Recent congressional funding cuts for road projects nationwide couldn’t come at a worse time for local contractors already slogging through a stagnant market.
The Missouri Department of Transportation withdrew all projects advertised for bid in its February and March bid openings, representing 12 highway and bridge projects totaling $130 million, MoDOT spokesman Bob Brendel said.
MoDOT officially canceled opening March bids on March 9, according to a news release from the agency. They were scheduled to be opened March 26.
The federal funding cuts forced MoDOT to delay eight road projects in February and four in March. MoDOT’s bid-letting schedule has been modified to begin March 26 with those projects scheduled to be awarded in April.
State officials cited continued uncertainty about federal funding levels for highway and bridge projects.
“MoDOT will not seek bids on future projects until the funding shortfall is corrected,” MoDOT Director Pete Rahn said in the release.
The crux of the issue is a $12 billion shortfall in federal highway funding that Congress has yet to address.
“Congress has shown their inability to move forward on any legislation to fund the transportation program for more than 28 days at a time,” said John View, vice president of Leo Journagan Construction Co. Inc., in Springfield.
For Missouri, nearly $243 million worth of city, county and state highway and bridge projects are at risk. That includes the widening of Campbell Avenue in south Springfield.
“It was set to go in October,” Springfield Director of Public Works Marc Thornsberry said at City Council’s March 8 meeting. “They were hoping to move it up earlier. (With) what’s happening in Washington, that may or may not happen.”
The most recent multiyear federal highway bill – the Safe, Accountable, Flexible, Efficient Transportation Equity Act – was passed in 2005. It provided $42 billion per year nationally to fund highway and bridge projects for cities, counties and states.
When it expired in September 2009, Congress extended SAFETEA, but only at a $30 billion annual level.
If passed, House Resolution 4722 would extend SAFETEA and fund projects through Dec. 31, View said.
The resolution was referred March 2 to the House Committee on Transportation and Infrastructure and must pass the Senate before being sent to President Obama.
Dave Roling, Springfield division manager for Emery Sapp & Sons, said extending the federal funds through the end of the year is critical.
“Part of this continuing uncertainty is that Congress has only enacted this extension at this point through March 28,” Roling said.
“There’s been a lot of legislation about extending that through the end of the year. That’s really a very important thing – our Congress and people we elect to Congress, what they need to do for us is give certainty in this uncertain time,” he added.
Roling emphasized the importance of keeping construction crews working.
“My wish and desire is to get this extension at least through the end of the year,” he said. “The construction market is one of the most responsive markets in putting people back to work.”
APAC-Missouri Inc.’s Vice President David Anderson believes the funding will be renewed.
“At what level it’s funded, I don’t know,” Anderson said. “There will be something done on it.”
Roling said another aspect is that his company must now expand its coverage area.
“The more miles we travel and mobilize, the less competitive you are, in theory,” he said. “We’re probably bidding two or three times the work just to maintain the backlog.”
View said Journagan is operating on a “skeleton crew everywhere.”
“The fortunate part,” View added, “is a lot of contractors are shut down because of the time of year.”
Hartman & Co. Inc. office manager Mary Beth Daniels said members of Congress should focus attention on something besides health care.
“They’re so wrapped up in this health care issue up in Washington that everything else has just fallen by the wayside,” she said. “Everyone really just needs to write their Congressman.”
Anderson agreed.
“MoDOT can’t spend money they don’t have,” he said. “The federal government is who we need to be talking to.”
Despite the loss of federal funding, MoDOT has tried to keep road and transit projects rolling, according to separate news releases from the agency.
Recent efforts include a sale of property owned by the state agency last November that generated $676,739 for road and bridge projects and fully obligating $30.7 million in American Recovery and Reinvestment Act funds.
Because the property sale was so successful, MoDOT will hold a second property sale April 26–30. Thirty-two pieces of property ranging from a quarter of an acre to 200 acres will be offered for sale.
Information on state highway property for sale can be found at
www.modot.org/realtyforsale.[[In-content Ad]]
