Stimulus Plan -- Construction Sector Opportunities.

By Jeff Kimball

Companies with green expertise and those experienced in federal government procurement will have the advantage as they look for ways to participate in the stimulus program.

In its final form, the $789-billion American Recovery and Reinvestment Act holds a number of surprises and opportunities for the construction sector. Clearly, companies with expertise in green building techniques and constructing green facilities, along with those experienced in federal government procurement, will have the advantage as they look for ways to participate in the stimulus program.

The ultimate language of the Act stated that green building adherence is required and/or preferred in many of the funds that received the most allocations. In the billions of dollars provided to federal agencies throughout the legislation, environmentally friendly techniques and projects are called for in nearly all the work on facilities and infrastructure improvements, with the language stating that "green building principles shall be strongly considered," including the use and/or production of renewable energy and energy efficiency. While not nearly as many funds as anticipated were designated for direct funding of green projects, the agencies awarding contracts must require green building technology across the preponderance of the projects that are set in motion.

Another clear directive in the Act is that the majority of the funds will be going to existing federal agencies for construction and associated projects relating to their own facilities. For the most part, those funds not assigned for federal use will still be controlled by federal agencies to allocate to state government. Big winners on the federal side include transportation, with $27.5 billion for highways and bridges, a $1.5-billion discretionary fund allocated by the secretary of transportation, $8 billion for high-speed rail, and $6.9 billion for transit assistance, among other provisions.

The Department of Defense receives about $2 billion for construction under one budget and, in a second budget, $4.2 billion for facilities sustainment, restoration and modernization, along with $300 million to improve energy efficiency and $400 million for Defense health program facilities.

The Army Corps of Engineers is also high on the list, obtaining $4.6 billion that includes $2 billion for environmental infrastructure construction and $375 million for Mississippi River corridor improvements.