October 18-19, 2016 | Atlanta, GA Registration is open for Ҵýapp of America’s premier Building Contractor’s event! BuildCon 2016 brings together high-level leaders in the building construction industry to share, learn and discuss the issues that are essential to them and their business.
Contributed by Thompson E. Penney, FAIA, LS3P and Ryan Abbott, Sundt Construction, Co-Chairs of the National AIA-Ҵýapp Joint Committee In an industry that is evolving at an exponential rate and growing increasingly complex and interrelated, the lines between architecture and construction are rapidly blurring.
<p>A new <a href="https://www.gpo.gov/fdsys/pkg/FR-2016-05-31/pdf/2016-12494.pdf"><u>rule</u> </a>by the Small Business Administration makes several changes to small business contracting regulations. These changes, set to go into effect June 30, are aimed at increasing small-business competition and enabling small businesses to potentially obtain larger contracts without increasing compliance costs.  In April, Ҵýapp <a href="http://newsmanager.commpartners.com/agcleg/downloads/Ҵýapp%20Comments%20on%20SBA%20Performance%20of%20Work%20Prop%20Rule.pdf"><u>submitted comments</u></a> on the proposed rule.</p>
This week, 132 members of the House of Representatives sent a letter to House Ways and Means Committee Chairman Kevin Brady (R-Texas) and Ranking Democrat Sander Levin (Mich.) in support of fixing the Highway Trust Fund as part of comprehensive tax reform. Thanks to the Ҵýapp members who met with their representatives during the TCC Fly-In or contacted their representatives asking them to sign the letter.
<p>On May 25, the House Natural Resources Committee passed legislation that with sensible fiscal reforms—and no taxpayer dollars for a bailout—to address the financial crisis in Puerto Rico. The <a href="http://newsmanager.commpartners.com/agcleg/downloads/2016-05-23%20Puerto%20Rico%20Letter.pdf">Ҵýapp-backed</a> bill would create a debt-restructuring process, empower a federal oversight board to supervise the territory’s fiscal affairs and create a redevelopment authority that will help rebuild Puerto Rico’s infrastructure. As it stands, many Puerto Rican government entities are unable to pay contractors for work completed on government construction projects and the public and private construction markets there remain on life support.</p>
<p>On May 24, Ҵýapp objected to the Department of Defense’s <a href="https://www.gpo.gov/fdsys/pkg/FR-2016-03-25/pdf/2016-06725.pdf"><u>proposed change</u> </a>to the Defense Federal Acquisition Supplement (DFARS) that would prohibit the use of any cost-plus system of contracting for military construction and military family housing projects governed under Title 10 of the U.S. Code. Ҵýapp noted that a blanket prohibition of the use of a cost-plus system will prevent federal construction owners from selecting the best contracting and project delivery methods to meet the demands of any given construction project.</p>
<p>On May 17, the House Oversight and Government Reform Committee unanimously approved Ҵýapp-supported <a href="https://www.congress.gov/114/bills/hr5199/BILLS-114hr5199ih.pdf"><u>legislation</u> </a>that would (1) require civilian federal agencies—non-Department of Defense agencies—to utilize the two-step design-build selection process for design-build projects greater than $3 million, thereby limiting one-step design-build procurements; and (2) help prohibit reverse auctions for certain construction services. Introduced by Rep. Mark Meadows (R-N.C.), the bill—H.R. 5199—is nearly identical to the <a href="/news/2016/02/11/agc-backed-procurement-legislation-passes-senate-panel"><u>Ҵýapp-backed legislation</u></a> passed by a Senate Committee in February. Ҵýapp will continue to push for enactment of these procurement reforms.</p>
<p>On May 16, the Federal Acquisition Regulation (FAR) Council issued an Ҵýapp-supported <a href="https://www.gpo.gov/fdsys/pkg/FR-2016-05-16/pdf/2016-11003.pdf"><u>final rule</u></a> that effectively limits the second-step (“short-list”) of the two-step design-build procurement process to no more than five teams. Through <a href="/news/2014/12/05/agc-advances-legislative-priorities-defense-bill"><u>Ҵýapp’s efforts</u></a>, this reform was passed by Congress in 2014. For Ҵýapp’s comments on that proposed rule, click <a href="http://newsmanager.commpartners.com/agcfed/downloads/Ҵýapp%20Comments%20on%20FAR%20Council%20Design%20Build%20Prop.%20Rule.pdf"><u>here</u></a>.</p>
<p>In what may be a 12-round bout, Ҵýapp has scored another victory on the path to expunging President Obama’s <u><a href="/news/2015/08/28/agc-submits-comments-opposing-blacklisting-executive-order">Blacklisting Executive Order</a>.</u> On May 19, the House of Representatives approved legislation that includes an Ҵýapp-backed provision to the National Defense Authorization Act—a bill that has been annually enacted into law for 54 consecutive years—that ensures the EO would not apply to Department of Defense and National Nuclear Security Administration contracts. Ҵýapp will work with Congress to limit the Executive Order.</p>
The House of Representatives today failed—on a vote of 209-216—to pass Ҵýapp-supported legislation that would block further implementation of President Obama’s 2009 executive order encouraging federal agencies to consider government-mandated project labor agreements (PLAs) on construction projects. Ҵýapp, along with other industry allies, urged members of the House to support this initiative and will continue to advocate against government-mandated PLAs.