Federal Contractor Report
September 2021
Federal Contractors Conference
In-person on November 8-9, 2021
 
Register today for the 2021 AGC Federal Contractors Conference taking place November 8-9, 2021 in-person in Washington, D.C. The Federal Contractors Conference is the premier conference for federal construction contractors to discuss the latest projects, policies and contracting issues facing the industry with federal agencies, including the U.S. Army Corps of Engineers, Naval Facility Engineering Command, General Services Administration, and Small Business Administration.

In addition to substantive discussions and presentations with federal agencies, attendees will hear from experts about the latest federal regulations that will impact their businesses and may have the opportunity to continue a dialogue with federal agencies after the conference. And, when the conference concludes, AGC member attendees will have the opportunity to participate in ongoing dialogue and meetings with agency headquarters later in the year.
Federal Government
Task force provide further guidance on September 24
 
The Administration released general details of President Biden's COVID-19 Action Plan and two Executive Orders that will require all federal employees and federal contractors and subcontractors to be vaccinated against COVID-19. The Executive Order impacting federal contractors requires the Safer Federal Workforce Task Force provide further guidance and a draft contract clause by September 24th. The Federal Acquisition Regulation will be amended to include these requirements in a contract clause in federal solicitations and contracts. Direct federal contracts can expect this new contract clause to appear in all covered federal contracts, extensions, and renewals by October 15th. The E.O. requires all direct federal contractor and subcontractors to be vaccinated, without the option of submitting a weekly test. President Biden's COVID-19 Action Plan aims to require all employers with 100 or more employees to ensure their workforces are vaccinated or required to submit to weekly testing.
 
AGC of America has gathered resources to assist its members facing COVID-19 vaccine requirements; vaccine safety and the effectiveness that members can use in their educational efforts; and provided resources to assist with employer vaccine policies. Click HERE to find the AGC COVID-19 Vaccine Toolkit. There are a lot of questions that have yet to be answered. AGC will be reaching out to OSHA, FAR Council, and other federal agencies, and will update AGC members as we learn more.
 
For more information, contact jordan.howard@agc.org or (703) 837-5368.
Includes AGC-opposed PRO Act provisions and more
 
On September 8, House Democrats released legislative text detailing their labor priorities under consideration for inclusion in a $3.5 trillion human infrastructure bill. Included in that legislative text are AGC-opposed PRO Act provisions such as holding officers and directors personally liable for unfair labor violations, imposing civil fines up to as much as $100,000 for certain violations, and adding employer prohibitions on replacing striking workers, certain lockouts, and class action arbitration agreements. The legislative text also puts forth provisions increasing funding for federal enforcement agencies (such as the Department of Labor’s Occupational Safety and Health Administration (OSHA) and Wage and Hour Division (WHD). It also provides funding to the Office of Federal Contract Compliance Programs (OFCCP) to establish new paid family and medical leave requirements, as well as provides $80 billion in workforce development programs, with an emphasis on training displaced workers and individuals for clean energy-related jobs. AGC noted its objections  to key lawmakers regarding many of these proposals on September 3. It is important to note that intense negotiations continue among Democrats in the House and Senate as to the size and scope of many of these priorities. As such, the details remain subject to change. The House plans to put forth its finalized priorities by September 15.
 
On September 9, the House Committee on Ways and Means, which has jurisdiction over tax policy, began consideration of its share of President Biden’s American Families Plan. The final price tag of the overall legislation is still being negotiated by the House and Senate, as moderate Democrats, such as Senator Joe Manchin of West Virginia, are seeking to scale back the size and scope of the legislation. This will have significant bearing on how large the overall package of tax increases will be that the Ways and Means Committee will consider.
 
Currently, the Committee is scheduled to release their draft proposal of tax increases this week, although that may be pushed back. Amongst the broad tax increases potentially under consideration that AGC has expressed concern about are:
 
• an increase in tax rates for individuals and corporations;
• an increase in the tax rate on capital gains income, including a new “double death tax” where accumulated capital gains would be taxed at the time of death; and
• phasing out the Section 199A qualified business income deduction for pass-through businesses.
 
Last week, AGC sent a letter to Ways and Means outlining concerns regarding these potential tax increases and their effect on the construction industry.
Federal Agencies
 
Click HERE to find a new AGC COVID-19 Vaccine Toolkit that members can share with their staff, trade contractors, subcontractors, and partners. There, AGC has gathered information on COVID-19 vaccines, their safety and their effectiveness that members can use in their education efforts; created an industry-specific public service message urging the industry to get vaccinated; and provided resources to assist with employer vaccine policies. As we learn more about the COVID-19 vaccine and vaccine-related policies, including mandates, AGC will update the web page. Click HERE for more information.
Long requested new selection methodology also finally published
 
The Office of Federal Contract Compliance Programs (OFCCP) has published the latest Corporate Scheduling Announcement List (CSAL) for construction contractors, which is comprised of 400 federal contractors, federally assisted contractors and subcontractors. After years and multiple requests from AGC of America, OFCCP has also finally released the methodology for developing the list as well as frequently asked questions (FAQs) where answers to other matters related to the topic are included.
Smith, Currie & Hancock, LLP
Workforce
AGC submits regulatory comments
 
On August 27, AGC submitted regulatory comments in response to the U.S. Department of Labor’s proposed rule to implement and enforce Executive Order 14026, “Increasing the Minimum Wage for Federal Contractors,” signed by President Biden on April 27.
Environmental
Scope of ruling and impact on construction permitting unclear

On August 30, a federal district court in Arizona effectively threw out the Trump Administration EPA’s Navigable Waters Protection Rule, which defined waters of the United States (WOTUS) under the federal Clean Water Act and addressed the reach of federal government jurisdiction over waters and wetlands. At the time of this writing, the scope of this ruling is unclear—whether it applies to just the plaintiffs, the states where the plaintiffs reside, or nationwide. If a project is waiting on a jurisdictional determination (JD), the contractor may want to reach out to the appropriate U.S. Army Corps of Engineers District for a status update. Please contact melinda.tomaino@agc.org if any Corps Districts pause work on JDs.
Upcoming Events

September 14, 2021
Three Part Webinar Series: Claims, Change, Scheduling, Close Out--OH MY!
2 – 3 p.m.

September 14, 2021
Virtual CM-Lean Workshop: Lean in Pre-construction: How to Win from the Start
12 – 4 p.m.

September 19-20, 2021
National Chapter Leadership Conference
Orlando, Florida

September 21-23, 2021
AGC Annual Convention
Orlando, Florida

September 28, 2021
WebEd: Modern Workforce Management: 5 Ways to Efficiently Manage Your Workforce
Sponsored by: ARCORO
1 – 2 p.m.

October 13, 2021
National Construction Industry Workforce Summit
7:30 a.m. to 5 p.m.
St. Louis, Missouri

October 14-15, 2021
Construction HR & Training Professionals Conference
St. Louis, Missouri

October 25-27, 2021
Safety Management Training Course
Albuquerque, New Mexico

October 31-November 5, 2021
Advanced Management Program
Dallas, Texas

AGC News
  
September 21-23, Orlando, FL

The 2021 AGC Convention is next week! Experience for yourself how the convention provides contractors of all sizes and markets the opportunity to gain a competitive advantage, to help protect key business interests, make important industry connections, and to prepare for industry disruptions.
 
To access the agenda, register to attend and view the COVID-19 policies, please visit http://convention.agc.org.
  
Contractors may have millions of dollars of equipment, tools and materials stored on their job sites. On this episode, John Wallen of HUB International discusses how to position your firm to best manage the risk of theft. That includes being aware of the coverage details of your insurance policies, taking a multi-layered approach to keeping sites secure and deterring theft, and considering “Internet of Things” (IoT)-based solutions. Also hear tips and best practices on filing a theft report and insurance claim.
  
 
The latest issue of Constructor magazine focuses on workforce development. Find out how AGC of America, together with its members and chapters, are taking steps to combat the current labor market challenges plaguing the industry. In addition, this issue includes the 2021 Insurance Guide, Professional Services Guide and Attorney Profiles. Check out the digital edition today.
Eighty-nine percent of contractors are having a hard time finding craft workers, while 88 percent of firms are experiencing project delays and 93 percent are affected by rising materials prices
 
Construction firms are struggling to find enough qualified workers to hire even as they continue to be impacted by pandemic-induced project delays and supply chain disruptions, according to the results of a workforce survey conducted by AGC of America and Autodesk. The survey results underscore how the coronavirus pandemic has created constraints on the demand for work even as it limits the number of workers available to hire.
 

 

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