Federal Contractor Report
January 2022
Federal Government
 
Register here for an AGC and FMI hosted two-part webinar series on the implementation of the historic Infrastructure Investment and Jobs Act (also known as the Bipartisan Infrastructure Law) and how it will affect the 2022 highway, transportation, utility, and direct federal construction markets. 
 
The first session (1/25), a conversation between owners and contractors, will feature Mark Schiller, president and CEO of Lane Construction Corporation, Carlos Braceras, executive director, Utah Department of Transportation, and Dorval Carter Jr., president, Chicago Transit Authority, who will discuss the upcoming 2022 transportation construction market. The second session (1/27) will feature speakers from the Army Corps of Engineers and EPA to discuss how they plan to implement the significant amount of new funding the bill provided for water, wastewater, and other federal and municipal construction projects. For more information on this web series and to register, click HERE.
 
On January 13, the Supreme Court reinstated the nationwide stay on implementation and enforcement of the OSHA COVID-19 vaccination-or-testing emergency temporary standard (ETS). The case will now go back to the lower courts for litigation on the merits of the ETS. There, AGC of America will remain engaged via its Construction Advocacy Fund-backed lawsuit challenging the ETS. To support the Fund and other pro-construction industry efforts, click here.
 
Last week, AGC, along with the American Road and Transportation Builders Association (ARTBA) and Signatory Wall and Ceiling Contractors Alliance (SWACCA), submitted comprehensive comments to OSHA reiterating the construction industry’s success in protecting workers throughout the pandemic, while also reminding the agency of the low-risk nature of construction work. The joint comments further detailed how the ETS will exacerbate the workforce shortage for covered contractors, significantly increase construction project costs, and potentially result in delays that will undermine the nation’s economic recovery. 
 
Additionally, the comments strongly recommended that OSHA take a risk-based approach in developing a permanent standard if the agency remains committed to moving forward. Such an approach would regulate industry sectors that present a high risk of COVID-19 transmission in the workplace. AGC will continue to monitor the rulemaking process and keep its members informed of any key developments. For more information, please contact Kevin Cannon at kevin.cannon@agc.org or Nazia Shah at nazia.shah@agc.org.   
AGC communicates with agencies 

The federal contractor vaccine mandate remains on hold since the December 17, 2021, decision by the U.S. Court of Appeals for the Eleventh Circuit to maintain a nationwide stay (or freeze) of the mandate until—potentially—as late as April 2022. During the week of January 10, AGC had direct discussions with major construction federal agencies and key regulators. Guidance has been issued on ensuring federal compliance with court orders and injunctions, meaning that contractors should expect no federal action to enforce the contract clause implementing the requirement that federal contractors and subcontractors be vaccinated.  
 
AGC recently joined a group of business and non-profit stakeholders to support bipartisan legislation—introduced by Reps. Carol Miller (R-W.Va.) and Stephanie Murphy (D-Fla.) to extend the Employee Retention Tax Credit (ERTC) through the fourth quarter of 2021. The ERTC fourth quarter credit was canceled because it was used to help pay for the $1.2 trillion bipartisan infrastructure law, formerly called the Infrastructure Investment and Jobs Act. AGC will work with the coalition to find senators to introduce companion legislation and explore legislative vehicles to pass an extension of ERTC in the first quarter of 2022. If you have any questions about this issue, please contact Matthew Turkstra, Director, Tax, Fiscal Affairs, and Accounting, at Matthew.turkstra@agc.org, or (202) 547-4733. 
Federal Agencies
Funding from Bipartisan Infrastructure Law and supplemental 
 
On January 19, the U.S. Army Corps of Engineers released its Civil Works studies, projects, and programs that will be implemented by the recently enacted Infrastructure Investment and Jobs Act (also known as the Bipartisan Infrastructure Law) and a separate disaster supplemental. Taken together these two laws have provided the Army Corps with $22.81 billion in supplemental funding. According to the White House, more than $14 billion of this funding will be allocated for FY 2022 for over 500 projects across 52 states and territories. These projects will focus on improvements at ports and waterways to address the supply chain backlog and recovery and resiliency investments to areas recently impacted by natural disasters.  

If you are thinking about getting into federal construction contracting, AGC provides a five-session course on the basics of construction contracting with the federal government: Five Part Webinar Series - Federal Construction 101.  In addition, this and other topics will be discussed at AGC’s Annual Federal Contractors Conference taking place in-person in Washington, D.C. on June 20-22, 2022.  For more information, contact Jordan Howard at Jordan.howard@agc.org or 703-837-5368. 
 
On January 14, the Federal Highway Administration launched the Bridge Replacement, Rehabilitation, Preservation, Protection, and Construction Program created in the recently passed Infrastructure Investment and Jobs Act. The program represents the single largest dedicated bridge investment since construction of the interstate highway system, providing $26.5 billion to states, the District of Columbia and Puerto Rico over five years. The total amount that will be available to these entities in fiscal year 2022 is $5.3 billion. In conjunction with this announcement, the White House also detailed its progress over the last 60 days on implementing the new law, which may be found here. For more information, contact Alex Etchen at alex.etchen@agc.org or Cory Gattie at cory.gattie@agc.org
Smith, Currie & Hancock, LLP
Upcoming Events
Don’t miss this Texas-sized event 

Experience the AGC Annual Convention, providing contractors of all sizes and markets the opportunity to gain business-critical insights into the issues most affecting their operations. AGC brings together experts from across the industry to share their knowledge and help prepare contractors to meet the challenges of today (and tomorrow). Alongside the incredible keynote speakers, the AGC Annual Convention will feature more than 15 education breakout sessions covering a variety of key industry topics. 

Held in conjunction with this event, the AGC Equipment, Technology & Construction Solutions Expo provides a one-of-a-kind opportunity for your whole team to meet with more than 100 leading industry suppliers showcasing the latest tools, solutions and equipment to power your construction business.
AGC News
New industry outlook shows contractors expect a boost from the Bipartisan Infrastructure Bill and broad-based private-sector demand, except for retail and office construction, if they can find workers and materials 
 
Construction contractors expect increasing demand for numerous types of projects in 2022 despite ongoing supply chain and labor challenges, as most firms plan to add workers this year, according to survey results released recently by AGC of America and Sage. The findings are detailed in Expecting Growth While Coping with the Lingering Impacts of the Pandemic: The 2022 Construction Hiring & Business Outlook.
 
In this episode of ConstructorCast, a panel discusses the partnership between AGC and Procore Technologies,  and their efforts to raise money for the benefit of African American and disadvantaged students studying construction at Historically Black Colleges & Universities.The scholarship program has already connected with seven HBCUs, and raised over $400,000 including a $250,000 contribution from Procore. B. Scott Holloway, president and CEO of member and donor company Josam Company, joins in on the discussion, and encourages other members to donate to the effort.
 
The January/February 2022 issue of Constructor magazine is now available!  Read about the challenges and achievements of constructing wind farms in our cover story, "Tall Tales of Wind Farm Construction."
 
Other highlights include: 
New Year, Same Virus  
How the Infrastructure Bill Was Won 
Hell & High Water 
Mobile Collaboration on Jobsites Saves Time and Money 
 
Click here to start reading this issue now! Thank you to our advertisers, whose support helps make this publication possible. 
 

 

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