Clamor for Cuts Sacrifices Construction Spending

In addition to major cuts written about last week in funding for wastewater and drinking water construction, the emotional cry to cut spending continues to result in slashed federal construction programs .Significant cuts are in store for the construction programs of the General Services Administration, Military Construction, and the Department of Veterans Affairs. AGC Leads Coalition to Fights Big Cuts to  GSA New Construction and Lease Program Now that the House is preparing to finalize an FY 2012 spending plan for the General Services Administration that eliminates funding for design and construction services and allocates only $280 million for repairs and alterations, AGC is working with numerous partners in the construction and real estate industries to call on Congress to ensure sound funding for these programs. A letter drafted by AGC and the Building Owners and Managers Association (BOMA) International, calls on Congress to restore funding for the agency to levels proposed by the Obama Administration. The reductions approved by the House Appropriations Committee come on the heels of the recent FY 2011 budget deal that cut the agency’s budget by $1.7 billion. Senate Passes FY 2012 Military Construction and Veterans Affairs Spending Bill The Senate approved by a 97-2 vote the FY 2012 Military Construction and Veterans Affairs Appropriations bill (H.R. 2055). The bill provides $13.7 billion for military construction and family housing. This figure is $1.049 billion below the budget request by President Obama and $2.87 billion below the FY 2011 enacted level, due primarily to the completion of the BRAC 2005 construction phase in FY 2011. For VA, the plan provides a total of $589 million in funding for the major construction projects, a $486 million decrease from the $1.076 billion adopted in FY 2011. The bill now goes to Conference with the House of Representatives. In addition to funding considerations, AGC has been working to enact a provision allowing U.S. contractors who are working for the U.S. government in the Middle East to receive a 20 percent bid evaluation preference on projects procured in the U.S. Central Command Area of Responsibility. Currently, the preference is afforded only to work procured in countries bordering the Arabian Gulf. This new language is included in the House-passed version of the legislation, but not in the Senate version. AGC is working with House and Senate leaders to ensure this provision is included in final version of the bill. For more information, contact Marco Giamberardino at (703) 837-5325 or giamberm@agc.org.