AGC-Backed Change Order Reform Bill Passes House

Encourages Federal Construction Agency Transparency and Reporting
The recently released fiscal year (FY) 2019 National Defense Authorization Act (NDAA) Conference Report includes the AGC-backed bipartisan legislation that will require federal agencies to publish their change orders policy and procedures on any small business federal construction contract (see Sec. 855 of conference report). This legislation provides prospective federal construction contractors with the information they need to help factor into their bids and offers the risk and resulting cost of delayed payment for change order work.  The House of Representatives passed the FY 2019 NDAA on July 26 before leaving Washington, D.C. for the August recess. The Senate is expected to pass the legislation sometime before the end of the year.
This legislation is a product from a congressional hearing where AGC members testified before the House Small Business Committee on change order delays and the impacts it has on federal construction contractors. The Senate is expected to pass the NDAA in the coming months.  Once signed into law, this new transparency requirement will need to go through the rulemaking process.
AGC continues to be at the forefront in advocating for greater accountability of the change order process among the various federal agencies.  AGC has previously called on the Federal Acquisition Regulation Council to improve the data federal agencies collect regarding the administration of change orders in response to the Council’s information request. AGC’s recommendations would require federal agencies to collect a range of data regarding the timeliness of action by the contracting officer to encourage greater accountability.
For more information, contact jordan.howard@agc.org or (703) 837-5368.


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