be of interest to readers. The information contained herein is abridged and summarized from various sources, the accuracy and completeness of which cannot be assured. This alert should not be construed as legal advice or opinion, and is not a substitute for the advice of counsel.