Inflation Reduction Act – Potential Areas for Contract Opportunities

Published: August 17, 2022

Federal Market AnalysisUSDADOEFHAHUDInfrastructureDOIIRSNOAAPolicy and Legislation

Deltek identified programs and funding within the Inflation Reduction Act of 2022, which could lead to contract opportunities supporting federal agency initiatives prescribed in the legislation.

Yesterday, President Biden signed the Inflation Reduction Act of 2022, H.R. 5376, which makes investments to confront climate change, lower healthcare costs, reduce the federal deficit, and change the tax code.

Although much of the funding from the legislation results in direct payments, loans, and grants, the Deltek Federal Market Analysis team dove into the bill to break down line items that could become potential contractor addressable dollars.

Following are areas of the legislation that may lead to contracting opportunities or the need for contracted products or services:

TITLE I—COMMITTEE ON FINANCE, Subtitle A—Deficit Reduction, PART 3—FUNDING THE INTERNAL REVENUE SERVICE AND IMPROVING TAXPAYER COMPLIANCE

  • IRS - TAXPAYER SERVICES ($3.2B to remain available until September 30, 2031) To provide taxpayer services, including pre-filing assistance and education, filing and account services, taxpayer advocacy services, and other services.
  • IRS – ENFORCEMENT ($45.6B to remain available until September 30, 2031) For necessary expenses for tax enforcement activities such as tax determination, collection, legal and litigation support, criminal investigations, investigative technology, digital asset monitoring, compliance activities, and enforcement of criminal statutes. 
  • IRS - OPERATIONS SUPPORT ($25.3B to remain available until September 30, 2031) To support taxpayer services and enforcement programs, including rent payments, facilities services, printing, postage, physical security, administration activities, research and statistics of income, telecommunications, and information technology development, enhancement, operations, maintenance, and security. 
  • IRS - BUSINESS SYSTEMS MODERNIZATION ($4.8B to remain available until September 30, 2031) For the IRS business systems modernization program, including development of callback technology and other technology to provide a more personalized customer service but not including the operation and maintenance of legacy systems. 
  • IRS - TASK FORCE TO DESIGN AN IRS-RUN FREE ‘‘DIRECT EFILE’’ TAX RETURN SYSTEM ($15M to remain available until September 30, 2023) To deliver to Congress, within nine months a report on the cost of developing and running a free direct efile tax return system, including costs to build and administer each release, with a focus on multi-lingual and mobile-friendly features and safeguards for taxpayer data. Also, to research taxpayer opinions, expectations, and level of trust, for such a free direct efile system. And to solicit the opinions of an independent third-party on the overall feasibility, approach, schedule, cost, organizational design, and IRS capacity to deliver such a direct efile tax return system. 
  • IRS - TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION ($403M to remain available until September 30, 2031) For expenses of the Treasury Inspector General for Tax Administration in carrying out activities. 
  • IRS - OFFICE OF TAX POLICY ($104M to remain available until September 30, 2031) To carry out functions. 
  • IRS - UNITED STATES TAX COURT ($153M to remain available until September 30, 2031) To conduct contract reporting and other services. 
  • IRS - TREASURY DEPARTMENTAL OFFICES ($50M to remain available until September 30, 2031) For expenses related to oversight and implementation of this Act.

TITLE II—COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY; Subtitle B—Conservation

  • USDA - CONSERVATION TECHNICAL ASSISTANCE ($1B to remain available until September 30, 2031) To provide conservation technical assistance. 
  • USDA - CONSERVATION TECHNICAL ASSISTANCE – CARBON ($300M to remain available until September 30, 2031) For a program to quantify carbon sequestration and carbon dioxide, methane, and nitrous oxide emissions. 
  • USDA - ADMINISTRATIVE COSTS ($100M, to remain available until September 30, 2028) For the Secretary for administrative costs of the agencies and offices of the USDA for costs related to implementing this section of the Act.

TITLE III—COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

  • HUD - DEFENSE PRODUCTION ACT (DPA) ($500M to remain available until September 30, 2024) To carry out the Defense Production Act. No addition directives are provided under this section of the bill. 
  • HUD - AFFORDABLE HOUSING EFFICIENCY LOANS AND GRANTS ($837.5M to remain available until September 30, 2028) For direct loans or grants to fund projects that improve energy or water efficiency, enhance indoor air quality or sustainability, implement the use of zero-emission electricity generation, low emission building materials or processes, energy storage, or building electrification strategies, or address climate resilience, of an eligible property. 
  • HUD - PROGRAM IT, RESEARCH AND OVERSIGHT ($60M to remain available until September 30, 2030) For information technology, research and evaluation, and administering and overseeing the implementation of energy and water efficiency or climate resilience of affordable housing. 
  • HUD - AFFORDABLE HOUSING PROGRAM CONTRACTS ($60M to remain available until September 30, 2029) For contracts or cooperative agreements administered by the HUD Secretary. 
  • HUD - EFFICIENCY/RESILIENCY BENCHMARKING, ANALYSIS AND SUPPORT ($42.5M to remain available until September 30, 2028) For energy and water benchmarking of properties eligible to receive grants or loans under the Affordable Housing program, along with associated data analysis and evaluation at the property and portfolio level, and the development of information technology systems necessary for the collection, evaluation, and analysis of such data.

TITLE IV—COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

  • NOAA - INVESTING IN COASTAL COMMUNITIES AND CLIMATE RESILIENCE ($2.6B to remain available until September 30, 2026) To provide funding through direct expenditure, contracts, grants, cooperative agreements, or technical assistance to coastal states for the conservation, restoration, and protection of coastal and marine habitats, resources, Pacific salmon and other marine fisheries. 
  • NOAA - NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION FACILITIES ($150M to remain available until September 30, 2026) For the construction of new facilities, facilities in need of replacement, piers, marine operations facilities, and fisheries laboratories. 
  • NOAA - NATIONAL MARINE SANCTUARIES FACILITIES ($50M to remain available until September 30, 2026) For the construction of facilities to support the National Marine Sanctuary System. 
  • NOAA - EFFICIENT AND EFFECTIVE REVIEWS ($20M to remain available until September 30, 2026) To conduct more efficient, accurate, and timely reviews for planning, permitting and approval processes through the hiring and training of personnel, and the purchase of technical and scientific services and new equipment, and to improve agency transparency, accountability, and public engagement. 
  • NOAA - FORECASTING AND RESEARCH ($150M to remain available until September 30, 2026) To accelerate advances and improvements in research, observation systems, modeling, forecasting, assessments, and dissemination of information to the public as it pertains to ocean and atmospheric processes related to weather, coasts, oceans, and climate. 
  • NOAA - RESEARCH GRANTS AND SCIENCE INFORMATION, PRODUCTS, AND SERVICES ($50M to remain available until September 30, 2026) for competitive grants to fund climate research as it relates to weather, ocean, coastal, and atmospheric processes and conditions, and impacts to marine species and coastal habitat, and for related administrative expenses. 
  • NOAA - COMPUTING CAPACITY AND RESEARCH FOR WEATHER, OCEANS, AND CLIMATE ($190M to remain available until September 30, 2026) for the procurement of additional high-performance computing, data processing capacity, data management, and storage assets; transaction agreements; and related administrative expenses. 
  • NOAA - ACQUISITION OF HURRICANE FORECASTING AIRCRAFT ($100M to remain available until September 30, 2026) for the acquisition of hurricane hunter aircraft. 
  • NOAA - ALTERNATIVE FUEL AND LOW-EMISSION AVIATION TECHNOLOGY PROGRAM – SUSTAINABLE AVIATION FUEL ($245M to remain available until September 30, 2026) To establish a competitive grant program for eligible entities to carry out projects located in the U.S. relating to the production, transportation, blending, or storage of sustainable aviation fuel. 
  • NOAA - ALTERNATIVE FUEL AND LOW-EMISSION AVIATION TECHNOLOGY PROGRAM – LOW-EMISSION AVIATION TECHNOLOGIES ($47M to remain available until September 30, 2026) To establish a competitive grant program for eligible entities to carry out projects located in the U.S. relating to low-emission aviation technologies. 
  • NOAA - ALTERNATIVE FUEL AND LOW-EMISSION AVIATION TECHNOLOGY PROGRAM – ADMINISTRATION ($5.9M to remain available until September 30, 2026) To fund the administration and oversight of grants under this program.

TITLE V—COMMITTEE ON ENERGY AND NATURAL RESOURCES, Subtitle A—Energy

  • DOE - ADVANCED INDUSTRIAL FACILITIES DEPLOYMENT PROGRAM ($5.8B to remain available until September 30, 2026) To purchase and install, or upgrade, advanced industrial technologies at eligible facilities. 
  • DOE – NATIONAL LABORATORY INFRASTRUCTURE ($15.5B to remain available until September 30, 2031) For high energy physics, nuclear physics and fusion energy science construction and major equipment at DOE national laboratories, advanced scientific computing research facilities and research and development facilities. 
  • DOE – PLANT INFRASTRUCTURE ($300M to remain available until September 30, 2027) For infrastructure and general plant projects out of the Offices of Nuclear Energy, and Energy Efficiency and Renewable Energy.  
  • DOE – HIGH-ASSAY LOW-ENRICHED URANIUM ($700M to remain available until September 30, 2026) For activities supporting the availability of high-assay, low-enriched uranium for civilian domestic research and development, and commercial use.  

TITLE V—COMMITTEE ON ENERGY AND NATURAL RESOURCES, Subtitle B—Natural Resources

  • DOI - NATIONAL PARKS AND PUBLIC LANDS CONSERVATION ($500M to remain available until September 30, 2031) For projects related to the conservation, protection, resiliency, and ecosystem and habitat restoration on lands administered by the National Park Service and Bureau of Land Management. 
  • DOI – PARK SYSTEM DEFERRED MAINTENANCE ($200M to remain available until September 30, 2026) Toward priority deferred maintenance projects within the National Park System. 
  • DOI – DOMESTIC WATER SUPPLY PROJECTS ($550M to remain available until September 30, 2031) To plan, design or construct, through grants, contracts or financial agreements, domestic water supply projects for communities and households without reliable access to State or territory water supplies. 
  • DOI – CANAL IMPROVEMENTS ($25M to remain available through September 30, 2031) To cover water conveyance facilities with solar panels to generate renewable energy and increase water efficiency and implement clean energy goals. 
  • DOI – DROUGHT MITIGATION ($4.0B to remain available until September 30, 2026) To mitigate the impacts of drought in Reclamation States with priority given to the Colorado River Basin. 
  • DOI – CLIMATE CHANGE TECHNICAL ASSISTANCE ($15M to remain available until September 30, 2026) For technical assistance in climate change planning, mitigation, adaption and resilience in U.S. Insular Areas. 
  • DOI – 3D ELEVATION PROGRAM ($24M to remain available until September 30, 2031) To produce, collect, disseminate and use 3D elevation data at the United States Geological Survey. 

TITLE V—COMMITTEE ON ENERGY AND NATURAL RESOURCES, Subtitle C—Environmental Reviews

  • DOI/DOE/FERC– ENVIRONMENTAL REVIEWS ($150M to DOI until September 30, 2026, $115M to DOE until September 30, 2031, and $100M to FERC until September 30, 2031) Towards additional personnel and the development of programmatic environmental documents, environmental data, equipment, or information systems to facilitate timely and efficient environmental reviews and authorizations.

TITLE VI—COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS, Subtitle D—Council on Environmental Quality within the Executive Office of the President (EOP)

  • EOP - ENVIRONMENTAL CLIMATE DATA COLLECTION ($32.5M to remain available until September 30, 2026) To support data collection efforts relating to disproportionate negative environmental harms and climate impacts; and cumulative impacts of pollution and temperature rise. Second, to establish, expand, and maintain efforts to track disproportionate burdens and cumulative impacts and provide academic and workforce support for analytics and informatics infrastructure and data collection systems. Third, to support efforts to ensure that any mapping or screening tool is accessible to community-based organizations and community members. 
  • EOP - ENVIRONMENTAL REVIEWS ($30M to remain available until September 30, 2026) To carry out the Council’s functions and for training personnel, developing programmatic environmental documents, and developing tools, guidance, and techniques to improve stakeholder and community engagement. 

TITLE VI—COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS, Subtitle E—Transportation and Infrastructure

  • FEDERAL HIGHWAY ADMINISTRATION (FHWA) – NEIGHBORHOOD ACCESS AND EQUITY GRANT PROGRAM ($1.9B to remain available until September 30, 2026) For competitive grants to states, local government, territory or other eligible entities to improve public accessibility, safety, and affordability of surface transportation facilities and to mitigate or remediate negative health and environmental impacts resulting from a surface transportation facility. This funding is also to be used for planning and capacity building activities in disadvantaged or underserved communities to monitor local air quality and flood resilience; assess transportation equity and develop local anti-displacement policies; and expand public participation in transportation planning. Eligible facilities include a surface transportation facility for which high speeds, grade separation, or other design factors create an obstacle to connectivity within a community; or a surface transportation facility which is a source of air pollution, noise, stormwater, or other burden to a disadvantaged or underserved community. 
  • FHWA – INVESTMENT IN ECONOMICALLY DISADVANTAGED COMMUNITIES ($1.3B to remain available until September 30, 2026) For grants for projects in disadvantaged or underserved communities to improve access, safety and affordability of surface transportation. Grants would be made under a community benefits agreement with representatives of a community that has an anti-displacement policy, a community land trust, or a community advisory board in effect; or has demonstrated a plan for employing local residents in the area impacted by the project. 
  • FHWA – Technical Assistance ($50M to remain available until September 30, 2026) For guidance, technical assistance, training, or tools to facilitate efficient and effective contracting, design, and delivery of surface transportation projects by units of local government. This funding may also be used for subgrants to local governments to build capacity to deliver surface transportation projects and for FHA operations and administration. Fund may not be used for additional through travel lanes for single-occupant passenger vehicles. 
  • GSA FEDERAL BUILDING FUND - ASSISTANCE FOR FEDERAL BUILDINGS ($250M to remain available until September 30, 2031) To convert General Services Administration facilities to high-performance green buildings. 
  • GSA FEDERAL BUILDING FUND - GREEN BUILDING MATERIALS ($2.15B to remain available until September 30, 2026) To acquire products for use in the construction or alteration of General Services Administration buildings that have substantially lower levels of greenhouse gas emissions. 
  • GSA FEDERAL BUILDING FUND - EMERGING TECHNOLOGIES ($975M to remain available until September 30, 2026) For emerging and sustainable technologies, and related sustainability and environmental programs.

TITLE VII—COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

  • DHS - OFFICE OF CHIEF READINESS SUPPORT OFFICER ($500M to remain available until September 30, 2028) For the Office of the Chief Readiness Support Officer to carry out sustainability and environmental programs. 
  • UNITED STATES POSTAL SERVICE (USPS) – CLEAN FLEETS ($1.3B to remain available through September 30, 2031) For the purchase of zero-emission delivery vehicles. 
  • USPS – CLEAN FLEET INFRASTRUCTURE ($1.7B to remain available through September 30, 2031) For the purchase, design, and installation of the requisite infrastructure to support zero-emission delivery vehicles at facilities that the United States Postal Service owns or leases from non-Federal entities. 
  • USPS - OFFICE OF THE INSPECTOR GENERAL (OIG) ($15M to remain available through September 30, 2031) To support oversight of USPS activities pursuant to the provisions included in the IRA. 
  • GOVERNMENT ACCOUNTABILITY OFFICE (GAO) – IRA OVERSIGHT ($25M to remain available until September 30, 2031) To support the GAO oversight of the distribution and use of IRA funds and whether the economic, social, and environmental impacts of the funds are equitable. 
  • OFFICE OF MANAGEMENT AND BUDGET (OMB) – IRA OVERSIGHT ($25M to remain available until September 30, 2026) To oversee the implementation of the IRA and track labor, equity, and environmental standards and performance. 
  • FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) – BUILDING MATERIALS PROGRAM – Authorizes FEMA to provide financial assistance under the Robert T. Stafford Disaster Relief and Emergency Assistance Act for costs associated with low-carbon materials; and incentives that encourage low-carbon and net-zero energy projects.