The Infrastructure Investment and Jobs Act (IIJA), often called the “Bipartisan Infrastructure Bill,” is legislation that allocates funds for various infrastructure projects across the United States. The federal government has committed more than $1 trillion to construction, manufacturing, and energy-related initiatives. Businesses looking to capitalize on these opportunities must comply with the bill’s requirements and understand the intricacies of the legislation, as most of the funding will be distributed through federal grants.
Funding and Applications
The IIJA is already making a difference, but agencies must ensure funds are used and accounted for responsibly. When states receive funds, counties and municipalities propose projects, justifying them with solid business cases. These cases will describe specific project outputs.
Once a project is funded, agencies will issue requests for proposals (RFPs) with clear key performance indicators (KPIs) for contractors. Regular reporting on KPIs and expenditures will ensure funds are used effectively and accountability is maintained. States, counties, municipalities, and other recipients must adhere to strict compliance reporting requirements to the U.S. Department of the Treasury.
To apply for funding from the Bipartisan Infrastructure Bill, businesses need to identify eligible RFP requests. They can research opportunities by exploring specific programs and grant opportunities offered by federal agencies. Once identified, comprehensive proposals outlining project goals, budgets, and timelines must be presented. Proposals must meet the specific eligibility requirements of each funding program.
Complying with Reporting Requirements
The Bipartisan Infrastructure Bill imposes stringent reporting requirements on recipients of federal funds. Funding recipients are subject to a number of compliance requirements:
- Office of Management and Budget’s (OMB) uniform guidance for federal regulations (2 CFR 200)
- S. Department of Energy’s (DOE) grant regulations (2 CFR 910)
- Other statutory requirements imposed by the bill
- Department of Energy (DOE) funding agreement terms and conditions
Businesses must keep detailed records of all project expenses, revenues, and other financial transactions. They must file required reports on time, including financial statements, progress reports, and compliance certifications. They must also follow federal procurement, labor, and environmental regulations.
Audits
To ensure compliance with the Bipartisan Infrastructure Bill, federal agencies require audits of recipients that receive Federal awards of $750,000 or more for a given fiscal year (2 CFR 200.501). These audits aim to verify whether funds were used for intended purposes, adherence to federal rules and guidelines, and the correctness and timeliness of financial reports.
The OMB provides a compliance supplement as guidance on audit focus areas. These focus areas tend to match the federal grant compliance regulations.
Procurement
The Bipartisan Infrastructure Bill emphasizes fair and open competition in procurement (2 CFR 200.320). Businesses should adhere to federal procurement regulations, including the Federal Acquisition Regulation (FAR), establish procurement procedures to ensure transparency and accountability, and consider opportunities for small businesses to participate in infrastructure projects.
Cost and Accounting
Accurate cost accounting is essential for compliance with the Bipartisan Infrastructure Bill. Businesses need to employ consistent accounting principles and practices, allocate costs to specific projects accurately, and keep detailed documentation to support cost claims. (2 CFR Subpart E)(2 CFR 910.352)
Domestic Preferences
The Bipartisan Infrastructure Bill includes provisions for domestic preference, encouraging the use of American-made products (2 CFR 200.322). Businesses should prioritize preference for domestically produced goods and materials and understand the Build America, Buy America Executive Order.
Employment and Labor
The Bipartisan Infrastructure Bill emphasizes labor standards, including prevailing wage and Davis-Bacon Act requirements. Businesses will have to ensure that workers are paid the appropriate prevailing wage rates, adhere to the Davis-Bacon Act’s requirements for public works projects, and maintain detailed payroll records to demonstrate compliance with labor laws. (29 CFR 5)
Strong Internal Controls
Internal controls are crucial for effective financial management and compliance. Businesses must implement a system of internal controls to prevent fraud, waste, and abuse, regularly assess internal controls to identify and address weaknesses, and provide training to employees on internal control procedures. (2 CFR 200.61)
Windes Can Help
Windes Accounting Firm can assist businesses in navigating the complexities of the Bipartisan Infrastructure Bill. Our services include conducting audits to ensure compliance with federal regulations, tax planning and compliance to help companies minimize tax liabilities and comply with tax laws, guiding cost allocation and accounting practices, and assisting with grant application and compliance requirements.
By partnering with Windes, businesses can confidently navigate the challenges and opportunities presented by the Bipartisan Infrastructure Bill.
For questions or more information, please contact Jeff Ehlers at jehlers@windes.com.
