Vol. XXV, Number 17
May 21, 2004

1015 15th Street, NW
8th Floor
Washington, DC 20005-2605
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www.acec.org

E-mail acec@acec.org
Alan D. Crockett, Director, PR
Ann Brandstadter,
Editor/Designer

ACEC Means
Business

Buy A Publication,
Win A "Notebook"

Be automatically entered to win an IBM ThinkPad G Series Notebook when you purchase over $100 at the ACEC bookstore or sign up for the FedEx discount program. The winner will be sent the ThinkPad G Series notebook via FedEx on June 30.

This model includes the following features: Intel Pentium 4 processor 3.00 GHz, 256 MB memory, 40 GB hard drive, 8.54 lbs, CD/DVD, and ergonomic design.

No purchase necessary! You must be a member to enter. Click here to download the FedEx enrollment form, and then send it directly to FedEx. A FedEx representative will contact you. ACEC cannot answer any questions on a member's individual account. All inquiries should be directed to FedEx.

Project Delivery Systems Manual: Design-Build/Operate

In all sectors of the engineering industry, more clients are using Design-Build/ Operate as a delivery method for medium and large projects.

Find out key differences in the Design/Build process versus the Design-Build/Operate delivery system, as well as the long and short-term opportunities, obligations, responsibilities and liabilities that exist.

Click here to order before May 31 for the special price of $69 (Regularly $89).

Market Forecast Series

Alan Shepherd, Consultant,
"Small Business Opportunities with Department of Homeland Security"

May 27 — 12:30pm–1:30pm EDT
Washington, D.C. & Online

Alan. J. Shepherd will provide strategic and tactical plans for acquisition of new Homeland Security business opportunities. Shepherd recently helped two companies acquire more than $150 million in new Homeland Security business.

Topics to be discussed:

The size of the market by sector, i.e. federal, state & local;
Set aside goals by sector and agency as a sub or prime contract;
Scope of work sectors for buildings, airports, ports & harbors, including structural hardening, HVAC, telecommunications, and IT;
Sources of information for acquisitions.

This program is available both online and on-site at the ACEC offices in Washington, D.C. Click here to register, or contact Cortney Coxon at ccoxon@acec.org.

Online Seminar

Mergers & Acquisitions, Steve Gido, CFA & Ian Rusk, ASA
May 26 — 1:30pm–3:00pm EDT

Discuss current merger and acquisition activity and trends in the engineering industry. Topics included: The motivations behind recent activity, where and what firms are buying, structuring and financing considerations, and valuation trends.

Click here for more information or to register, or contact Cortney Coxon at ccoxon@acec.org.

CEO Retreat

Lowell Getz, Olin Jennings, and Don Thomas
June 4-5 — The Westin Resort, Hilton Head, S.C.

Energize your corporate vision! Join CEOs from engineering firms around the country as they examine new threats and opportunities created by accelerating changes in the workforce and marketplace. Register today for a program of three new workshops, each designed for CEOs, principals, and owners of small and large firms.

Presentations include:

Strategic Marketing for CEOs
Financial Aspects of Ownership Transition;
Leadership Skills and Communicating in Changing Organizations — Creating A Cutting Edge Technical Services Business.

Click here for more information or to register, or contact Cortney Coxon at ccoxon@acec.org.

Peer Review: Enjoy The Benefits

The Peer Review Program continues to be one of the industry's most effective tools to enhance firm performance. Over 1,100 firms have benefited from having an ACEC Peer Review.

"We know of no other program that accomplishes a targeted goal in a relatively short period of time with individuals who understand the specifics of the consulting industry."

—Fermin Diaz, P.E, President
WilsonMiller Inc.
Peer Reviewed April, 2004

To join the "Peer Reviewed" club, please contact Kevin Wilson at kwilson@acec.org.

Thanks To ACEC/PAC Corporate Sponsors At The Annual Convention

SILVER SPONSOR
Degenkolb Engineers

19th HOLE RECEPTION
CO-SPONSOR

HDR

GOLF HOLE SPONSORS
PWNA
Strand Associates, Inc.
Parrone Engineering.
Pennoni Associates, Inc.
Hawaii Pacific Engineers, INC.
Transystems Corporation

VACATION DONORS
Peter Andrews, Dufresne-Henry, Inc.
Bill Garrity, ACEC/WA

SPECIAL THANKS TO:
ACEC/UT and Browning

 
Luxurious Colorado Setting Matched Only By Exemplary Annual Convention Program


Dianne Schaefer of Cincinnati, OH (left), Bonnie Andrews (center) of North Springfield, VT and Patricia Jester of Chicago enjoy a guided tour of the "Garden of the Gods" in Colorado Springs.


2002-2004 ACEC Vice Chairman David Wright (center) of Maitland, Fla., his wife Bonnie, and ACEC/Mississippi President-elect Slade Exley during the Convention's Opening Reception.
In a setting befitting a James Clavell novel, more than 900 members and guests enjoyed a "five-star" Convention program with noted guest speakers, sports celebrities, and the Council's first ever "Diversity Summit."

Held at the visually stunning Broadmoor resort, members enjoyed exemplary services and educational activities.

"It was great, fantastic," said Bennett Reischauer, of Stanley Consultants in Muscatine, Iowa, who attended with his wife Rosalie. "A great program with great speakers in a beautiful place. You couldn't ask for more."

"This has been a great experience," said Roger Johr, of Williams & Works, Inc., Grand Rapids. "The place is fantastic and all the seminars I've attended were very helpful and informative."

Highlights of the 2004 Annual Convention included:


    CNN's Tucker Carlson entertains ACEC members with witty commentary at the Opening Luncheon.
  • William Wulf, president of the National Academy of Engineering, addressed the need for more diversity in the industry.
  • CNN's Tucker Carlson offered insights on the 2004 race for the Presidency.
  • New ACEC member and former Olympic Gold Medalist Richard Fosbury chronicled the origin of the "Fosbury Flop."
  • Former NFL Hall of Fame Kicker Jan Stenerud and PGA Pro Mark Carnevale were part of successful ACEC/PAC events. (See further Convention coverage below)
  • Bill Howard began his tenure as 2004-2005 ACEC Chairman, succeeding 2003-2004 Chairman Eric Flicker.
  • ACEC's Board of Directors approved the Council's new three-year budget; the Directors also voted to amend the Bylaws to allow the Fall Conference locations to be recommended by professional staff and approved by the Executive Committee.

Flicker Passes Leadership Torch To Howard


ACEC Chairman Bill Howard greets ACEC/ Florida President Charles Geer during the Incoming Chairman's Reception.
After a year of significant progress toward meeting ACEC's political and business goals, 2003-2004 Chairman Eric Flicker officially passed the torch of Council leadership to 2004-2005 Chairman Bill Howard.

Flicker thanked members for the opportunity to serve, calling it "an honor." Flicker said, "The goals we accomplished promise to keep ACEC on the right path in furthering opportunities and success for all engineers."

Incoming Chairman Bill Howard, executive vice president of Camp Dresser & McKee in Edison, New Jersey, pledged to continue ACEC's focus on meeting strategic plan objectives, and summarized his goals under the topics of "unite, educate and influence." He said members must join forces to better communicate industry concerns, especially the severity of the current infrastructure crisis.


2003-2004 Chairman Eric Flicker (center) enjoys Convention festivities with Korean Engineering & Consulting Association President Heung Yil Park (left) and Chairman Lee Woo Jeong.
"In ACEC we have the perfect vehicle for collaborating on these challenging issues," Howard said. "ACEC is uniquely positioned to make a difference by ensuring that all our members have the tools necessary to succeed in these dynamic times."

"One of the advantages we have at ACEC is that we are a highly focused organization," ACEC President Dave Raymond said. "As we welcome a new chairman and his leadership team, we are confident in the continuing progress of our organization, as we are proud of our achievements."

Three Percent Tax Cut Clears Senate

ACEC and its industry allies won a major victory in the Senate last week, securing a tax reduction for A/E firms as part of a larger tax package.

The Hutchison-Smith-Landrieu Amendment to the Jumpstart Our Business Strength (JOBS) Act (S. 1637), provides a tax cut of approximately three percent for engineering or architectural services performed in the US for domestic construction projects.

The focus now switches to the House, where companion legislation (which also covers A/E services) awaits consideration on the House floor.

The JOBS Act repeals the Extraterritorial Income exclusion (ETI), an export-based tax relief provision, in response to a 2002 World Trade Organization (WTO) decision finding the benefit in violation of international trade rules. A/E firms have been beneficiaries of this benefit since 1972.

ACEC successfully lobbied for the inclusion of A/E services in the House bill (HR 2896), which was approved by the House Ways and Means Committee last November. The House bill provides for a tax rate reduction from 36 percent to 32 percent, but currently applies only to corporations.

Passage of the Hutchison A/E amendment was made difficult by election year politics surrounding A/E contractors working in Iraq. ACEC's grassroots lobbying effort was essential in educating senators as to the fairness of including A/E services and the importance of a healthy A/E sector.

ACEC will now shift focus back to the House in an effort to convince lawmakers to adopt the Senate's approach to the legislation and include all business entities within the bill's reach.

House Rejects Attempt To Thwart FLSA Reforms


Rep. Jim DeMint (R-SC)
ACEC and its business allies also were successful in urging the House of Representatives to reject a move last week by Rep. George Miller (D-CA) to prevent the Department of Labor from implementing key portions of the final regulations that will update the Fair Labor Standards Act (FLSA).

The final regulations establish new standards for classifying employees as exempt and non-exempt from the Act's minimum wage and overtime requirements, subsequently making the regulations easier to follow, and protecting businesses from unfair enforcement actions and lawsuits.

During floor debate on May 12, Miller asked for a recorded vote on a motion that would put the House on record as supporting legislation previously adopted by the Senate that would prevent the Department of Labor from moving forward on implementing the final FLSA reforms. He was immediately challenged on the House floor by House Majority Leader Tom DeLay (R-TX), who offered a counter "motion to table" that would effectively kill Miller's effort. The House adopted DeLay's counter motion on a close vote of 222-205.

In related news, Rep. Jim DeMint (R-SC) has introduced ACEC's FLSA reform legislation in House. The bill, H.R. 4396, is modeled after S. 237, which was introduced in the Senate by Senator Lindsey Graham (R-SC), and seeks to further clarify the exempt status of specific positions within engineering firms. While much of the focus of ACEC's efforts has been to promote and defend the regulatory reforms put forth by the Department of Labor, ACEC continues to advocate legislative changes that will make additional improvements to the Act.

"I applaud the Department of Labor for its ongoing administrative action to update these regulations that are more than 50 years old," said DeMint. "However, I believe the language contained in this bill will help to clarify the engineering positions that meet the "professional exemption" category and help to restore consistency in the Fair Labor Standards Act's enforcement nationwide."

Deadlock Broken On TEA-21 Conference

Senate Minority Leader Tom Daschle (D-SD) has agreed to drop his objections to allowing a six-year TEA-21 reauthorization bill to go to conference with the House, ending a standoff that has lasted for over three weeks. To secure Daschle's support, Senate Majority Leader Bill Frist (R-TN) pledged that Republicans would not agree to a final conference report unless it had bipartisan support.

"Getting to conference was a crucial part of the process," said ACEC President Dave Raymond, "getting us closer to a well-funded six-year package that will increase the nation's investment in transportation infrastructure."

Normally a very mundane procedural matter, the appointment of Senate conferees to draft a final six-year highway and transit bill has been mired in a lengthy dispute over extent to which Senate Democrats will have input into the final product. While the agreement with the Senate Majority Leader ends that impasse, House and Senate conferees go into the conference with substantial hurdles remaining, including an ongoing dispute with the White House over the size of the package.

Conferees must also wrestle with developing a fair funding formula for each state, a process that will pressure House and Senate members, as well as the White House, to increase the size of the package to ensure that states receive a fair return in gas tax revenue.

ACEC/PAC Winners In Golf and Sporting Clays


From Left to Right: NFL Hall of Fame Kicker Jan Stenerud, ACEC Chairman Bill Howard, 2001-2002 ACEC Chairman Steve Goddard, and NACECE President Bill Garrity at the ACEC/PAC Golf Tournament at The Broadmoor.
ACEC members enjoyed golf, sporting clays, a tour of Pikes Peak, and other fun events during the Annual Convention in Colorado Springs.

Golfers braved challenging weather during the ACEC/PAC Golf Tournament.

The foursome made up of ACEC Chairman Bill Howard, former ACEC Chairman Steve Goddard, NACECE President Bill Garrity, and NFL Hall of Famer Jan Stenerud won first place, and promptly headed back out to take their best shot at ACEC/PAC's first "Million Dollar Hole-in-One Contest."

While no one collected the cash, the gallery of ACEC members enjoyed witnessing the high-stakes attempts.

ACEC Vice Chairman John Hennessey took first prize in the Closest to the Pin contest, and prizes for the longest drives were awarded to ACEC/Illinois President David Oates and Patti Harris, of Concord, CA.

The first annual ACEC/PAC Sporting Clays Tournament saw stiff competition, with Greg Staffileno of SK Geotechnical Corporation in Billings, Montana taking first prize and ACEC/Utah President Mike Brehm coming in a close second.


Copyright © 2004 by the American Council of Engineering Companies (ACEC). All rights reserved. No part of this newsletter may be reproduced, stored in any form of retrieval system, or transmitted in any form or by any electronic, mechanical, photographic, or other means without the prior written permission of ACEC.


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