ARRA bond reimbursement for DBEs
Published on 07/16/2010
Disadvantaged Business Enterprises (DBEs) are not taking advantaged of American Recovery and Reinvestment Act (ARRA) bond reimbursement dollars, says the US Department of Transportation (US DOT).
"It is surprising that a large number of DBEs at [outreach] meetings were not aware of the reimbursement program," wrote Allen Masuda, US DOT's Associate Administrator for Civil Rights, in an email circulated to DBE program officials. "For DBEs that are working on or have worked on Recovery Act projects, this could mean missing out on receiving several thousands of dollars."
To date, only $250,000 of the $20 million allocated by the ARRA has been paid out to the Bonding Assistance Reimbursable Fee Program (BAP).
Under the BAP, which is administered by the US DOT's Office of Small and Disadvantaged Business Utilization, DBEs are eligible to be reimbursed for bonding premiums and fees incurred when competing for, or performing on, transportation infrastructure projects funded by ARRA as a subcontractor or prime contractor. Only premiums paid to the surety company for performance, payment or bid/proposal bonds issued on or after August 28, 2009 will be reimbursed.
In the event that the DBE also obtains a bond guarantee from Small Business Administration's Surety Bond Guarantee Program, the US DOT will also reimburse the DBE for the small business concern fee of .729% of the contract price.
Without Congressional approval, BAP is scheduled to expire on September 8, 2010.
