CNN's Mark Shields: "Election Up For Grabs" CNN's Mark Shields In a preview of the upcoming 2004 race for President, CNN's Mark Shields told Fall Conference attendees the upcoming race for president is a toss-up: "The election is totally up for grabs, with neither side having an advantage." Federal Highway Administrator Mary Peters, also a conference speaker, noted that the delay of a reauthorization bill for transportation funding is "literally choking the economy" by putting a hold on many needed projects. The Phoenix Conference featured 45 educational sessions and business forums, with more PDHs than any previous fall conference.

FHWA's Mary Peters Other Conference highlights included: ACEC's presentation of the 2003 Distinguished Award of Merit to retired Congressman Jack Brooks, author of the Brooks Act; and the selection of Maui, Hawaii by the National Directors as the site of the 2007 Fall Conference. Many members praised the Phoenix conference venue and program content as ACEC's "best ever."

Make Florida Number 47 To Adopt ACEC Name Charles Geer, president of ACEC/Florida ACEC's Florida member organization has adopted the name the American Council of Engineering Companies of Florida (ACEC/Florida). It becomes the 47th state organization in the ACEC federation to join in the unified branding effort. "Florida is proud to join with the rest of the states in adopting the common brand name to strengthen the effectiveness of the organization," said Charles Geer, president of ACEC/Florida. Frank Rudd, executive director of ACEC/Florida also applauded the new name change: "I am looking forward to unifying our lobbying efforts, and the new name will help identify us more easily."

TEA-21 Extended for Five Months; ACEC Backs
$2 Billion More Per Year For Highways

President Bush signed legislation into law that will keep federal highway and transit funding flowing to the states for an additional five months. TEA-21 expired on September 30, and the extension was necessary to ensure the continued flow of federal funds for projects while Congress works to complete a six-year package. ACEC also seeks to include an additional $2 billion per year in highway funding as a provision in a comprehensive energy package currently before Congress. The provision requires raising the tax rate for ethanol up to the rate levied for gasoline. The subsidy would then be replaced by a tax credit for ethanol producers.

In a letter to Congress, ACEC President Dave Raymond said the proposed ethanol tax increase would create "an effective solution to a complicated fuel delivery and tax collection system while fostering sound energy, tax and transportation investment policy."

ACEC Members Mobilized Against FAS 150 Paul Haglund, chairman of ACEC's Management Practices Committee ACEC and its member firms are mobilizing against a new accounting standard that could significantly reduce, or even eliminate, the net worth of many non-public firms. In May, FASB released its new accounting standard, Statement of Financial Accounting Standards 150 (FAS 150), which requires non-public companies to classify their stock as a liability or debt in situations where the firm automatically repurchases the stock at a specific time or circumstance, such as when a stockholder dies or leaves the firm. By treating the stock as a debt, the new standard will have a significant and adverse affect on the balance sheets of many non-public firms. ACEC is protesting this measure in Congress and is requesting House and Senate hearings to highlight problems with the new rule. "The new standard will create real problems for many engineering firms," said Paul Haglund of Greeley and Hansen in Chicago and Chairman of ACEC's Management Practices Committee. "At a single stroke, it will artificially eliminate the net worth of a firm, making it more difficult to obtain loans, bonding, leases and insurance. It may disqualify firms from competing for some client projects."

Outsourcing Win in Senate; Employee Unions Now Target QBS

Last week, the Senate rejected an amendment offered by Senator Barbara Mikulski (D-MD) that aimed to halt efforts by federal agencies to open contracting opportunities for the private sector. ACEC and its coalition allies mounted a successful campaign against the Mikulski Amendment, which came up during consideration of the FY'04 Transportation and Treasury Appropriations bill.

The amendment was rejected by a close margin — 48 to 47 — with a number of Senators missing the vote. During the debate, Senator Craig Thomas (R-WY) and Senator George Voinovich (R-OH) offered a compromise amendment that was adopted by a vote of 95-1.

Among other provisions, the Thomas/Voinovich Amendment includes a provision that strengthens the QBS requirement in the process that governs competitions between agencies and the private sector (OMB Circular A-76). These competitions will open business opportunities to engineering firms and other contractors in government functions currently handled by federal employees, and is a key feature of the President's "competitive sourcing" initiative.

In related action, the House and Senate completed their conference on the F.Y. '04 Interior Appropriations bill. At ACEC's urging, the conferees removed language from the House bill that would prevent the Department of Interior from conducting public-private competitions. Instead, the final bill requires the Interior Department to submit an annual report to Congress on the progress of its competitive sourcing plan.

Mulcahy Nominated For 2005-2006 Chairman Edward J. Mulcahy Edward J. Mulcahy, principal of TranSystems Corporation of Kansas City, Mo., has been nominated for ACEC chairman for 2005-2006. Mulcahy is past senior vice chairman at the national level and past president of ACEC of Missouri. Also nominated for two-year terms beginning in 2004: for Treasurer, John F. Hennessy III, chairman & chief executive officer of Syska Hennessy Group, Inc. (New York); for vice chairman: Thomas L. Burke, senior vice president of Turner Collie & Braden Inc. (Texas); Rodney C. Hoffman, senior vice president, HDR (Colorado); and Douglas M. Watson, chairman of the board of Wade-Trim (Michigan). Ballots will be sent to national directors for voting return by January 14; followed by an official announcement on January 15.

GSA, Park Service Opportunities Detailed

At ACEC's Market Forecast event on October 1, David Eakin, chief engineer at the U.S. General Services Administration (GSA) discussed GSA's $1 billion construction plan, which includes a major courthouse construction program. The courthouse program involves five to eight new design starts each year, with more than a hundred courthouses yet to be built.

At ACEC on October 23, Sue Masica, director of park planning, facilities and lands at the National Park Service (NPS), discussed an estimated $700 million construction budget for F.Y. 2004 including $300 million in the Federal Lands Highway program. Over 90 percent of NPS design work is outsourced to the private sector; the design that NPS currently maintains in-house may also be outsourced as part of the Bush Administration's plan to open commercial work to private sector competition.

ACEC-Endorsed Leavitt Confirmed As Next EPA Chief Michael O. Leavitt, New EPA Chief Utah Governor Michael O. Leavitt has been confirmed as the next administrator of the Environmental Protection Agency (EPA). Leavitt, a three-term governor of Utah was confirmed by the Senate 88-8. He is due to be sworn in early November. ACEC endorsed the nomination in a letter to Environment and Public Works Committee Chairman James Inhofe (R-OK). ACEC President Dave Raymond stressed Leavitt's experience and approach to issues of concern to the engineering industry. "Leavitt has earned the support of the engineering community in Utah through his steady efforts at advancing technology, education and economic development initiatives," said Raymond. He praised Leavitt's balanced approach to environmental management, adding, "his leadership and consensus-building has earned the respect of both supporters and opponents on both sides of difficult policy matters."

Workshops/Seminars

Project Management: The Road to Profitability
November 13-14   —   Houston, Texas
This comprehensive workshop focuses on the keys to profitability in project management. Learn how to:

• Examine the stages of managing a project and the project manager's role;
• Calculate project profitability and understand project budgeting methods and cost estimating;
• Build a project "dream team" through resource allocation
• Increase client retention using proven tools and techniques.

Webinars

Brains & Alignment? It's the Execution that Bedevils Us
Pat Holcomb, The Picus Group
November 5  —   1:30pm-3:00pm EST
Long-range planning accomplished through open dialogue and supported by a strong action plan usually means a profitable, successful organization—it's the execution that bedevils us!

This session will help in identifying and developing potential leaders for your staff, articulate essential skills and attitudes, and appropriately align talent and leadership needs to ensure successful plan execution.

Members $199/non-members $249
Click here for more information or to register.

Project Management for Engineers
ACEC and SmartPros Engineering present, "Project Management for Engineers," the first completely online interactive project management course developed exclusively for engineers by engineers.

This course is designed for individuals who want to become better project managers or achieve project management certification. It is also ideal for deployment across an entire firm. Top engineering firms use this course to train thousands of employees in various stages of project management.

Click here for further information and to register.

Click here to review past editions of the Last Word.