Congress Takes Notice of Change Orders Delays

AGC-Supported Bill Encourages Transparency; Hearing Next Week
Earlier this month, Congressman Don Bacon (R-Neb.) introduced the “Small Business Know-Before-You-Bid Construction Transparency Act of 2017, H.R. 2350, which would require federal agencies to publish their change orders policy and procedures on any small federal construction contract. This requirement will provide prospective federal construction contractors with the information they need to factor the risk and cost of delayed payment for change orders prior to submitting bids or offers to the federal government. Next Thursday, AGC members Ed DeLisle and Andy Brown will testify before the House Small Business Committee on change order delays and the impacts they have on federal construction contractors.
AGC is at the forefront in advocating for greater accountability of the change order process among the different federal agencies. In March, the House of Representative’s Small Business Committee requested that the Government Accountability Office (GAO) conduct a review of the use of change orders on federal construction contracts. This bipartisan request was a direct result of AGC’s efforts with both parties in Congress to address the many issues associated with change orders.
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 (CO) to encourage greater CO accountability.
For more information, contact jordan.howard@agc.org or (703) 837-5368.


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