How to bid for programs in the Economic Stimulus Bill

The $787 Billion American Recovery and Reinvestment Act of 2009 – also known as the Stimulus Bill represents a massive opportunity for many suppliers across America.  But, if they are new to Federal programs, they will need to be able to demonstrate good Earned Value and Project Management techniques - and implement effective systems and processes if they want to bid for the projects on offer.

With funding allocated all the way across Federal spending - from a modest $15M on Wildland Fire Management to a $29Billion allocated to Highway Improvements – there will be thousands of organizations considering making bids for the first time.  For a breakdown of the stimulus bill view this sortable table at the Wall Street Journal.

What Project Control or Governance will apply?

Looking in detail at the economic stimulus bill, it includes over $250M just for additional spending ‘oversight’ – which means that the Administration is serious about tracking every cent of expenditure against project delivery.  And nowadays that means effective project management – and the use of earned value techniques. 

Looking in more detail at the ‘Initial Implementing Guidance for the American Recovery and Reinvestment Act of 2009’ – section 6.5 states:

6.5 Are there actions, beyond standard practices, that agencies must take related to oversight and audit of contracts awarded under Recovery Act?

Agencies already have in place processes and procedures to continuously monitor and improve the effectiveness of internal control associated with their programs. In light of the Administration’s commitment to high levels of accountability and transparency, special attention should be given to maintaining strong internal controls over Recovery Act program funds. High risk associated with the award and expenditure of Recovery Act program funds, merit increased oversight by the Agency.

In addition, the Recovery Accountability and Transparency Board, established by the Act, Congress and the Office of Management and Budget will oversee and monitor implementation of the Recovery Act through periodic reporting on the use and expenditure of funds. Reporting will be in a variety of areas including:

• Progress against program schedule and performance objectives;
• Qualification and number of acquisition, grants and program management staff
• Use of competition;
• Timeliness of awards; and
• Dollars obligated and expended

Agencies should identify any special reporting requirements required by the Act and take action to ensure the information will available for timely reporting. Agencies are reminded that proper documentation must be maintained for each contract award. FAR Part 4 prescribes policies and procedures related to the proper documentation of contract files.

So without specifically mentioning EVM techniques, the clear message is that reporting requirements will be tight.

Earned Value Management?

Earned Value Management (EVM) is a technique for measuring and managing the scope, schedule and cost of a project in a single integrated management system.  Applied correctly it gives very early warning of any problems emerging in the project and for this reason it is being steadily mandated across more and more Federal programs.  There is a formal ANSI standard that covers it - ANSI/EIA 748.  Read more about why EVM is important

So if, for example, you are interested in bidding for some of the $350M allocated to create a ‘Broadband Inventory” for the country, you will probably need to submit a proposal that is fully compliant with the ANSI/EIA 748-A standard for Earned Value.

This may entail being ready with skills, processes and systems – depending on your starting point.  Contact Pinnacle now using the form on this page for a no-obligation conversation about what implementing an EVMS might require.

How can we help?

Pinnacle Management can help you prepare a proposal that will be compliant for any EVM requirement.  Contact us today and ask how we can help you succeed in your proposals – for the Stimulus package or any other Federal program needing Earned Value Management. Read more about how we can help you bid