ACEC - The Last Word August 15, 2003

Vol. XXIV, Number 30
August 15, 2003
1015 15th Street, NW
Washington, DC 20005
202-347-7474
Fax 202-898-0068
www.acec.org
E-mail acec@acec.org
Alan D. Crockett, Director, PR
Ann Brandstadter,
Editor/Designer

ACEC Means
Business

Get Your PDHs In Phoenix — 41 Courses Offered
Thirty-six educational sessions and five professional forums provide more professional development hours (PDHs) at this year's Fall Conference in Phoenix, Ariz., October 8-11, than at any previous ACEC event. The sessions encompass eight professional tracks vital to the engineering industry.
Other Conference activities include a day trip to Sedona, a Southwest cooking experience and a city tour with shopping. Don't miss the ever-popular Local Color Night, where you'll be entertained by live 'cowboy' music. Also, at this year's Award of Merit Banquet, we'll honor Jack Brooks, the "Father of QBS."
For more information click here.

Sept. Market Forecast: Updates From GSA
By popular demand, ACEC's Market Forecast Series brings back David Eakin from the General Services Administration (GSA). Participate online or live at ACEC headquarters on September 18 in Washington.
The Market Forecast Series offers up-to-date project and budget information with presentations by key federal agencies. Speakers are announced one month prior to the presentation to ensure timely topics. Click here to register or by contacting at Education@acec.org for more information.
ACEC's Grand Hawaiian Giveaway
Don't miss your chance to win a luxury vacation, including airfare and a seven-night stay at the luxurious Turtle Bay Resort in Oahu! You will be automatically entered to win with each EJCDC Full Set of Contracts purchase or ACEC Fall Conference Registration.
Click here for contest details!

State Licensure
Guide Available
Stay current with the new ACEC State Licensure Guide. ACEC saves you time and effort by detailing P.E. licensing board requirements for all 50 states.
This new CD shows you how to obtain your license through varying levels of education, professional development hours, work experience and testing depending on each state's requirements. You'll also receive application forms from each state. This is a comprehensive report that every engineer should keep as a handy desk reference.
$149 ACEC members/$169 non-members, click here.
Latest Quality Management Guidelines Offered
ACEC has developed this latest publication to assist you in preparing your own Quality Management plan.
"The Quality Management Guidelines evolved because of the perceived need that ACEC needed to be more out front is assisting firms create or prepare their Quality Management systems."
—Charles Rendall, Chairman, ACEC's Quality Management and Peer Review Committee
"This is a quick, interactive method for preparing a written quality management plan for small and medium sized firms."
—Harvey Stone, P.E., President, Stone Consulting
$69 members/$89 non-members, click here to order.
Business Trends Survey Results Ready
The 2002 Business Trends Survey is now available. Use the full results to assess your firm's business, and revise your firm's strategic plan accordingly.
The results include such key issues as net revenue per employee, multiplier rates, overhead rates, gross revenue per project type, and profit margin as a percentage of net revenue.
The 2002 Business Trends Survey was sent to key principals of ACEC member firms in 2002, and answered by 458 firms of all sizes.
Members $149/non-members $179
Click here to order.

FHWA Says "No" To Minnesota 'Reverse Auctions'

Mary Peters, Federal Highway Administrator and invited Fall Conference speaker
In a big win for ACEC members, Federal Highway Administrator Mary Peters asserted that the Minnesota Department of Transportation (DOT) cannot use 'reverse auctions' to procure engineering services for federally-funded highway projects.

Peters, who has been invited to speak at the upcoming ACEC Fall Conference in Phoenix, confirmed the ineligibility of 'reverse auctions' for federally-aided highway projects in Minnesota after receiving a letter from ACEC President Dave Raymond. In the July 23 letter, Raymond was critical of the state's recently passed legislation authorizing public agencies to use reverse auctions to procure professional design services.

David Oxley, Executive Director, ACEC/MN
"It is ACEC's strong belief that based on Federal Highway Administration (FHWA) regulations, the Minnesota DOT risks losing its federal-aid highway funding if it uses reverse auctions to procure design services using federal dollars. We urge FHWA to notify the Minnesota DOT regarding this situation," Raymond wrote.

In an August 1st response to Raymond's letter, Peters replied: "I can confirm that 'reverse auctions' may not be used in Minnesota if federal-aid highways funds will be obligated for engineering and design services."

She went on to respond that FHWA has notified the Minnesota DOT about the unacceptability of reverse auctions, and that the Minnesota DOT is fully now aware "that the process is not permitted and (the DOT) has no intention of using reverse auction bidding for engineering and design services" based on federal regulations.

"To have the Federal Highway Administration officially reject reverse auctions is a huge win for ACEC members," said David Oxley, ACEC/Minnesota executive director. "FHWA sent a strong message to Minnesota and the other state DOTs: reverse auctions are a non-starter."

To see a copy of Administrator Peters' letter, click here. To see a copy of Dave Raymond's July 23 letter, click here.

ACEC-Backed Tax Legislation Introduced

Rep. Jim Nussle
(R-Iowa)
Congressman Jim Nussle (R-Iowa) has introduced legislation supported by ACEC that will update the tax code and preserve the ability of employee-owned engineering firms to continue to use the "cash method" as opposed to the "accrual method" of accounting.
In 1986, Congress recognized that certain service providers, including both small and large engineering firms, should continue to use cash accounting, where firms are taxed when they are paid for services, as opposed to the accrual method, where firms are taxed in the year they perform the service. The law set forth a number of requirements firms must meet in order to use the cash method, including an ownership test and a function test.
Since 1986, however, the nature of the engineering industry has evolved, as more and more clients want firms to not only design facilities, but also build, operate, maintain, and even finance those facilities. Engineering firms have evolved to meet these demands, but in doing so they have changed their internal structure in a way that puts at risk their ability to continue to use cash accounting.

Ken White, chairman of ACEC's Small Firms Council
"Forcing employee-owned engineering firms to use the accrual method will create significant cash flow problems," said Ken White, chairman of ACEC's Small Firms Council. "H.R. 2814 is the preemptive strike we need to protect these firms and ensure that their bottom lines stay a bit healthier in these tough economic times."
H.R. 2814, the "Qualified Personal Service Corporations Clarification Act of 2003," would remedy this looming problem by updating the tax code's ownership and function tests to ensure that certain firms can continue to use cash accounting.
ACEC is working with Congressman Nussle, who chairs the House Budget Committee and also sits on the tax writing Ways and Means Committee, to attach H.R. 2814 to a larger tax package moving through Congress.

New Members Needed For An Even
Stronger ACEC Voice
More ACEC members mean a stronger voice to advocate ACEC's legislative agenda with state and national lawmakers.
State Membership Chairs are a key component to increasing Council membership recruitment. ACEC supports State Membership Chairs by providing lists of prospective members, supplies, and by hosting networking conference calls.
If you would like to get involved in membership recruitment, contact pbrookover@acec.org.

On-Site Workshops/Seminars

Senior Executives Institute (Session 1 of 5)
September 6-11 — Washington

ACEC's highly respected Senior Executives Institute is the ideal way to empower A/E executives with vision and motivation. This intensive program, which is spread out over a two-year period, gives participants the opportunity to explore concepts and techniques that will enhance individual management performance. During each of five four-day sessions, experienced management professionals will lead participants through advanced management concepts on how to position their organizations for the future. Although registration is nearly closed for SEI Class IX, you can still register if you act now. Click here or contact Kevin Wilson at kwilson@acec.org or 202-347-7474 for more information.

Marketing: Raising the Bar
Co-sponsored by The Society for Marketing Professional Services (SMPS)
September 17-18 — San Francisco

Presented by renowned marketing specialists David A. Stone and Ronald D. Worth, this seminar will instruct how to analyze industry trends to develop new tools for business development, emphasize the marketing function throughout your firm, apply new methods to enhance current relationships, and develop a working plan to position your firm for consistent new business. Click here to register.

Professional Development Hours (PDH): 11
Early Bird Registration Fee: ACEC/SMPS members $545/Non-members $745
After August 30: ACEC/SMPS members $645/Non-members $845

Project Management: The Road to Profitability
October 16-17 — Nashville, Tenn.

This seminar is a comprehensive workshop focused on the integral role of project management in an organization. As a critical component in every successful job, project managers must possess strong leadership skills and effective collaboration techniques. This workshop is a great opportunity for design professionals to develop valuable skills that can be implemented on all upcoming projects.

Click here to register.
ACEC members $545/Non-members $745

Business of Design Consulting Leadership Seminar
October 22-25 — Nashville, Tenn.

This intensive, multi-day course offers up-and-coming design firm leaders the chance to look into eight different management areas. Come and learn ways to maximize your firm's potential with proper management skills from a wide variety of industry professionals. Individual modules feature hands-on activities, extensive discussion and interactive workshops to prepare you for difficult issues ahead. Click here to register or contact Sandrine Mailli at Education@acec.org.

Early-bird registration: members $1,295/non-members $,1495
After September 30: members $1,495/non-members $1,695

Online Seminars

ACEC will be hosting several Webinars throughout the fall months. Participate in an interactive online session right at your own desk.

The Good, The Bad, and The Ugly in Professional Services Contracts.
Richard B. Garber. Vice President, Victor O, Schinnerer & Company, Inc.
Presented by CNA/Victor O. Schinnerer & Company, Inc.
September 17 — 1:30-3:00 pm EDT

This session addresses the real world of contract negotiation and provides a foundation for informed decision-making. The session presenter, Richard Garber was a project manager and regional preconstruction services manager for an ENR Top 50 general contractor. In this informative 90-minute session, you'll learn some of the pitfalls of contract negotiation in a heavily contract-dependent environment, as well as some tools and techniques for navigating the waters.

Click here to register or visit www.acec.org to learn about the other Webinars ACEC will be offering this fall.

Click here to review past editions of the Last Word.