Contracting Pilot Program

41.  Is DOT extending the pilot program, which expires on March 6, 2016?

• Yes.  DOT is extending the pilot program for another year through March 6, 2017.  The extension of this pilot program will provide FHWA and FTA recipients and subrecipients flexibility to continue operating under the pilot program while DOT conducts its evaluation as well as provide DOT with additional projects to consider in evaluating the impacts on competition.

42.  Does Section 418 of the Consolidated and further Continuing Appropriations Act, 2015, (FY 2015 Appropriations Act) continue to apply to FTA construction contracts? (see Q&As 27 and 28)

• No.  Section 418 of the FY 2015 Appropriations Act only applied to funds appropriated under that Act as well as any Continuing Resolutions of that Act.
   
• However, Congress enacted an identical provision at Section 415 of the Consolidated Appropriations Act, 2016, Public Law 114-113 (FY 2016 Appropriations Act).  As a result, FTA recipients and subrecipients do not need to submit applications for participation in the pilot program for contracts awarded or advertised on or before September 30, 2016.

43.  Are there any new requirements that are applicable to the pilot program?

• Yes.  Section 192 of the FY 2016 Appropriations Act expressly authorizes DOT assist contracts under titles 49 and 23 of the United States Code utilizing geographic, economic, or other hiring preferences not otherwise authorized by law if the grant recipient certifies the following:

1. That except  with respect to apprentices or trainees, a pool of readily available but unemployed individuals possessing the knowledge, skill, and ability to perform the work that the contract requires resides in the jurisdiction;
    
2. That the grant recipient will include appropriate provisions in its bid document ensuring that the contractor does not displace any of its existing employees in order to satisfy such hiring preference; and
    
3. That any increase in the cost of labor, training, or delays resulting from the use of such hiring preference does not delay or displace any transportation project in the applicable Statewide Transportation Improvement Program or Transportation Improvement Program.

• Accordingly, in addition to the requested information described in Q&As 21 and 25 above, recipients and subrecipients must also include the required certifications from Section 192 of the FY 2016 Appropriations Act as discussed above.