This week, Senate Finance Committee Chairman Max Baucus (D-Mont.) told colleagues that he intends to be nominated by President Obama to be the next ambassador to China, succeeding outgoing U.S. Ambassador Gary Locke. As one of the most tenured senators currently serving, his potential early resignation in the Senate could trigger new policy and political implications in 2014, including passage of a tax reform bill A resignation by Baucus would leave Senator Jay Rockefeller (D-W.Va) as the successor to the Finance Committee chairmanship, but Rockefeller has signaled that he intends to remain chair of the Commerce Committee until he retires at the end of 2014. Next in line is Senator Ron Wyden (D-Ore.) who has a keen interest in tax reform and it is likely to take up the charge.  However, much of the momentum Baucus and his staff have gained to potentially pass a tax reform bill in 2014 will be lost.  It is not yet known when Baucus's nomination will reach the Senate for consideration.

President to Sign Law Allowing Prime Contractors to Count Lower-Tier Small Businesses On December 19, the Senate passed the National Defense Authorization Act of 2014 (NDAA), which includes a critical AGC-supported small business reform.  The AGC-supported reform will allow prime contractors to count lower-tier small business contractors towards the prime contractor’s small business subcontracting goals. The current law only allows prime contractors to count first-tier small business subcontractors towards these goals.

As expected, former state Senator and gubernatorial candidate Bradley Byrne (R) easily won the special election to replace resigned Rep. Jo Bonner (R), scoring a 2:1 victory over Democrat Burton LeFlore in the strongly Republican southwestern Alabama congressional district.

Three House members surprisingly announced retirements yesterday, potentially altering the outlook for 2014.  Veteran Congressmen Frank Wolf (R-VA-10), Tom Latham (R-IA-3), and Jim Matheson (D-UT-4) each will not seek re-election, representing an aggregate total of 68 years of congressional seniority. 

AGC, along with a broad-based diesel coalition, sent a letter to the Office of Management and Budget encouraging them to include funding in the fiscal year 2015 budget for grants, loans, and rebates made possible by the Diesel Emission Reduction Act (DERA). 

President to Sign Law Allowing Prime Contractors to Count Lower-Tier Small Businesses On December 19, the Senate passed the National Defense Authorization Act of 2014 (NDAA), which includes a critical AGC-supported small business reform.  The AGC-supported reform will allow prime contractors to count lower-tier small business contractors towards the prime contractor’s small business subcontracting goals. The current law only allows prime contractors to count first-tier small business subcontractors towards these goals.

Complementary Webinar: Dec. 19, 2013 l 2:00 - 3:30 p.m., EST Register now for this complimentary webinar that could help you expand your federal construction market opportunities. Congress recently expanded the federal Small Business Administration Mentor-Protégé program to all federal agencies and requires such programs to include all small businesses as protégés. In short this means more opportunities for more small businesses and non-small businesses to joint venture on federal small business-set aside work. The webinar will cover what your construction contracting company—whether a small business or large—should do to prepare for and take advantage of this program.

Yesterday, the House passed a compromise National Defense Authorization Act (NDAA) for FY 2014 by a vote of 350-69.  The NDAA includes an AGC-supported small business provision, known as the Lower Tiers measure, which will benefit all construction contractors.

AGC Federal and Heavy Construction Division Vice Chair Nigel Cary of Cox Construction, San Diego, Calif., testified in opposition to reverse auctions before a joint hearing of the House Veterans Affairs and Small Business Committees on December 11.

Measure Clears Way for Action on AGC Legislative Priorities   This week, House Budget Committee Chairman Paul Ryan (R.-Wis.) and Senate Budget Chairperson Patty Murray (D-Wash.) announced a two year budget deal. The budget deal, which passed the House by a vote of 332-94, sets overall levels for discretionary spending for fiscal years 2014 and 2015. It also partially mitigates the impact of the across-the-board sequestration cuts for both years.  The Senate is expected to vote on the deal next week before adjourning.