President Biden Reinstates Executive Order On Nondisplacement Of Qualified Workers

President Biden issued an Executive Order (Order) reinstating the Nondisplacement of Qualified Workers Under Service Contracts.

The Biden Executive Order essentially reinstates a policy that requires successor federal contractors, in certain circumstances, to offer a right of first refusal of employment to employees working under the predecessor contract.

The Executive Order directs the Department of Labor to develop regulations, and then the FAR Council to create a contract clause to apply to new solicitations. However, “agencies are strongly encouraged” to include the new contract clause in solicitations issued before the FAR clause is final.

Employees working on predecessor contracts covered by the Service Contract Act, and meeting other requirements, who would be terminated as a result of the contract’s end, should be offered by the successor “a right of first refusal of employment under this contract in positions for which those employees are qualified.”

A copy of the Executive Order can be found here: https://www.whitehouse.gov/briefing-room/presidential-actions/2021/11/18/executive-order-on-nondisplacement-of-qualified-workers-under-service-contracts/

Infrastructure Bill Signed by President Biden

On November 5th, the House of Representatives passed the Senate version of the $1.2 trillion infrastructure bill, sending it to the President. The overall $1.2 trillion price tag includes $550 billion of new federal investments in public-works spending. The balance consists of amounts usually allocated to infrastructure projects each year.

The infrastructure package includes funding for roads, bridges, rail, mass transit, airports, waterways, and ports. The infrastructure bill includes

• $55 billion to expand access to clean drinking water
• $65 billion to help ensure access to high-speed internet
• $110 billion for surface transportation programs
• $39 billion in new investment to modernize transit
• $17 billion for port infrastructure and waterways
• $25 billion for airports
• $66 billion for rail funding
• $7.5 billion for EV charging stations
• $65 billion investment in clean energy transmission and grid
• $21 billion for Superfund cleanup

Various sources will be used to pay for the infrastructure agreement, including unspent COVID-19 relief funds, delaying a rebate for Medicare prescription plans, unused unemployment insurance, and economic growth spurred by infrastructure spending.

It’s also important to note, according to a White House fact sheet published in August, “The overwhelming majority of the funds in the Bipartisan Infrastructure Investment and Jobs Act will be subject to Davis-Bacon requirements.”

Federal Contractor COVID-19 Requirement Extended Until January 18, 2022

The Occupational Safety and Health Administration (OSHA) published its emergency temporary standard (ETS) on COVID-19 vaccination and testing. It includes an extension for federal contractors subject to Executive Order 14042, Ensuring Adequate COVID Safety Protocols for Federal Contractors.

OSHA’s ETS, which applies to most private employers with 100 or more employees, required workplace vaccination and testing rules to be effective on January 4, 2022. To keep dates consistent, the effective date for EO 14042, which applies to federal contractors, was also extended to January 4, 2022. A subsequent update issued by the Safer Federal Workforce Task Force on November 10 extended the contractor deadline until January 18, 2022.

EO 14042 shall generally apply to new federal contracts or renewals or options, including those covered by the Service Contract Act or Davis-Bacon Act. EO 14042 requires employees to be vaccinated for COVID-19 or have a medical or religious exemption. Contractor sites not covered by EO 14042 would be subject to OSHA’s ETS. It is important to note that the OSHA rule allows for testing as an alternative to vaccination, whereas EO14042 does not.

More information regarding the application and timing of the federal contractor COVID-19 requirement can be found here, https://link.zixcentral.com/u/8a804b82/KH7euapL7BGkQDDUhnsoMg?u=https%3A%2F%2Fwww.saferfederalworkforce.gov%2Fcontractors%2F

Welcome To The First Edition Of The Contractors Plan Retirement Newsletter!

The purpose of this quarterly newsletter is to provide a deep dive into retirement topics to help you better prepare for upcoming and important events. We will also cover happenings in the retirement industry that may potentially impact your plan.

Click here to read The Contractors Plan Retirement Newsletter

Michigan Reinstates Prevailing Wage For State Construction Projects

Earlier this month, Governor Gretchen Whitmer of Michigan announced that the State would once again require state contractors and subcontractors to pay prevailing wage on state-funded projects. The intent of reinstating the prevailing wage is to help ensure that construction workers can earn a fair wage while saving taxpayers time and money on essential state infrastructure projects.

The Michigan legislature repealed Michigan’s prevailing wage in June 2018, which eliminated the State’s prevailing wage requirement. However, the 2018 law included a clause allowing the Michigan Department of Technology, Management, and Budget to put it back in state contracts, which Governor Whitman is now implementing.

Governor Whitmer hopes that reinstating the prevailing wage will rebuild confidence among Michigan workers and employers by providing a fair and equal bidding process for highly trained workers to earn a decent wage. Nonetheless, opponents have vowed to fight the new policy in court, arguing that the prevailing wage will raise costs and reduce the amount of building that could be achieved for taxpayers.

US Department of Labor Announces Davis-Bacon Wage Determination Conformance Request Guide

Today the US Department of Labor, Wage and Hour Division published a new resource for stakeholders in the construction contracting community: the Davis-Bacon Wage Determination Conformance Request Guide.

The Wage and Hour Division Davis-Bacon Wage Determination Conformance Request Guide details the information and construction types contained in wage determinations and provides additional clarity regarding the limited circumstances in which contractors and contracting agencies may need to request a new class of laborer or mechanic be added to a published wage determination for a specific contract. The Guide also contains other useful resources to help construction contractors and contracting agencies comply with the requirements of the Davis-Bacon and Related Acts.

Task Force Issues Guidance To Implement Biden’s Orders to Vaccinate All Federal Workers & Contractors

On September 13, the Safer Federal Workforce Task Force (Task Force) published guidance for implementing the requirements of President Biden’s Executive Orders requiring all federal employees and any contractors or subcontractors working on a federal contract to get vaccinated. The guidance provides model safety principles for executive departments and agencies for their COVID-19 workplace safety plans.

The Task Force says that all federal employees must be fully vaccinated, except in limited circumstances, as quickly as possible and by no later than November 22, 2021. Agencies are instructed to work expeditiously to ensure their employees get fully vaccinated; this includes allowing employees to get vaccinated during work time and receive paid time off to address any side effects for themselves or family members.

As for contractor employees, the Task Force recognizes that they may not yet be subject to a contractual requirement to be vaccinated. Therefore agencies need to ask about the vaccination status of onsite contractor employees who are not yet contractually required to be vaccinated. In addition, those who are not fully vaccinated and are not part of an agency testing program must prove a negative COVID-19 test no later than the previous three days before entry to a Federal building.

When an individual discloses that they are not fully vaccinated or declines to provide information on their vaccination status, agencies are expected to treat that individual as not fully vaccinated for purposes of implementing safety measures, including mask-wearing and physical distancing.

The guidance provides specific details on handling contact tracing, travel, meetings and events, telework and remote work, maintaining a COVID-19 Coordination Team, symptom monitoring, workplace operations, confidentiality, and privacy.

To learn more about the detailed guidance visit https://www.saferfederalworkforce.gov/downloads/updates%20to%20model%20safety%20principles%209.13.21.pdf

Executive Orders Requiring COVID Vaccination of All Federal Workers & Contractors

On September 9th  President Biden issued two Executive Orders; Ensuring Adequate COVID Safety Protocols for Federal Contractors and Requiring Coronavirus Disease 2019 Vaccination for Federal Employees. Combined, these Orders will require that all federal employees and any contractors or subcontractors working on a federal contract get vaccinated regardless of where the work is performed.

To ensure adequate safety protocols against COVID-19, the Order mandates that all Executive departments and agencies establish contracts that comply with contractor or subcontractor workplace location guidelines. The guidelines were published by the Safer Federal Workforce Task Force (Task Force), established in January 2021 to protect the federal workforce. A vital aspect of this Order is that workplace locations extend beyond just government facilities to include anywhere an individual is working on or in connection with a Federal Government contract or contract-like instrument.

Regarding the mandatory Coronavirus Disease 2019 Vaccination for Federal Employees, each agency will need to implement a program requiring COVID-19 vaccination for all federal employees. Within seven days of this Order, the Task Force is expected to provide specific agency implementation requirements.

Biden’s Orders aim to halt the spread of COVID-19, including the Delta variant, and hope to promote the health and safety of the Federal workforce and the efficiency of the civil service. The White House Press Secretary Psaki remarked that the Orders took effect immediately with a 75-day ramp-up period. As more information becomes available regarding implementation, we’ll provide it here.

Bipartisan Infrastructure Bill – Part II

This article is the second of a two-part blog on the bipartisan infrastructure bill. This second article covers the agreement’s details.

The bipartisan infrastructure bill will make a significant long-term investment in America’s infrastructure. As discussed in Part I, the bill combines existing programs with $550 billion in new spending that the Senate approved as part of a bipartisan deal.

Here is a breakdown of the critical components:

• $110 billion for the repair, replacement, and rehabilitation of Roads, Bridges, and Major Projects for which the focus will be to address climate change mitigation, resilience, equality, and safety for users.
• $105 billion for modernizing and expanding Public Transit/Passenger and Freight Rails
• $73 billion for Power Infrastructure by building of new transmission lines and expanding renewable energy
• $65 billion for High-Speed Internet aimed at connecting all Americans with reliable internet service
• $65 billion for Environmental Remediation addressing the legacy pollution that harms the public health of communities and neighborhoods, as well as funds to clean up superfund and brownfield sites, reclaim abandoned mine land, and cap orphaned gas wells.
• $55 billion to deliver Clean Drinking Water, remove lead service lines and pipes, and address wastewater infrastructure issues.
• $50 billion for Resilience and Western Water Infrastructure to build resilience to physical and natural systems and making our communities safer and more resilient to the impacts of climate change and cyber-attacks.
• $25 billion to the modernization of Airports to address repair, renovations, and maintenance backlogs.

More particulars about what the bill will cover can be found at https://www.whitehouse.gov/briefing-room/statements-releases/2021/07/28/fact-sheet-historic-bipartisan-infrastructure-deal/

Infrastructure Bill Grinds Forward

This article is the first of a two-part blog on the bipartisan infrastructure bill. The first article addresses its current status and challenges to passage. The second article will cover what’s included in the bill.

As Congress returns to Washington and takes up a slew of legislative actions, it will also address the $1.2 trillion bipartisan infrastructure bill. Its passage, however, is far from certain.

The bill, which includes $550 billion in new spending over eight years and $650 billion in the renewal of existing programs, was the work of a bipartisan group of Senators. The infrastructure bill passed the Senate on August 10, 2021.

Since Senate passage, the focus has shifted back to the House, where several evolving and critical bills are also pending, such as a broader $3.5 trillion budget framework, appropriations for the fiscal year 2022, which begins October 1, and the debt ceiling. The slim Democratic majority in the House and the critical importance of these bills give leverage to blocks within the Democratic House majority.

To get passage of both the broader $3.5 trillion budget framework and the infrastructure bill, House Speaker Nancy Pelosi committed to an infrastructure vote the end of September at the same time the House approved the budget framework. Passage of the framework allows negotiators to hammer out appropriations details.

There are still many ways in which the bill can be derailed. A lot depends on the details stemming from the approved budget framework.

The second article will cover the details of the infrastructure bill itself.