Engineering Inc. - November/December 2004 - 8

L E G I S L AT I V E AC T I O N ELECTION-YEAR POLITICS PROMPTS TEA-21
EXTENSION; ACEC FIGHTS ANTI-COMPETITION BILLS between the public and
private sectors. ACEC Wins Major Tax Cut A-76 was updated last year to
simplify the competition process and for Engineering Firms increase
opportunities for the private sector. It also is a key mechanism in the
president's competitive sourcing initiative, which seeks to open A
year-long campaign by ACEC has resulted in passage of a commercial
functions currently done by fed- major tax cut to benefit the engineering
industry. The Ameri- eral agencies to competition from the private can
Jobs Creation Act H.R. 4520 , which has been signed into sector. law,
provides a new nine percent tax deduction for A/E firms Competitive
sourcing allows the com- for income derived from projects in the U.S. See
News and mercial functions of the government to be Notes, page 4.
contracted out to whoever offers the best deal for the taxpayer, said
Congresswoman Congress Extends TEA-21 Marsha Blackburn R-Tenn. during
floor Congress passed an eight-month extension bill to continue highway
debate on the Van Hollen provision. That is called getting the most bang
for your Rep. Marsha Blackburn and transit programs until May 31 of next
year. This latest action R-Tenn. makes it all but certain that TEA-21
reauthorization will be a priority buck. issue when the new Congress
convenes in January. ACEC successfully fought anti-contrac- The
reauthorization became mired in election-year politics, despite tor
provisions added to both the House and ACEC and industry efforts to pass a
bill this year. House and Senate Senate versions of the F.Y. 2005 Defense
Authorization bill. Conferees negotiators had come close to agreeing on
the final outline of a com- agreed to remove House-passed language,
offered by Congressman promise package that would authorize a total of
nearly $300 billion Jim Langevin D-R.I. that sought to restrict the
Defense Depart- for surface transportation programs through 2009. However,
uncer- ment's competitive sourcing program while allowing federal employ-
tainty among the states over the impact of this funding level, coupled ees
to compete for federal work currently performed by the private with other
policy differences and the short time frame remaining sector. before
Congress returns home, hampered efforts to finish work on the House and
Senate negotiators on the Defense bill also agreed to sig- new bill.
nificantly scale back language in the Senate version of the bill that On
the bright side, the effort to pass legislation in 2005 was made a sought
to restrict engineering companies from carrying out task orders bit easier
as a result of provisions supported by ACEC in the recently- as part of the
Iraqi reconstruction effort. Senators Ron Wyden passed Jobs Act story on
page 4 that will add up to $24 billion in D-Ore. and Byron Dorgan D-N.D.
contended that these program new Highway Trust Fund revenues over the next
six years. The provi- management contracts are better suited for government
employees. sions fix the loss of revenue due to the lower tax rate for
ethanol- Conferees removed all references to Iraqi reconstruction
contracts, blended fuels relative to gasoline, and strengthen enforcement
efforts and replaced the onerous provision with existing Federal
Acquisition to crack down on fuel tax evasion schemes. Regulations FAR
requirements. During conference committee delib- The extension bill H.R.
5183 lasts until May 31, 2005. States will erations, ACEC secured a letter
co-signed by senior members of the receive two-thirds of their F.Y. 2005
funding under the bill, which House Armed Services Committee expressing
strong opposition to translates to $24.5 billion for highways and $5.2
billion for transit. the Wyden-Dorgan language. Next year, lawmakers will
have to start again and introduce new reau- thorization bills. ISSUE ON
THE MOVE WHAT'S NEXT ACEC Fighting Anti-Competition, Anti-Iraq TEA -21
extended into 2005 Congress to move new bills Contractor Language in
Appropriations Bills early in new year ACEC and its industry allies were
working in the closing days of the congressional session to remove
anti-contractor language from a num- Price Anderson liability Two-year
extension to pass in ber of pending pieces of legislation. protection
November ACEC is fighting an amendment offered by Rep. Chris Van Hollen
D-Md. to the F.Y. 2005 Transportation and Treasury Appropriations Priority
issue for Congress in Tort Reform bill, which would prohibit federal
agencies from using the revised A- 2005 76 process. The process
establishes guidelines governing competition 8 ENGINEERING INC. N o v e m
b e r l December 2004
Engineering Inc. - November/December 2004

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