Obama, Biden, DOT Secretary LaHood: 2,000th transport project underway
President Barack Obama announced funding for the 2,000th project at the U.S. Department of Transportation with Vice President Joe Biden and Transportation Secretary Ray LaHood.
The Trucker News Services
4/13/2009
WASHINGTON — Since the first transportation project was approved six weeks ago under the American Recovery and Reinvestment Act (ARRA), the 2,000th project was approved, the president and vice president and DOT chief Ray Lahood announced today.
President Barack Obama announced funding for the 2,000th project at the U.S. Department of Transportation with Vice President Joe Biden and Transportation Secretary Ray LaHood.
“I am proud to utter the two rarest phrases in the English language,” Obama said, “projects are being approved ahead of schedule, and they are coming in under budget.”
The programs are “going to help create jobs, make it easier for folks to get to the jobs they have, and improve our nation's infrastructure all at the same time,” said Biden, while DOT Secretary LaHood it was an example of government “working for the people.”
The 2,000th project is in Kalamazoo County, Michigan. The $68-million project involves widening of I-94 from two lanes both east and westbound to three lanes in each direction. The project will improve safety and ease congestion by providing a more efficient interchange.
State departments of transportation around the country have reported to FHWA intense competition by contractors for ARRA projects, according to a White House news release. Bids have been roughly 15 to 20 percent lower on average, and as much as 30 percent lower in some cases, than engineers anticipated.
For example, in Colorado, the state’s first five ARRA transportation projects announced on April 2 were 12 percent lower than anticipated. In Maine, one bridge project was 20 percent lower than estimated. In Oregon, during February and March 2009, bids have averaged 30 percent lower than expected, the release stated.
Obama secured passage of the ARRA and signed it into law on Feb. 17, less than one month after taking office. Less than two weeks later, on March 3, the Obama, Biden and LaHood released the first funding to the states and localities for highways, roads and bridge projects. That release of funds came eight days earlier than required by law.
ARRA provides a total of $48.1 billion for transportation infrastructure projects to be administered by the U.S. Department of Transportation. Of that $27.5 billion is for highways and bridges, $8.4 billion is for transit, $8 billion is for high speed rail, $1.3 billion is for Amtrak, $1.5 billion is for discretionary infrastructure grants $1.3 billion is for airports and Federal Aviation Administration facilities and equipment and $100 million for shipyards.
In early February, prior to the passage of the ARRA, LaHood established within the U.S. Department of Transportation the TIGER (Transportation Investments Generating Economic Recovery) team to ensure that economic recovery dollars for transportation infrastructure projects is rapidly made available and that project spending is monitored and “transparent.”
Apparently, the lower bids are due to heightened competition among contractors for recovery construction work, the release noted.
“These lower-than-expected bids are allowing states to stretch economic recovery funds to pay for additional projects, which the Department of Transportation predicts will create even more jobs and yield further infrastructure repair nationwide.”
The Trucker staff can be reached for comment at editor@thetrucker.com.