AGC arranged for several large and small members to meet last week with Department of Veterans Affairs Secretary Robert McDonald and Deputy Secretary Sloan Gibson to discuss the agency’s construction program. While AGC and its members noted the problems they collectively face in the field, the bulk of the discussion centered upon ways the VA could reform its construction program. Some of those reforms included the establishment of decisions resolution boards, an industry peer review program, and standardized agency facility designs.
Last week, AGC helped eliminate a rule issued by the Department of the Army to the Army Federal Acquisition Regulation that sought to remove contracting authority from 400 engineers within the Army Corps of Engineers. The rule would have removed construction experts from having the authority to make construction contracting decisions on Corps projects. The Army issued this rule without providing for any public comment and claimed that such a rule would not impact the contracting industry.
Sens. Rob Portman (R-Ohio) and Mazie Hirono (D-Hawaii) introduced the AGC-backed Construction Consensus Procurement Improvement Act, and included the legislation as an amendment to the National Defense Authorization Act. This bill would prohibit federal agencies from procuring construction services through reverse auctions. Please urge your senators to co-sponsor the bill and support this amendment.
On June 9, AGC submitted a letter to the Internal Revenue Service asking for clarification on the reporting process for employers that contribute to multiemployer health plans and the requirements to provide detailed information on the health care coverage employers’ offer. Employers participating in multiemployer health plans are subject to additional complexity while trying to comply because many decisions and requirements are bound by the employer’s collective bargaining agreements. Under the multiemployer plan model, a plan administrator has access to the information required by the IRS and reports this information, despite the reporting obligation remaining with the employer.
Sens. Rob Portman (R-Ohio) and Mazie Hirono (D-Hawaii) this week introduced the AGC-backed Construction Consensus Procurement Improvement Act, and included the legislation as an amendment to the National Defense Authorization Act to prohibit federal agencies from procuring construction services through reverse auctions. Please urge your senators to co-sponsor the bill and support this amendment.
The Department of the Army recently issued a final rule (via memorandum) to the Army Federal Acquisition Regulation that, if implemented, would remove contracting authority from about 400 engineers within the U.S. Army Corps of Engineers. The rule would remove construction experts from having the authority to make construction contracting decisions for the safe and efficient construction of everything from barracks that house and protect our soldiers to the levees and dams that guard millions of Americans from floods. The Army issued this rule without providing for any public comment and claims that such a rule will not impact the contracting industry. Ultimately, the Army is seeking to move all contracting activities, including the procurement of construction through USACE, within the Army Contracting Command.
Congress Passes AGC-Backed Measure to Allow Construction to Continue
On May 27, the Federal Acquisition Regulation (FAR) Council issued a proposed rule and the Department of Labor (DOL) issued guidance implementing the president’s “Fair Pay and Safe Workplaces” Executive Order (EO) 13673, commonly referred to as the Blacklisting EO.
The House passed, by unanimous consent, legislation to allow work on the Department of Veterans Affairs Denver Hospital Project to continue for several more weeks. The Veterans Access, Choice and Accountability Act of 2014, introduced by Rep. Mike Coffman (R-Colo.), increases funding for the project by $100 million. The Senate is expected to pass this legislation before adjourning for the Memorial Day recess. The U.S. Army Corps of Engineers recently found that the project will cost about $1.7 billion to complete, $1.1 billion more than the initial cost estimate.
The House of Representatives passed a provision that would help prevent federal agencies from procuring construction services through reverse auctions. Representative Richard Hanna (R-N.Y.) offered this AGC-supported provision as an amendment—which passed by unanimous voice vote—to the National Defense Authorization Act of 2016. The Defense Act – with the reverse auction ban amendment included – subsequently passed the House on a 269 to 151 vote late last week. The Act funds for the Department of Defense and has passed Congress every year for over 50 consecutive years.