Come Hear the New Reality Directly from the Federal Owners The 2011 AGC Federal Contractors Conference will be held May 2-5, 2011, at The Mayflower Hotel in Washington, D.C. This meeting is the only national event where contractors and federal agency personnel can meet in a collaborative forum to review federal construction contracting issues and trends from around the United States. These insightful and highly productive exchanges have solidified the need for both federal construction contractors and the federal construction agencies to share information on a wide variety of issues, foster better communication, and create real solutions.

Join your industry allies in Washington, D.C. on May 24-25 for the Transportation Construction Coalition’s 2011 Legislative Fly-in as we make the case that “Transportation Moves the Economy.” Your Congressional delegation needs to hear from you about the importance of transportation infrastructure investment to the nation’s economy – creating jobs while building the future.

Over Half of Budget Cuts Derived From Federal Construction Programs After several long weeks of negotiations, the White House and House Republicans announced in the late hours of April 8 that they have agreed on a $1.208 trillion spending package for the remainder of FY 2011.  The package represents nearly $40 billion dollar cut in non-defense discretionary spending for the remainder of FY 2011. 

By Thomas J. Kelleher, Jr., Smith, Currie & Hancock LLP In 2006 Congress added Section 3402(t) to the IRS Code (26 CFR Part 31).  That section provides that the Government of the United States, every State, every political subdivision thereof, and every instrumentality of the foregoing (including multi-State agencies) making any payment to any person providing any property or services on a public project (including any payment made in connection with a public program) shall withhold 3% from all payments as a guard against possible business tax evasion. 

LaHood Praises AGC as a Valuable Partner Secretary of the Department of Transportation Ray LaHood partnered with AGC to hold a press conference on the importance of underground damage prevention. This follows on the heels of an event in March where the Secretary kicked off National Safe Digging Month at CONEXPO-CON/AGG.

President Obama signed H.R. 4 into law, a bill supported by AGC that repeals the 1099 reporting requirement that would have required all businesses to submit Form 1099s to the IRS and to any business with which it purchased $600 or more in goods or services in a year, creating a tremendous paperwork and compliance burden for businesses of all sizes. 

Senators Jim DeMint (R-S.C.) and Lindsey Graham (R-S.C.) introduced S.573, the Corps of Engineers Reform Act of 2011, on March 14. The legislation converts the Harbor Maintenance Trust Fund into a state-administered grant program with the U.S. Army Corps of Engineers (USACE) doling out funding locally under general Corps oversight. Under the reforms, project spending decisions would be made by state officials making the program locally run and without the possibility of congressional earmarks.

The U.S. Senate Wednesday defeated four competing amendments to pending small business legislation that would have blocked, delayed, or limited the U.S. Environmental Protection Agency (EPA) authority to regulate greenhouse gas emissions from stationary sources.  Although none of the amendments garnered the necessary 60 votes for passage, altogether 64 Senators voted for at least one of the amendments to rein in the EPA’s greenhouse gas regulatory agenda.

The U.S. Senate passed legislation to repeal the new IRS Form 1099 reporting mandate enacted in last year’s healthcare bill by a vote of 87 to 12. The bill now goes to President Obama, who is expected to sign the measure.

The Naval Facilities Engineering Command (NAVFAC), after considerable time and effort in evaluating numerous factors and realities in the Federal procurement process, has decided not to utilize Project Labor Agreements (PLAs) in Guam.