The US DOT has issued a series of proposed rule changes to its disadvantaged business enterprise (DBE) regulations. The proposed changes are the result of meetings initiated by AGC to discuss DBE program implementation. The proposed rules deal with: concerns counting items obtained by a DBE subcontractor from its prime contractor, "unbundling" of contracts, improvements to DBE application form, program oversight, DBE certification in multiple states, discretion of prime to terminate DBE participation, setting goals every three years instead of annually. Comments on the proposed rule are due by July 7, 2009.  AGC will have its comments available for your review in time to submit your own comments on the proposed rules.

" width="300" height="200" />Workers at DC National Work Zone Awareness Week event

The 10th annual Work Zone Awareness Week began this week, and includes events around the country to raise awareness of the importance of highway work zone safety.  An event outside Washington, D.C., featured a tour of an AGC member project site led by Michael Hart, Cianbro Construction Corp.

May 19-20, Washington, D.C.The Transportation Construction Coalition (TCC) will hold a Fly-In May 19-20 in Washington, D.C.  Under the theme "Transportation Builds Our Economy," the coalition will meet with members of Congress to discuss the importance of transportation infrastructure investment.Congress and the Administration have less than nine months to draft and approve legislation to reauthorize critical highway, bridge, transit and aviation construction programs.  Join the coalition to ensure these issues are front and center in the 111th Congress.For more information, click here or contact Brian Deery at (703) 837-5319 or deeryb@agc.org.

The House and Senate have completed action on their versions of the FY 2010 budget resolution, a non-binding blueprint that guides Congressional tax and spending decisions for the upcoming fiscal year. A conference committee will work out the differences in the two resolutions when Congress returns from its two week spring recess but this document does not go to the President for his approval.Both resolutions include funding for the highway and transit programs at the FY 2009 level. Since SAFETEA-LU expires at the end of FY 2009 and with the Highway Trust Fund projected to have an insufficient balance to maintain current funding levels, new legislation is necessary. Both resolutions take this uncertainty into account by providing room in the budget for increased spending if subsequent legislation provides necessary revenue. Both resolutions reject the Administration's proposal to change the budgetary treatment of Highway Trust Fund which would have eliminated the accounting mechanism that allows the federal government to provide states with muti-year budget authority for their highway and transit programs. AGC contacted both House and Senate Budget committees opposing this provision, pointing out how this would undermine states' ability to plan their long term transportation construction programs.

The White House announced that President Obama will nominate Victor Mendez to serve as the next Administrator of the Federal Highway Administration. Mr. Mendez was a member of former Arizona Governor Janet Napolitano's Cabinet serving as the Director of the Arizona Department of Transportation. He joined ADOT in 1985 and was named director in 2001. Mendez served as AASHTO's National President in 2007 and, in 2008, was selected as Leader of the Year in Public Policy in Transportation by the Arizona Capitol Times. Both AGC of America and the Arizona Chapter AGC have a longstanding excellent working relationship with Mr. Mendez. He served as an AASHTO delegate to the AASHTO-AGC-ARTBA Joint Committee and has addressed AGC's Highway and Transportation Division on numerous occasions.

Amy Hall, president of Ebony Construction in Sylvania, Ohio presented testified on the need for clarity in implementing regulations for the US DOT's disadvantaged business enterprise program and the work AGC has done to develop industry standard guidance documents over the last three years.  The hearing was held in conjunction with the Transportation & Infrastructure Committee's reauthorization of highway, transit and aviation programs. In response to Ms. Hall's testimony T&I Committee Chairman Jim Oberstar (D-MN) said: "I want to thank AGC for their very active, assertive involvement in the DBE program and the very significant contributions AGC has made. It is very much to their credit to have you as their articulate witness."Hall participated in a Highway and Transportation Division taskforce that developed a guidance document on which AGC is seeking federal and state input and approval. AGC also recommended continued dialogue with the agency and interested parties on critical issues impacting the program. The hearing featured testimony from AGC members Katherine Cloonen, President of JK Steel Erectors in Bonfield, Ill., and Anthony Thompson, President and CEO of Kwame Building Group in St. Louis, Mo.

House and Senate Budget Committees this week passed their respective budget resolutions providing a non-binding blueprint for FY 2010 federal spending and tax policy.  The House and Senate will consider the resolutions next week, with final passage votes expected by the weekend. Both resolutions provide for level funding for surface transportation programs, but provide room for more spending if sufficient resources are made available in subsequent legislation. SAFETEA-LU expires at the end of FY 2009 and without an authorization in place the funding levels for the highway and transit programs are uncertain.The House budget resolution includes a "reserve fund" for surface transportation reauthorization that allows Congress to revise spending for surface transportation programs upward if Congress writes legislation that "establishes or maintains a solvent Highway Trust Fund over the period of fiscal years 2009 through 2015."  The provision leaves open the option of a transfer of general fund revenues to the Highway Trust Fund, "as long as the transfer of Federal funds is fully offset."The Senate budget resolution includes a reserve fund for a broader array of infrastructure projects, including energy, water, and public housing.  It also allows for more spending on surface transportation if the "solvency of the Highway Trust Fund will be maintained for the length of the surface transportation authorization." Both resolutions reject the Administration's proposal to change the budgetary treatment of Highway Trust Fund which would have eliminated the mechanism that allows the federal government to provide states with muti-year budget authority for their highway and transit programs and would have instead treated surface transportation programs like other federal programs which receive single year appropriations. AGC wrote to both House and Senate Budget committees opposing this provision, pointing out how this would undermine states' ability to plan their long term transportation construction programs.

The Highway and Transportation Division previewed a new safety product to protect highway workers from job site injuries, which was recently completed by an AGC task force and Zurich. The Highway Worker Safety Program has been underway for two years and is a collaborative product with input from AGC's Highway and Transportation Division, Safety and Health Committee and Zurich. It includes training videos, Power Point presentations and text books for students and instructors. Highway contractors can use the materials as a full blown training program or use video and Power Point segments for daily or weekly tool box talks. Filmed at AGC member highway construction projects, the DVD footage presents real-world examples of job site hazards and preventative practices.The Highway and Transportation Division was also focused on the recently enacted federal stimulus legislation and this year's effort by Congress to reauthorize the federal surface transportation programs. Gary Gallegos, San Diego Association of Governments, discussed the difficulties of getting transportation improvement projects under construction in the current economic conditions. He welcomed the federal stimulus funds and said they would be put to work immediately. The Division also learned that the Highway Trust Fund is operating on close to a zero balance and achieving a good transportation reauthorization bill will require political activism at the national, state and local levels.For more information, contact Brian Deery at (703) 837-5319 or deeryb@agc.org.

In a letter to the full House of Representatives this week, Transportation & Infrastructure Committee Chairman James Oberstar (D-Minn.) and Highways & Transit Subcommittee Chairman Peter DeFazio (D-OR) warned that the Highway Trust Fund is facing a severe revenue shortfall and Congress needs to act quickly to enact new transportation authorization legislation to avoid a dramatic downturn in highway construction. The letter pointed out that, "Without taking steps to avoid this situation, the Highway Trust Fund will only support a highway investment level of approximately $20.5 billion in FY 2010, one-half of the amount that we are investing this year.  The Federal transit program would also face a significant cut in FY 2010."  The letter further warned that, "These cuts would unquestionably cause construction to halt on many critical projects throughout the nation and would negate the simulative effect of the American Recovery and Reinvestment Act of 2009." Included with the letter was a state by state chart showing the dramatic cuts that will occur if this situation is not fixed.The letter was intended as a wake-up call pointing out that the current authorization bill, SAFETEA-LU, expires on September 30, 2009 and that Congress needs to ensure that there will be no disruption in highway and transit program funding. Chairman Oberstar has stated on numerous occasions his intent of having new authorization legislation enacted before the expiation deadline arrives. This letter once again makes that point saying that states need a reliable funding source to avoid the pull back in investments in highway construction projects that occurred in the last reauthorization when 12 extensions were necessary to keep the program running while a new bill was negotiated.