While not ideal, enactment of a short-term continuing resolution (CR) will ensure federal agencies remain open and ongoing projects for direct federal contractors (e.g., those with contracts directly with the U.S. Army Corps, Navy, General Services Administration, etc.) remain uninterrupted through December 11. However, federal construction projects that need fiscal year 2021 funds to begin or start a new phase are prohibited from moving forward. That does not mean that all or many direct federal construction projects will grind to a halt, because the majority continue to utilize funds from previous fiscal years (thus falling outside the new project starts prohibition). Fully funding the government will be back at center stage in December. Nevertheless, AGC has resources available to your company in the event of a partial or complete federal government shutdown: What Contractors Should Know in the Event the Government Shuts Down.

On August 13, a federal prohibition on the use of certain telecommunications components took effect. The new Interim Final Rule (IFR), often referred to as “Section 889 Part B,” prohibits federal agencies from entering into, extending, or renewing a contract with a contractor that uses any equipment, system, or service that utilizes certain Chinese companies’ telecommunications equipment or services as a component or critical technology of any system, unless an exception applies or a waiver is granted. The Department of Defense issued a memo on this measure, explaining that federal contractors should expect change orders or other required affirmations of a contractor’s compliance with this prohibition. On July 1 and July 15, AGC, along with a coalition of stakeholders, called on Congress to extend the date of implementation and to make key changes to the rule.

Heads to Conference

On July 8, the House Appropriations Subcommittee on Military Construction and Veterans Affairs began to consider funding legislation for fiscal year (FY) 2021. The bill provides a total of $10.1 billion for military construction projects, roughly $1.5 billion below the FY 2020 enacted levels. The VA portion of the bill funded major and minor construction within the VA at $1.8 billion, an increase of $139 million above the FY 2020. This amount includes $1.4 billion for Major Construction and $400 million for Minor Construction. House Democratic leadership has stated that it wants all twelve funding bills to be passed by the end of July. The Senate has yet to pass any of its appropriations bills. AGC strongly supports increased investment in our nation’s military programs and veterans’ facilities and will continue to advocate for increased funding as the bill moves to the Senate for additional consideration. The full text of the measure can be viewed here.

Chris has worked in the construction industry for over 25 years in various marketing, business development and public relations positions. In 2008, Chris founded Atlas Marketing to tell stories for people who build things. The agency, based in Pittsburgh, specializes in marketing, social media, digital development, crisis communications, public relations and marketing strategy. Since inception, the agency has worked hard to simplify the complex stories of labor organizations, government agencies, general contractors, specialty contractors and statewide industry associations. In addition to being a member of the AGC BD Forum, Chris is co-host of the Building PA Podcast, a podcast that showcases the construction industry throughout Pennsylvania and a frequent speaker on the topics of crisis communications and telling stories for the construction industry.
On July 1, the House Armed Services Committee overwhelmingly passed (56-0) H.R. 6395, the National Defense Authorization Act for Fiscal Year (FY) 2021. In addition, on July 2, the Senate is set to vote on it’s version of the FY2021 NDAA (S.4049). AGC has provided feedback to both chambers on provisions important to federal construction contractors.

Billions of Dollars for Military Construction Projects

AGC is currently seeking questions and topics for discussion at the Virtual Federal Contractors Conference (FedCon) to be held June 8-12, 2020. Attendees have the unique opportunity to lead the meeting agenda and directly interact with and pose questions to construction leaders in a wide array of federal agencies. These robust discussions offer contractors the opportunity to learn about the latest projects and policies and address problems the industry may face when working directly with a federal agency.

Construction Firms Are Already Taking Steps to Protect Employees, Most of Whom Already Wear Protective Equipment, While Halting Work Will Undermine Efforts to Add Hospital Capacity