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Positive Change Stemming from AGC Legislative Action
The U.S. Small Business Administration (SBA) released a proposed rule that would allow prime contractors to count lower-tier, small business subcontracts towards their small business subcontracting goals. Currently, prime contractors can only take credit for their small business subcontracts at the first tier. This proposed rule will allow prime contractors to take credit for such subcontracts—above $650,000—at any tier to meet such goals.
AGC Legislative Success Begins Implementation Process
The FAR Council released a proposed rule that would help limit the number of short-listed design-build teams to no more than five during a two-step design-build procurement through federal agencies. The proposed rule takes a two-pronged approach to implementing this policy. First, for contracts at or below $4 million, contracting officers will have to document their reasons for including more than five teams on the short-list. Second, for contracts above $4 million, contracting officers will not only have to provide such documentation to include more than five teams, but also have approval from the head of the contracting agency—i.e., Chief of Engineers at U.S. Army Corps of Engineers—to include more than five teams on the short-list.
Prohibits Reverse Auctions for Construction Services Contracts
This week, Sens. David Vitter (R-Louisiana) and Jeanne Shaheen (D-N.H.) introduced and passed legislation out of the Senate Small Business and Entrepreneurship Committee that would help prohibit federal agencies from conducting reverse auctions for construction services contracts. A reverse auction is a procurement process through which contractors bid down price—and can see others’ bids—for a good or service contract in real time. Many federal agencies use reverse auctions to procure non-variable commodities like pens and paper. However, several federal agencies also use reverse auctions to procure construction services, which are inherently variable based on the project, site location and construction professionals.
On Sept. 10, AGC participated in a business community roundtable discussion on the “Fair Pay and Safe Work Places” Executive Order– commonly referred to as the Blacklisting Executive Order – with Republican members of the House Small Business Committee. AGC General Counsel Mike Kennedy discussed the myriad legal and practical difficulties this executive order will present construction contractors when bidding and performing work on federal contracts.
Federal Contractors Again the Focus of Executive Action
On Labor Day, President Obama signed an executive order that would mandate direct-federal prime contractors and subcontractors to issue paid sick leave. The executive order mandates paid sick leave at a rate of no less than 1 hour earned for every 30 hours worked, setting a minimum of 56 hours a year of paid sick leave—about seven days—covering not only employee illness, but also caring for a child, parent, spouse, domestic partner “or any other individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship.”
On Aug. 26, AGC submitted its comments to the Federal Acquisition Regulation Council and the U.S. Department of Labor on their proposed rule and guidance, respectively. The rule and guidance implement the president’s “Fair Pay and Safe Workplaces” Executive Order 13673, commonly called the Blacklisting Executive Order.
At the request of the U.S. Department of Veterans Affairs, AGC recently led several workshops with Department resident engineers from around the country on the value of project-level partnering. Over the course of two days, AGC discussed the need for contractors and owner representatives to not only establish trust at the front end of the project, but to maintain it throughout project delivery—whether through formal or informal partnering means. Several AGC contractor members participated in the workshops and stressed the need for honest, consistent communication and the establishment of decision escalation processes as a means to deliver projects on time and on budget. The workshops included brief presentations from contractors, interactive team-building exercises and back and forth questions and answers between the Department engineers and AGC contractors. The Department held this workshop as part of a broader training initiative, the theme of which was “turning the page” on the old ways and looking towards improvement ahead.
On Oct. 1, the House approved the conference report for the National Defense Authorization Act for Fiscal Year 2016, which includes several AGC-supported procurement reforms. These reforms would:
On September 16, the U.S. Department of Labor’s Wage and Hour Division (WHD) published a notice in the Federal Register announcing a new minimum wage rate of $10.15 for direct federal contracts and subcontracts covered by Executive Order 13658. Federally assisted contracts are not affected. The rate goes into effect on January 1, 2016.
The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) recently released an infographic to help veterans determine whether or not they are protected under the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA).
