Overview
The American Recovery and Reinvestment Act of 2009 includes provisions to promote the inclusion of small disadvantaged businesses in federal contracting opportunities. However, 80 percent of the spending decisions will be made by states and localities that are not subject to Federal Acquisition Regulations.
Pennsylvania will receive an estimated $16 billion in ARRA funds. While the commonwealth is not subject to federal procurement requirements, the “Agreement Addendum on Implementation of the American Recovery and Reinvestment Act of 2009” requires a contractor to use “reasonable and good faith efforts” to include certified MBEs:
14. DBE Provisions. The Contractor shall comply with all applicable federal Disadvantaged Business Enterprises (DBE) requirements related to DBE programs. In the event there are no federal DBE programs applicable to this agreement, the Contractor shall comply with the Pennsylvania Department of General Services (DGS) policy for contracting (http://www.portal.state.pa.us/portal/server.pt/community/bureau_of_minority_and_women_business_opportunities/1358). In the event this agreement is a grant agreement not covered by federal DBE requirements, the Contractor shall use reasonable and good faith efforts to solicit and utilize DGS-certified Minority Business Enterprises (MBEs) and Women Business Enterprises (WBEs) for those contracting, subcontracting and purchase opportunities that exist and report utilization to DGS.
The PA MBEC ARRA Advocacy and Outreach Initiative will review MBE/WBE Subcontractor and Supplier Certification, Solicitation and Commitment forms for selected construction and non-construction projects to identify what, if any, efforts were made to provide opportunities for certified minority-owned businesses.
Governor Rendell Signs Executive Order Ensuring Recovery Act Funding Opportunities for Small, Disadvantaged Businesses (Oct. 28, 2009)
Reports
First Quarterly Report on Executive Order 2009-02, "Creating Opportunities for Small and Disadvantaged Businesses
in the Expenditure of Federal Stimulus Monies"
Source: James P. Creedon, Chief Implementation Officer and Secretary of the Department of General Services (March 11, 2010)
Public Hearings
Pennsylvania House Committee on Intergovernmental Affairs Hearings on the ARRA
Council of the City of Philadelphia Committee on Commerce and Economc Development Hearing on Proposed Ordinances to Establish "Local Bidding Preferences" and Require "Economic Opportunity Plans" on Stimulus-Funded Projects (Nov. 4, 2009)
Council of the City of Philadelphia Committee on Fiscal Stability and Intergovernmental Cooperation Hearing on City of Philadelphia's Receipt, Allocation and Utilization of Federal Stimulus Funds (Oct. 28, 2009)
Useful Links
Recovery.gov: Track the Money
Government Accountability Office's Oversight of the Recovery Act: Pennsylvania
Pennsylvania Right to Know Law
Minority Contracting Toolkit
ProPublica: Eye on the Stimulus
Recovery Act Transparency and Accountability Board
Regional Equity Monitoring Project
States for an Accountable Recovery
Reports
State of Entrepreneurship
Source: Kauffman Foundation (January 19, 2010)
News Stories
Less stimulus for minority firms
Obama wants stimulus projects to hire more minorities, women
City must get stimulated
Pa. order steers some stimulus work to small and minority-owned firms
Stimulus plan needs some stimulation: Awarded $157M in fed funds, the city has spent just $1M, and saved only 52 jobs
Agencies surpass Recovery Act small business contracting goals
Stimulus Reporting Deadline Looms
Pa. moving toward aid on stimulus
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