Sen. Chuck Grassley (R-Iowa) reintroduced legislation (S.458) on February 24 to expand the scope of the Federal False Claims Act (FCA). The legislation is cosponsored by the chairman and ranking member of the Senate Judiciary Committee Patrick Leahy (D-Vt.) and Senator Arlen Specter (R-Pa.).Current law authorizes the Attorney General to recover treble damages and fines from anyone who submits or causes someone else to submit a false claim for payment to the Government. AGC is greatly concerned this legislation will virtually rewrite the intent and spirit of the Act. It will expand the universe of claims - many of which would not involve truly false claims nor involve any loss to the Federal Treasury - and will complicate management of government programs, allow opportunistic plaintiffs to recover funds that should go to the Treasury, and impose huge burdens on non-profits, state and local governments and small businesses.AGC is working with its coalition partners in the business community to oppose passage of this legislation, which will raise companies' cost of doing business, increase the government's cost of contracts, discourage large and small businesses from doing business with the government and cause irreparable damage to the government contracting process.

The bipartisan National Surface Transportation Infrastructure Financing Commission released its final report today, unanimously recommending the ten-year phase-out of federal motor fuel taxes to be replaced by a distance fee based on "vehicle miles traveled" (VMT). The finance commission is the second of two commissions established in SAFETEA-LU to make recommendations about the future direction of the federal surface transportation programs and how they should be funded.The finance commission evaluated a wide range of financing options and concluded that the fuel-based user fee system is no longer a viable way to pay for transportation improvements and recommended the gradual transition to a distance-based user fee system. To fund transportation needs while this transition is underway, the finance commission also recommends increases of 10 cents per gallon in the federal gasoline tax and 15 cents per gallon in the diesel tax, combined with new public-private revenue streams, expanded tolling and congestion pricing.View the National Surface Transportation Infrastructure Financing Commission Web site.

Stimulus Web site covers all construction programsOn February 13, 2009, Congress passed the American Recovery and Reinvestment Act of 2009 (HR 1), and President Obama signed the bill at a ceremony in Denver on February 17. The Act includes a total of $787.2 billion in spending and tax cuts, including $308 billion in appropriated spending, $269 million in direct spending (refundable portion of tax credits, Unemployment assistance, Medicaid reimbursement to states, etc) and $211 billion in tax cuts. AGC worked hard to ensure significant infrastructure investment was included in the plan, and ultimately secured $140 billion in construction spending.Highlights include $4.6 billion for the Corps of Engineers; $1.2 billion for the VA hospital and medical facility construction and improvements; $3.1 billion for repair, restoration and improvement of public facilities; $4.2 billion for facilities sustainment, restoration and modernization; $2.33 billion for Department of Defense Facilities; $1 billion for the Bureau of Reclamation; $48 billion for transportation infrastructure; $14.5 billion for environmental clean-up and clean water programs; $39.5 billion to local school districts for modernization or other purposes; and $4.5 billion for increased energy efficiency in federal buildings.AGC has updated its stimulus Web site to provide comprehensive information on what the final legislation signed by President Obama means for the construction industry. Included on the site is a breakdown of construction spending by program, with as much detail as is currently available about how the money will be allocated, by whom, and if possible, how much will go to each state. The site also includes analysis of the various tax provisions within the legislation that affect the construction industry and an overview of some of the policy implications of the legislation.The intent of the site is to provide our members, and more broadly the construction community, the widest possible range of current information about the stimulus. In addition, over the coming weeks we will be creating a new site, "Stimulus At Work," which will highlight the work our members are doing to help ensure the success of the stimulus package.

The Office of Management and Budget (OMB) issued a stimulus guidance document to the Federal agencies on February 18. The memo will serve to provide information on how to administer stimulus funds and provide information and requirements on financial reporting, risk management and contracting.The guidance addresses Federal agency requirements to provide spending and performance data to the "Recovery.gov" website. The Web site is designed to provide greater transparency and accountability for stimulus dollars to be accurately tracked and monitored. The guidance also establishes requirements for various aspects planning and implementation of the Act, including the following objectives:Funds are awarded and distributed in a prompt, fair, and reasonable manner; The recipients and uses of all funds are transparent to the public, and the public benefits of these funds are reported clearly, accurately, and in a timely manner; Funds are used for authorized purposes and instances of fraud, waste, error and abuse are mitigated; Projects funded under this Act avoid unnecessary delays and cost overruns; and Program goals are achieved, including specific program outcomes and improved results on broader economic indicators.OMB plans on issuing additional guidance providing further detail and covering a fuller range of items within the next 30-60 days.

Having wrapped up work on the economic recovery package, House and Senate Appropriations Committees will return from the President's Day recess to complete work on the fiscal year 2009 appropriations process and prepare for the arrival of the President's FY 2010 budget. Because Congress failed to enact all but three (Defense, Homeland Security and Military Construction) of its annual appropriations bills, the majority of federal programs are operating under a Continuing Resolution through March 6. Congress is expected to pass an Omnibus appropriations bill that would consolidate the nine remaining annual spending measures to fund the government through the remainder of the fiscal year without much controversy.The Obama Administration's spending priorities are likely to be included in the upcoming FY2010 budget request to Congress, which is expected to be released in full in April. The Administration is expected to release a blueprint of the budget next week, which will preview the Administration's fiscal agenda for the next four years.The annual Congressional appropriations process provides, on average, about $100-110 billion for federal construction spending accounts. Congress is expected to use this year's appropriations process to conduct hearings on the efficiency and effectiveness of stimulus funding and to determine where additional spending may be directed to continue recovery efforts. This process will allow AGC an opportunity to highlight the job creation and quality of life improvements that we expect from the stimulus funding.

Last week, Congressman Sullivan (R-Okla.) introduced legislation (H.R. 983) that seeks to ensure that federal contracts are awarded through open competition. The Government Neutrality in Contracting Act would prohibit the use of government mandated project labor agreements.This legislation mirrors the Senate bill, S.90, which was introduced by Senator Vitter (R-La.).AGC does not support government-mandated labor agreements (GMLAs) and believes they effectively compel both union and open shop contractors to alter their hiring practices, work rules, job assignments and benefits in order to compete or perform work on publicly-funded projects. This not only constitutes inappropriate government interference with private labor relations, but it amounts to an unfair government preference that can significantly impact the cost of public works.AGC sent a letter to the House in support of Congressman Sullivan's bill. Please visit the AGC Legislative Action Center to send a letter in support of The Government Neutrality in Contracting Act.

Supporters of the (so-called) Employee Free Choice Act (EFCA) remain short of their goal of original cosponsors thanks to AGC members voicing their concerns. AGC opposes the Employee Free Choice Act and urges AGC members to discourage cosponsorship.EFCA would take away a worker's right to a federally supervised private ballot election when deciding whether or not to select union representation. It also imposes unrealistically short deadlines for labor-management negotiations over a first contract before mandating third-party mediation and binding arbitration.AGC supports the status quo, which allows both card-check recognition and secret-ballot elections to establish union representation and remains the most fair and reliable way to determine the desire of employees to be represented by a union.Please reach out to your Members of Congress to urge them not to co-sponsor or support the bill. Make your voice heard on this issue by using AGC's Legislative Action Center. Contact your congressional delegation today and urge them not to co-sponsor or support the (so-called) Employee Free Choice Act.

On Tuesday February 17, the Government Accountability Office publicly released a report on diminishing contractor participation in the State Department's Bureau of Overseas Buildings Operations (OBO) embassy construction program. The report was jointly requested by the Senate and House Foreign Relations Committees in August 2007 after a series of meetings with AGC, congressional staff and OBO.The report, titled Embassy Construction: Additional Actions Are Needed to Address Contractor Participation, highlights longstanding AGC concerns that have led to diminishing contractor participation in the OBO program. Additionally, the report examined proposed legal changes in OBO prequalification criteria, factors that have impacted contactors interest in participating in the program including risk allocation, project management, design issues, REA's, compressed schedules and the termination of partnering under the direction of former OBO Director Charles Williams.In addition to the GAO report, AGC's efforts led to an internal review by the State Department Inspector General released in August 2008 which examined of the entire OBO program and made over 50 recommendations to improve construction and management issues at the State Department.In a letter to AGC of America President Doug Barnhart on January 9, 2009, OBO highlighted many of the changes that are underway, including instituting project management, streamlining the Standard Embassy Design (SED) RFP, creating bridging documents, improving REA and change order management, address scheduling and other management issues which are intended to create a more equitable and consistent relationship with contractors. AGC and OBO remain committed to an open and honest dialogue as OBO undertakes these significant steps to improve its program.

While Congress has not yet voted on the American Recovery and Reinvestment Act, House and Senate negotiators have released details of the plan and expect a vote before the weekend. All reports indicate significant infrastructure investment, as outlined in the AGC summary of infrastructure and public building investment provisions.Highlights include $4.6 billion for the Corps of Engineers; $1.2 billion for the VA hospital and medical facility construction and improvements; $3.1 billion for repair, restoration and improvement of public facilities; $4.2 billion for facilities sustainment, restoration and modernization; $2.33 billion for Department of Defense Facilities; $1 billion for the Bureau of Reclamation; $48 billion for transportation infrastructure; $14.5 billion for environmental clean-up and clean water programs; $39.5 billion to local school districts for modernization or other purposes; and $4.5 billion for increased energy efficiency in federal buildings. AGC will alert all members as soon as more information is available. In addition, www.agc.org/stimulus is updated regularly with stimulus news and AGC's efforts related to the bill.Thanks to a strong grassroots effort nationwide, AGC of America, AGC's nationwide network of Chapters and members can be proud that combined efforts resulted a bill that will bring work and jobs back to the construction industry.AGC committed thousands of hours over the last several months to advocating for investment in infrastructure and public buildings. AGC submitted written and oral testimony to six Congressional hearings and delivered four letters to Capitol Hill on behalf of member companies advocating for investment in infrastructure and public buildings. In addition, activity on AGC's legislative action center was unprecedented, ultimately sending 12,000 letters to Senators and Representatives in support of the stimulus plan while countless phone calls were made to Congressional offices. AGC and its coalition partners stirred grassroots efforts with five new advertisements and significant media coverage, and AGC's petition for investment now includes more than 3,000 supporters.AGC Presents Podcast on Details of Recovery Plan, Requests Member HelpAGC created a 30-minute podcast February 2 to update members on the status of the stimulus plan then circulating on Capitol Hill and urged members to contact their Senators in support for infrastructure investment as part of the stimulus plan. Visit www.agc.org/stimulus.AGC of America: Working for YouIn January alone, members of AGC benefited from three free webinars and thousands of man and woman hours working in support of infrastructure investment in the pending stimulus plan. Two webinars, For CEOs Only: Where Do I Turn for Answers in Tough Times? and Have We Hit Bottom?, were designed to help members cope with the economic downturn. Last week's webinar, Understanding the New FAR Requirements for Mandatory Disclosure and Stronger Compliance Programs, provided detailed analysis of the federal government's new Mandatory Disclosure Rule for federal contractors.View AGC's other stimulus-related activities here.

The deadline for comments in response to the December 5, 2008 Internal Revenue Service (IRS) notice of proposed rulemaking to implement the 3 percent withholding provision is approaching on March 5. With Congress unlikely to include a full repeal of the law in its economic stimulus package, but rather a one-year delay in its effective date (from 2011 to 2012), AGC is preparing comments to the IRS. AGC has once again made full repeal of the onerous 3 percent withholding tax a top priority of the 111th Congress and will continue efforts to urge Congress to enact such legislation.Effective January 1, 2011 (or January 1, 2012 under the proposed stimulus bill), federal, state, and local governments with annual expenditures of $100 million or more are required to withhold 3 percent from payments for goods and services, including payments made under government contracts with construction companies. The law was intended to reduce the so-called "tax gap" and tax evasion.IRS' proposed rule clarifies that payments for the construction of a building or other public works projects are subject to 3 percent withholding. For additional information on the proposed rule and AGC's position, please click here.On January 7, Representative Kendrick Meek (D-Fla.) introduced H.R. 275, a bill to repeal the 3 percent withholding law. On January 21, Senator Arlen Specter (R-Pa.) introduced a Senate version, S. 292. AGC is working with a broad coalition of stakeholders to enact the legislation.