The American Recovery and Reinvestment Act (ARRA) has provided the construction industry with an unprecedented opportunity to help rebuild our nation, our economy and our industry. As a result, ARRA and several other major changes governing how the federal government procures construction services have dramatically changed the federal construction industry.

AGC is offering a cutting edge series of federal contracting webinars to provide a detailed overview of some of the most critical challenges both new and experienced federal contractors will need to know about to successfully navigate this new landscape and meet the demands of the economic stimulus package.

November 5, 1:30-3pm ET  - Protests and Debriefings: How to Protect Yourself

November 12, 1:30-3pm ET - Small Business Contracting: Opportunities Gained & Challenges Identified

November 19, 1:30-3pm ET  - Cost Recovery & Claims: Obtaining Fair Compensation and Avoiding Pitfalls

Visit www.agc.org/fedwebinars for full webinar descriptions and a list a speakers. For more information, contact Marco Giamberardino at (703) 837-5325 or giamberm@agc.org.

Secretary of Defense Robert M. Gates announced on October 16 a major shift in its Army Corps senior leadership team. Major General Merdith W.B. (Bo) Temple will become the Deputy Commanding General (DCG) in January 2010. MG Temple has served as the DCG for Civil and Emergency Operations since 2008. MG Temple will succeed Major General Don Riley, who has served the DCG since April 1, 2008. MG William T. Grisoli, who has been serving as the  Deputy Chief of Staff for the Army, was named DGC for Civil and Emergency Operations.

MG Grisoli previously held senior positions with the Corps, including commander of its Northwestern and North Atlantic divisions. Prior to his appointment at the Civil Works, MG Temple was DCG for military and international programs.  Lieutenant General Robert L. Van Antwerp remains Commander and Chief of Engineers. MG Jeffrey J. Dorko continues as the DCG for military and international operations.

AGC thanks MG Riley for his friendship and his years of service to our nation. We also congratulate MG Temple and MG Grisoli on their new positions as we look forward to working with them to ensure the USACE mission is a success.

For more information, contact Marco Giamberardino at (703) 837-5325 or giamberm@agc.org.

President Obama and the U.S. Small Business Administration announced October 21 a new plan to raise the maximum loan size for SBA-backed loans to small business. Specifically, President Obama called for:

• Increasing the size of SBA's 7(a) loan from $2 million to $5 million.
• Increasing the size of SBA's 504 loan from $2 million to $5 million for standard borrowers (supporting a total project of $12.5 million) and from $4 million to $5.5 million for manufacturers (supporting a total project of $13.75 million).
• Increasing the size of SBA's Microloan from $35,000 to $50,000.

AGC believes these measures will go a long way to help extend and expand credit to small businesses that need this valuable help now more than ever.   

To view a copy of the President's remarks, click here. To view the SBA fact sheet on the proposal, click here.

For more information, contact Marco Giamberardino at (703) 837-5325 or giamberm@agc.org.

Now that the House passed the Student Aid and Fiscal Responsibility Act of 2009, which authorizes more than $4 billion for elementary and secondary school facility projects over the next two fiscal years, the Senate is currently working on its version of the bill.

The House version of the bill authorizes $2.1 billion in 2010 and 2011 to renovate and modernize facilities for elementary and secondary schools (K-12), and authorizes $2.5 billion in 2011 to renovate and modernize facilities for community colleges. AGC has long-advocated for increased federal investment in school construction, as there is substantial opportunity for investment in upgrading and improving the unmet needs for school construction and renovation, which is estimated to be $3.7 billion. The average age of a public school building is estimated to be over 40 years old, the same age that schools have been documented to deteriorate.

The bill was referred to the Senate Committee on Health, Education, Labor, and Pensions (HELP). Committee staff currently working on the bill indicated that the Senate will be writing their own bill language, but that the goal is to match the numbers in the House bill. The unofficial timetable is to finish the bill and have it to the president before the end of the year to maximize the savings and effectiveness of the student aid portions of the bill. Given this timeframe, it is unlikely that there will be time for any hearing on the legislation, as the health care debate has presently taken the majority of attention and resources.

While AGC supports the overall bill, it includes the same Buy American language as was included in the American Recovery and Reinvestment Act (ARRA) that AGC continues to oppose. Committee staff currently working on the bill has indicated that while they would like to keep the Buy American language in the bill, they see it as unlikely to make it into the final Senate language. AGC will urge Senators to support the bill without the Buy American restrictions.

For more information click here.

For more information, contact Marco Giamberardino at (703) 837-5325 or giamberm@agc.org.

This week the Dept. of Housing and Urban Development (HUD) issued a waiver of Section 1605, or the Buy American requirements, in the American Recovery and Reinvestment Act for projects using Community Development Block Grant-Recovery (CDBG-R) funds and Neighborhood Stabilization Program 2 (NSP2) funds.

The Recovery Act appropriated $1 billion in funds to states and local governments to carry out eligible activities on an expedited basis. The Recovery Act also appropriated $2 billion for the second round of NSP2, "[f]or the provision of emergency assistance for the redevelopment of abandoned and foreclosed homes."

This waiver provides that HUD will accept any other agency's waivers and well as any waivers from other HUD programs. They also waive entirely the Buy American requirements for public housing projects with less than 8 units, when the grant size is less than $100,000, or any project that is substantially under construction or contract prior to receipt of funds. These exceptions were made on the basis of the of the "Public Interest" option of potential waivers provided in Section 1605(b).

This waiver joins others HUD has issued for the Capital Fund Recovery Formula and Competition (CFRFC) grant funds  and a project specific waiver for the Boston Housing Authority's HOPE IV project.

For more information, contact Marco Giamberardino at (703) 837-5325 or giamberm@agc.org.