Value for Money Analysis Requirements for Projects
Several legislative acts have established or amended statutory Value for Money (VfM) requirements for projects seeking Bureau credit assistance. Applicability of these requirements depends on project size, phase of the project lifecycle, and other attributes. In particular, Fixing America’s Surface Transportation Act (FAST Act), Pub. L. 114-94, [49 U.S.C. § 116(e)(3)(A)], requires project sponsors seeking TIFIA loans to conduct VfM or comparable analysis before deciding to advance projects as P3s.
The Bipartisan Infrastructure Law (BIL), which was signed by the President on November 15, 2021, contains several additional provisions regarding VfM analysis, with new legislative requirements. The VfM provisions were effective as of the date the BIL was signed. Some of the VfM requirements are triggered when a project sponsor is considering delivering a project through a public-private partnership (P3). However, in some cases a VfM analysis is required even when a P3 is not being contemplated for certain projects seeking TIFIA and RRIF financing. VfM provisions can be found in sections 11508 and 70701 of the BIL.
The Bureau is currently developing detailed VfM guidance that project sponsors may follow in addressing the requirements in the law. However, because both the FAST Act and the BIL are in effect, in the interim, if you are a project sponsor seeking Federal financial assistance for your project, please contact the Bureau’s Head of Technical Assistance, Sam Beydoun, at firstname.lastname@example.org or (202) 366-0198 at your earliest opportunity to ensure compliance with current law.