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The chief executive officer of the Associated General Contractors of America, Stephen E. Sandherr, released the following statement in reaction to President Trump’s State of the Union call for new infrastructure investments:
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FAR Council Addresses Many of AGC’s Concerns
On Dec. 20, the Federal Acquisition Regulation (FAR) Council issued a final rule requiring a prime contractor to notify federal contracting officers if (1) the prime contractor makes a reduced payment to a small business subcontractor or (2) if the prime contractor’s payment to a small business subcontractor is more than 90 days past due. The rule goes into effect on Jan. 19. The FAR Council did not withdraw the proposal as AGC recommended based on a myriad of existing small business subcontractor payment legal protections. However, it did take into account many of AGC’s concerns with the proposed rule.
$8 Billion in Federal Real Property Up for Consideration
Last week, the President signed into law the AGC-supported Federal Assets Sale and Transfer Act. This bipartisan law will shrink the federal footprint and streamline the disposal of excess or underutilized federal buildings. AGC has long been involved in pushing for federal real property reform and strongly supports these efforts.
Construction employers added 19,000 jobs in November, reaching the highest employment level since November 2008, but a drop in public sector investments in construction projects held down employment among heavy and civil engineering firms, according to an analysis by the Associated General Contractors of America. Association officials noted that recent construction spending numbers show a decline in most categories of infrastructure investment.
Construction employment declined or was stagnant in 131, or 37 percent, of 358 metro areas between May 2015 and May 2016, according to a new analysis of federal employment data released today by the Associated General Contractors of America. Association officials said. The data comes as years of underfunding have contributed to declining highway, transit and other public infrastructure just 60 years after President Eisenhower signed the first interstate highway act.
On Wednesday, the House Ways and Means Subcommittee on Tax Policy held its second hearing on reform America’s tax code. At the hearing, Congressmen Bob Goodlatte (R-Va.) and Roger Williams (R-Texas) presented legislative proposals to reform the income-tax system so that it is fairer and simpler for taxpayers. AGC will continue to monitor these legislative proposals and promote reforms that provide clarity, simplicity and certainty for construction firms.
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.
Requests Improved Data Reporting to Encourage CO Accountability
AGC, along with the American Subcontractors Association, called on the Federal Acquisition Regulation (FAR) 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) in an effort to encourage greater CO accountability.
Urge Your Congressman to Delay Implementation
Please contact your member of Congress to urge them to delay implementation of the Blacklisting Executive Order. This President Obama executive order will require federal prime and subcontractors to report violations of 14 federal labor laws and "equivalent" state labor laws during the previous three years, and again every six months, on federal contracts over $500,000.
