Iowa MPOs Should Opt-Out of “Federal-Aid SWAP” Program (IA)

Posted by National Alliance for Fair Contracting on

PUBLISHED NOV 27, 2018 AT 3:38 PM

In 2017, the Iowa General Assembly passed legislation that authorized the Iowa Department of Transportation to create a “Federal-Aid SWAP” program (Iowa DOT, 2018). This legislation essentially eliminated federal requirements on public infrastructure projects, including the historically bipartisan Federal Davis-Bacon Act which creates a level playing field for all federal construction contractors by ensuring that public expenditures maintain and reflect local area standards for wages and benefits. Under Iowa’s “Federal-Aid SWAP” program, federal dollars that were designated for local construction projects are now retained through the state and fail to include Davis-Bacon Act standards. Local metro planning organizations in Iowa should opt-out of participating in the program.

The main purpose of the Davis-Bacon Act is to support middle-class American families by protecting local standards for compensation and craftsmanship in the competitive public bidding process. Federal construction bidding is not like the private sector. Government procurement agents are required to select the lowest bidder. In the low-bid model used on federally-funded construction projects, contractors aim to lower their bid however possible, including by lowering wages and by reducing apprenticeship training. The Davis-Bacon Act levels the playing field, allowing local contractors and local workers a fair shot at these government projects and incentivizing competition based on core competencies in construction (Duncan et al., 2017).

The Davis-Bacon Act boosts local economies and provides great value to taxpayers. The Davis-Bacon Act protects work for local contractors and construction workers, supports training programs, and provides pathways into the middle class for all blue-collar workers– keeping them off government assistance programs. Local metro planning organizations in Iowa should opt-out of participating in the “Federal-Aid SWAP” program and instead choose to maintain Davis-Bacon Act standards on taxpayer-funded construction projects.

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Guest Commentary: Apprenticeships beneficial to economy

Posted by National Alliance for Fair Contracting on

Sun, 10/30/2016 – 7:00am | The News-Gazette
By FRANK MANZO IV

Students of all ages across our country are back to school.

And while there are many disputes about education policy, there is no disputing its fundamental purpose – to prepare Americans for the jobs of tomorrow.
In Illinois, our fastest growing industry is construction. And construction is projected to grow at twice the rate of Illinois’ economy over the next decade, adding thousands of new
middle-class jobs.

Accessing these jobs in the fastest-growing skilled trades typically requires at least three years of apprenticeship training. And new research from the Illinois Economic Policy Institute and University of Illinois at Urbana-Champaign shows that the average impact of that training – in the form of increased earnings over an entire career – is greater than the effect of associate’s degrees and many bachelor’s degrees.

So what is an “apprenticeship?”

Apprenticeships have been around for nearly a century. They are governed by state and federal standards that ensure proper certification of graduates. Funded almost entirely by private entities such as employers, labor-management groups and unions, they require almost no out of pocket costs for students, and better yet, enable students to “earn while they learn” – collecting a paycheck while learning a skilled trade on the jobsite and in the classroom. Best of all, they ensure that our state has a pool of skilled tradespeople to meet our long-term infrastructure and building needs.

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$150M available to states to implement or expand job-driven training programs for laid-off workers

Posted by National Alliance for Fair Contracting on

WASHINGTON – The U.S. Department of Labor today announced the availability of up to $150 million in funding through a new Job-Driven National Emergency Grant program to train workers who have lost their jobs through no fault of their own for jobs in high-demand industries.

These investments will help create or expand employer partnerships that provide opportunities for on-the-job training, Registered Apprenticeships or other occupational training that results in an industry-recognized credential. Funding will also be used to provide services, such as coaching, counseling and direct job placement, that help connect laid-off workers, including the long-term unemployed, with available jobs. Focusing funding on proven, job-driven training strategies is a key component of the Obama administration’s agenda to connect ready-to-work Americans with ready-to-be-filled jobs.

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