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House Committee Releases Annual Defense Bill

AGC Change Order and Contractor Payment Priorities Included
The House of Representatives overwhelmingly (60-1) reported the National Defense Authorization Act for Fiscal Year 2019 (House NDAA) out of the House Armed Services Committee. The House NDAA contains a host of AGC-backed federal construction procurement provisions important to construction contractors. The bill now goes to the floor for amendments and a final vote in the House.
The final legislation features the following AGC procurement wins:


  • Section 852: Requires federal agencies to accelerate payment to small businesses, so that   agencies must now pay the small business within 15 days of receiving a proper invoice;

  • Section 855: Requires federal agencies to publish their change orders policy and procedures for any small federal construction contract. This bill provides prospective federal construction contractors with the information they need to factor into their bids;

  • Section 875:  This section will help address the shortage in acquisition workforce by expanding the hiring authority of the federal agency where there is a shortage of acquisition personnel.

AGC will continue to monitor the NDAA as it heads for a floor vote in the both houses of Congress, and will continue to advocate for further reforms in Congress.
For more information, contact Jordan Howard at [email protected] or (703) 837-5368.

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Senate Committee Unveils Latest Water Resources Development Act

AGC Opposes New USACE Hopper Dredge; Calls for Greater Water Infrastructure Investment
On May 14, AGC urged the U.S. Senate to make important changes to the authorizing biennial water resources bill, entitled America’s Water Infrastructure Act of 2018 (WRDA). While not a spending bill, WRDA authorizes billions in funding for U.S. Army Corps of Engineers Civil Works (USACE) projects, including about $2.4 billion of new federal spending on six projects involving disaster recovery.
Among other recommendations to the bill, AGC proposed the following:


  • Exclude Section 3111 – authorization of appropriations for purchase of a hopper dredge by USACE;

  • Include Securing Required Funding for “Water Infrastructure Now Act” – a fiscally responsible approach to providing states over $10 billion annually for critical improvements to the country’s rural and urban water infrastructure. The act will provide state financing authorities WIFIA loans to support water and wastewater construction projects;

  • Include Regulatory Streamlining – Congress should require federal agencies to follow a one federal decision process, so there is just one NEPA review for a project that ends with a single record of decision issued by the lead agency;

  • Include Regulatory Transparency – AGC put forth its support for two regulatory transparency items: (1) a public database of USACE real property holdings as a means to help states, localities, and private industry to better plan for—or avoid entirely—issues any construction project could face under Section 408 of the Rivers and Harbors Act; and (2) a public database for USACE district and regional offices to disclose and accept public comments on changes to regulatory and general policies impacting water resources projects or state water quality certifications, as such policy changes can occur at the local or regional USACE office level with little or no input from the public.

AGC testified before the committee earlier this year, and you can read AGC’s list of recommendations by clicking here and here.
For more information, contact Jordan Howard at [email protected] or (703) 837-5368.

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The Spring Unified Agenda Slates Many Federal Environmental Policy Items for Review

From the repeal and replacement of the 2015 definition of Waters of the United States and opening up the National Environmental Policy Act procedures, to reevaluating regulations on listing species and designating critical habitat, the spring Unified Agenda sets a busy schedule for the year ahead.
Army Corps of Engineers

Council on Environmental Quality

  • Review existing CEQ regulations implementing the procedural requirements of the National Environmental Policy Act (NEPA) pursuant to Executive Order 13807 (related to the environmental review process).
Environmental Protection Agency

  • Repeal and replace the 2015 Waters of the United States Rule; EPA anticipates finalizing the repeal by November 2018, releasing the proposed replacement rule by August 2018 and finalizing that rule approximately a year later in 2019 (with the Army Corps of Engineers);

  • Propose a new rule this June on spill prevention rule for hazardous substances;

  • Address residential dust-lead hazard standards and the definition of lead-based paint with a proposed rule this June – consideration of expanding the current lead paint “work practice” rules to public and commercial buildings remains on the long-term agenda;

  • On the long-term agenda, EPA plans to update its regulations for when states can assume administration of the Clean Water Act 404 permits.  This means that states, not the Corps, could make wetlands decisions for projects.
Fish and Wildlife Service For more information, contact Melinda Tomaino at [email protected] or (703) 837-5415 or Leah Pilconis at [email protected] or (703) 837-5332.

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AGC Supports Proposal to Streamline Disposal Requirements for Aerosol Cans

On May 15, AGC put forth its support for the U.S. Environmental Protection Agency’s (EPA) proposal to expand the universal waste regulations to include non-empty aerosol cans. Recognizing that aerosol cans are often the only hazardous waste stream produced on a construction site, this proposal could change a company’s status as a “generator” and reduce program costs and facilitate recycling.
AGC further suggested that EPA allow flexibility to very small quantity generators (VSQG) to treat aerosol cans as either universal waste or to follow the existing VSQG regulations.  AGC also recommended that EPA create a single regulatory structure for aerosol cans that allow non-hazardous, non-intact, and intact aerosol cans to be managed together as universal waste.
For more information, contact Leah Pilconis at [email protected] or (703) 837-5332.

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Spring 2018 Regulatory Agenda Unveils Priorities of Federal Labor Agencies

On May 9, 2018, the Trump Administration unveiled its Spring 2018 Unified Agenda of Regulatory and Deregulatory Actions mapping out federal agency priorities for the coming months.  This bi-annual publication informs the public of regulations under consideration or planned by federal agencies. The present agenda includes several submissions by labor agencies.
The U.S. Department of Labor’s submission updates projected timelines for action already in progress and adds several new actions of relevance to construction contractors, such as a:


  • proposed rule revising the overtime regulations;

  • proposed rule to update the child labor protections to allow teenagers to work longer hours in hazardous conditions;

  • proposed rule to revise the law governing time-and-a-half overtime calculations by redefining the regular rate of pay;

  • final rule establishing criteria for the sponsorship of association health plans; and a

  • final rule to rescind the “persuader rule.”

The Equal Employment Opportunity Commission also revealed plans for several actions.  Most notably are reports of initiatives to revise its regulations governing employer-sponsored wellness programs.
The National Labor Relations Board announced its timeline for considering responses to a recent Request for Information regarding its controversial “quickie election” rule.  In a more surprising announcement, the Board disclosed that it is considering rulemaking to address another controversial matter in which it has been enmeshed for the past few years, the standard for determining joint-employer status.
AGC regularly provides input on regulatory actions through the public comment process and stakeholder meetings with agencies and the administration.  AGC will monitor and consider participation in these actions, and will notify members of significant developments.
For more information, contact Denise Gold at [email protected] or (703) 837-5326.

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House Transportation Funding Bill Provides Significant Increases for Highways

On May 15, the House Appropriations Transportation, House & Urban Development (THUD) Subcommittee released its fiscal year 2019 funding bill, which provides significant increases for infrastructure programs at the U.S.Department of Transportation (DOT).  As requested by AGC and our partners in the Transportation Construction Coalition (TCC), the bill provides funding levels authorized by the FAST Act for highways ($45.27 billion) and transit ($9.939 billion plus $2.614 billion for Capital Investment Grants).  Additionally, the bill provides an extra $4.25 billion highway supplement from the general fund. Of that amount, $3.8 billion will be distributed via formula as apportioned under the Surface Transportation Block Grant Program, and $250 million is for highway safety projects. This new money equates to an 11% increase, $49.5 in highway formula funding in fiscal year 2019.
The bill also includes $750 million for BUILD Grants (formerly known as TIGER), representing a $250 million cut from fiscal year 2018 but a $250 million increase over 2017 levels.  In terms of aviation, the bill is status quo, with a $500 million exception. The additional $1 billion included in the fiscal year 2018 bill has been cut to $500 million in 2019.
The bill is likely to be considered by the Full Appropriations Committee next week, where AGC will continue to weigh-in and ensure that these significant increases are realized.
For more information, contact Sean O’Neill at [email protected] or (202) 547-8892.

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AGC Federal Contractors Descend on Washington

Leaders from Ten Federal Agencies Made Announcements
Hundreds of federal construction contractors met with major federal construction agencies and members of Congress in the Washington, DC metro area last week at the AGC Federal Contactors Conference. Representatives from the U.S. Army Corps of Engineers, Naval Facilities Engineering Command, Air Force Civil Engineer Center, Department of Veterans Affairs, General Services Administration, Small Business Administration, Bureau of Reclamation and Natural Resources Conservation Service participated, with several agencies making significant announcements about their respective programs.
Among the many highlights, the Honorable Lucian Niemeyer, Assistant Secretary of Defense, and Emily Murphy, Administrator of the General Services Administration, joined AGC’s CEO Steve Sandherr to discuss their vision for reforming the procurement process and ensuring timely payments to federal contractors. NAVFAC’s commander Rear Admiral Bret Muilenburg discussed his vision for the agency’s future and partnering with the construction industry.  The Army Corps of Engineer’s Lloyd Caldwell, Director of Military Programs, spoke about the roughly $17 billion worth of work from the disaster supplemental that the Army Corp intends to put out for bid.  GSA gave updates on the $1 billion courthouse construction program and on the Public Buildings Reform Board that will make recommendations of at least $8 billion worth of underutilized and vacant federal properties.
Presentations and other information from the conference were made available this week to the attendees of AGC Federal Contractors Conference.
For more information, contact Jordan Howard at [email protected] or (703) 837-5368.

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House Committee Passes Military and Veterans Affairs Construction Appropriations

The House Appropriations Committee passed a funding bill to boost military construction and Department of Veterans Affairs (VA) construction accounts for fiscal year (FY) 2019.  Military construction received $10.3 billion, an increase of roughly $241 million over the FY 2018 budget.
Meanwhile, the VA’s major and minor construction projects are slated to receive roughly $1.7 billion for FY 2019. In addition, the bill provides for $2 billion for existing infrastructure repair, and nearly $750 million for seismic correction work on several VA facilities across the nation.
The committee bill is now ready to move to the House floor for approval. The Senate Appropriations Committee has not yet progressed its version of the bill. AGC continues to press for investment in America’s military structures and veteran’s facilities to ensure the continued safety and health of our nation’s heroes.
For more information, contact Jordan Howard at [email protected] or (703) 837-5368.

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House Passes AGC-Backed Change Orders Bill

Encourages Transparency and Reporting
The House of Representatives passed an AGC-backed bipartisan bill that will require federal agencies to publish their change orders policy and procedures on any small federal construction contract. This change allows prospective federal construction contractors to better factor into their bids the risk and resulting cost of delayed payment for change orders.  This bill resulted from AGC member testimony during a House Small Business Committee on the impact of change order delays on federal construction contractors.
Chairman Steve Chabot (R-Ohio) echoed AGC’s position that this bill “…safeguards these contractors and requires agencies to publish their change order process up front, in their solicitations, so they have all of the information they need that can affect their bottom line.”
AGC is at the forefront in advocating for greater accountability of the change order process among the different 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 (CO) to encourage greater CO accountability.
For more information, contact Jordan Howard at [email protected] or (703) 837-5368.

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How Steel and Aluminum Tariffs Hurt Construction

On the latest episode of The ConstructorCast, we explore President Trump's recent tariffs on steel and aluminum imports. We talk with Collin Janich, AGC of America's Manager of Political & International Affairs, about how the tariffs have begun to hurt construction companies' bottom lines, negatively impact construction employment, and what AGC is doing to fight them.
Stream or download the episode here or search for "ConstructorCast" in your podcasts app!

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