Solicitations requiring bidders on certain U.S. Army Corps of Engineers (USACE) construction projects to submit an executed project labor agreement (PLA) prompted AGC to write and call agency officials expressing strong concern.  On August 18, the agency called AGC to announce that it was withdrawing the PLA requirement and to thank AGC for educating them on the issue.

On August 12, AGC sent a letter to the USACE's Mobile District demanding information about the agency's justification for including a PLA mandate in a solicitation for the construction of an Air Force Technical Applications Center at Patrick Air Force Base in Florida. The letter questioned how it determined that the conditions listed in President Obama's executive order on PLAs were present. The requirement, along with similar mandates by other contracting agencies and information about pressure from higher in the Administration, also prompted AGC to send a letter calling on President Obama to protect contracting officers from such political pressure, and to send an "unmistakable and public" message that political appointees should not cross the line between politics and procurement.

Read more here.

As part of the Transportation Construction Coalition and Americans for Transportation Mobility, AGC launched a new national effort to push for passage of the long-delayed bill that provides federal funds to fix aging roads and unsafe bridges. In conjunction with AGC of South Dakota, the campaign began with the unveiling of a new billboard, and radio and print advertisements in Rapid City, Sioux Falls and Aberdeen.

The effort, which will cover dozens of states during the coming weeks, is designed to educate the public about why passing a federal transportation bill is essential to improving road conditions in states like South Dakota. The Rapid City Journal announced the start of the campaign on the front page this week, and the story was also covered in the Argus Leader and on the local ABC station, among other local media outlets.

The news conferences were hosted by the state's Secretary of Transportation Darin Bergquist.  The mayor of Rapid City and the Sioux Falls city engineer also took part in the events.

In addition to funds contributed by the coalitions to support these events, AGC of South Dakota contributed an additional $10,000 to help finance the effort. Visit AGC's website for more information and to let Congress know you support long-term investment in transportation.

The massive healthcare bill enacted in March contained a provision which requires businesses to send Form 1099s for all business-to-business transactions for services and goods equaling $600 or more in a year.  The provision was justified as a way to identify businesses that are not reporting or underreporting income to avoid paying their fair share of taxes. The Congressional Budget Office estimated that the provision would raise $17 billion to offset a small portion of  the healthcare bill,  but AGC members know it will be a tremendous burden on businesses and increase paperwork and compliance costs.

Legislation has been introduced in both the House and Senate to modify and repeal the 1099 requirement. AGC supports full repeal of the provision rather than a modification, which is why AGC supports H.R. 5141 and S. 3578, the Small Business Paperwork Mandate Elimination Act. 

The House considered legislation prior to the August recess that would have repealed the provision; however, the bill ultimately failed.   The Senate is scheduled to vote on two amendments to a small business jobs bill when they return in September: one that would repeal the provision and one to modify the provision. Because the proposed modification would not repeal the 1099 requirement, but would instead put in place new exemptions, AGC does not believe the amendment would provide adequate relief for business.

AGC continues to request members write their Senators and Representative in support of H.R. 5141 and S. 3578 and in support of a full repeal of the burdensome 1099 reporting requirement.  For more information on the 1099 reporting requirement and to write your Members of Congress, use the AGC Legislative Action Center.

A provision in the massive healthcare bill enacted in March requires businesses to send Form 1099s for all business-to-business transactions equaling $600 or more in a year.  The provision was passed to help identify businesses that are not reporting or underreporting income to avoid paying their fair share of taxes. The Congressional Budget Office estimated that the provision would raise $17 billion to help pay for the healthcare bill.  However, the new requirement will be a tremendous burden on businesses, increasing their paperwork and compliance costs.

Legislation has been introduced in both the House and Senate to modify and repeal the 1099 requirement. AGC supports repeal of the provision rather than a modification, which is why AGC supports H.R. 5141 and S. 3578, the Small Business Paperwork Mandate Elimination Act.  The House considered legislation prior to the August recess that would have repealed the provision; however, the bill ultimately failed.   The Senate is scheduled to vote on an amendment to a small business jobs bill that would repeal the provision when they return in September. 

AGC is requesting members write their Senators and Representative in support of H.R. 5141 and S. 3578 and in support of a full repeal of the burdensome 1099 reporting requirement.  For more information on the 1099 reporting requirement and to write your Members of Congress, use the AGC Legislative Action Center.

Nearly a dozen AGC member companies, including host George J. Igel & Company, participated in an event arranged by the Ohio Contractors Association with Transportation Secretary Ray LaHood and Representative Mary Jo Kilroy (D-Ohio) in Columbus.

During the event, contractors and their employees expressed concern over what would happen when stimulus money runs out. Secretary LaHood and Rep. Kilroy agreed that a six-year transportation bill would be a logical sequel to the stimulus.

Watch the local NBC affiliate's coverage here or read coverage from the Columbus Dispatch.

The November elections are quickly approaching, with 34 primary elections completed and 16 to go. Colorado and Connecticut were front and center this week as they hosted primaries on Tuesday. Neither state brought many surprises, but Republican nominee Cory Gardner ran unopposed in the primary for Colorado's 4th District and is one of the first candidates inducted into the National Republican Congressional Committee's "Young Guns" program. He will face Democrat Rep. Betsy Markey.

Colorado's one term Sen. Michael Bennett (D) will face Weld City, Colorado's District Attorney Ken Buck in a "toss-up" race. Meanwhile, in Connecticut, Republican Linda McMahon will face Attorney General Richard Blumenthal (D) for Senator Chris Dodd's (D) seat. Connecticut State Senator Sam Caligiuri (R) will challenge incumbent Chris Murphy (D) in November for what could be called Connecticut's most vulnerable seat.

The Senate finished work last week on a $26 billion package that contains state aid, extension of Medicaid funding and funds to avert teacher layoffs, and confirmed Solicitor General Elena Kagan to the Supreme Court.  The passage of the state aid package required the House to return to the Capitol to pass the Senate version before they can resume their August recess. The administration has no plan at the moment to push for additional construction stimulus.

While Congress was able to finish work on these issues, many of the issues specific to AGC and the construction industry must wait until September or later.  SAFETEA-LU authorization expired on September 30, 2009, and the highway program is operating under short term extensions, the latest of which expires at the end of the year.  Senate Majority Leader Harry Reid (D-Nev.) announced this week he may attempt to pass an energy bill as early as September. The Senate bill includes oil-spill and other energy provisions, but could be expanded to include provisions on promoting renewable energy sources and possibly caps on greenhouse gases, although it is unlikely.

Congress also failed to move legislation meant to help small businesses. The bill was bogged down by how big the tax provisions should have been, but is expected to see action in the Senate when Congress returns in September. The bill is expected to include funds for community banks to make loans to small businesses and tax cuts, including quicker write-offs for depreciation.

For more information, contact Jim Young at (202) 547-0133 or youngj@agc.org.