For immediate release: Jul 02, 2009
Posted by: [INDOT]
Contact: Bruce Childs
Phone: 317-233-4675

INDOT's "First-Come, First-Served" Has $86.2 Million Pay-off in ARRA funds for Many Local Projects


INDIANAPOLIS - INDOT Commissioner Michael W. Reed today announced that in the next two months the agency will allocate all $86.2 million set aside for Local Planning Agencies (LPAs) as part of the American Recovery and Reinvestment Act.


"That's good news for many of those cities, towns and counties that submitted their projects in the first few months," Reed said. "Unfortunately, there are some projects that won't be funded, because there isn't enough money to pay for them."


Under ARRA, the state of Indiana received just under $658 million.  Of that, $460 million was allocated for state projects and $112 million for Metropolitan Planning Organizations (MPOs).  LPAs were allocated $86.2 million, and, as of July 2, LPAs had submitted projects valued at $124 million. 


There are two groups of LPAs affected by today's announcement.


First, there are the LPAs that have already submitted projects.  "We have instructed our senior managers in all six INDOT district offices to contact LPAs about the funding situation," Reed said. "INDOT will continue to review the projects that have been submitted until all the ARRA allocation is spent."


Second there are the LPAs that are still working on projects.  Reed said, "INDOT will also contact LPAs and advise them that if their projects have not yet been submitted, it is highly unlikely that they would be funded."


INDOT reviews all projects on a first-come, first-served basis to make sure they are "shovel ready."  That means that they have plans, specifications, cost estimates, environmental work completed, right-of-way purchased, and permits have been obtained.  The Federal Highway Administration (FHWA) also reviews the projects to ensure they meet federal guidelines for building highway and bridges, as well as transportation enhancement projects. 


LPA Allocation by INDOT Districts


Reed said each of INDOT's six districts was allotted a portion of the $86.2 million in ARRA funds set aside for LPA projects. The chart below shows the allocations, the value of projects that have completed the review process, the value of projects still in the review process, and the total value of projects that have been submitted in each district.



Completed Review

Queue of Reviewed Projects












Fort Wayne


























Reed said that some of the projects in the "Queue of Reviewed Projects" column may still be funded.  "We have been very fortunate that bids for projects have been running 12 to 15 percent under original estimates," Reed said. "That means as contracts are awarded in the next rounds of bid openings there is more money for other projects that are in line."


No MPO Impact


This announcement applies only to those LPAs that are not part of one of Indiana's 14 Metropolitan Planning Organizations.


MPOs submit projects on behalf of their members, and according to Reed, no MPO projects have been advertised for bids yet. 


The Next Bid Openings


INDOT's next bid opening will be in late July and August.  The lists of projects for that opening are being finalized.


ARRA Deadlines


The ARRA requires that all state and local projects must have funds obligated by March 3, 2010, and work on those projects must be completed by September 30, 2012.




As of the end of June (including the June 24 bid letting projects), the state had obligated or advertised $307 million in projects in 78 counties.



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