Program Description
This American Recovery and Reinvestment Act (ARRA) program, will be administered by the Department of Transportation’s (DOT) Office of Small and Disadvantaged Business Utilization (OSDBU), which will allow small and disadvantaged businesses to apply to be reimbursed for bonding premiums and fees incurred when competing for, or performing, transportation infrastructure projects funded by ARRA. This program will be especially helpful for businesses with traditionally less working capital than larger contractors.
Under the ARRA Bonding Assistance Program (BAP), Disadvantaged Business Enterprise (DBE) performing on a transportation and infrastructure projects receiving ARRA funding assistance from any DOT mode of transportation will receive financial bonding assistance in the form of bonding fee cost reimbursement. This provision is applicable to a subcontract or prime contract at any tier in the construction project. Under this program, DOT will directly reimburse DBEs the premiums paid to the surety company for performance, payment or bid/proposal bonds. The range of the premium fee is between 1-3 percent of the total bond amount. In the event the DBE also obtains a bond guarantee from Small Business Administration’s Surety Bond Guarantee Program, the DOT will also reimburse the DBE for the small business concern principal fee of .729 percent of the contract price.
General Program Requirements
The DBE performing on transportation-related projects, at the Federal, state or local level, receiving ARRA funding assistance from any DOT mode of transportation such as Federal Highway Administration, Federal Transit Administration, and Federal Aviation Administration qualify for a bonding assistance in the form of a bonding fee reimbursement.
To be eligible for a bonding fee reimbursement under the Recovery Act: DBE Bonding Assistance Program, a contractor must:
(a) Be a certified DBE in accordance with Title 49 Code of Federal Regulation Part 26 (49CFR26);
(b) Have a Dun and Bradstreet Number,
(c) Be registered in the Central Contractor Registration (CCR), CCR.gov; inclusive of bank information for electronic payment, and
(d) Provide goods or services on a contract for a transportation-related project receiving funding pursuant to ARRA or if a bid/proposal bond is required, bid on a contract for a transportation-related project receiving funding pursuant to ARRA
Only qualified bonds obtained from August 28, 2009 to September 8, 2010 are eligible.
The following information will lead you to the next steps to apply for this benefit.
Application Process
You can apply for reimbursement by email or by mail (please use only one method per application). Awards will be made in the order of application receipt until funding is fully expended or the program closes on September 8, 2010. In the event funding is fully expended prior to September 8, 2010, OSDBU will cease to accept new applications. The application can be found at: http://www.dot.gov/recovery/ost/osdbu/FeeReimbursementForm.pdf.
To Mail: Send your signed application and all supporting documentation to the following address:
U.S. Department of Transportation (DOT)
Office of Small and Disadvantaged Business Utilization (OSDBU)
1200 New Jersey Ave., SE, W56-448
Washington, DC 20590
To Email: Scan your completed and signed application and all supporting documentation to (all emailed applications must be in PDF format):bap.arra@dot.gov.
Applications submitted by mail may be delayed due to mail screening security requirements. For faster reimbursement, submit your application electronically by email. Applications must be received on or before September 8, 2010. Regardless, the applicant is advised to request delivery confirmation for mail submissions or return receipt for email submissions.
Program Contact Information
For more information, see the full notice in the Federal Register at: http://www.federalregister.gov/inspection.aspx#reg_T. Additional Guidance and information can also be found at: http://www.dot.gov/recovery/ost/.
To contact the Bonding Assistance Program office, please use one of the following options:
1. Phone: 1-800-532-1169
2. Website: http://www.dot.gov/recovery/ost/osdbu/
3. Address:
OSDBU/DOT ARRA BAP
U.S Department of Transportation
1200 New Jersey Ave, S.E., Room W56-49
Washington, DC 20590
4. Email:
bap.arra@dot.gov
Managing Agency
U.S. Department of Transportation
http://www.dot.gov/
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