NASBP Focal Point – June 4, 2024

Federal Report

This week on Capitol Hill: Congress will be in session for only two days this week as a majority of the Members travel to Normandy, France to take part in the events of the 80th Anniversary of D-Day. Just prior to the Memorial Day recess, the House Armed Services Committee (HASC) advanced its version of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2025 by a vote of 57-1. The NDAA authorizes funding for the Department of Defense (DoD) and often serves as a legislative vehicle for the procurement of military construction. The Senate Armed Services Committee is scheduled to mark up their version of the NDAA next week.

ASA’s Fly-in: On June 11 and 12, members of the American Subcontractors Association (ASA) will be in Washington to meet with their elected officials to seek support for the “Small Business Payment for Performance Act of 2023,” H.R. 2726, which requires prompt payment to contractors for change orders. Timely payments are vital to maintaining cash flow for subcontractors, ensuring they can meet their financial obligations and maintain stability in their operations, which is a core legislative issue for ASA members. Another ASA priority is to seek support for H.R. 1740, legislation which clarifies that performance and payment bonds are required when federal loans, grant funds are provided or when public-private agreements (P3s) are utilized for Water Infrastructure Finance and Innovation Act (WIFIA) contracts.

State Activity

Update: LA HB514(Braud): Amends R.S. 48:252(A)/253(A) by increasing the bond threshold from $50,000 to $100,00 for Louisiana DOT contracts. HB514 was signed by the governor on May 8.

If you are aware of any bills impacting the industry, please reach out to Larry LeClair, NASBP’s Director of Government Relations, and let us know.