Speaker of the House Nancy Pelosi (D-CA) and House Majority Leader Rep. Steny Hoyer (D-MD) discuss progress of the economic recovery legislation set to be voted on this week by both houses of Congress.

Congress is expected to clear a $789.5 billion economic stimulus package before the end of the week that includes more than $100 billion in new investments in transportation, environment, energy infrastructure, and public buildings.

The bill will also delay implementation of a flawed 3 percent withholding mandate until 2012.

The America Recovery and Reinvestment Act includes $29 billion for road and bridge projects, $16.4 billion for transit and high speed rail, $18 billion for water, flood control and other environmental projects, and $9.5 billion for DoD facilities and other federal buildings.

The package also provides over $60 billion in funding and tax incentives for energy-related infrastructure and other projects, including energy efficiency projects for public housing and alternative energy projects.

States will be able to access a $53.6 billion stabilization fund that can be used for school construction and modernization. The bill will also make available a new bond financing program for school construction and rehabilitation.

These funds are over and above normal annual appropriations which will continue to be provided on a regular basis.

“The final package is not perfect, but it will invest well over $100 billion in infrastructure improvements at a time when this investment is desperately needed,” said ACEC President Dave Raymond.

In addition to delaying the 3 percent withholding mandate, the bill includes a number of beneficial business tax provisions, including accelerated businesses depreciation schedules, small firm expensing benefits, and extension of the net operating loss carry back from two years to five years for small firms.

President Obama is expected to sign the bill into law by Monday. Click here to access ACEC's Economic Stimulus Resource Center for bill summaries and other information.

Faulty audit methodologies and suspect conclusions characterize a long-awaited audit of engineering firm overhead released this week by the Office of the Inspector General (OIG) at the U.S. Department of Transportation.

ACEC President Dave Raymond noted that the audit had deep flaws both in its substance as well as conclusions, but that it "validated our industry's longstanding efforts to achieve uniform procurement guidelines for state departments of transportation.”

In the final report released this week, the OIG contends that, based on data from 21 firms selected by the OIG and extrapolated across the entire industry, over $41 million in excessive charges were billed to state DOTs as part of firm overhead in 2003.

The Federal Highway Administration (FHWA) notes that the excessive charges identified by the OIG represent only “estimates” that have not been validated. The audit report acknowledged that the estimated overcharge has a 77 percent margin of error. Click here to access the complete text of the OIG audit report.

Initiated in 2004 to examine compliance with overhead rules based on the Federal Acquisition Regulations (FAR), the audit was delayed because of serious problems over the manner in which OIG staff interpreted the data supplied by audited firms.

ACEC has long advocated improved procurement rules that govern work with state DOTs. Since 1995, the Council has worked closely with Congress to pass legislation that, when fully implemented, will require all state DOTs to follow FAR when procuring and paying for engineering services.

ACEC is currently working with AASHTO and FHWA to develop new rules and guidance to fully implement these reforms, which will ease compliance for both engineering firms and state DOT clients.

For more information on the audit and ACEC's response, contact Vivian Moeglein, senior policy advisor, transportation programs at vmoeglein@acec.org or 202-347-7474.

David Gergen, CNN Analyst

How to steer your firm through today's challenging business climate will be a major topic of discussion at the upcoming ACEC Annual Convention, April 26-29, at the Grand Hyatt Hotel in Washington, D.C.

The Convention includes more than 30 education sessions targeting critical business management topics and procurement opportunities from federal contracting agencies such as the U.S. Department of Commerce, Army Corps of Engineers, GSA, and NASA.

The Convention also features visits to lawmakers on Capitol Hill to promote important industry issues.

Noted CNN Analyst David Gergen will spotlight the Opening General Session on Monday, April 27. A veteran of four previous Presidential administrations, Gergen will share his insights on the Obama Administration's agenda.

The Convention also features the 43rd Annual Engineering Excellence Awards Gala—the "Academy Awards" of the engineering industry—on Tuesday April 28, in addition to a host of other exceptional entertainment and social events, including a celebration of the Council's 100th anniversary.

Make your hotel reservations well in advance while rooms are available. Contact the Grand Hyatt directly at 1-888-421-1442 and reference "ACEC Annual Convention" to secure your hotel room at a special discounted rate. ACEC's discounted room rates expire on April 3.

Click here to view Convention registration information.

The Clean Water Council, a coalition that includes ACEC and other industry and public sector groups, has issued a draft report that demonstrates the immediate positive economic impact of water and wastewater infrastructure investment.

The report, Sudden Impact: Assessment of Short-Term Economic Impacts of Water and Wastewater Projects in the United States, shows that a $1 billion investment in water and wastewater infrastructure results in total national output (i.e., demand for products and services in all industries) of between $2.87 and $3.46 billion.

The investment also creates up to 26,669 new jobs and generates household income of approximately $1 billion. Additionally, each $1 billion invested generates approximately $82.4 million in state and local tax revenue. Click here to view the draft report.

"This report offers further proof of the very real economic benefits of infrastructure investment," said ACEC President Dave Raymond. "This should be a must read for policy makers at the local, state and national level."