From Capitol Hill insights with rising leaders at the NextGen Fly-In to major federal procurement wins and game-changing international trade deals, this edition is packed with critical updates for contractors.
Situational Awareness 👋: From Capitol Hill insights with rising leaders at the NextGen Fly-In to major federal procurement wins and game-changing international trade deals, this edition is packed with critical updates for contractors.
Let’s dive in!
NextGen Fly-in 2025: Emerging Leaders in Action
Top from left to right: Eric Hott (MJM Electric); Zach Sechrist (MJM Electric); Tony Tiedemann (Roman Electric); Ben Thomsen (Redwood Empire Chapter NECA); Jeff Murray (Miller Electric); Brad McCluskey (Edward G. Sawyer Co. Inc.); Kyle Sanders (A-C Electric); Bottom from left to right: Walter Morrell (Boston Chapter NECA); Jennifer Mitchell (Sunflower Electric); Elizabeth Vasquez (Southwest Washington Chapter NECA); Sydney LeGuillow (Haughland Energy Group)
Twelve emerging contractors and Chapter staff gathered in Washington, D.C., for the 2025 NECA NextGen Fly-in on July 21-22.
Why it matters: This event provided a platform for these future leaders to become effective advocates for the electrical construction industry.
The big picture: Attendees gained firsthand insights into Congress and connected directly with Congressional Chiefs of Staff, equipping them to effectively champion our industry's interests.
They also got an exclusive after-hours Capitol tour by NECA Champion (and former electrician) Rep. Donald Norcross.
What's next: Attendees will apply their skills in meetings with Members of Congress and staff, aiming to influence policy and promote industry interests.
One fun thing: The Fly-in concluded with a thrilling view of the Washington Nationals' victory over the Cincinnati Reds, marking a successful and inspiring event for NECA's next generation of advocates and leaders.
The Latest on Tariffs
The Trump administration recently announced trade deals two of our largest trading partners, the European Union and Japan. He also announced a new policy on copper tariffs.
E.U. Deal
A 15% flat tariff on most EU exports to the U.S.: This replaces the previously threatened 30% reciprocal tariffs, offering clarity and predictability for major sectors like automobiles, semiconductors, and pharmaceuticals.
Major EU commitments to U.S. energy, investment, and defense: The EU will buy around $750 billion in U.S. energy products (roughly $250 billion annually over three years), invest $600 billion in the U.S., and acquire substantial U.S. military equipment.
Targeted Exemptions and Steel Duties: Select products like aircraft parts, certain chemicals, and semiconductor equipment will stay duty-free. But, U.S. tariffs of 50% on steel and aluminum persist. Future talks may lead to quotas instead.
Why it matters: The administration claims this deal counters EU trade practices that harm U.S. exporters. However, it may raise costs for the construction industry on imported metals and specialty items.
Japan Deal
Japan will invest $550 billion directed by the United States to rebuild and expand core American industries. Trial base, including:
Energy infrastructure and production, including LNG, advanced fuels, and grid modernization;
Semiconductor manufacturing and research, rebuilding U.S. capacity from design to fabrication;
Critical minerals mining, processing, and refining, ensuring access to essential inputs;
Pharmaceutical and medical production, ending U.S. dependence on foreign-made medicines and supplies; and,
Commercial and defense shipbuilding
Copper Tariffs
On July 29, 2025, President Donald Trump issued a formal proclamation under Section 232 of the Trade Expansion Act of 1962 that will significantly reshape the U.S. copper trade landscape. This proclamation follows the President’s comments on July 8 where he first said he would increase tariffs on copper to 50 percent.
Beginning August 1, 2025, a 50% ad valorem tariff will be imposed on all imports of semi-finished copper products (such as copper pipes, wires, rods, sheets, and tubes) and copper-intensive derivatives (such as pipe fittings, cables, connectors, and electrical components).
Further, the administration invoked the Defense Production Act requiring 25% of high-quality copper scrap produced in the United States to be sold in the United States.
NECA Notes: The price of copper futures dropped dramatically within a few minutes of the new policy announcement.
Take Action: If your company does critical infrastructure, data center or defense related work and has been impacted by tariffs please contact the Government Affairs team. Please visit www.necanet.org/regs for the latest Regulatory bulletins on tariffs and other regulatory news.
FAR Part 36 Revisions: A Big Win for Federal Contractors
NECA members specializing in federal contracting will be pleased to learn that significant changes to Federal Acquisition Regulation (FAR) Part 36 are bringing welcome simplification and modernization to federal construction procurement processes.
Why it matters: FAR Part 36 introduces a logical, lifecycle-based structure organized into three clear phases. Pre-Solicitation, Evaluation and Award, and Post Award align with natural acquisition workflows.
All essential statutory protections for construction contractors remain intact, including:
Administration of Construction Change Orders (15 U.S.C. § 644(w))
Brooks Act of 1972 requirements for architect-engineer services
Project Labor Agreement requirements for federal construction projects over $35 million
The requirement for government estimates has been tightened and clarified. Estimates must now be submitted to contracting officers "before receipt of proposals" instead of "at the earliest practicable time".
Several outdated and unnecessarily restrictive provisions have been removed to provide greater flexibility:
The "12 Percent Rule" is Gone: The rule requiring prime contractors to self-perform at least 12% of the work is gone. This change offers more subcontracting options while ensuring quality through other oversight.
Pre-Award Activities Now Optional: Site inspections and preconstruction conferences during the solicitation phase are now discretionary. This shift allows for customized approaches tailored to project complexity and risk.
Simplified Architect-Engineer Evaluations: Specific evaluation requirements for A-E contracts have been removed, giving contracting activities additional flexibility in evaluating offeror qualifications.
The updated regulations embrace innovative procurement techniques and modern project delivery methods. New "Smart Accelerators" provide guidance on best practices including:
Enhanced use of oral presentations for streamlined communication
Confidence ratings for proposal evaluations
Comparative evaluation methods without traditional scoring
Optimized pre-award site visits to improve collaboration and reduce post-award modifications
For Design-Build projects, the revision maintains strong quality controls while providing clearer guidance on when to use this delivery method versus traditional Design-Bid-Build approaches.
Timeline: These updates are rolling out through agency-specific deviations as formal rulemaking continues. Agencies are urged to adopt the new FAR language right away, so NECA members should see these changes in upcoming federal construction bids.
A major win for NECA members: The removal of unnecessary regulations while preserving key protections will streamline procurement, cut administrative costs, and boost opportunities for innovative project delivery. This ensures competitive integrity and maintains high-quality standards in federal construction projects.
Take Advantage of Congress’ August Recess
Congress is home for the summer district work period until September 1st. This period offers a prime opportunity to meet with your Member of Congress and discuss issues impacting the electrical construction industry.
Why it matters: Engaging with Congress during this time can strengthen NECA's influence and support your business's interests.
Take this opportunity to set up a meeting at one of the following locations:
NECA Chapter Office
NECA-IBEW Training Center
NECA Member Company Office
Job site
Resources available: NECA offers tools for a productive meeting. For questions or assistance, contact Seth Guidry at seth.guidry@necanet.org.
