2006 Election Impact on Federal Construction
On the heels of Democratic victories in the House and the Senate on Tuesday, AGC is poised to use the 110th Congress to strengthen bipartisan relationships with new decision makers, and outline an aggressive agenda for advancing legislative and regulatory goals.  The Federal construction market can continue to look to AGC to protect the gains made in policy and infrastructure funding in recent years while working to finalize WRDA reauthorization.

Federal Construction Funding

Federal construction funding may be more generous under a Democratic-controlled Congress, particularly for  important federal construction accounts, including federal facilities construction program and the Civil Works mission of the Army Corps of Engineers.  However, it is more uncertain what changes will be made to defense construction accounts should the Democratic Congress shift direction in Iraq and the War on Terrorism.

Waterways Infrastructure Funding

If Congress does not address WRDA during the 2006 lame duck session, it is hoped that the new Democratic majorities in the House and Senate would move to quickly approve WRDA early next year. AGC will continue to monitor, comment and engage with all appropriate players in the Congress and at the U.S. Corps of Engineers (USACE) on both WRDA Reauthorization and funding for the USACE (Civil Works) program on behalf of its members.

Government Reform Agenda
 
Democrats are expected to reform federal acquisition practices by promoting competition, limiting the use of abuse-prone contracts, increasing contract oversight and disclosure of overcharges, and preventing contractor conflicts of interest. AGC will continue to advocate for reform of the federal procurement process, asking that the system recognize construction’s unique melding of industry sectors while ensuring the government uses the most cost-effective method of procurement.

Small Business Agenda

Despite one-party control of the Congress in recent years, party leaders have not been able to successfully pass legislation reauthorizing the Small Business Act or enact any substantial reforms to the small business program. After failing to get a Reauthorization of the Small Business Act (SBA) off the ground, Congress opted to temporarily extend the program until February 2, 2007. The was necessary because several key programs at the SBA are not supported by direct appropriations and must be extended in order to keep those programs functioning. AGC worked to see legislation introduced during the 109th Congress that calls for reform of the HUB Zone program, addresses how subcontracting goals are calculated and allows construction contracts to be reviewed for bundling. It is also expected that the Democrats will move to "set aside" more federal contracting opportunities for small business and work to revamp the administration of the 7(a) small business loan program.