David Oxley, Executive Director, ACEC/MN

ACEC Minnesota is battling Governor Tim Pawlenty and the state legislature over a provision that allows agencies to use “reverse auctions” (or bidding) when acquiring professional engineering services.

David Oxley, executive director of ACEC/MN, said that “the valiant efforts of ACEC/MN members, lobbyists and staff could not overcome the governor’s desire to implement this new program.”

Reverse auctions have been proposed by government officials at the state level as an acceptable method for procuring engineering services, putting the process in direct conflict with qualifications-based selection (QBS). Under the reverse auction process, an agency collects bids from potential providers. The bids are posted for all competitors to view, and engineering firms are encouraged to submit new bids in a drive to find the lowest price.

ACEC strongly opposes reverse auctions and all other procurement methods that erode QBS, and will continue to work with ACEC/MN to overcome the implementation of the reverse auction provision. The Council has also opposed similar efforts at the federal level.

ACEC members are encouraged to contact Camille Fleenor, Director of Procurement Policy, at cfleenor@acec.org with any information on other instances of reverse auctions around the country.

Quick ACEC Response Protects Outsourcing In F.Y. 2004 Defense Authorization Bills

Sen. John Breaux (D-Louisiana)

ACEC received an advance copy of an amendment Senator Edward Kennedy (D-Mass.) was preparing to introduce on the Senate floor last week. His amendment sought to impede the Administration’s outsourcing plans with Department of Defense (DOD). ACEC Montana and ACEC Louisiana worked quickly to secure the two key swing votes of Senators Max Baucus (D-Montana) and John Breaux (D-Louisiana). After it became clear that he would lose the vote, Senator Kennedy declined to introduce his amendment.

The Senate version of the bill authorizes military construction and family housing at $9.5 billion; the House bill authorizes $6 billion. Though the total funding levels of both bills were identical at $400.5 billion, various management provisions appearing in the House version will have to be resolved in conference.

These include provisions regarding the acquisition of engineering services. The House bill directs DOD to develop a plan to improve the acquisition workforce for engineering services, and requires an increase in the threshold of small business set-asides for engineering services from $85,000 to $300,000.

It also prohibits the General Services Administration from offering engineering services under its multiple-award schedule or government-wide task and delivery-order contracts unless the services are procured using QBS.

Association Health Plan Legislation On The Move — ACEC Member Action Needed

Paul Meyer, CELSOC Executive Director

H.R. 660, “The Small Business Health Fairness Act of 2003,” will enable businesses to pool together through trade associations to purchase health insurance from a provider, or self-insure in the same manner as large employers and labor unions.

ACEC currently offers its members the benefits of an association health plan, but individual state regulations at times hamper its effectiveness. In Maryland, for example, coverage is not offered to ACEC member firms that have less than 50 employees. In addition, compliance with 50 different sets of state regulations leads to higher administrative costs under the plan.

The proposed AHP legislation would create a single set of national regulations, making it easier for ACEC and other associations to offer insurance products to their members.

“Health care costs continue to be a huge burden for our member firms”, said CELSOC Executive Director Paul Meyer. “This legislation would provide business owners with a quality, competitive health care option to offer its employees”.

The House Education and the Workforce Committee is expected to vote on HR 660 next week, with consideration by the full House of Representatives to occur the following week. ACEC members are encouraged to contact their Representatives and urge them to support HR 660. Click here for a draft letter to send to your member of Congress.

Ex-Com Approves New Direction For International Committee

The new International Committee, now an open committee, will have nine subcommittees focusing on key areas of international practice, and will hold quarterly business meetings with prominent speakers. Committee membership is open to all ACEC members. Click here for a description of the exciting new direction for the committee, and details about committee membership.

ACEC To Sponsor Brownfields Conference

ACEC is sponsoring the event as part of the Environmental Business Committee’s continuing effort to provide support to EPA on matters that concern ACEC environmental firms. The conference will focus on technical approaches to the clean-up of contaminated properties for reuse and revitalization, and will include four ACEC-sponsored case-study sessions. For more information, contact Tom McNulty at tmcnulty@acec.org, or go to www.brownfieldstsc.org.

Client Surveys: Helping Your Firm Reach New Heights Organizational Peer Review (OPR) increases the value offered to ACEC members by adding client surveys. As a leader in the A/E industry, OPR helps firms reach new heights and achieve goals that increase effectiveness and profitability. “The client survey has proved to be an invaluable tool,” said Ron Bonar, veteran peer reviewer. “The first firm received a 75 percent response rate from its clients. The feedback on cost & qualifications, response & quality of personnel, communication, and the final product have given new meaning to their vision and strategies.” Focusing on core management areas, OPR helps a firm identify strengths, while giving insight into tough management areas such as improving productivity and communication with employees. As ACEC’s premier quality tool, OPR is the best investment you can make for your firm. Contact Kevin Wilson at 202-682-4320 or kwilson@acec.org for more information.

ACEC’s Senior Executives Institute (SEI): Measuring Leadership Success

“SEI works. So far, we’ve sent two senior leaders through the SEI program. The positive impact of SEI on our firm is in organization, profits and long-term focus. The training on ‘systems thinking’ paid dividends immediately—just that one session helped us recover our firm’s entire SEI investment within a year through increased operational profits,” said Lee W. Slade, Walter P. Moore Engineers & Consultants, TX, and graduate of SEI Class V.

SEI Class IX begins September 6-11, 2003 in Washington, D.C. Class size is limited to 26 executives. Click here to download a registration form or contact Anna Johnson at (202)347-7474 or ajohnson@acec.org for more information.

Click here to review past editions of the Last Word.