AGC Meets with Government Accountability Office on Recovery Act Progress

AGC met with officials from the Government Accountability Office (GAO) to discuss the implementation of the American Reinvestment and Recovery Act (ARRA) as the Office prepares a report to Congress on whether any new federal requirements affected the selection or start of projects. The agency also was interested in determining the effects of the reporting requirements and the new Buy American provisions and how those requirements may affect the selection or start of certain projects. AGC shared some concerns over the reporting requirements and how the additional oversight had caused some confusion for both new and experienced federal contractors. AGC explained its experiences with the new Buy American requirements and how those rules have challenged the EPA-funded State Revolving Fund programs, and expressed concern over the rising construction unemployment in the U.S. and its effect on the industry. The meeting gave AGC an opportunity to inform GAO about the practical, and negative, effect of government-mandated project labor agreements, particularly on ARRA projects.  For example, the GAO now understands the problems of having contracting officers with little construction expertise negotiate GMLA's and the impact a mandated agreement may have on the cost of an ARRA project. The GAO is expected to deliver a final report to Congress in late February, 2010.