Joint AGC - Corps of Engineers Meeting

Doubletree Hotel, Omaha, NEMay 9, 2012

Jimmy ChristiansonDirector, Government Affairs

Federal & Heavy Construction DivisionAssociated General Contractors of America

2012 Federal Contractors Conference

• Over 15 federal owner agencies participated;

• More than 325 attendees;• Take aways:

• Federal investment in construction will remain flat; however, there are rays of sunshine!

• Provide your insight; it makes a difference.• 2013 FedCon: April 29 - May 2, 2013

@ Mayflower Hotel in Washington, DC

Review FedCon Presentations

WWW.AGC.ORG/FEDCON

USACE Civil FY 2013 Budget OutlookUSACECivil

FY2012 enacted

President’s Request

House Approps

Senate Approps

Construction

$1,694,000 $1,471,000 $1,477,284 $1,700,000

Mississippi River & Tributaries

$252,000 $234,000 $224,000 $253,000

FUSRAP $109,000 $104,000 $104,000 $109,000

Flood Control

$27,000 $30,000 $27,000 $30,0000

Overall $5,002,000 $4,731,000 $4,814,193 $5,007,000

USACEMilCon

FY2012 enacted

President’s Request

House Approps

Senate Approps

Army $4,300,000 $2,100,000 N/A N/A

Air Force $1,500,000 $313,000 N/A N/A

DoD $3,300,000 $2,400,000 N/A N/A

ECIP $51,600 $50,000 N/A N/A

Overall $9,100,000 $4,900,000 N/A N/A

MilCon FY 2013 Budget Outlook

Small Business Contracting

• AGC has long requested a FAR amendment that would allow prime contractors to include lower tier small business subcontracts to be counted towards agency goals.

• AGC believes subcontracting goals should be achievable and realistic, based on the project and area.

Government Mandated PLAs

• President Obama’s 2009 EO 13502 encourages federal agencies to require PLAs on federal construction contracts exceeding $25 million;

• Increased federal agency PLA activity;• AGC has helped defeat more than 40

gov’t mandated PLAs;• Support H.R. 735 and S. 119, the

Government Neutrality in Contracting Act.

Overview

• CURRENT STATE OF PLAY• LOOK AT THE RACES• --President• --Senate• --House• WHAT IS AGC DOING TO INFLUENCE?

Legislative & Political Environment

2012 Political Outlook/Presidential

• Obama is vulnerable• --campaigned as moderate/governed as

liberal• --owns the economy/gas prices• --his victories unpopular (stimulus,

health care)• Electoral college (need 270)• --solid/likely Dem=195• --solid/likely GOP=217

9 Toss-up States = 126 EV’S

• CO (9)• FL (29)• IA (6)• NV (6)• NC (15)

Obama carried all in 2008!

• OH (18)• PA (20)• VA (13)• WI (10)

2012 Political Outlook

• Senate:• --53 Dems/47 GOP• --Dems defending 23 seats (13 safe)• --GOP defending 10 seats (7 safe)• --3 vulnerable GOP seats (NV, MA, ME)• --8 vulnerable Dem seats

• Open: NE, HI, ND, NM, VA, WI • Incumbents: MO, MT

2012 Political Outlook

• House: 242 GOP/193 DEM• 53 close races• --23 Dems• --30 GOP• Redistricting favors GOP slightly

nationwide• GOP likely to retain majority

How You & AGC Can Make A Difference

• AGC PAC• www.agc.org/

PAC

• Legislative Action Center

• www.agc.org/LAC

15

AGC Gov’t Advocacy: It Makes A Difference

2011 Congress• 5,793 bills introduced• 81 laws—fewer than 2% of bills introduced

Two Major AGC Victories• Repealed 3% Withholding• Repealed 1099 Requirement

Questions, Comments,

Advice?