The Department of Labor canceled the Manchester New Hampshire Job Corps Center construction solicitation due to concerns surrounding a project labor agreement (PLA) requirement.In September, AGC of America, in cooperation with AGC of  New Hampshire, sent a letter to the Department of Labor expressing concerns about the agency's decision to include a PLA mandate in solicitations related to the construction of a new Job Corps Center in Manchester, N.H., and demanding information about the agency's justification and decision-making process. Read more here.DOL announced that the solicitation was cancelled because it believes that "it is in the public interest for the Department to further evaluate the issues involved in the PLA requirement" as it is a new issue to DOL.AGC will continue to closely monitor any federal agency PLA activity.  If you become aware of any PLA mandates on federal or federally assisted construction projects, please let us know at federal@agc.org.

On December 3, 2009, the White House Council on Environmental Quality (CEQ) submitted a proposal for review to the National Academy of Sciences (NAS) that would significantly change the principles and guidelines that govern federal water-resource planning.The proposal would require that all projects improve the economic well-being of the nation, better protect communities from the effects of floods and storms, help communities and individuals make better choices about where to build based on an understanding of the risk, and protect and restore the environment. AGC is currently reviewing the draft.For details on the proposal, click here

The White House Interagency Ocean Policy Task Force has issued draft recommendations on how federal, state and local authorities can better work together for ocean and coastal planning.    Among the recommendation are:  fostering better communication, coordination and cooperation among agencies; getting the public more involved in the planning process; and establishing a database where information can be shared.The draft report, the "Interim Framework for Effective Coastal and Marine Spatial Planning," lays out how regional planning across the country would be set up to gather science, data and planning information.  CEQ Chairwoman Nancy Sutley noted that regional planning would be a multiyear process to look at how to better manage the uses and ecosystem health of oceans and coasts and make them more sustainable. These regional plans would be completed by 2015, she said.Public comments on the report will be received until February 12, 2010.  It is available at: http://www.whitehouse.gov/administration/eop/ceq/initiatives/oceans

On December 3, 2009, the White House Council on Environmental Quality submitted a proposal for review to the National Academy of Sciences (NAS) that would significantly change the principles and guidelines that govern federal water-resource planning. The proposal would require that all projects improve the economic well-being of the nation, better protect communities from the effects of floods and storms, help communities and individuals make better choices about where to build based on an understanding of the risk, and protect and restore the environment.The proposal calls for the development of water-resources projects to be based on the best available science, increased consideration of monetary and non-monetary benefits to justify and select a project, improved transparency, and consideration of nonstructural approaches that can solve the flooding problem without harming floodplain functions. The proposal would also expand the scope of the Principals and Guidelines to cover all federal agencies that undertake water-resource projects. The Obama administration will publish the new draft Principles and Guidelines in the Federal Register for a 90-day public comment period ending in early March. The NAS review is expected to be completed by November 2010.In the Water Resources Development Act of 2007 (WRDA), Congress instructed the Secretary of the Army to develop a new Principles and Guidelines for the U.S. Army Corps of Engineers. In an effort to modernize the approach to water resources development, the administration is expanding the scope of the Principals and Guidelines to cover all federal agencies that undertake water resource projects, not just the four agencies (i.e., U.S. Army Corps of Engineers, Bureau of Reclamation, Natural Resources Conservation Service and the Tennessee Valley Authority) which are subject to the current Principles and Guidelines.The proposed revisions to the Principles and Guidelines would require that:Federal water-resources planning and development to protect and restore the environment and improve the economic well-being of the nation for present and future generations. While the 1983 standards emphasized economic development alone, the new approach calls for development of water resources projects based on sound science that maximize net national economic, environmental, and social benefits.All federal agencies consider monetary and non-monetary benefits to justify and select a project that has the greatest net benefits - regardless of whether those benefits are monetary or non-monetary. For example, the monetary benefits might capture reduced damages measured in dollars while the non-monetary benefits might capture increased fish and wildlife benefits, or biodiversity.Any decision to modify water resources and floodplains will be based on evaluations of the services gained and lost by such an action. Only those actions that provide a net benefit will be further pursued or recommended for construction. For the first time such evaluations must give full and equal consideration to nonstructural approaches that can solve the flooding problem without adversely impacting floodplain functions.Water-resources projects deliver "good government" results for the American people. It is expected that the use of best science, peer review, and full transparency will ensure that projects undergo a more rigorous study process, which should inform authorization and funding decisions.Each agency will develop its own "Implementation Guidance" to outline how the new Principles and Guidelines apply to their agency-specific missions completed in late 2010.AGC has been following the development of the revisions since the passage of WRDA 2007. AGC originally provided comments on the revisions to the U.S. Army Corps of Engineers when the agency solicited comments in 2008. In addition, AGC and its partners in the Water Resources Coalition have been working with CEQ to provide additional input on the revisions.To view the proposed P&G revisions, click here.For more information, please contact Marco Giamberardino at (703) 837-5325 or giamberm@agc.org

In a final series of directives issued by the Office of Management and Budget (OMB) on October 27, the Administration said that the civilian agencies should increase their acquisition workforce by at least five percent by 2014. In addition, the agency called for a limit on the use of noncompetitive and other "higher-risk" types of contracts.According to the OMB Acquisition Workforce Strategic Plan, the Federal government's investment in the acquisition workforce has not kept pace with changes in Federal contracting. AGC has long advocated About one federal acquisition professional in eight already is eligible to retire, and that will rise to more than half the workforce by 2016. The average retirement eligibility for contracting professionals will increase from 29 percent in FY 2011 to 50 percent in FY 2016. Although the federal agencies have a variety of tools to help recruit and retain older workers, the agencies have not always been aware of the full range of options. Recruitment, retention and training of the government workforce should be a high priority for both government and industry.A second memo on Increasing Competition and Structuring Contracts for the Best Results OMB released provide agencies with serues if guidelines to help Chief Acquisition Officers (CAOs) and Senior Procurement Executives (SPEs) evaluate the effectiveness of their agency's competition practices and processes for selecting contract types. The guidelines focus around three key questions:1) How is the agency maximizing the effective use of competition and choosing the best contract type for the acquisition?2) How is the agency mitigating risk when noncompetitive, cost-reimbursement, or T&M/LH contracts are used?3) How is the agency creating opportunities to transition to more competitive and lower risk contracts?These consideration are designed to help implement President Obama's March 5 Memo on Contracting also called upon OMB to issue guidance: (1) to govern the appropriate use and oversight of sole-source and other types of noncompetitive contracts and to maximize the use of full and open competition and other competitive procurement processes; and (2) to govern the appropriate use and oversight of all contract types, in full consideration of the agency's needs, and to minimize risk and maximize the value of Government contracts generally.The White House on July 29 formally unveiled contracting and workforce reforms that are designed to save the taxpayers at least $40 billion a year. The reforms, released by the Office of Management and Budget (OMB), focus on three areas: improving acquisition, managing the multi-sector workforce and contractor performance information.Previously, President Obama established in a March 4 memorandum his principles for contracting reform, and charged the OMB with identifying the best approaches to accomplish his goals.For more information, contact Marco Giamberardino at (703) 837-5325 or giamberm@agc.org.

U.S. Small Business Administration on October 28, 2009 announced a notice of proposed rulemaking that would substantially revise contracting rules for firms benefiting from the 8(a) Business Development program . The proposed changes are the result of the first comprehensive review of the 8(a) program in several years. The rules cover a variety of areas of the program, ranging from providing further clarification on determining economic disadvantage to requirements on Joint Ventures and the Mentor-Protégé program. The public comment period on the proposed changes is open for 60 days.The 8(a) program is a nine-year business development program for small businesses that fit the SBA's criteria of being socially and economically disadvantaged. The intent of the 8(a) program is to help these firms develop their business and provides them with access to government contracting opportunities, allowing them to become solid competitors in the federal marketplace. It also provides specialized business training, counseling, marketing assistance and high-level executive development to its participants. In FY08, small businesses received $16.1 billion in 8(a) contracts.Some of the components of the 8(a) program that the proposed changes will affect include:Joint Ventures - qualifying that 8(a) firms are required to perform a significant portion of the work to ensure that these companies are able to build capacity;Economic Disadvantage - providing more clarification on economic disadvantage as it relates to total assets, gross income, retirement accounts and a spouse of an 8(a) company owner in determining the owner's access to capital and credit;Mentor-Protégé Program - requiring that assistance provided through the Mentor-Protégé relationship is directly tied to the protégé firm's business plan;Ownership and Control Requirements - providing flexibility in admitting individuals of immediate family members of current and former 8(a) participants;Tribally-Owned Firms - seeking public comments on the best way to determine whether a tribe meets the criteria of being economically disadvantaged for the 8(a) program;Excessive Withdrawals - amending regulations on what is considered excessive as a basis for termination or early graduation from the 8(a) program; andBusiness Size for Primary Industry - requiring that a firm's size status remain small for its primary industry code during its participation in the 8(a) program.AGC is currently reviewing the proposed rule and will prepare formal comments to the SBA. In addition, AGC will work with SBA and Small Business Congressional Leaders on Capitol Hill to continue advocating common-sense contracting reforms that will benefit contracting for the construction industry. Comments to this proposed rule are due on or before Dec. 28, 2009 and may be submitted to www.regulations.gov, where they will be posted or mailing them to 409 3rd St. SW, Mail Code: 6610, Washington, DC 20416 or via e-mail at: 8aBD2@sba.gov.

The American Recovery and Reinvestment Act (ARRA) has provided the construction industry with an unprecedented opportunity to help rebuild our nation, our economy and our industry. As a result, ARRA and several other major changes governing how the federal government procures construction services have dramatically changed the federal construction industry.AGC is offering a cutting edge series of federal contracting webinars to provide a detailed overview of some of the most critical challenges both new and experienced federal contractors will need to know about to successfully navigate this new landscape and meet the demands of the economic stimulus package.November 5, 1:30-3pm ET  - Protests and Debriefings: How to Protect YourselfNovember 12, 1:30-3pm ET - Small Business Contracting: Opportunities Gained & Challenges IdentifiedNovember 19, 1:30-3pm ET  - Cost Recovery & Claims: Obtaining Fair Compensation and Avoiding PitfallsVisit www.agc.org/fedwebinars for full webinar descriptions and a list a speakers. For more information, contact Marco Giamberardino at (703) 837-5325 or giamberm@agc.org.

Secretary of Defense Robert M. Gates announced on October 16 a major shift in its Army Corps senior leadership team. Major General Merdith W.B. (Bo) Temple will become the Deputy Commanding General (DCG) in January 2010. MG Temple has served as the DCG for Civil and Emergency Operations since 2008. MG Temple will succeed Major General Don Riley, who has served the DCG since April 1, 2008. MG William T. Grisoli, who has been serving as the  Deputy Chief of Staff for the Army, was named DGC for Civil and Emergency Operations.MG Grisoli previously held senior positions with the Corps, including commander of its Northwestern and North Atlantic divisions. Prior to his appointment at the Civil Works, MG Temple was DCG for military and international programs.  Lieutenant General Robert L. Van Antwerp remains Commander and Chief of Engineers. MG Jeffrey J. Dorko continues as the DCG for military and international operations.AGC thanks MG Riley for his friendship and his years of service to our nation. We also congratulate MG Temple and MG Grisoli on their new positions as we look forward to working with them to ensure the USACE mission is a success.For more information, contact Marco Giamberardino at (703) 837-5325 or giamberm@agc.org.

President Obama and the U.S. Small Business Administration announced October 21 a new plan to raise the maximum loan size for SBA-backed loans to small business. Specifically, President Obama called for:Increasing the size of SBA's 7(a) loan from $2 million to $5 million.Increasing the size of SBA's 504 loan from $2 million to $5 million for standard borrowers (supporting a total project of $12.5 million) and from $4 million to $5.5 million for manufacturers (supporting a total project of $13.75 million).Increasing the size of SBA's Microloan from $35,000 to $50,000.AGC believes these measures will go a long way to help extend and expand credit to small businesses that need this valuable help now more than ever.   To view a copy of the President's remarks, click here. To view the SBA fact sheet on the proposal, click here.For more information, contact Marco Giamberardino at (703) 837-5325 or giamberm@agc.org.

Now that the House passed the Student Aid and Fiscal Responsibility Act of 2009, which authorizes more than $4 billion for elementary and secondary school facility projects over the next two fiscal years, the Senate is currently working on its version of the bill.The House version of the bill authorizes $2.1 billion in 2010 and 2011 to renovate and modernize facilities for elementary and secondary schools (K-12), and authorizes $2.5 billion in 2011 to renovate and modernize facilities for community colleges. AGC has long-advocated for increased federal investment in school construction, as there is substantial opportunity for investment in upgrading and improving the unmet needs for school construction and renovation, which is estimated to be $3.7 billion. The average age of a public school building is estimated to be over 40 years old, the same age that schools have been documented to deteriorate.The bill was referred to the Senate Committee on Health, Education, Labor, and Pensions (HELP). Committee staff currently working on the bill indicated that the Senate will be writing their own bill language, but that the goal is to match the numbers in the House bill. The unofficial timetable is to finish the bill and have it to the president before the end of the year to maximize the savings and effectiveness of the student aid portions of the bill. Given this timeframe, it is unlikely that there will be time for any hearing on the legislation, as the health care debate has presently taken the majority of attention and resources.While AGC supports the overall bill, it includes the same Buy American language as was included in the American Recovery and Reinvestment Act (ARRA) that AGC continues to oppose. Committee staff currently working on the bill has indicated that while they would like to keep the Buy American language in the bill, they see it as unlikely to make it into the final Senate language. AGC will urge Senators to support the bill without the Buy American restrictions.For more information click here.For more information, contact Marco Giamberardino at (703) 837-5325 or giamberm@agc.org.