The Administration has conceded that the American Recovery and Reinvestment Act (“ARRA”) has not worked as planned. With unemployment numbers continuing to climb, the Administration now acknowledges it “misread the economy.” But from the beginning not everyone believed ARRA would achieve the desired stimulative effect. After all, $787 billion dollars cannot be disbursed without some complication.

ARRA has choked itself. Complexity, inflexibility, and draconian oversight provisions have combined to confuse and frighten contractors and state and local governments. Timely award of contracts funded by ARRA and, if the contracts are awarded, their performance, have become impracticable.

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