Onvia Releases Scorecard and Cumulative Spending Figures
Washington, DC (PRWEB) Feb. 17, 2010 -- A one-year scorecard on the American Recovery and Reinvestment Act prepared by government spending analysts at Onvia reveals 2009 was a start-up year, paving the way for huge impacts in 2010. Onvia is the leader in business-to-government solutions and the creator of Recovery.org, a private sector initiative to give businesses access to recovery contracts and projects.
Impact on Jobs in 2009: C+
536,500 jobs have been funded by contract spending in the year since stimulus passage. The majority of jobs funded to date are in the public sector, primarily teachers and public safety personnel. In 2010 Onvia expects more than 90% of the job creation to shift to the private sector.
Tracking job creation was a major challenge in 2009 due to the formulas used and reliance on recipients.
Spending Velocity in 2009: C
In 2009 just 25% of stimulus contract spending was awarded to the contractors and subcontractors that create jobs, with the bulk of the remainder cued up for award in 2010.
ARRA intended to utilize existing programs to speed funding to the marketplace to jumpstart job creation. However the time lag between announcement of Federal funding and actual spending/contracting at the local level has proven to be more protracted than expected.
Federal-Regional Alignment in 2009: C
With huge sums of federal money being spent nationwide, attention to regional attributes – such as pre-existing infrastructure and workforce skills – can allow agencies to make the best use of stimulus dollars. However disseminating funds through existing formula programs has not been optimized for this strategy. For example there has been no significant focus on distressed communities, or where best to make healthcare vs. energy vs. infrastructure investments. What works to stimulate economic growth in one region or sector can vary in another.
Transparency in 2009: B-
Although the stated intent was to track spending “down to the penny,” in reality ARRA did not require tracking beyond the first two tiers of stimulus distribution. Therefore the reporting is often provided by pass-through agencies that are not the final recipients of the money. With 65% of spending occurring below the first two tiers, the federal government does not have the visibility required to track every dollar awarded to contractors and subcontractors. Onvia’s approach is to track contract allocation, advertisement, and award data from 89,000 government entities daily. The company established Recovery.org in February of 2009 to give businesses transparency into recovery project spending.
Running Totals of Recovery Act Project Spending and Job Funding
BY END Q1 '09:
Allocated: $16,787,100,869; Advertised: $1,018,948,343; Awarded: $494,493,477
Totals: $18,300,542,689; Jobs Funded: 5, 370
BY END Q2 '09:
Allocated: $42,586,019,916; Advertised: $9,040,180,674; Awarded: $8,890,069,029
Totals: $60,516,269,620; Jobs Funded: 96,546
BY END Q3 '09:
Allocated: $56,174,200,019; Advertised: $17,611,039,800; Awarded: $28,982,845,282
Totals: $102,768,085,101; Jobs Funded: 314,754
BY END Q4 '09:
Allocated: $72,378,127,460; Advertised: $25,892,702,030; Awarded: $43,280,352,869
Totals: $141,551,182,359; Jobs Funded: 470,025
AS OF FEB 10 2010:
Allocated: $85,645,483,797; Advertised: $32,006,096,535; Awarded: $49,404,137,193
Totals: $167,055,717,525; Jobs Funded: 536,529
Potential Impact in 2010: A-
89,000 government entities in the United States will spend $5.5 trillion in 2010, nearly half of GDP and an all time high as a percentage of GDP. Competition will be fierce among contractors and subcontractors as more look to this market as the only viable way to grow their businesses in 2010.
Onvia forecasts the funding of 1.1 million direct and indirect jobs from ARRA contract spending in 2010. Of these, Infrastructure projects will generate 900,000 direct and indirect jobs; transportation, 70,000; and energy projects, 110,000. The Southeast region will see the most job activity, followed by the Far West and the Great Lakes regions.
"Government spending is at an all-time high and we do not see that changing in the foreseeable future," said Mike Pickett, CEO of Onvia. "We are witnessing the 'Next Economy' in which government more actively participates in business interests through regulation, direct ownership, contracting requirements, and other means. For business, the debate isn't about the size of government, but rather how to engage in and influence this vast and growing market."
For more than a decade Onvia has been the leading provider of Business-to-Government solutions in the United States, covering the broadest set of industries, projects and products at every level of government. Thousands of companies rely on Onvia's customized information services to grow sales opportunities, understand buyer and seller activities, and research markets. For information, call 1-800-331-2320 or visit www.onvia.com. To view Economic Recovery-funded projects tracked by Onvia, visit www.recovery.org.
Read the full story at http://www.prweb.com/releases/2010/02/prweb3615394.htm.
Copyright©2010 Vocus, Inc.
All rights reserved