Change Order Reform; Accelerated Payment to Small Business and More
This week, the House of Representative overwhelmingly passed (351-66) the National Defense Authorization Act for Fiscal Year 2019 (House NDAA). The Senate Armed Services Committee is currently marking up its version of the NDAA (Senate NDAA) and is expected to finish before the end of this week. The House NDAA contains a host of AGC-backed federal construction procurement provisions important to construction contractors. Once the Senate NDAA is passed, the House and Senate will go to conference.
As previously reported, the House NDAA bill includes several AGC-backed federal procurement reform provisions, such as requiring federal agencies to accelerate payment to small businesses, requiring federal agencies to publish their change orders policy and procedures on any small federal construction contract, and addressing the shortage in acquisition workforce by expanding the hiring authority for the federal agency.
Additionally, the House NDAA authorizes $11.3 billion for military construction, including family housing, and other infrastructure projects. AGC will continue to monitor the NDAA as it makes its way through the legislative process, and will advocate for further reforms in Congress.
For more information, contact Jordan Howard at [email protected] or (703) 837-5368.

Provision for New $150M Corps’ Owned/Operated Hopper Dredge Dropped
On May 22, the Senate Environment and Public Works Committee unanimously passed its version of a Water Resources Development Act (WRDA) bill, which—thanks to AGC and other allies’ advocacy efforts—dropped a provision that would have authorized $150 million for the construction of a new Army Corps’ owned and operated hopper dredge. A day later, the House Transportation and Infrastructure Committee overwhelmingly passed its 2018 Water Resources Development Act. WRDA authorizes U.S. Army Corps of Engineers Civil Works projects, including navigation (dredging, locks), flood control (levees), hydropower (dams), recreation (parks), and water supply. AGC followed both bills closely and advocated for construction industry priorities in both the Senate and House bills.
Disappointingly, neither the Senate nor the House WRDA bills include provisions from the president’s infrastructure plan or AGC’s recommendations that will streamline duplicative environmental reviews before USACE can initiate a water infrastructure project. AGC testified before the committee earlier this year.
Notable provisions in the Senate bill include:

• SRF WIN Act – authorizes the Securing Required Funding for Water Infrastructure Now Act. This program provides funding for State Infrastructure Financing Authorities to utilize WIFIA funds and would authorize $200 million annually ($1 billion over 5 years) in additional funds for the Drinking Water and Clean Water State Revolving Loan Funds.


• WIFIA – Reauthorizes of the Water Infrastructure Finance and Innovation Act at $50 million for both FY2020 and FY2021. WIFIA provides long-term, low-cost supplemental loans for regionally and nationally significant projects


• Five Year Plan – Requires USACE to provide Congress with a work plan and four-year projected budget on an annual basis

Notable provisions in the House WRDA bill include:

• Harbor Maintenance Trust Fund – Requires the full use of funds taken into the HTMF to be entirely spent on harbor maintenance by the year 2029


• Post-disaster Projects – Modifies the repair standard for post-disaster Corps projects to all repairs to be done at either pre-storm conditions or the “design level of protection”


• Real Property Database – Requires USACE to publicly post its real property portfolio as a means to help owners and contractors determine the potential for a Rivers and Harbors Act Section 408 permission, often a regulatory chokepoint that delays issuance of Clean Water Act Section

Both the Senate and House WRDA bills authorize seven Chief’s Reports and 10 studies.
For more information, contact Jordan Howard at [email protected] or (703) 837-5368.

On May 23, the House Appropriations Committee approved its fiscal year 2019 funding bill, which provides significant increases for infrastructure programs at the U.S. Department of Transportation. The bill includes $49.52 billion in funding for highways by adding $4.25 billion from the general fund to the FAST Act-authorized level of $45.27 billion, a 9.3 percent increase. 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. An additional $310 million was added to transit Capital Investment Grants, increasing the FAST Act-authorized level from $2.3 billion to $2.614 billion. The formula transit program would be funded at the FAST Act level of $9.939 billion (See chart below).

Fiscal Year 2019 Highway and Transit Appropriations
(In Billions)	FY 2017	FY 2018	FY 2019 (House)
FAST Act – Highways (HTF)	$43.27	$44.23	$45.27
Additional General Fund		$2.53	$4.25
Total Highways	$43.27	$46.76	$49.52
FAST Act Transit Capital Grants (General Fund)	$2.3	$2.3	$2.3
Additional General Fund	0.2	$.35	$0.31
Total Transit Capital Grants	$2.5	$2.65	$2.61
Transit Formula Grants (HTF)	$9.733	$9.733	$9.939
Additional General Fund		$0.834	$0.800
Total Transit Formula	$9.733	$10.567	$10.739
Airport Improvement (AIP) Aviation TF	$3.35	$3.35	$3.35
Additional General Fund		$1.0	$0.50
Total AIP	$3.35	$4.35	$3.85
Build (TIGER) Grants – General Fund	$0.50	$1.50	$0.75

The bill also includes $750 million for BUILD Grants (formerly known as TIGER), down $250 million from fiscal year 2018 but a $250 million increase over 2017 and previous fiscal year levels. For aviation, the bill provides $3.85 billion down $500 million from FY 2018 but an additional $500 million over FY 2017 and previous fiscal years.
The bill is not yet scheduled for floor action. AGC will continue to weigh-in and ensure that these significant increases are realized.
For more information, contact Brian Deery at [email protected] or (703) 837-5319.

Following in the tradition of Presidents Bush’s “greening the government” and Obama’s “federal sustainability” efforts, President Trump ordered federal agencies to meet statutory requirements for environmental performance and prioritize actions that reduce waste and enhance the resilience of federal infrastructure and operations. Trump’s May 17 Executive Order Regarding Efficient Federal Operations takes a less prescriptive approach and provides agencies greater flexibility in meeting existing requirements than Obama’s now rescinded 2015 order – which set far-reaching goals for federal buildings and fleets beginning in 2016 through 2025 and beyond.
In the coming months, the Office of Federal Sustainability will work with agency-level Chief Sustainability Officers to develop metrics and provide guidance on improving the efficiency (and reducing costs) of the federal government’s more than 350,000 buildings and 600,000 vehicles. According to the White House, “Federal agencies spent more than $6 billion on energy for buildings and $635 million on water” last year.
For more information, contact Melinda Tomaino at [email protected] or (703) 837-5415.

On May 21, AGC challenged the U.S. Environmental Protection Agency’s consideration of using the Clean Water Act (CWA) permit program to regulate discharges to groundwater eventually making their way to a jurisdictional surface water. EPA’s considered action could impact contractors who employ stormwater collection systems (such as detention ponds) as well as green infiltration practices to control stormwater. CWA programs cover point source discharges to jurisdictional waters, not releases to groundwater. AGC further argued that groundwater is currently protected under other laws, such as, for example, the Safe Drinking Water Act.
For more information, contact Leah Pilconis at [email protected] or (703) 837-5332 or Melinda Tomaino at [email protected] or (703) 837-5415.

On May 21, the Occupational Safety and Health Administration (OSHA) issued a Notice of Proposed Rulemaking to revise crane operator training, certification/licensing, and competency. The proposed changes would: (1) require comprehensive training of operators; (2) remove the provision that requires certification by capacity; (3) clarify and permanently extend the employer’s responsibility to evaluate crane operator competency; and (4) require documentation of that evaluation.
The proposed rule was released ahead of the November 10 compliance deadline for enforcement of crane operator certification. AGC has been following this rulemaking closely and will be working with members to draft and submit comments by June 20.
For more information, contact Kevin Cannon at [email protected] or (703) 837-5410.
 

Over 400 construction industry executives, including AGC contractors and chapter executives from around the country, participated in the 2018 Transportation Construction Coalition’s (TCC) legislative Fly-In, May 15-16, 2018.
The coalition delivered three key messages to elected officials on both sides of the aisle: fix the Highway Trust Fund, increase infrastructure investment, and complete action on the Federal Aviation Administration (FAA) reauthorization through increased funding levels and a lifted cap on the Passenger Facility Charge (PFC). The coalition’s Hill visits were augmented by an aggressive social media campaign, launched a week prior to the fly-in and running through the in-person lobbying blitz.
Attendees also heard from elected officials, as Sen. Tom Carper (D-DE), ranking democrat on the Senate Environment and Infrastructure Committee, and Sam Graves (R-MO), chair of the House Transportation and Infrastructure Subcommittee on Highways, addressed the trust fund shortfall, similarly characterizing the issue as pressing. For his part, Rep. John Katko (R-NY) discussed the Problem Solver’s Caucus, a bipartisan group of representatives working together to enact compromise legislation on a variety of issues, including infrastructure.
AGC members also participated in meetings with Federal Highway Administration (FHWA) officials who discussed issues related to contract administration, safety, drone use, and e-construction. Additionally, AGC meetings focused on the vehicle miles traveled (VMT) concept and reviewed the status of nation-wide pilot programs testing VMT collected user fees as a means of providing revenue for future highway and bridge improvements.
For more information, contact Brian Deery at [email protected] or (703) 837-5319.

October 17-19 in Arlington, VA
This unique three-day course provides construction safety and health professionals with the next-level knowledge required to successfully manage a company-wide safety program.
Moving beyond the basics of Focus Four training, AGC’s Advanced Safety Management Training Program will give participants a more holistic view of safety’s role in project and company success, as well as advanced tactics and best practices for managing all aspects of a corporate safety program. Participants will also focus on the importance of "selling" safety throughout the organization and methods to generate buy-in from different audiences.
Full details on the course and links to registration can be found here.
For more information, contact Kevin Cannon at [email protected] or (703) 837-5410 or Nazia Shah at [email protected] or (703) 837-5409.

July 25-27 in Indianapolis, IN
The 2018 Summer Safety & Health Conference will take place July 25-27, 2018 at the JW Marriott in Indianapolis, IN.
Join more than 250 industry professionals and participate in the development of regulatory and legislative activity on both a national and local level; assist in the development and creation of new safety training programs and products; and hear the latest initiatives from OSHA and other industry experts.
Full details on the Conference and links to registration and the hotel room block can be found here.
For more information, contact Kevin Cannon at [email protected] or (703) 837-5410 or Nazia Shah at [email protected] or (703) 837-5409.

AGC Comments, Urges Members to Comment on Proposal
May 17 marks the close of a three-day public hearing (May 15-17) into the Administration’s proposed 25% tariffs on $50 billion worth of Chinese goods (1,333 products), including materials and equipment essential to carrying out construction projects. The proposed products listincludes: concrete or mortar mixers; electric signaling items for traffic or safety control; elevators and conveyors; tower cranes; tunneling machinery; and water pumps, among other products. In pre-hearing comments, AGC urged the Office of the United States Trade Representative (USTR) to strike construction-related products from the proposed list, and AGC is now encouraging member companies to submit post-hearing rebuttal comments before a May 22 deadline.
The tariffs on $50 billion worth of Chinese goods stem from the Administration’s investigation into China’s state-directed practice of forced technology transfers, intellectual property theft, and acts/policies threatening American innovation. This week’s hearings featured testimony from dozens of company executives, as well as representatives from USTR, the Department of Commerce, and the Department of the Treasury.
On Wednesday, Senate Finance Committee Chair Orrin Hatch tamped down hopes that the Administration would abandon these proposed tariffs, saying, “We can't let them do some of these things that really fly in the face of reasonable international law without some sort of response by us.” If Hatch is correct and the Administration carries out its planned tariffs, as many as 23,468 construction jobs could be at risk according to a new study jointly published by the National Retail Federation and the Consumer Technology.
For more information, contact Collin Janich at [email protected] or (703) 837-5435.