On November 15, 2008, the Federal Acquisition Regulation Council issued a final rule to require federal contractors and subcontractors to use the U.S. Citizenship and immigration Services (USCIS), or "E-Verify," system as a means of verifying that their employees are eligible to work in the United States. While the final rule originally applied to solicitations issued and contracts awarded after January 15, 2009, a legal challenge to the rule has led to the government agreeing to suspend applicability of the rule until February 20, 2009. Solicitations that occur prior to February 20, 2009 would not contain the contract clauses that the rule would impose.

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

On January 15, the House Democratic Leadership announced details of the American Recovery and Reinvestment Act. Details of the $825 billion package were released by the House Appropriations and Ways and Means Committees. The total package consists of $275 billion in economic recovery tax cuts and $550 billion in targeted investments, coupled with several unprecedented accountability measures. AGC estimates that approximately $150 billion of the spending proposed in this bill would benefit the construction industry.

House Speaker Nancy Pelosi (D-Calif.), said today that she hoped Congressional Committees would take up the bill late next week, with the goal of sending a final product to the White House by mid-February. According to House Appropriations Chairman Dave Obey (D-Wis.), this package would create and save 3 to 4 million jobs and jumpstart our economy.

In many instances, funds would be distributed through existing formulas. How funds are spent, all announcements of contract and grant competitions and awards, and formula grant allocations must be posted on an open government web site. Governors, mayors or others making funding decisions must personally certify that the investment has been fully vetted and is an appropriate use of taxpayer dollars. A Recovery Act Accountability and Transparency Board would also be created to review management of recovery dollars and provide early warning of problems. Federal and state whistleblowers who report fraud and abuse are protected. Finally, there are no earmarks in this package.

The House Ways and Means Committee's $275 billion tax package would provide tax, health and other benefits to American families, as well as incentives for businesses to grow and create jobs.  Highlights in the package benefiting the construction industry include: 

• One-year deferral of the 3 percent withholding law from 2011 to 2012
• Bonus depreciation
• 5-year carry-back of net operating losses
• Extension of increased small business expensing
• Repeal AMT limits on new private activity bonds
• School construction bonds
• Remove repayment requirement on $7,500 first-time homebuyer credit
• Tax exempt and tax credit bonds to "recovery zones" (i.e., areas of high unemployment, foreclosures or poverty)
• Various energy efficiency tax incentives and bonds

 AGC's CEO Stephen Sandherr released a statement indicating that the newly released details of the proposed stimulus package provide encouraging signs that Congress is willing to make significant, but essential, investments needed to rebuild our aging infrastructure and inefficient public buildings while repairing America's ailing economy.  However, he pointed out that in an environment where almost 900,000 construction workers have lost their jobs, the construction community has the capacity to do even more work than is currently being considered. 

AGC is continuing to meet with House and Senate leaders to increase the proposed investments in infrastructure in the draft package and enact the bill as soon as possible.

 To view a copy of the House Appropriations Committee Plan, click here.

To view a copy of the House Ways and Means Committee Plan, click here.

To view AGC's analysis of the bill, click here. 

For more information, please visit www.agc.org/cs/economic_stimulus.  Contact Marco Giamberardino at (703) 837-5325 or giamberm@agc.org or Karen Bachman Lapsevic at (202) 547-4733 or bachmank@agc.org.

On November 14, 2008, Federal Acquisition Regulation (FAR) Council issued a final rule to require federal contractors and subcontractors to use the U.S. Citizenship and Immigration Services' (USCIS), or “E-Verify” system as the means of verifying that their employees are eligible to work in the United States.

The final rule applies to solicitations issued and contracts awarded after January 15, 2009. Contractors who wish to enroll in E-Verify before the effective date of this rule may do so now.  Enrolling now may help contractors become familiar with the system and may make it easier for them to use E-Verify if and when you are awarded a federal contract.  All employers, including federal contractors, may enroll in E-Verify at any time without waiting for the effective date.

Critical Components of the Final Rule

1. Significantly Extended Timelines. The final rule amends the proposed rule to permit Federal contractors participating in the E-Verify program for the first time a longer period - 90 calendar days from enrollment instead of 30 days as initially proposed - to begin using the system for new and existing employees.
2. Covered Prime Contract Value Threshold. The final rule requires the insertion of the E-Verify clause for prime contracts above the simplified acquisition threshold ($100,000) instead of the micro-purchase threshold ($3,000).
3. Contract Term. The final rule clarifies that the E-Verify clause need not be inserted into prime contracts with performance terms of less than 120 days.
4. Sureties. Under the final rule, sureties performing under a takeover agreement entered into with a Federal agency pursuant to a performance bond need only verify employees assigned to the covered Federal contract.
5. Security Clearances and HSPD–12 Credentials. The final rule exempts employees who hold an active security clearance of confidential, secret or top secret from verification requirements.
6. All Existing Employees Option. The final rule provides contractors the option of verifying all employees of the contractor, including any existing employees not currently assigned to a Government contract. A contractor that chooses to exercise this option must notify DHS and must initiate verifications for the contractor’s entire workforce within 180 days of such notice to DHS.

Further information on registration for and use of E-Verify can be obtained at http://www.dhs.gov/E-Verify.

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

As reported Monday, House Speaker Nancy Pelosi (D-CA) convened a forum with economic experts to discuss an economic recovery plan for the nation.  She announced that she would be calling on the appropriate committee chairmen to conduct hearings on various portions of an economic recovery package in the upcoming weeks. 

AGC has been working with Congressional leaders, Federal agency officials and state and local organizations to determine the current needs for infrastructure investment that would be included in a comprehensive stimulus package.

Such legislation will be an uphill battle for us this year. One stimulus measure failed a procedural vote in the Senate earlier this month, and the odds are stacked against another large package passing this year in the Senate, as it is unlikely that Senate Republicans will change their minds. Finally, President Bush has said he would veto a large stimulus package should it include funds for unemployment benefits and infrastructure investment.

 AGC will continue to work with Congressional leaders and the White House to make the case that additional investment in infrastructure provides tangible and ongoing stimulus for the economy.

 For more information, please contact Jeff Shoaf at (202) 547-3350 or shoafj@agc.org.

House Speaker Nancy Pelosi (D-Calif.) convened a forum with economic experts to discuss an economic recovery plan for the nation on Monday.  Prior to the meeting, AGC sent a letter to Speaker Pelosi urging her to consider economic stimulus initiatives that will positively impact economic activity, including provisions to boost the construction industry.  AGC sent a press release announcing the meeting and AGC's support of infrastructure investment.  The letter, press release and a white paper titled The Pivotal Role of Federal Infrastructure Investment in Our Economy, are available here.

At a press conference following the forum, the Speaker expressed her intent for the House to develop an economic recovery package that would include an infrastructure investment component to "rebuild America" among other provisions to provide financial assistance to state and local governments whose budgetary shortfalls may otherwise lead to reductions in public works spending.   The Speaker did not offer any specifics of an infrastructure package, but did refer to the bill the House passed September 26, which AGC supported and would have provided approximately $34 billion in additional infrastructure spending.   That bill, which passed by a vote of 264 to 158, would have provided $12.8 billion for the federal-aid highway program; $3.6 billion for transit; and $600 million for airport capital improvement projects; along with grants to other major federal construction spending accounts.  Speaker Pelosi announced that she would be calling on the appropriate committee chairmen to conduct hearings on various portions of an economic recovery package in the upcoming weeks.   It is possible that the House may return for a "lame duck" session in mid-November to act on a package.   The Senate has already expressed its intent to return briefly to conduct legislative business during the week of November 17.

For more information, contact Brian Deery at (703) 837-5319 or deeryb@agc.org.