Senate Approves Highway Funds; Conferees To Begin Task this Week

The Senate approved its version of the F.Y. 2002 Supplemental Appropriations bill June 7, setting up a conference to hash out differences between its bill and a competing House version. The House supplemental includes $4.4 billion in additional federal highway funding, which would raise it to the TEA-21 authorized level of $27.7 billion, while the Senate version includes a provision making "up to $5.7 billion" in additional funds available to the program (for a total of $28.9 billion).

The House and Senate conferees have been selected, so the process of hammering out the differences will begin immediately. ACEC has worked with congressional leaders to restore funding to the highest possible level, and will continue to do so until this bill is signed into law by the president.

Anti-Outsourcing Threat Looming In Senate

Sen. Edward Kennedy (D-Mass.) is expected to introduce an anti-outsourcing amendment that would hinder DoD's ability to contract with the private sector, including engineering services, when the Senate takes up the F.Y. 2003 Defense Authorization Bill next week. The amendment is almost identical to one introduced in the House last month by Reps. Tom Allen (D-Maine) and Robert Andrews (D-N.J.) that was killed through ACEC's efforts.

ACEC has sent an alert to all members asking them to contact senators to oppose the Kennedy amendment. Click HERE for a sample letter and other important information.

Arizona, Maine Adopt New Name

Arizona and Maine are the 34th and 35th MOs to adopt the new name and national standard. Other MOs are in the process of change.

"Maine changed its name because we believe in the power of the ACEC brand and recognize the importance of being aligned with the national organization as we work to further the legislative and business agendas of our members," said Judith Harvie, executive director of ACEC/Maine. "We felt it was the right thing to do and the right time to do it."

"Death Tax" Legislation Killed By Senate, But Will Likely Reappear This Fall

The Senate has rejected legislation that would have made last year's gradual repeal of the estate tax permanent. President Bush and House Republicans pushed for the measure (the House passed its own version of the bill), but the 54-44 vote in the Senate was just shy of the 60 votes needed for passage.

ACEC supported the original effort to pass the president's tax-cut package last spring. However, in order to get around budgetary obstacles, those tax cuts were all scheduled to expire at the end of 2010. If the repeal of the estate tax is not made permanent, it will be fully eliminated beginning in 2010, only to appear again the following year with a top rate of 55 percent and an exemption for assets set at $1 million. The Senate's rejection of the legislation calling for a permanent repeal means the issue will be revisited again in the fall, and on a regular basis thereafter until the change is made.

ACEC Gains Support For QBS On International Projects

ACEC gained support to restore QBS as the procurement method for engineering services at the Inter-American Development Bank (IDB) and other multilateral development banks during a meeting this week with senior U.S. leadership at the IDB.

A half-dozen leading ACEC firms were on hand for frank discussions with U.S. Executive Director Jose Fourquet and Alternate Director Jorge Arrizurieta. The session focused on business impediments faced by U.S. engineering firms on IDB-funded projects. Concerns were voiced on a range of issues, from excessively onerous contracts to broken promises of payment.

Alternate Director Arrizurieta said he recognizes that price competition hurts U.S. firms and promised to throw the weight of the U.S. executive director's office behind QBS.

A Good Look At The Facts

Demographic trends are forecasting future business opportunities for engineering firms, but what do the numbers tell us? Don't overlook ACEC's market research. Find out where your firm should be spending marketing dollars by reading ACEC's Market Watch newsletter.

Your FREE June copy will be mailed to you at the end of this month with Last Word, but don't wait! Market Watch will be available on a subscription basis only beginning Sept. 1. Members receive a full year for only $95 (electronic) or $145 (hard copy); the non-member price is $195 (electronic) or $245 (hard copy). Contact Michele Moore (mmoore@acec.org, 202-682-4326) for details.

ACEC Publication Of The Week: "ESOP; The Ultimate Instrument in Succession Planning" What kind of incentive increases productivity, profitability and company value? Employee Stock Ownership Plans (ESOPs) allow owners to sell company stock and retain control without paying taxes. ESOPs also provide employees with equity without forcing them to pay from their own pockets. Robert Frisch's second edition, "ESOP; The Ultimate Instrument in Succession Planning", is a comprehensive guide to the rules that govern them, the situations they can be applied to, and how they work within a company. As the book explains, "ESOPs are truly a win-win instrument for corporate finance." "ESOP; The Ultimate Instrument in Succession Planning" (publication # 252-01) is $65 (plus $5 shipping and handling). Purchase it online at www.acec.org/publications or contact Rina Lee (publications@acec.org, 202-682-4332).

Click here to review past editions of the Last Word.