Joint AGC - Corps of Engineers Meeting Doubletree Hotel, Omaha, NE May 9, 2012 Jimmy Christianson Director, Government Affairs Federal & Heavy Construction Division Associated 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 FedCon: April 29 - May 2, Mayflower Hotel in Washington, DC

Review FedCon Presentations

USACE Civil FY 2013 Budget Outlook USACE Civil 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 $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

USACE MilCon FY2012 enacted President’s Request House Approps Senate Approps Army$4,300,000$2,100,000N/A Air Force$1,500,000$313,000N/A DoD$3,300,000$2,400,000N/A ECIP$51,600$50,000N/A Overall$9,100,000$4,900,000N/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 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 Legislative Action Center

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 15

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