IN THIS ISSUE
** NEWLY PASSED STATE LAW EXTENDS QBS TO ALL POLITICAL SUBDIVISIONS
** JERRY SHEPHERD NEW CECO PRESIDENT -- ANNUAL CONVENTION HUGE
SUCCESS
** RAISE PRICES NOW!
** SULLINS HONORED BY PEERS
** ACEC GOVERNMENT AFFAIRS REPORT
** GOVERNMENT UNIONS WANT YOUR COMPANY'S WORK -- HELP STOP HR
3766, THE ANTI
CONTRACTOR BILL
** "ESITMATOR" DEMO SEMINAR
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NEWLY PASSED STATE LAW EXTENDS QBS TO ALL POLITICAL SUBDIVISIONS
On Tuesday, June 6th, Governor Frank Keating signed Senate Bill 1172, which makes significant changes in the State Consultants Act. SB 1172 was part of a three-bill package developed by the Task Force on Public Construction to address the use of design/build in Oklahoma.
While there are several important changes, one stands out as possibly the most significant legislative victory by CECO since the initial passage of qualifications-based selection (QBS) for Oklahoma.
The bill became law immediately upon the signature of the Governor, effective so now ALL POLITICAL SUBDIVISIONS SHALL USE QBS when procuring engineering, architectural, and land surveying services!
When the State Consultants Act was adopted in the 1980's, language was included which stated, "In the selection of a consultant, all political subdivisions of this state MAY follow these procedures..." This has caused many problems over the years as cities, counties, etc., "price-bid" their design contracts since the statutory language was permissive.
During the development of the bill, CECO was successful in getting the "may" changed to "shall", which means that political subdivisions are REQUIRED TO USE QBS as their selection process. "Price Bidding" of design services is no longer an option for any political subdivision in Oklahoma!
The new statute reads as follows:
"AMENDATORY 61 O.S. 1991, Section 62. Section I. In the selection of a design consultant political subdivisions of this state SHALL follow these procedures:
The subdivision shall select a design consultant based upon the professional qualifications and technical experience of the design consultant. The subdivision shall negotiate a contract with the highest qualified design consultant provided that a fee can be negotiated that is fair and reasonable to both parties. In the event a reasonable fee cannot be negotiated with the selected design consultant, the subdivision may negotiate with other design consultants in order of their qualifications."
This is a MAJOR VICTORY for CECO! But, the battle may be just beginning. Municipal and county officials are just now learning of this change, and will probably not be as excited about this as we are. In fact, we can probably expect a huge outcry from political subdivisions and won't be surprised to see an effort during the next session to overturn this new statute.
So, we need to working with them by helping them understand how easy the system can be and how it is really to their benefit to use QBS rather than price bidding.
CECO is willing to work with any political subdivision which needs assistance in setting up the procurement procedures.
We already have a guide entitled, "HOW TO SELECT A CONSULTING ENGINEER FOR YOUR PROJECT" which is available on the CECO web site (http://www.cecok.org).
And, our Directory is on the web site, so they have a ready-made list to which they can send their requests for proposal.
For now, let's celebrate our victory, and make every effort possible to make the transition to QBS as easy as possible on the subdivisions.
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** JERRY SHEPHERD NEW CECO PRESIDENT -- ANNUAL CONVENTION HUGE SUCCESS
Jerry Shepherd, Terracon Consultants, Inc., was installed as the 46th President of CECO at the conclusion of the Annual Meeting in Branson.
Shepherd takes the helm at CECO on his "second try" to lead the Council. Several years ago Jerry was on the CECO Board and in line to become President, but sold the former Shepherd Engineering and Testing before reaching the Presidency. After spending time with the company that purchased his former firm, and went to a geotechnical firm in Texas for a few years. He returned to Oklahoma as President of the Oklahoma City division of Terracon, and was elected "again" to the CECO Board two years ago.
Joining Shepherd on the Board for the 2000-2001 year are:
President-Elect Mike Arand, Dewberry Design Group, Tulsa
Vice President - Membership Chuck Darr, Darr-Collins, Oklahoma
City
Treasurer Mike Homan, Terracon Consultants, Tulsa
Vice President - Business Practices Don Vick, JGVE, Oklahoma City
Vice President - P.R./Education Jerry Farrar, CH2M Hill, Tulsa
ACEC National Director Tony Dark, FHC, Inc., Tulsa
If you did not attend the CEC Midwest Meeting in June at Chateau
on the Lake, you missed an outstanding meeting. It was again held
jointly with CEC/Missouri,
ACEC/Arkansas and CEC/Oklahoma and we had a total of 143 members
and spouses from the three states attend.
Here are highlights from the meeting:
¨ Relaxing dinner cruise - We started our meeting on Thursday evening with a 2-hour cruise on the Polynesian Princess which was a great success. Everyone enjoyed very delicious appetizers along with cocktails for a relaxing cruise on Table Rock Lake.
¨ Golf Tournament - Members and guests from all 3 states enjoyed golfing at the Ledgestone Country Club. A record 35 golfers participated and enjoyed the course and play. Luckily the weather cooperated just enough to let everyone play before it started to rain.
¨ Worthwhile Business Practice Seminars - David Stone presented two informative seminars on Project Management and Marketing. Both received rave reviews.
¨ Entertaining dinner/show - Members enjoyed a friendly North/South competition at the Dixie Stampede on Friday evening. They had chicken, pig and even ostrich races. When we were served our meal we had no silverware so we had to literally eat our food with our fingers. What a sight that was.
¨ Installation of Officers Reception/Banquet - To end a very memorable weekend, we first enjoyed a reception and appetizing dinner which was followed by the installation of officers for all 3 states.
THANKS MEETING SPONSORS
Company sponsorship helped hold costs down at the CEC Midwest Meeting. This year the following companies helped sponsor various convention events and helped hold costs down at the meeting. We thank these companies for helping:
¨ ACEC Business Insurance Center
¨ ACEC Life/Health Insurance Trust
¨ Prudential Retirement Services
¨ Concrete Reinforcing Steel Institute
¨ The Insurance Exchange
¨ Lockton Companies
¨ Ramsey, Krug, Farrell & Lensing
¨ Van Gilder Agency
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RAISE PRICES NOW!
If there was ever a time when the moon lined up with the stars and the timing was right for A/E/P and environmental firms to raise prices, this is it! Never before has the unique combination of circumstances existed as it does now.
If you and your fellow principals are currently debating whether or not to raise your billing rates, consider these thoughts on the subjects:
* You are already overloaded and understaffed. Raising prices is one way to reduce demand and make more money at the same time. If there are pressures on you to pay more for labor, why shouldn't this be passed along to your clients? If there are more of them wanting you than you can serve, this is the time to bump up rates.
* You are tired of not making the money you deserve. I have heard these complaints from firm owners for years. We don't make as much as doctors, lawyers, investment bankers, etc. But one reason we don't is that we don't value our time the way these other professionals do. Get the idea in your head that the only thing that's limited is time. Treat your time as if it's valuable because it is. Don't be so desperate for approval that you give your time away. There are always other things you can do with your time besides work. If clients want you, make them pay!
* The more you charge, the more the clients listen. The fact is, many clients believe there is a relationship between price and quality of advice. The more they pay for it, the more they value it. The more they value your advice, the more likely they are to follow it. That makes your efforts more successful, allowing you to charge more than the other guys do. Think about that.
* Your competitors are raising prices. If they can do it, why can't you? You know you are every bit as good, perhaps even better, at what you do than they are. You make a lot of money for your clients. You add value. You save a lot of money for your clients. You look out for your clients' well-being at all times. You deserve a raise, don't you?
* Make sure your old clients don't get gouged. While now is the time, if there was one, to raise prices, I would add one caveat: You should still go out of your way to cut the best deal for the old-line, loyal clients who have been there for you through thick and thin. You cannot ignore the importance of long-term relationships to the value of your business. You do not want to take that for granted and tighten the screws on long-term clients just as you would on a new (and potentially riskier) client.
No doubt, not every client will react positively to your price increases. Be ready for that. If and when you do hear a complaint, keep reminding yourself that as long as you are selling more work than you can do, you did the right thing!
- Zweig White & Associates
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SULLINS HONORED BY PEERS
CECO Executive Vice President Jim Sullins, CAE, has been named the recipient of the 2000 George Nigh Association Executive of the Year Award by the Oklahoma Society of Association Executives (OSAE). OSAE is the state society for association management professionals.
The award is named for George Nigh, the former Governor of Oklahoma, who was a founding member and the first President of OSAE. It is given annually to a chief executive officer who has provided exemplary leadership and service to their employing organization, the profession and their community.
Sullins has been the chief executive officer of CECO since February 1988. He received his Certified Association Executive (CAE) designation from the American Society of Association Executives in 1991, and is one of only approximately 2,500 CAE's nationwide.
Sullins has been active in OSAE for many years, serving in various leadership capacities on both committees and the Board of Directors. He served as President of OSAE in 1993.
During his tenure at CECO, Sullins has been a member of many ACEC Committees, including being Chairman of the ACEC Membership Committee. In 1992-93 he served on the ACEC Executive Committee as President of the National Association of Consulting Engineer Council Executives.
Locally, he is a member of the Kerr-McGee Swim Club Board of Directors, and was Communications Chairman of Oklahoma Swimming.
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ACEC GOVERNMENT AFFAIRS REPORT
The ACEC Government Affairs Report keeps you updated on the latest legislative and regulatory activities affecting the engineering community, as well as updates on ACEC's public policy programs through its committees and coalitions. The full text of each article, in addition to other GA links, is available on the ACEC website at: http://www.acec.org/programs/wr06222000.htm
1. Senate to Vote on House-Passed Estate Tax Legislation Soon!
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2. Help ACEC End Government Competition: Take Our On-line Survey
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3. ACEC's New Legislative Action Center Puts Congress at your
Fingertips - ACEC has created a powerful grassroots tool that
allows its members to interact with Congress with the click of
a mouse.
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4. ACEC/PAC Enhances its Resources by Using e-Contributor - ACEC
has jumped to the forefront of trade associations by being the
first to allow its members to contribute to its PAC via the Internet.
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5. Government Unions Want Your Company's Work! - Help Stop HR
3766, The Anti Contractor Bill.
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For full text of the above items including addition Government
Affairs information please visit the GA Report at: http://www.acec.org/programs/wr06222000.htm
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GOVERNMENT UNIONS WANT YOUR COMPANY'S WORK
HELP STOP HR 3766 -- THE ANTI-CONTRACTORS BILL
Government employee unions are out to stop all federal contracting, period. HR 3766, the so called Truthfulness, Responsibility and Accountability in Contracting (TRAC) Act, would freeze all future and present government contracts and promote giving them to employees. Not only new solicitations, but all existing contracts also, would be evaluated to see if the unions can perform the work "cheaper". Under a scheme that the overhead costs private firms have to pay, the private sector will not see these contracts again!
If enacted, this bill will:
* Hinder continuing efforts to reform the acquisition process.
* Completely halt the competitive sourcing initiatives that the Defense Department, and the Administration in general, is promoting.
* Increase costs to the taxpayers.
* Disrupt vital government operations.
* Further jeopardize national security.
* Slow down the clean up of Superfund sites, brownfields and other hazardous waste sites
Unfortunately, almost half the House of Representatives has sponsored this bill. It is time Congress gets a message to stop unfair competition and support the private sector.
Join ACEC in opposing this bill by sending a letter or e-mail to your member of Congress.
For more information or to act right now, go to the Legislative Alert on the ACEC web site http://congress.nw.dc.us/cgi-bin/alertpr.pl?dir=acec&alert=142, or contact Felix Martinez at fmartinez@acec.org.
There are only a few weeks left in this Congress, so act now!
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"ESTIMATOR" DEMO SEMINAR
Info Tech, maker of Estimator' and FieldManager ™, will be doing a demonstration of FieldManager ™ at the Association of County Commissioners of Oklahoma office in Oklahoma City on July 11th, and all CECO members are invited to attend.
The presentation is going to be used to Demo FieldManager software and to answer any questions people may have regarding the use of the software. Info Tech representatives also will be glad to answer any questions regarding Estimator Software.
To sign up for the class, contact Info Tech's Mike Self at 352-381-4400, or e-mail Mike at michael.self@infotechfl.com
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