Engineering Inc. - January/February 2005 - 32

ONE ON ONE HNTB's Yarossi says federal market is the growth market ; Warns
Against Commoditization of Engineering government agencies. Retired for
the next long-term bill to 2 supporting value pricing by Gen. McCaffrey's
intimate pass. The sooner Congress reau- removing obstacles such as
knowledge of U.S. borders the thorizes funding the sooner our salary and
overhead caps; and 3 front-line of homeland secu- industry will be
strengthened, dealing with the offshoring of rity and Retired Gen. Bob and
we will be able to address engineering services. Flowers' experience as the
for- programs that have stalled for While each of these issues is mer Chief
of the U.S. Army too long. While we did see an important in its own right,
they Corps of Engineers, for instance, upsurge in approved local bond all
are related to a significant enhances our ability to bring issues in the
last election, we overarching issue facing our pro- real solutions to
these agencies. can't meet all the demands with- fession today: the
commoditiza- out a strong federal bill. tion of engineering services. Q.
ACEC understands that if an Employee Stock Owner- Q. HNTB is making a
engineering firm of any size can't ship Plans ESOPs are quickly Paul
Yarossi is CEO compete on its qualifications for becoming a favorite
method for major push into the federal mar- of HNTB Companies in the job,
can't price its services facilitating ownership transition ketplace with
the recent addi- Kansas City, Mo. based on the value of its work within
engineering firms. How tions of Lt. Gen. Robert Flowers and has to compete
with low- has HNTB's ESOP benefited and Gen. Barry McCaffrey. cost offshore
labor, the stature the firm and its employees? How important is this market
to and value of our profession will the future of the company, and A.
decline. where do you see areas of Since its inception in growth? 2000,
HNTB's ESOP has met a Q. key goal by enabling us to One of the major
agenda A. The federal market is the smoothly and effectively transi- items
left undone by Congress tion ownership. Our employees in 2004 is the
reauthorization growth market in the United also have experienced the
bene- of TEA-21. Current negotia- States right now. Nothing is fits of
employee ownership. Our tions envision a program in the more important to
this country share value has posted strong neighborhood of $300 billion
than defense and homeland increases each year. In addition, over six
years. How important is security. These two segments of with dividends and
matching it for Congress to act early on the federal government need to
funds from HNTB, our this legislation? be able to turn to professional
employees' annual returns have engineers who can bring solu- Q. A. been
significant. tions to the agencies' major civil In 2004, ACEC had a What
we need is a good This type of return represents works challenges.
Engineers number of important legislative bill, not a fast one. The trans-
the greatest contribution to our have always been critical wins, such as
the new 9 percent portation industry must have a employees' retirement in
the his- resources in the defense of this deduction for A/E firms. Con-
bill that will adequately meet tory of the firm, and it has pro- country,
and it is an important sidering the fact that the new our infrastructure
requirements vided employees the opportu- place for us to apply our trade.
Congress will have a pro-busi- for the next six years. The Sen- nity to
build wealth for Because the federal govern- ness orientation, what areas
do ate-approved bill is the closest retirement. We've seen the ment is
such an expanding mar- you believe should be priorities proposal to doing
this, and it's ESOP bring employees together ket, engineers and government
for ACEC? being backed by other industry to increase earnings and over-
professionals need to join forces advocates, such as the American A. come
difficulties. This win-win to meet the demand for services. Road and
Transportation As I see it, there are three situation enables our
employees HNTB has tapped the expertise Builders Association. critical
advocacy issues for the to share in the success of the of leaders such as
Barry McCaf- The transportation industry engineering industry: 1 track-
firm, and they understand how frey and Bob Flowers to help us has spent
the past 18 months ing legislation that threatens they can mitigate risks
as well. develop strategies for serving virtually on hold as we've waited
Qualifications-Based Selection; 3 2 ENGINEERING INC. J a n u a r y l
February 2005
Engineering Inc. - January/February 2005

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