Use of Contingency Funding for the Great American Outdoors Act, National Parks and Public Lands Legacy Restoration Fund Projects

The GAOA LRF Contingency Fund is used to provide additional funding for BLM GAOA LRF projects and to ensure the BLM can address fluctuations in construction costs due to the ongoing volatility in the construction market.  Contingency funding for LRF projects is held in reserve and not allocated to specific projects until it is needed. Congressional approval is required for contingency requests exceeding 10 percent of the original project allocations. This IM is step down policy to the GAOA Program Management Office’s Memorandum, “Fiscal Year 2024 Quarterly Reporting and Contingency Fund guidance for GAOA LRF Projects,” (Attachment 1).

BLM is experiencing elevated construction costs due to increases in material and fuel prices, wages, and competition; therefore, the BLM’s contingency funding needs have increased and are forecasted to outpace contingency funds available.  To maximize the number of projects that can be completed, contingency allocations must be strategically approached. Therefore, all requests for contingency allocations will be approved on a case-by-case basis utilizing the following criteria:

• Amounts requested must be intended to complete the full scope of the project or contract modification.
• All project funding must be allocated to the project, i.e. there should be no additional funding for the project programmed for out-years.
• Contingency requests for subprojects will only be considered if all other subprojects are fully funded and nearing substantial completion.
• Value Engineering (VE) must be complete and implemented in the design, if required.
• Cost estimate must be at 100% design and approved/reviewed by the appropriate Headquarter/National Operations Center Subject Matter Expert (SME) or based on the solicitation bid.
• Prior to a contingency request, the project must be evaluated to determine if a reduction in scope is feasible. If so, consult with the Branch of Engineering and Asset Management (HQ-754) on recasting the project (annual opportunity to change the scope or budget of a GAOA project).
• Project must be considered a GAOA high priority, i.e. contingent upon number of major impacts project contributes to GAOA criteria.
• The State/Center’s weighted obligation rate for all GAOA projects must be equal to or greater than 54%. This is based on the current median value of all state obligation rates as of December 31, 2024.  Obligation rates will be re-calculated at the end of each fiscal quarter and provided to State Engineers by mid-month in October, January, April, and July. Reference Attachment 2 for your state’s Weighted GAOA Obligation Rates for Quarter 1 Fiscal Year 2025.

As part of the evaluation and recommendation for approval, HQ-754 will also evaluate the impacts to the overall contingency reserve. HQ-754 may request that another GAOA LRF project in your state or another state, be descoped or removed to assist in funding the requested amount.

States/Centers should request contingency funding reallocations from HQ-754 before any costs are incurred that would exceed project amounts allotted. Contingency fund requests are not to be used for changing project scope, terminating a project, adding a project, making project–to-project changes, or reallocating funding from a project to its contingency fund.

To request contingency funds, complete the Contingency Fund Allocation Request Form, Attachment 3, and email the completed form to the GAOA LRF Program Lead. Forms may be submitted at any time.