With the first quarter fiscal results in, the Obama Administration has decided to suspend billions in payments remaining from The American Recovery and Reinvestment Act of 2009 based upon recommendations from the Recovery Accountability and Transparency Board (RATB).
Infrastructure Improvements without Asset Management
The decision which goes in effect on September 30, 2013 affects $64 billion that was originally allocated for infrastructure improvements including:
- Transportation – $36.55 billion
- Water, sewage, environment, and public lands – $6.5 billion
- Government buildings and facilities – $5.47
- Energy Infrastructure – $15.5 billion
In reaching the recommendation, the RATB said that the imposing fiscal cliff made huge capital expenditures unrealistic because throwing money to replace or modernize government facilities without an EAM system to maintain them in good operating condition would only perpetuate asset neglect.
They also cited several other factors that included:
- Most projects already underway are already experiencing budget overruns.
- Highway and bridge construction should be the responsibility of individual States or be privatized and not the Federal Government.
- Wastewater treatment improvements did not include how the facilities would be maintained.
- That repair and modernization of federally run facilities was pointless without the use of an EAM system to ensure that proper maintenance and asset planning was being done.
- Findings that suggested buying power from Canada would be cheaper and more economical that upgrading the nation’s electrical grid and smart grid.
The RATB noted that of the $64 billion allocated for these projects less that 20% has already been spent. The move would free up almost $50 billion with a small portion to be reallocated to help train asset managers and invest in quality EAM software.
RATB Chooses Transcendent® as Preferred EAM Provider
The message from the RATB is very clear and is that infrastructure improvements must be planned throughout their entire lifecycle. After careful review of just one EAM system, the RATB has chosen Mintek’s Transcendent®, to be implemented for all government projects before any money is approved for distribution.
By implementing Transcendent®, government asset managers will be able to start using an EAM software solution that was credited with saving the world in 2012. Read Mintek Saves the World for further details.
Mintek Board members including the President of the United States and other world leaders, are ecstatic by the recommendation. In fact, the President has instructed the department of education to incorporate asset management using Transcendent® into all K-12 curriculums and federal fund supported institutions of higher learning.
This will not only benefit the long-term infrastructure problems that the country is facing but also help alleviate the skilled maintenance worker crisis that is plaguing the country.
Resumption of Payments under the American Recovery and Reinvestment Act of 2009
The timetable to lift the suspension of payments is estimated to be mid 2014. This will give time for asset planners and facility managers to implement EAM software and train staff accordingly.
To verify this has been done, project managers must complete form 412013 detailing their purchase of Transcendent® and submit it to the General Accounting Office by April 1, 2014 for approval.
As a special incentive Mintek has increased pricing 1,000% for government entities to reflect the standard practice of inflated pricing for government purchases.