IN THIS ISSUE
** CECO/OML QBS AWARDS COMPETITION DEADLINE NEARS
** NEXT CECO MEETING SET FOR AUGUST 29TH IN TULSA
** LEGISLATIVE INTERIM COMMITTEES STUDY SEVERAL TOPICS OF INTEREST
TO CECO
** ACEC FALL CONFERENCE
** POST CONFERENCE CRUISE
** MERGER & ACQUISITION ACTIVITY FOR DESIGN FIRMS AT RECORD
LEVELS
** ACEC GRASSROOTS PAYS OFF: $27.7 BILLION GUARANTEED FOR HIGHWAYS
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CECO/OML QBS AWARDS COMPETITION DEADLINE NEARS
Again this year, CECO is partnering with the Oklahoma Municipal League for the Annual Qualifications-Based Selection Public Improvement Awards competition. CECO is continuing the program under a new and improved format which will highlight projects procured under Qualifications Based Selection! This change was made to make the benefits of QBS more visible to Oklahoma cities as well as to fit with one of the missions of CECO, which is to promote the use of QBS.
This award will recognize Oklahoma cities and their public improvement projects which were designed by firms selected under the qualifications based selection process.
Competition will be in two categories - cities with populations of less than 10,000, and, cities with populations of more than 10,000. Awards will be presented to the winner in each category at the 2002 OML Annual Convention in Tulsa this September.
In addition to the CECO award, the winning cities in the two categories will automatically be entered in a national QBS competition sponsored by ACEC and NSPE.
Deadline for submitting nominations is Friday August 16, 2002.
The key to this being a successful program will be nominations received from CECO members. While this information has been sent to all OML members, nominations from CECO members are critical. You deal with cities and towns on a regular basis and know which ones use QBS regularly and properly.
Additionally, nomination of a city or town by a CECO member will enhance your client relations with the municipality you nominate.
Of prime importance to the judges will be selection process used to procure design services, details of the specific project, and how the project benefited the citizens of the city.
You can download the nomination form in a pdf. format at the CECO website (www.cecok.org) or call the CECO office and we will fax you the form. Please complete the form in full, or have your nominated city do so, and provide all of the requested information for the judges use. Also, you are not restricted to just one nomination. Feel free to nominate as many municipalities as you desire.
If you have any questions, please feel free to call the CECO office at (405) 525-7696. We look forward to receiving your nomination, and to a successful competition.
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NEXT CECO MEETING SET FOR AUGUST 29TH IN TULSA
CECO's first meeting of the 2002-03 year will be held on Thursday, August 29th at the Indian Springs Country Club in Broken Arrow.
We have invited former Congressman and now Republican Candidate for Governor Steve Largent to be our speaker for the program.
The General Business Meeting will begin at 5:00pm, and be followed at 6:00pm by dinner and the program. Cost for dinner will be $20.00 per person.
Mark your calendar today. See you August 29th!!!!!
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LEGISLATIVE INTERIM COMMITTEES STUDY SEVERAL TOPICS OF INTEREST TO CECO
Election season is upon us with races for statewide offices including Governor, Lt. Governor, U.S. Senate, all five Congressional seats, plus all of the Oklahoma House of Representatives and half of the Oklahoma Senate, that doesn't mean that the Oklahoma Legislature is completely wrapped up in election year campaigning.
The House and Senate leadership has approved over 100 "interim" studies to be considered from now through the end of the year. These interim studies were requested by individual members and assigned to committees to give in-depth study to specific issues which the Legislature doesn't have time to devote time to during the regular session.
In some cases the interim studies are simply opportunities to gather general information on a topic, while at other times these studies get very specific and end up with bills being drafted for consideration in the upcoming session.
This year at least seven of the approved studies either directly or indirectly impact the business of consulting engineering. Below is a list of these studies which CECO will be closely monitoring through the rest of the summer and fall:
** Interim Study 2002H-005 - Accountability in Government
Topic: Accountability in Government Requested by: Rep. Bill Nations
Explanatory Comments: The study will include research regarding
the need and process of privatization of state public functions
and recommendations for potential legislation. Assigned to Joint
Committee on Accountability in Government
** Interim Study 2002H-019 - Rural Roads and Bridges
Topic: Funding for High Use Rural Roads and Bridges Requested
by: Rep. Frank W. Davis Explanatory Comments: Many high use rural
roads and bridges are in bad repair. More money is needed to address
this problem. Assigned to House Transportation Committee
** Interim Study 2002H-021 - Continuing Education
Topic: Rule Changes for Continuing Education Required by Professional Engineers and Land Surveyors. Requested by: Rep. Chris Hastings Explanatory Comments: To determine if mandatory continuing education is beneficial to the profession of engineers and land surveyors and is necessary to maintain competency and integrity within the profession. Assigned to House Commerce, Industry and Labor Committee
** Interim Study 2002H-042 - Contractors, Architects, Engineers
Topic: General Contractors, Architects, and Engineers Requested by: Rep. Mary Easley Explanatory Comments: Regulation or Licensing of General Contractors relating to both new and remodeling/renovations. Also the bonding and liability requirements of both Architects and Engineers. Assigned to House Commerce, Industry and Labor Committee
** Interim Study 2002H-057 - Transportation Funding
Topic: Transportation Funding Requested by: Rep. Curt Roggow. Explanatory Comments: A study on funding and maintaining roads, highway and bridges. Assigned to House Transportation Committee
** Interim Study 2002H-108 - Highway Maintenance Funding
Topic: Highway Maintenance Funding Requested by: Rep. Kevin Calvey. Assigned to House Transportation Committee
** Interim Study 2002S-004 - Motor Fuel Tax Needs
Topic: Motor Fuel Tax Needs in Oklahoma Requested by: Sen. Robert Milacek. Assigned to Joint House/Senate Finance Committee
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ACEC FALL CONFERENCE
The 2002 ACEC Fall Conference will be held October 23-26 at the Westin Rio Mar Beach Resort near San Juan, Puerto Rico. Located on northeast coast of the island, the Westin Rio Mar welcomes you to a spectacular 500-acre beachfront paradise in the shelter of lush mountains.
The four-day conference is your opportunity to relax your body and revitalize your business with speakers and programs guaranteed to invigorate your mind and stimulate new ideas to improve your firm. Keynote speakers include Jose Izquierdo, Secretary of Transportation & Public Works - Puerto Rico; Rodney Slater, former U.S. Secretary of Transportation (1997-2000); Dwight Beranek, Chair, The Infrastructure Security Partnership; Marlin Fitzwater, former Reagan/Bush Press Secretary; and Joe Lockhart, former Clinton Press Secretary.
Plus, check out this sample of session topics:
* Why What Happens in Washington Affects You
* Planning for Security in the Wake of 9/11
* New Models of Design Firm Practice
* Increasing the Value of Your Firm - Without Any Accounting
Tricks
* Design-Build Realities: Learning From Design-Build Legal Cases
* Future Perfect - Ten Rules to Sustain Your Firm's Success
* Contract Clauses: Deal Makers & Deal Breakers
* The Money Mania, Breaking the Entitlement Mentality
* Key Elements of an Effective Mentoring Program
* Recruiting High-Tech People with Low Budget Dollars
* Creating Effective Visual Aids
* A New Paradigm in "Selling" the Value of QBS
* Five Myths, Five Truths About Marketing Professional Services
* Optimum Interview Presentation Content
* The Business Email Model for A-E Design Firms
* If Only We Knew Everything We Know - Knowledge Management for
Design Professionals
* Selecting, Implementing & Managing Effective Financial
& Project Accounting
The Rio Mar Beach Resort (http://www.riomar.com/), is offering ACEC meeting attendees discounted rates beginning at $175 single/double. For reservations, call the Westin Rio Mar at 1-800-4-RIO-MAR (474-6627). Reference ACEC to receive the discounted rate.
This is going to be a great ACEC Fall Conference. Don't miss out!!!! Go to the ACEC website at www.acec.org for complete registration details and information.
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POST CONFERENCE CRUISE
St. Thomas, St. Maarten, Antigua, St. Lucia, Barbados
October 27 November 3
As CECO told you several months ago, ACEC is offering a special post-conference cruise leaving the Port of San Juan on Sunday afternoon following the conclusion of the ACEC Fall Conference Saturday evening.
Your tropical adventure begins Sunday afternoon, October 27th onboard Royal Caribbean's luxury cruise liner, the Adventure of the Seas (http://www.rccl.com). At over 1000-feet long and 158-feet wide, the 138,000-ton floating palace's 15 decks are packed with amenities found nowhere else including an indoor ice skating rink, street fair, rock-climbing wall, enhanced staterooms, expanded dining options, and exceptional recreational facilities. Add to all of this five ports-of-call, and this is truly a once-in-a-lifetime opportunity.
Your first port-of-call is Charlotte Amalie, St. Thomas, once the center of a bustling pirate culture that's now an idyllic vacation destination. Spend the next day in Philipsburg, St. Maarten, and compete in an actual race around an "America's Cup" shortened course. Next, set sail for St. John's, Antigua, a popular vacation destination, which attracts tourists with its ideal climate, 366 beautiful beaches and leisurely lifestyle. The fourth stop on your cruise is Castries, St. Lucia, offering lush rain forests, striking waterfalls, beautiful beaches, and Sulphur Springs - the world's only drive-through volcano! The last port-of-call is Bridgetown, Barbados, an island with a distinctly British flavor. Your 7-day Southern Caribbean voyage concludes with a relaxing day-at-sea and one last evening under the Caribbean stars as the Adventure of the Seas makes her way back to the port of San Juan.
Prices for this cruise are: $716.85 per person, inside stateroom; $876.85 per person, atrium stateroom; and $964.85 per person, deluxe ocean view stateroom with balcony. Prices are based on double occupancy. Make your arrangements for this post conference cruise through World Wide Travel. Reservations can also be made by contacting Terri Mauldin, ACEC's World Wide Travel Service cruise representative, at 800-643-3788, extension 4702. The deadline to book this cruise is August 25, and payment must be made in full.
Time to reserve your cruise is short as the deadline for reservations is August 25th, so don't delay. Reservations received after that date will be confirmed on space available basis only.
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MERGER & ACQUISITION ACTIVITY FOR DESIGN FIRMS AT RECORD LEVELS
A record 83% of design and construction firms currently have some level of interest in mergers and acquisitions. Data from the recently released 2002 MERGER & ACQUISITION SURVEY OF DESIGN & CONSTRUCTION FIRMS from ZweigWhite show more firms than ever before in the 12-year history of the survey are currently considering a merger, acquisition, and/or firm sale.
ZweigWhite merger and acquisition consultants reported tracking 117 deals in 2001, and are projecting 128 for 2002. The continued popularity of merger and acquisition activity in the design and construction industry is in contrast to that of the overall U.S. market as tracked by Mergerstat (Santa Monica, CA), which shows a decrease in activity from 2001 to 2002.
Jon Gatti, an associate with ZweigWhite and leader of the firm's merger and acquisition consulting practice, says there are several reasons that the design and construction industry is going against the trend:
Several industry leaders are aggressively and successfully carrying out acquisition programs. Firms such as Stantec Inc. (Edmonton, Canada), TRC Companies, Inc. (Windsor, CT), Earth Tech, Inc. (Long Beach, CA), and U.S. Laboratories Inc. (San Diego, CA) have all made continual acquisitions an important part of their strategic growth plans.
The weakened economy provides opportunities for buyers to make acquisitions at a more reasonable price. During the economic boom of the second half of the nineties, many firms enjoyed fast growth and high profits. The economic downfall of 2001 resulted in a market correction, bringing down the values of many selling firms and making prices more reasonable for buyers.
Buyers need less cash up front. It's not currently necessary for most firms making acquisitions to go beyond their commercial lender for financing, as more and more transactions are involving seller financing and stock as considerations.
Both large and small buyers are typically acquiring smaller companies. Even the larger firms in the industry, such as Stantec, are currently looking to acquire firms with 50 or fewer employees.
With these four components of continued merger and acquisition growth all coming into play, and MERGER & ACQUISITION SURVEY results showing the vast majority of firms indicating interest in merger and acquisition activity, Gatti says we can expect to see the design and construction industry continuing to ramp up its efforts in this area.
The 2002 MERGER & ACQUISITION SURVEY OF DESIGN & CONSTRUCTION FIRMS is available from the publisher for $50, plus $4 shipping and handling. Contact ZweigWhite, P.O. Box 8325, One Apple Hill Drive, Natick, MA 01760, tel: 508-651-1559, fax: 508-653-6522, e-mail mailto:info@zweigwhite.com, or visit our web site at http://www.zweigwhite.com/store/svm&a.
ZweigWhite is the leading source of management consulting, information, and education for the design and construction industry. The firm is based in Natick, MA, and has additional offices in Oakland, CA; Washington, DC; and Olathe, KS.
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ACEC GRASSROOTS PAYS OFF: $27.7 BILLION GUARANTEED FOR HIGHWAYS
Responding to an ongoing grassroots effort by ACEC and its "citizen lobbyists," the House and Senate passed the Supplemental Appropriations Bill last week that sets a minimum level $27.7 billion for highway funding. The bill awaits signature by the president.
With this minimum amount firmly established, the Senate Appropriations Committee in a separate action voted unanimously to restore the $8.6 billion in highway funding originally cut from the president's budget.
This bill (S. 2808), which would provide more than $31.8 billion in highway spending next year, must still be considered by the full Senate after the summer recess.
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