AGC Testifies Against Reverse Auctions During Congressional Hearing

AGC Federal and Heavy Construction Division Vice Chair Nigel Cary of Cox Construction, San Diego, Calif., testified in opposition to reverse auctions before a joint hearing of the House Veterans Affairs and Small Business Committees on December 11. At the hearing, AGC’s Cary noted that the reverse auction process ignores the unique nature of construction. General contractors, specialty contractors, subcontractors and suppliers offer and provide a mix of services, materials and systems. They do not “manufacture” buildings, highways, or other facilities. The Committees called on AGC to testify given the association’s extensive involvement in educating federal agencies as to the risks of procuring construction services through online reverse auctions. Specifically, AGC has recently pushed back against the Department of the Interior and Department of Veterans Affairs  in opposition to their use of reverse auctions for construction. Additionally, AGC recently sent a letter to and met with the General Services Administration on its online reverse auction  platform that enables any federal agency to conduct the procurement of certain construction services and materials through an online reverse auction.  AGC also testified before the House Small Business Committee in May, urging it to introduce legislation, which it did, to prohibit reverse auctions for construction.  You can view a recording of the hearing by clicking here. For more information, please contact Jimmy Christianson at 703-837-5325 or christiansonj@agc.org.