The FAR Council on November 12 issued a final rule on its "Contractor Business Ethics Compliance Program and Disclosure Requirements." The rule becomes effective on December 12, 2008.

The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) have agreed on a final rule amending the Federal Acquisition Regulation (FAR) to amplify the requirements for a contractor code of business ethics and conduct, an internal control system, and disclosure to the Government of certain violations of criminal law, violations of the civil False Claims Act, or significant overpayments.

This final rule amends the Federal Acquisition Regulation to require Government contractors to:

• Establish and maintain specific internal controls to detect and prevent improper conduct in connection with the award or performance of any Government contract or subcontract; and
• Timely disclose to the agency Office of the Inspector General, with a copy to the contracting officer, whenever, in connection with the award, performance, or closeout of a Government contract performed by the contractor or a subcontract awarded thereunder, the contractor has credible evidence of a violation of Federal criminal law involving fraud, conflict of interest, bribery, or gratuity violations found in Title 18 of the United States Code; or a violation of the civil False Claims Act (31 U.S.C. 3729 3733).

The rule also provides as cause for suspension or debarment, knowing failure by a principal, until 3 years after final payment on any Government contract awarded to the contractor, to timely disclose to the Government, in connection with the award, performance, or closeout of the contract or a subcontract thereunder, credible evidence of

• Violation of Federal criminal law involving fraud, conflict of interest, bribery, or gratuity violations found in Title 18 of the United States Code;
• Violation of the civil False Claims Act; or
• Significant overpayment(s) on the contract, other than overpayments resulting from contract financing payments as defined in FAR 32.001, Definitions.

To view a copy of the final rule click here.

The final rule requiring Federal contractors and subcontractors to use the E-Verify system administered by the Department of Homeland Security, U.S. Citizenship and Immigration Services, as the means of verifying that certain of their employees are eligible to work in the United States was published November 14, 2008. The rulemaking will take effect January 15, 2009.

The Federal Acquisition Regulation (FAR) Council included several AGC-suggested provisions in the final rule, including: extending the time to permit Federal contractors to participate in the E-Verify program from 30 to 90 days; providIng a longer period after this initial enrollment period – 30 calendar days instead of 3 business days – for contractors to initiate verification of existing employees who have not previously gone through the E-Verify system when they are newly assigned to a covered Federal contract; increases the threshold for prime contracts above the simplified acquisition threshold ($100,000) instead of the micro-purchase threshold ($3,000); and, provides contractors the option of verifying all employees of the contractor, including any existing employees not currently assigned to a Government contract.

To view a copy of the final rule click here.

Further information on registration for and use of E-Verify can be obtained here.

The 111th Congress will be sworn in January 6, 2009. The Congress will consist of larger Democratic majorities in both the House and Senate. In addition to the election results, there will be congressional leadership and committee changes as well as new cabinet posts.

It is important for AGC members to continue its 90 year history of working in a bipartisan fashion to promote the needs of the nation's construction industry. AGC looks forward to bipartisan work on pensions, immigration and long-term programs to invest in America's infrastructure, including transportation reauthorization, clean water infrastructure and investment in federal buildings. With strong Democratic majorities in both the House and Senate, AGC will work to show the impact of tax, health care and labor issues on the businesses that are members of the AGC.

AGC has developed a Web page that contains information intended to inform AGC members on the role they can play in advocating for building a better construction industry, as well as a document titled New President, New Congress, New Threats and Opportunities.

Despite a great deal of talk about Congress taking up economic stimulus legislation in a lame duck session, it still remains uncertain whether or not this will happen. The Senate is scheduled to be in session next week. In the House, Speaker Nancy Pelosi (D-Calif.) has expressed the desire to go back into session to address stimulus legislation but she has not yet officially called the House back into session. In a press conference this week, President-Elect Obama urged Congress to pass stimulus legislation as soon as possible. However, President Bush has expressed skepticism about the benefit from this legislation.

AGC continues to advocate for the inclusion of infrastructure funding as part of the economic stimulus package. Prior to adjournment the House passed a stimulus bill which included $34 billion in infrastructure funding, including: $12.8 billion for the federal-aid highway program; $3.6 billion for transit; $600 million for airport capital improvement projects; $7.5 billion for water infrastructure; $5 billion for the U.S. Army Corps of Engineers; $3 billion for public school reconstruction; $500 million for Amtrak; and $1 billion for public housing construction. A Senate bill that included $25 billion in infrastructure spending was blocked from passage on a procedural motion.

AGC member Brian Burgett, President and CEO of Kokosing Construction Co., Inc., Fredericktown, Ohio, testified on behalf of AGC October 29 before the House Transportation and Infrastructure Committee to urge Congress to enact an economic recovery package which would include infrastructure investment to create jobs.  Mr. Burgett described for the Committee market conditions facing his company and the commercial construction company as a whole, including rising unemployment, credit availability issues, and volatile construction materials prices. The Committee asked Mr. Burgett to focus his remarks on the immediate needs of the U.S. Army Corps of Engineers.  The Corps estimates that a $5 billion investment would create 140,000 direct and indirect jobs and that contracts could be awarded in less than 9 months for large projects, and sooner for on-going and smaller projects.  To view Mr. Burgett's testimony, click here.

The House Ways and Means Committee, chaired by Representative Charlie Rangel (D-N.Y.), also met October 29 for a hearing on economic recovery, job creation, and investment in America. Two panels testified before the committee with representatives from state and local governments, think tanks, and industry. To view the testimony AGC submitted for the hearing click here.

Your Senators and Representatives need to hear from you this week. Please go to AGC’s Legislative Action Center and send a message to your elected officials.

Congressional leaders are advocating for inclusion of infrastructure funding in the economic stimulus legislation and they have asked AGC for information about current conditions in the construction industry as well as the positive impact that would result from increased infrastructure funding. Please take a few minutes to complete this survey. This information will be very useful in our efforts on Capitol Hill.