The Infrastructure Investment and Jobs Act (IIJA) is a historic investment, allocating $550 billion to build, repair, and improve the nation's roads, bridges, airports, railways, and other transportation systems.

According to a report in Reuters, in just the last year, the federal government, largely through state or local municipalities, has awarded roughly $200 billion in contracts through more than 20,000 projects across all 50 states. While the legislation aims to enhance industrial competitiveness and foster a more resilient and efficient economy, the funding provides a generational opportunity for contractors to bid and win large construction contracts.

As Sherwin-Williams learned in a recent False Claims Act (FCA) settlement, the influx of money does carry conditions and it is important prime contractors, subcontractors, and Disadvantaged Business Enterprises (DBEs) understand and comply with the responsibilities that accompany the successful award of a contract.

Most notably, the IIJA places an emphasis on the use of DBEs, requiring 10 percent of all funding for surface transportation projects, public transportation programs, highway safety research, and development to be earmarked for DBE firms. DBEs are for-profit businesses that are at least 51 percent owned and controlled by socially and economically disadvantaged individuals. Interestingly, the federal Department of Transportation relies on state determinations and certifications of DBE status.

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Source: Reuters