St. Louis Construction News and Real Estate (CNR)

News, March 3, 2010 | 03/03/2010

Federal Uncertainty Ends MODOT Awards

Uncertainty about the federal dollar pipeline led the Missouri Department of Transportation to withdraw its February bid awards at the last minute.

SAFETEA-LU, the most recent multi-year federal highway bill passed in 2005, provided $42 billion per year nationally to fund highway and bridge projects for cities, counties and states. When it expired in September 2009, the U.S. Congress extended SAFETEA-LU, but at a $30 billion annual level. For Missouri, the resulting funding shortfall puts nearly $250 million in state and local transportation projects in jeopardy.

"We are encouraged by actions taken by the U.S. Senate in recent days to remedy this situation," MoDOT Director Pete Rahn said. "But, in fact, there is not yet agreement between the Senate and the House on a common bill to address the shortfall in federal funding for highway and bridge projects to cities, counties and states. Because of this, MoDOT cannot prudently proceed with the February 26 bid opening."

The Missouri Highways and Transportation Commission will re-evaluate the remaining bid openings scheduled through May 21, 2010.