Sen. McCain, CNN's Mark Shields To Join ACEC At Fall Conference In Phoenix Sen. John McCain (R-AZ) U.S. Senator John McCain (R-AZ) highlights an impressive list of prominent speakers set to appear at the upcoming ACEC Conference in Phoenix. The Arizona lawmaker and current chairman of the Senate Committee on Commerce, Science and Transportation, will appear at a reception from 5:30 – 6:30 p.m. Friday, October 10. The reception will support McCain's bid for another term as Arizona's senior Senator, and give ACEC members a unique opportunity to discuss key issues with one of our most influential policy makers. CNN’s Mark Shields The Fall Conference also features Mark Shields, nationally known columnist and CNN commentator, who will offer a sample of his political insights and wit during the keynote luncheon, October 9. With unmatched credentials as an analyst of U.S. politics, Shields is moderator of CNN's weekly political show The Capital Gang, alongside Robert Novak, Al Hunt, Kate O'Beirne and Margaret Carlson. Also scheduled to appear at the Conference is FHWA Administrator Mary Peters. (See story below) In addition to the special guests, ACEC's Institute for Business Management will provide five professional forums: Professional Sales and Marketing, Finance, Human Resources, Information Technology along with the newly added Young Leaders Forum. For more information contact Andrew Fort at 202-682-4330.

"Reverse Auctions" Denied By FHWA In Minn. ACEC Gains "Critical Win On QBS" Mary Peters, Federal Highway Administrator 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, an invited speaker at the upcoming ACEC Fall Conference in Phoenix, confirmed the ineligibility of "reverse auctions" for federally-aided highway projects in Minnesota in response to a letter from ACEC. In the July 23 letter, ACEC President Dave Raymond was critical of the state's recently passed legislation authorizing public agencies to use reverse auctions to procure professional design services. "The Minnesota DOT risks losing its federal-aid highway funding if it uses reverse auctions to procure design services using federal dollars," asserted Raymond. In her August 1 response to Raymond's letter, Peters confirmed that "reverse auctions may not be used in Minnesota if federal-aid highways funds will be obligated for engineering and design services." Steve Goddard, ACEC Government Advocacy Committee chairman said, "Obtaining this critical FHWA ruling in support of QBS shows how the national organization works closely with ACEC state organizations—in this case ACEC/Minnesota—to effectively address issues vital to our industry nationwide—an important example of what ACEC does for its members day in and day out."

ACEC/South Carolina Is Number 46; Sen. Graham Praises Name Change Sen. Lindsey Graham (R-SC) The momentum towards "one army, one uniform" continues as South Carolina became the 46th MO to adopt the ACEC name, becoming the American Council of Engineering Companies of South Carolina. Sen. Lindsey Graham (R-SC) applauded the news: "I'm pleased to hear the South Carolina state organization is now ACEC of South Carolina. By adopting the common name, engineering firms in my state will take full advantage of the association with the national organization." The South Carolina lawmaker has worked with ACEC for several years on changing outdated Fair Labor Standards Act guidelines. South Carolina's National Director Peter Strub said: "The unanimous decision of the membership of South Carolina to change the name to ACEC of South Carolina reinforces the political strength of our state organization as well as the national federation."

ACEC-Backed Tax Legislation Introduced Richard L. Corrigan 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 for tax purposes. 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. "This is an important issue that affects the bottom lines of many engineering firms and is central to retaining the culture of employee ownership that is a hallmark of our profession," said Richard L. Corrigan, senior vice president of Governmental Affairs for CH2M HILL and vice chairman of the Design Professionals Coalition. "HR 2814 provides many essential reforms, including a robust definition of "engineering" in the Tax Code for the first time to ensure that employee-owned engineering firms can continue to using cash accounting in a changing market place, one driven by the needs of our domestic and international customers."

"How To Tap National Resources"— Attend ACEC State Leaders Orientation There are just a few slots left for ACEC's popular orientation for MO leaders, being held September 19 and November 7 in Washington, D.C. ACEC Chairman Eric Flicker dubs this a "must-do" for state leaders to be effective in making full use of national resources. Contact Patrick Brookover at pbrookover@acec.org or 202-683-4341 to register.

GSA Kicks Off Fall Market Forecast Series GSA’s David Eakin Brought back by popular demand, David Eakin of the General Services Administration (GSA), will address a live and webcast audience at ACEC headquarters in Washington on September 18. This is the first fall session of ACEC's Institute for Business Management's Market Forecast Series. There is over $1.5 billion budgeted this year for GSA new construction, repairs and alterations to courthouses, federal buildings and border stations. Eakin will provide participants with advice on where this money will be spent and who to contact in regions where projects are being implemented. At the last Market Forecast meeting, Donald Basham of the Army Corps of Engineers detailed $1 billion worth of engineering contracts allocated in USACE's F.Y. 2003 budget. Visit www.acec.org/education to register.

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