Establishes New Office to Root Out Inefficiency
AGC of America brought Infrastructure Week to a close last Friday with President Donald Trump at the Transportation Department.  In his speech, President Trump criticized the red-tape associated with obtaining project permits and approvals, which can delay projects by a decade or more.  He signaled a new urgency to reform the permitting for infrastructure and announced a new office – housed within the Council for Environmental Quality – charged with modernizing and streamlining the process. The president also called for agencies to be held accountable for missing permitting deadlines.
AGC has been leading the charge on permitting reform. Both Congress and the White House have turned to AGC for common-sense recommendations. AGC has delivered solutions to the White House, to the regulatory agencies, and in testimony and letters to Congress.
For more information, contact Melinda Tomaino at [email protected] or (703) 837-5415.

In line with AGC’s regulatory recommendations, on June 7, U.S. Secretary of Labor Alexander Acosta announced the withdrawal of the U.S. Department of Labor’s (DOL) 2015 and 2016 informal guidance on joint employment and independent contractors. Both pieces of guidance together took an expansive interpretation of employment and threatened the traditional relationship between contractors and their partners. AGC and its members were concerned that these interpretations would make compliance more complicated, leading to unnecessary enforcement efforts and increased costs to projects.
The 2015 Labor Department memo aimed to address the misclassification of employees as independent contractors. The Department’s position was that most workers qualify as employees under the Fair Labor Standards Act (FLSA) and its broad definition of "employ." Then, in 2016, the Department issued a second memo establishing new standards for determining joint employment under the federal Fair Labor Standards Act (FLSA) and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA). The intent was to hold companies jointly accountable for FLSA and MSPA violations of their subcontractors, staffing agencies, joint venture partners, and the like through use of an “economic realities” analysis.
AGC continues to identify opportunities where AGC and the Department of Labor (DOL) can partner on its mission to keep American workers safe and healthy while stimulating economic growth and creating new high quality jobs. Specifically, AGC advises that DOL can achieve these goals through regulatory reduction and streamlining, strengthening the symbiotic partnership between DOL and the construction industry and enhancing present regulatory compliance education and collaboration initiatives.
For more information, contact Claiborne Guy at [email protected] or 703-837-5382.

On July 20, the Occupational Safety and Health Administration (OSHA) will hold an Advisory Committee on Construction Safety and Health (ACCSH) meeting to consider a proposed rule extending the enforcement date for crane operator certification for one year – to Nov. 10, 2018.  The proposal also extends existing requirements for employers to ensure that crane operators are trained and competent to operate the equipment safely.
OSHA has determined that two of the four organizations that offer third-party certifications have programs that do not meet the “type AND capacity” requirements currently contained within the standards. These organizations currently offer certification by type but not by capacity. Operators in possession of this certification would be deemed “noncompliant” according to the agency.  To address the potential disruption and uncertainty this interpretation has caused, OSHA has proposed to extend the compliance and enforcement date by another year. In Sept. 2014, OSHA issued a similar extension for crane operator certification requirements and employer requirements for operator training and competency by three years to Nov. 10, 2017.
The meeting will be held by teleconference only and is open to the public.  The tentative meeting agenda topics include:

• Presentation on OSHA’s proposed rule to extend the enforcement date for the crane operator certification requirements and the existing employer duty in the Cranes and Derricks in Construction standards.


• ACCSH’s consideration of, and recommendation on, OSHA’s Proposed Rule to extend the enforcement date for the crane operator certification requirements and the existing employer duty in the Cranes and Derricks standards.


• Public comment period

AGC is a member of ACCSH and supports the proposed extension to allow OSHA to address the “type AND capacity” issue while also addressing operator qualification.  However, we believe the agency should allow contractors the flexibility to qualify operators under a performance standard.  To participate in the meeting, the dial-in number is 1 (888) 604-9368 and the passcode is 8521818.  AGC will continue to monitor the status of any further updates on the rule as they become available.
For more information, contact Kevin Cannon at [email protected] or (703) 837-5410.

President Trump turned his focus to infrastructure this week by dedicating a series of events to addressing America’s infrastructure.  The events included announcing his plan to privatize the nation’s air traffic control, holding a rally in Cincinnati – attended by several AGC members – highlighting the need to improve the Inland waterways system and discuss his broader infrastructure plan, a meeting with governors and mayors, and finally, a Roads and Rail Regulatory event at the U.S. Department of Transportation.
AGC continues to be encouraged by the president and his administration’s commitment to improving our nation’s infrastructure and we look forward to working with them and Congress to ensure that any infrastructure package provides increased federal funding and additional financing along with a regulatory environment that ensures the greatest return on any new investments.
For more information, contact Sean O’Neill at [email protected] or (202) 547-8892.

Tell your Rep. to Sign Bipartisan Letter Supporting Long-Term Fix – DEADLINE EXTENDED
A bipartisan group of congressmen are circulating a letter asking House Ways & Means Committee Chairman Kevin Brady (R-Texas) and Ranking Democrat Richard Neal (Mass.) to fix the Highway Trust Fund as a part of any tax reform package the committee considers. Contact your representative and urge them to sign this letter, which is being circulated by Transportation & Infrastructure Subcommittee on Highways and Transit Chairman Sam Graves (R-Mo.) and Ranking Democrat Eleanor Holmes Norton (District of Columbia). As of press time, 216 members of the House have signed onto the Graves/Holmes Norton letter (check to see if your representatives has signed on).
If you recall, Representatives Graves and Holmes Norton circulated a similar letter last year (check here to see if your Rep. signed the 2016 letter) that was signed by 130 bipartisan members of the House. The FAST ACT provides funding certainty for the Highway Trust Fund through fiscal year 2020. However, following the FAST Act's expiration, the Highway Trust Fund will face cuts of approximately $18 billion per year. A permanent fix for the Highway Trust Fund needs to be found in order to eliminate these cuts.
For more information, contact Sean O’Neill at [email protected] or (202) 547-8892.

What Happens Between Award and Construction
Last week, AGC members met with the Department of Veteran Affairs (VA) resident engineers from across the country for an interactive training session at the VA Acquisition Academy in Frederick, MD. AGC detailed the many steps that are involved between the time a contract is awarded and a contractor breaks ground. VA resident engineers engaged in team exercises where they brainstormed timelines of the different steps involved.  AGC walked through the whole process and addressed gaps between what the engineers perceived as a suitable timeline and the actual time needed for a contractor to complete the required steps.
Some of the topics discussed included safety reviewing specifications, the logistics of laying out trailer space, assigning personnel, creating a log for the initial Construction Project Management schedule, material delivery and lay down areas, equipment rental, logistics of moving from another project, and site storage facility.
AGC frequently engages in training sessions with federal agencies and remains dedicated to further educating federal agencies on the construction process.
For more information, contact Jordan Howard at [email protected] or (703) 837-5368.

Today, the U.S. Environmental Protection Agency (EPA) announced an extension and expansion of its competitive grant funding for the Diesel Emissions Reduction Act (DERA) Clean Diesel National Funding Assistance Program. EPA increased the total funding available from $11 million to $34 million.  The program is soliciting proposals nationwide for projects that achieve significant reductions in diesel emissions, particularly from fleets operating in areas with poor air quality. In addition, clean alternative fuel conversions are now eligible.  Proposal packages must be submitted electronically to EPA through www.Grants.gov by July 5, 2017 (extended from June 20), to be considered for funding.
AGC fights to keep diesel retrofit grants flowing to equipment owners and recently signed a letter with 20 organizations urging Congress to keep subsidies flowing for replacing or retrofitting diesel engines.
For more information, contact Melinda Tomaino at [email protected] or (703) 837-5415.

This week, President Trump released his first budget request, which covers fiscal year 2018 and also looks out over the next 10 years (2018-2027). The proposal, “A New Foundation for American Greatness,” calls for $1 trillion in total tax cuts over the next 10 years, while also cutting federal spending by $4.6 trillion over the same time period. The budget assumes the economy will grow by $2.1 trillion, which would reduce 10-year deficits by $5.6 trillion and balance the budget in FY 2027.
As with most budgets submitted by respective administrations, President Trump’s is largely seen as a messaging document that primes the budget and appropriations debate for the coming year. This year however, the budget carries a bit more relevance due in large part to the president’s promise to include $200 billion for his infrastructure initiative. The budget did provide a fact sheet detailing four key principles for the White House’s initiative but did not provide any details on a specific infrastructure plan.
In terms of federal construction accounts tracked by AGC, the budget is status quo with previous year’s appropriations and budget requests—approximately $120 billion. While the budget provides significant funding increases for border wall construction and a $5 billion dollar down payment on the administration’s infrastructure initiative, it also cuts TIGER grants, Capital Investment Grants for transit projects, rural water programs, and the Community Development Block Grant Program. Even more troubling, the budget assumes that funding for the Highway Trust Fund will be cut by $95 billion in 2021.
A full analysis of the FY 2018 budget for federal construction accounts can be found here.
Additional details on budget funding and policy issues—including the infrastructure initiative—can be found here.
For more information, contact Sean O’Neill at [email protected] or (202) 547-8892.

Enforcement Agencies See Similar Cuts
The fiscal year 2018 budget proposal shows new priorities for the Trump Administration, with the Federal Education and Training Programs taking the brunt of the proposed budget cuts. The Department of Labor’s budget (DOL) includes a 20 percent reduction in funding from the FY 2017 enacted level, and large job training reductions and employment service accounts represent some of the largest cuts. Funding for state grants for the Workforce Innovation and Opportunity Act (WIOA) have received a 40 percent cut, and funding for apprenticeship grants have received a 5 percent reduction. WIOA overwhelmingly passed Congress in 2014, so it is unlikely that Congress will allow the proposed cuts.
The FY 2018 budget proposal also contains reductions within the Department of Education for accounts that fund career and technical education. The budget proposes a 15 percent reduction in funding despite the fact that Congress is working towards reforming and reauthorizing career and technical education.
Among the federal agencies within the DOL, funding levels are little changed. The Wage and Hour Division received a small increase for compliance assistance and outreach to employers, while the Office of Labor-Management Standards received one of the largest percentage increases—primarily to fund a program that audits larger international unions. Meanwhile, funding for the National Labor Relations Board has been decreased. The Occupational Safety and Health Administration’s funding has stayed relatively level, but the budget does call for the elimination of Susan Harwood Training Grants, a grant program that AGC has benefitted from and that has provided valuable safety training to thousands of industry workers.
The budget also proposes dramatic changes to the premium structure paid to the Pension Benefit Guaranty Corporation. Ultimately, these large increases would have to be absorbed by contributing employers and would require congressional approval first. AGC will strongly oppose any such unilateral increases.
Interestingly, the budget proposal calls for the merging of the Office of Federal Contract Compliance Programs and the independent Equal Employment Opportunity Commission. AGC is concerned by this merging of agencies, and it remains unlikely that Congress will approve of such a change.
Finally, among one of the more public proposals in the budget is a proposal to create a federal-state parental leave benefit program within the unemployment insurance program. Beginning in 2020, this program would provide six weeks of family leave to new parents. The proposal expands upon President Trump’s campaign promises, but like many others, the details of how such a program might work in practice have yet to be determined.
For more information, contact James Young at [email protected] or (202) 547-0133.

Impact of Change Order Delays on Contractors
Yesterday, AGC members Ed DeLisle and Andy Brown testified at the House Small Business Committee hearing on change order delays and the impacts they can have on federal construction contractors. Members of Congress heard how federal agency delays in processing and paying change orders can disrupt cash flow, impact schedules, waste taxpayers’ money, and restrict opportunities for contractors to bid on additional projects. AGC called for greater transparency, oversight, and agency action to address delays in paying contractors for the work they do for the federal government.
AGC will continue to advocate for greater accountability among the different federal agencies in the change order process. In March, the House of Representatives’ Small Business Committee requested that the Government Accountability Office (GAO) conduct a review on 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.
Previously, AGC 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.