Federal

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.

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.

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.

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.