ARRA Contract Clauses
Third Party Procurement
Frequently Asked Questions
Q = Question; A = Answer
Q. What if any additional clauses are we required to put in our contracts if they are funded with Recovery Act stimulus funds?
A. Title XII of ARRA holds recipients of FTA Recovery Act funds to the existing requirements of 49 USC Chapter 53. No additional third-party contract clauses are required unless the recipient is receiving Recovery Act funds from sources other than FTA. Recipients themselves, however, are subject to the Recovery Act's reporting requirements for the funds received and expended — refer to the ARRA home, specifically, Reporting. And reference Contacts for the requirements currently applicable to third-party contracts under ARRA. (Posted: December 2009)
Q. Does the $100,000 threshold for FTA Buy America regulations apply to ARRA capital projects?
A. Given that the first goal of Congress in enacting the American Recovery and Reinvestment Act of 2009 (ARRA) was to "preserve and create jobs and promote economic recovery" (see Public Law 111-5, Section 3(a)) the Buy America waivers that would normally apply to regular FTA-assisted procurements (e.g., public interest, cost-differential, etc.) do not apply to procurements receiving ARRA funding, particularly if the waiver would permit the acquisition of foreign-made products to the detriment of domestic manufacturers.
FTA recipients are advised to find domestic sources for procurements using ARRA funds, and to use alternative sources of funding if domestic sources cannot be found. FTA may consider waivers in extreme circumstances, but only on the basis of non-availability and after a thorough notice-and-comment process has taken place via the Federal Register. (Posted: October, 2010)