Federal Contractor Report

Federal Government

AGC-Backed Change Order Bill to Become Law

Congress Passes the National Defense Authorization Act

On August 1, the Senate passed the fiscal year 2019 National Defense Authorization Act by a vote of 87-10, sending the defense bill to the president to sign into law. The bill includes the AGC-backed bipartisan legislation requiring federal agencies to publish their change order policy and procedures on any small federal construction contract (see Sec. 855 of conference report). This legislation provides prospective federal construction contractors with the information they need to factor into their bids and offers the risk and resulting cost of delayed payment for change. Once signed into law, the changes will need to go through the rulemaking processes.

Visit https://www.naylornetwork.com/ngc-fcreport/articles/index.asp?aid=516375&issueID=58798 to view the full article online.

Senate Passes Funding Bill Impacting Transportation and Water Infrastructure Projects

Many Construction Accounts Would See Increased Funding Levels

Prior to leaving for a two-week recess, the Senate overwhelmingly passed a package containing funding for federal programs impacting highway and transit as well as drinking water and waste water construction projects, among other things. House and Senate leaders intend to finalize funding for these programs and send a bill to the president for signature prior to the end of the fiscal year on September 30.

Visit https://www.naylornetwork.com/ngc-fcreport/articles/index.asp?aid=516376&issueID=58798 to view the full article online.

Rep. Shuster Releases Highway Trust Fund/Infrastructure Proposal

Urge Congress to Take Action on Infrastructure

House Transportation and Infrastructure Committee Chairman Bill Shuster (R-Pa.) released a Republican "discussion draft" for addressing the nation's infrastructure needs and, in particular, fixing the long term health of the Highway Trust Fund. Some of the ideas have come from existing proposals from the administration's infrastructure plan as well as members of Congress from both parties. Many of the plan’s elements have long-been supported by AGC. To help build support for the Shuster plan, please contact your Representative and ask them to support Chairman Shuster’s effort and act on an infrastructure bill.

Visit https://www.naylornetwork.com/ngc-fcreport/articles/index.asp?aid=516377&issueID=58798 to view the full article online.

AGC’s Newest Podcast Episode Features Rep. Sam Graves

Discusses Funding Options for the Highway Trust Fund

In this edition of the ConstructorCast, Chairman Sam Graves (R-Mo.) provides information on what the House Subcommittee on Highways and Transit will be working on for the rest of the year. Graves explains the funding issue with the Highway Trust Fund and possible solutions.

Visit to view the full article online.

Workforce

Career and Technical Education Reform Signed into Law

New Opportunities for Employers

On July 31, the president signed the Strengthening Career and Technical Education for the 21st Century Act into law. This bill reauthorizes the Perkins Act, which provides over $1 billion to the states to fund career and technical education for secondary and post-secondary programs. Among the law’s changes are the relationships between the states and Department of Education and how educators consult with stakeholders, such as employers.

Visit https://www.naylornetwork.com/ngc-fcreport/articles/index.asp?aid=516380&issueID=58798 to view the full article online.

Labor Department Rescinds "Persuader Rule"

The U.S. Department of Labor has published a final rule rescinding the controversial "Persuader Rule" issued under Pres. Obama. This is a victory for AGC and others who opposed the regulation and urged the Trump administration to rescind it.

Visit https://www.naylornetwork.com/ngc-fcreport/articles/index.asp?aid=516381&issueID=58798 to view the full article online.

Showcase Your Company’s Commitment to Diversity & Inclusion

Apply for AGC’s Diversity & Inclusion Awards by October 15

AGC of America is now accepting applications for its 2019 AGC Diversity & Inclusion Awards program. AGC will present a total of six awards in three award categories: 1) Diverse Business of the Year, 2) Diversity & Inclusion Excellence Awards, and 3) Chapter Diversity & Inclusion Award. These awards seek to raise awareness of the value that a diverse workforce and inclusive environment brings to a company by spotlighting diversity and inclusion champions within AGC. By recognizing these diversity and inclusion champions, AGC hopes to inspire other AGC member-companies to engage in activities that will promote diversity and inclusion both within the Association and the industry. AGC member companies and chapters in good standing who meet the competition requirements are encouraged to apply online for some much-deserved recognition. Apply by October 15, 2018. Learn more about AGC of America’s Diversity & Inclusion Awards program at www.agc.org/diversityawards. For more information, contact Brynn Huneke at brynn.huneke@agc.org or (703) 837-5376.

Visit https://www.naylornetwork.com/ngc-fcreport/articles/index.asp?aid=516382&issueID=58798 to view the full article online.

Environmental

Federal Agencies, Congress Tackle Endangered Species Act Reforms

In July, the Fish and Wildlife Service (FWS) and National Oceanic and Atmospheric Administration (NOAA) proposed streamlining updates to multiple sections of the Endangered Species Act (ESA). In addition, the U.S. Senate Environment and Public Works Committee is considering an AGC-supported discussion draft of a new bill to amend the Act. AGC is optimistic the measured reforms in the proposals and in the discussion draft of the bill could lead to greater certainty in the permitting process, without compromising the success of threatened or endangered species.

Visit https://www.naylornetwork.com/ngc-fcreport/articles/index.asp?aid=516383&issueID=58798 to view the full article online.

Tax

Treasury Releases Regulations on Pass-Through Deduction (199A)

In August, Treasury and the Internal Revenue Service (IRS) released an important proposed regulation stemming from passage of the Tax Cuts and Jobs Act. The Act included a new deduction, Section 199A, which provided a 20 percent deduction off the qualified business income for most pass-through businesses, such as partnerships, S-Corporations, or LLCs, with certain restrictions. The deduction reduced the disparity between tax rates in the Act, where C-Corporations are now taxed at a 21 percent rate, while pass-through businesses are taxed at the individual rates, up to a top 37 percent marginal rate.

Visit https://www.naylornetwork.com/ngc-fcreport/articles/index.asp?aid=516386&issueID=58798 to view the full article online.

Safety

OSHA Proposes to Revise its 2016 Electronic Recordkeeping Rule

Would Rescind E-Submittal of OSHA Forms 300 and 301

In July, the Occupational Safety and Health Administration (OSHA) issued a notice of proposed rulemaking to amend the 2016 recordkeeping rule. This proposal would rescind a requirement that contractors with 250 or more employees electronically submit detailed information from their OSHA Forms 300 (Log of Work-Related Injuries and Illnesses) and 301 (Injury and Illness Incident Report), a requirement from which smaller contractors were already exempted.

Visit https://www.naylornetwork.com/ngc-fcreport/articles/index.asp?aid=516385&issueID=58798 to view the full article online.

Labor

Your Help is Needed to Support Immigration Reform

Contact your Members of Congress

Prior to the Congressional summer break, the Workforce for an Expanding Economy Act was introduced in the House to fill the visa gap for year-round less-skilled and middle-skilled construction workers. Current law allows legal immigration for high tech, agriculture and seasonal worker but there is no dedicated visa for typical construction occupations. AGC views the legislation as a complement to its efforts to help address the industry’s worker shortages as well as a critical ingredient for immigration reform. Please contact your federal legislators through the AGC Legislative Action Center.

Visit https://www.naylornetwork.com/ngc-fcreport/articles/index.asp?aid=516379&issueID=58798 to view the full article online.

AGC News

Construction Input Costs are Mixed in July but Pressure Intensifies on Contractors as Year-over-Year Increases Outstrip Bid Prices

Fuel, metals and wood product prices post double-digit annual increases despite pause in July; association officials warn that additional tariffs are likely to add to squeeze on contractors

Prices for goods and services used in construction costs were unchanged overall from June to July, but months of steep increases over the past year have squeezed the profits of contractors, whose bid prices have not matched the cost shocks, according to an analysis by AGC of America of new Labor Department data. Association officials warn that the impact of recent and threatened tariffs are likely to put contractors in further financial peril.

Visit https://www.agc.org/news/2018/08/09/construction-input-costs-are-mixed-july-pressure-intensifies-contractors-year-over to view the full article online.

AGC's Political Action Committee Endorses Rick Scott for U.S. Senate

Construction industry’s election fund also provides the maximum contribution to support the governor’s Senate campaign

The AGC Political Action Committee, also known as the AGC PAC, announced in July that it has endorsed Rick Scott for U.S. Senate. AGC PAC officials said they are supporting the governor's campaign because of his pro-growth economic record.

Visit https://www.agc.org/news/2018/07/26/associated-general-contractors-america-political-action-committee-agc-pac-endorses to view the full article online.

Federal Contractor Report

Associated General Contractors of America