Georgia Tech Procurement Assistance Center

The Infrastructure Plan and The Davis Bacon Act

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It’s coming.  From all outward signs, it appears that the Biden Administration may be planning to use the “American Jobs Plan” – otherwise known as the proposed infrastructure plan – to expand the Davis Bacon Act (“DBA”) and require the use of prevailing wages on all projects funded by any infrastructure bill ultimately passed by Congress.

The Davis Bacon Act (40 U.S.C. §§ 3141-3148), requires employers performing construction work under contract with the federal or District of Columbia government valued at more than $2,000 to pay their laborers and mechanics a prevailing wage and fringe benefits, at levels set on a regional or local level by the U.S. Department of Labor.  Noncompliance with the DBA can potentially lead to severe penalties, including suspension, debarment, and even False Claims Act civil and/or criminal liability.

Continue reading at:  Husch Blackwell

How to land a government construction contract

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Each year, state and local governments spend more than $250 billion on the construction of roads, schools and other public infrastructure.

Construction companies sometimes see government contracting as prohibitively competitive and believe the pay is low and the bid requirements are too time and effort-consuming.  But this is not the case, and should not hold construction companies back from bidding on a sector that offers huge growth opportunities.

Contractors of any size and any type can get started at any time with government work.  Construction companies and also landscape contractors, electrical contractors, design-build contractors, general contractors and even roofing contractors are desperately needed by government procurement departments.  Here are some tips for landing a government construction contract.

Continue reading at:  Construction Dive

Trump executive order extends Buy American policy

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President Donald Trump on Jan. 31 signed an executive order asking federal agencies to promote the purchase of American-made materials by contractors working on infrastructure projects that receive federal grants or loans.

Within 90 days, agencies covered by the order must submit their plan as to how they will encourage contractors on such projects to buy domestically-produced products including iron, aluminum, steel and cement. Within 120 days, agencies must also report any “tools, techniques, terms, or conditions” that they have used or believe they should use to promote the agenda outlined in the executive order.

Agency heads were also asked to consider in their reports whether a Buy American mandate on projects that receive federal financial assistance would be feasible.

Keep reading this article at: https://www.constructiondive.com/news/trump-executive-order-extends-buy-american-policy/547507/

 

String of infrastructure investments underway hints at big 2019

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Infrastructure work may be heating up again with whisperings of President Donald Trump’s administration reinitiating the $1 trillion infrastructure plan promised during his 2016 presidential campaign. The administration claims to be willing to increase the federal share of the infrastructure program significantly from the 20% referenced in previous iterations — a move that may draw Democrats back into negotiations.

Whether federal legislation will come to fruition or not in 2019, investments nonetheless are being made in the space. A December Wall Street Journal analysis of state and local revenue collection and spending found that public agencies are increasing their infrastructure investments and making headway on long-delayed projects. Much of that money is tax revenue stemming from increased consumer spending.

Although it’s hard to predict what 2019 may bring, Construction Dive has rounded up some of the biggest infrastructure initiatives already underway across North America as the year begins.

Keep reading this article at: https://www.constructiondive.com/news/string-of-infrastructure-investments-underway-hints-at-big-2019/545131/

State, local governments using higher revenues to increase infrastructure spending

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According to a Wall Street Journal analysis of state and local revenue collection and spending, public agencies are increasing their infrastructure investments and making a dent in projects that have been on back burners for many years.

A strong economy has resulted in an increase in consumer spending, and all that new tax revenue is helping to drive not only infrastructure spending but municipal borrowing as well. In fact, according to October 2018 data, the latest available from the Commerce Department, total state and local construction spending — based on a seasonal adjusted annual rate — was up 9.7% from October 2017 to more than $288 billion. Commercial construction was up the most year over year at 62%, followed by amusement and recreation (30%), water supply (22%), public safety (18%) and transportation infrastructure (15%). Tax revenue, adjusted for inflation, grew by 6% in the second quarter of 2018 from the second quarter of 2017, according to a Tax Policy Center report.

Year-to-date state and local government borrowing through October 2018 was up 19% from the same period in 2017, driven in part by a desire to take advantage of current interest rates in case they continue to increase. The pipeline of publicly funded construction projects, including those much-needed upgrades and repairs that have been shelved due to a previous lack of money, according to the newspaper, could make up for potential industry slowdowns.

Keep reading this article at: https://www.constructiondive.com/news/state-local-governments-using-higher-revenues-to-increase-infrastructure-s/544741/

Infrastructure spending: Which state is falling apart the worst?

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In the Donald Trump era, the United States appears to be more politically divided than it has been in decades. Still, there are matters of public policy that most Americans can agree on — chief among them is investment in infrastructure. According to a recent non-partisan Gallup poll, three out of four Americans support the president’s plan of spending more federal money on infrastructure.

The president proposed a $1 trillion plan to improve aging roads, bridges, and tunnels across the country. While funding the project has proven to be a political challenge, broad public support for the plan is rooted in necessity.

About seven out of every 100 miles of roadway nationwide are in poor condition; 9 percent of bridges nationwide are structurally deficient, meaning that they are in need of some repair; and 17 percent of dams in the country have a high hazard potential — meaning a functional failure would result in the loss of life.

Keep reading this article at: https://www.usatoday.com/story/money/economy/2018/08/13/infrastructure-spending-states-that-are-falling-apart/37270513/

Infrastructure projects should include more minority- and women-owned contractors

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The need to rebuild, repair, operate and maintain our country’s infrastructure is, and always will be, an ongoing endeavor. The problem is that minorities, women, veterans and other groups are seldom the contractors or high-wage earners on infrastructure projects.

Historically, the primary funding source for the U.S. Dept. of Transportation and its infrastructure projects is an 18.4¢-per-gallon gasoline tax and a 24.4¢-per-gallon tax on diesel fuel that millions of consumers pay at the pump. These taxes account for nearly $200 billion annually. In addition to the federal tax, states collect gasoline taxes that often are much higher, with some state rates adding as much as 57¢ per gallon to a fuel purchase. Couple these taxes with airport fees, tolls and so on, and we see that much of America’s infrastructure is supported by consumers—people who should have the right to participate in rebuilding it. The inclusion of all Americans must be a top priority for local, state and federal representatives and the companies awarded these contracts.

As financial models for these projects become more creative, including the wider use of public-private partnerships (P3s), we need to ensure that funds are being used for their intended purpose—to rebuild infrastructure—and that all Americans benefit from this funding.

Keep reading this article at: https://www.enr.com/articles/44181-infrastructure-projects-should-include-more-minority–and-women-owned-contractors

An infrastructure deal should be easy, but isn’t

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The stars should be aligned for a big infrastructure deal.

The lingering devastation from the hurricanes that crippled Houston and Florida underscored the national problems of crumbling roads and bridges, inadequate transportation systems and aging electrical grids. President Donald Trump and congressional Democrats both want Washington to spend billions on repairs and construction.

The need is critical. The American Society of Civil Engineers recently gave the country’s infrastructure a D-plus grade and estimated that its deficiencies will cost the economy $4 trillion over the next decade. As Floridians go days, stretching into weeks, without power, and with old people dying in nursing homes, the urgency is clear.

Keep reading this article at: https://www.bloomberg.com/view/articles/2017-09-17/an-infrastructure-deal-should-be-easy-but-isn-t

Contractors are confident amid uncertain political environment

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These days, change and uncertainty seem to be the one constant in the world of government and business.

As we move into the middle of the year, it’s hard not to be affected by the constant reminders of risk and uncertainty all around us with a slow-growing economy, political gridlock, skepticism in government and heightened tensions around the world. But as we measured the collective “mood” of government contractors in our recent survey of contractor sales expectations, a very different perspective emerged.

Contractors, vendors and suppliers are betting that the economy will continue to grow, agency budgets and spending will continue to improve, and that the “wait and see” type of caution that characterized many government contracting decisions prior to the November elections will transition to an “invest and grow” mentality in vital areas like infrastructure and technology.

In short, rather than limping along in a defensive posture, the government contracting marketplace is expected to be on its front foot in the coming year – a bright spot on the landscape.

Keep reading this article at: http://www.routefifty.com/finance/2017/07/contractors-remain-confident-amid-uncertain-political-environment/139341/

The federal work ‘trade-off’: What contractors need to know about the public sector

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One of the most popular elements of President Donald Trump’s campaign was his $1 trillion plan to boost the U.S. construction industry and revamp the nation’s highways, bridges, ports and other public assets. That proposal has sparked industry excitement as evidenced by spikes in construction-related stock prices the day after Trump won the election and whenever he hints at the possibility of advancing his infrastructure agenda.

However, the highway to riches has been paved with uncertainty thus far, with the administration largely focused on other issues like the repeal and replacement of the Affordable Care Act, tax reform, an increasingly volatile foreign policy landscape and a Supreme Court nomination.

Trump’s proposed 2018 budget seemed to confirm that infrastructure was no longer a priority, as it eliminated funding for many popular transportation-related programs. Then came word at the end of March that Trump might introduce an infrastructure spending bill along with tax reform, but that fell flat as the proposed measure did not earmark any of the new tax revenue that would be gathered under the bill for public works construction.

Keep reading this article at: http://www.constructiondive.com/news/the-federal-work-trade-off-what-contractors-need-to-know-about-the-publi/441894/

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