Using Federal Arpa Funds for Construction – Government Contracts, Procurement, PPPs

Do your school district or local government clients use federal ARPA dollars?
Is ESSER money included in construction and/or capital improvement contracts?
Do your clients rely on industry-standard forms and engineers to create drafts?
Tender and construction documents?
Have clients consider additional compliance requirements
Is it required to legally use federal ARPA funds for procurement or construction?

When was the last time the client revised the procurement contract?

Now is the time for school districts and local governments across the Commonwealth to prepare bid documents tailored to address the additional compliance requirements necessitated by the use of federal funds by school districts or local governments. McNees can work with solicitors and their clients to prepare documents to adequately protect the special interests of the school district or local government. Construction documents from previous procurement or project design professionals are often reused. This can lend itself to contractual documents that lack key clauses designed to protect taxpayers and school districts or local governments. They may not have been designed to adequately spread risk or account for concerns related to sourcing materials and rising costs. may not contain the information necessary to comply with

The consequences of not complying with federal ARPA and ESSER regulations and guidance are severe. In some cases, failure to comply and/or spending over certain amounts may result in a federal audit of school district or local government finances. Additionally, violations may force the federal government to repay school districts or local governments for repayment of funds, loss of grants, and/or disqualification for future federal funding. Liability and Criminal Fraud Certification.

Despite the above, and the serious consequences of any violation, errors and omissions are highly likely, so a comprehensive and regular review of procurement-related documentation is recommended. The McNees team reviews current drafts of his document and provides comments and documents specifically tailored to the project the client has in mind, taking into account the revenue streams used to pay for the project. can be prepared. Our experience allows us to do this in an efficient and cost-effective manner.

A comprehensive review includes:

• Review of standard request for proposal




• Review of proposed contract arrangements




• Review for compliance with state procurement law requirements




• Review for Compliance with Federal Acquisition Act Requirements




• Reviews for overall risk mitigation, including insurance, indemnification, limitations and/or waivers of liability




• Establish standard requirements for construction compared to procurement of equipment and materials

For example, we recently worked with a school district before it submitted a bid for a capital project. It turns out that the construction documents used by the district do not comply with additional state and federal procurement requirements. Additionally, these construction documents were drafted in a manner that would not protect the district if something went wrong during the construction project. created a series of documents containing stronger language important to construction projects to meet new federal requirements to protect the district.

The content of this article is intended to provide a general guide on the subject. You should seek professional advice for your particular situation.