<p>On May 24, AGC objected to the Department of Defense’s <a href="https://www.gpo.gov/fdsys/pkg/FR-2016-03-25/pdf/2016-06725.pdf"><u>proposed change</u> </a>to the Defense Federal Acquisition Supplement (DFARS) that would prohibit the use of any cost-plus system of contracting for military construction and military family housing projects governed under Title 10 of the U.S. Code. AGC noted that a blanket prohibition of the use of a cost-plus system will prevent federal construction owners from selecting the best contracting and project delivery methods to meet the demands of any given construction project.</p>
<p>On May 17, the House Oversight and Government Reform Committee unanimously approved AGC-supported <a href="https://www.congress.gov/114/bills/hr5199/BILLS-114hr5199ih.pdf"><u>legislation</u> </a>that would (1) require civilian federal agencies—non-Department of Defense agencies—to utilize the two-step design-build selection process for design-build projects greater than $3 million, thereby limiting one-step design-build procurements; and (2) help prohibit reverse auctions for certain construction services. Introduced by Rep. Mark Meadows (R-N.C.), the bill—H.R. 5199—is nearly identical to the <a href="https://www.agc.org/news/2016/02/11/agc-backed-procurement-legislation-passes-senate-panel"><u>AGC-backed legislation</u></a> passed by a Senate Committee in February. AGC will continue to push for enactment of these procurement reforms.</p>
<p>On May 16, the Federal Acquisition Regulation (FAR) Council issued an AGC-supported <a href="https://www.gpo.gov/fdsys/pkg/FR-2016-05-16/pdf/2016-11003.pdf"><u>final rule</u></a> that effectively limits the second-step (“short-list”) of the two-step design-build procurement process to no more than five teams. Through <a href="https://www.agc.org/news/2014/12/05/agc-advances-legislative-priorities-defense-bill"><u>AGC’s efforts</u></a>, this reform was passed by Congress in 2014. For AGC’s comments on that proposed rule, click <a href="http://newsmanager.commpartners.com/agcfed/downloads/AGC%20Comments%20on%20FAR%20Council%20Design%20Build%20Prop.%20Rule.pdf"><u>here</u></a>.</p>
<p>In what may be a 12-round bout, AGC has scored another victory on the path to expunging President Obama’s <u><a href="https://www.agc.org/news/2015/08/28/agc-submits-comments-opposing-blacklisting-executive-order">Blacklisting Executive Order</a>.</u> On May 19, the House of Representatives approved legislation that includes an AGC-backed provision to the National Defense Authorization Act—a bill that has been annually enacted into law for 54 consecutive years—that ensures the EO would not apply to Department of Defense and National Nuclear Security Administration contracts. AGC will work with Congress to limit the Executive Order.</p>
The House of Representatives today failed—on a vote of 209-216—to pass AGC-supported legislation that would block further implementation of President Obama’s 2009 executive order encouraging federal agencies to consider government-mandated project labor agreements (PLAs) on construction projects. AGC, along with other industry allies, urged members of the House to support this initiative and will continue to advocate against government-mandated PLAs.
<p>On May 18, the U.S. Department of Labor released its <a href="https://www.dol.gov/featured/overtime"><u>final rule</u></a> implementing changes to the Fair Labor Standards Act (FLSA) overtime regulations. The most significant change is a doubling of the standard salary threshold for exempt employees – from $455 per week ($23,660 per year) to $913 per week ($47,476 per year). The rule takes effect on Dec. 1, 2016. In 2015, AGC sent both <a href="https://www.agc.org/sites/default/files/Files/Labor%20%26%20HR%20%28public%29/AGC%20Comments%20to%20Overtime%20NPRM%20-%20Final_2.pdf"><u>individual comments</u></a> and signed onto <a href="https://www.agc.org/sites/default/files/Files/Labor%20%26%20HR%20%28public%29/PPWO%20Comments%20Overtime_1.pdf"><u>coalition comments</u></a> on the proposed rule. These comments raised strong concerns that the proposed salary threshold of $970 per week ($50,440 per year) would be too large an increase for employers to absorb all at once. While not all of AGC’s and the coalition’s recommendations were accepted, the final rule does establish a lower salary threshold than originally proposed. The final rule’s concession for bonuses and commissions and its abstinence from changing the duties test are also consistent with AGC’s recommendations.</p>
<p>This week, AGC <a href="http://newsmanager.commpartners.com/agcleg/downloads/2016-04-26%20Senate%20Flake%20Amdt%20USACE%20Funding.pdf"><u>successfully blocked</u></a> legislation that would cut millions of dollars from the Army Corps of Engineers civil works construction program in fiscal year 2017. Sen. Jeff Flake introduced the amendment to the USACE annual funding bill that failed on an <a href="http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=114&session=2&vote=00063"><u>84-12</u></a> vote. The Senate continues to consider the USACE funding bill as of publication.</p>
In what may be a 12-round bout, AGC won round one to block President Obama’s Blacklisting Executive Order. Late last night, the House Armed Services Committee added an AGC-backed provision to the National Defense Authorization Act—a bill that has been annually enacted into law for 54 consecutive years—that ensures the EO will not apply to Department of Defense and National Nuclear Security Administration contracts. AGC will work to expand the application of the EO government-wide when the bill hits the House floor and during consideration in the Senate.
Earlier this week, AGC hosted a day of roundtable discussions in Denver, Colo. that brought together environmental professionals who work for some of the nation’s leading construction firms. The group shared their best practices and strategies for incorporating environmental stewardship into their companies’ projects and overall business operations. A consistent theme throughout the discussions was the value in using every opportunity to get in front of the construction workforce and raise environmental awareness. Certainly there is no better opportunity than Earth Day, for AGC to share its multi-year collection of contractor ideas and tips on how to approach environmental issues: straight from one environmental manager to another.
AGC submitted comments on the Federal Acquisition Regulation (FAR) Council’s proposed rule to require prime contractors to self-report late or reduced payments to contracting officers. Under the proposed rule, unjustifiable delays or reductions in subcontractor payment under the terms and conditions of the subcontract would lead to a negative past performance review for the prime contractor. AGC’s comments concluded that the proposed rule is unnecessary and needlessly burdensome given existing Prompt Pay Act safeguards and small business subcontractor payment acceleration executive measures.