Advocacy Update

State Efforts

Non-Negotiated Contracts - At the end of last year, ACECL sent a letter to LADOTD that addressed our concerns with the departments use of non-negotiated contracts. In addition to the letter, we also filed and passed legislation last session (Act 788) that added a compensation negotiation requirement to the state Hammett Act R.S. 38:2318.1. In response to our request for a response to our issue paper, LADOTD recently issued a memo notifying the consultant community that effective September 17 the department would no longer use any type of non-negotiated contract. This was a big win for our members and the business of engineering. 

Unfortunately, our work to advocate against the use of non-negotiated contracts does not end with LADOTD as local governments have started using non-negotiated contracts for engineering services. ACECL has addressed the legality uses with these local agencies citing the aforementioned legislation that now requires the public entity to negotiate with the consultant after the selection. Though I have not received a formal response from these local agencies, it is my hope that awareness of the new Hammett Act negotiation requirement and LADOTD's directive will dissuade public entities from using these types of contracts.

If your firm sees any future RFQs that advertise the use of a non-negotiated contract, please email me a bdirmann@acecl.org. 

Public Project Payment Task Force - At the end of the last legislative session, a resolution was passed creating a task force that would recommend best practices to improve the timeliness of payments from public entities to contractors. The task force is made up of the following members:

• The chairman of the Senate Committee on Finance, or his appointed designee, who shall preside as chairman of the task force.
• The chairman of the House Committee on Appropriations or his appointed designee.
• The chairman of the committee operating as the Joint Legislative Committee for Transportation, Highways and Public Works.
• The chief executive officer of the Louisiana Associated General Contractors.
• The president of the Louisiana Concrete Association.
• The chief executive officer of the Louisiana Asphalt Paving Alliance.
• The president of the American Subcontractors Association.
• The chief executive officer of the Louisiana Chapter of the Architectural Institute of America.
• The chief executive officer of the Louisiana Chapter of the Associated Builders and Contractors.
• The president of the American Council of Engineering Companies.
• The president of the Louisiana Surety Association.
• The president of the Police Jury Association of Louisiana or his appointed designee.
• The president of the Louisiana Municipal Association or his appointed designee.
• The secretary of the Department of Transportation and Development or his appointed designee.
• The director of the Office of Facility Planning and Control within the Division of Administration or his appointed designee

LADOTD and LMA gave presentations at the first meeting and Facilities, Planning and Controls will present at the meeting next week. It there is a particular issue with FP&C you would like for me to question at that meeting please email me with details. Also, if there is a particular public entity you would like for this task force to review, please email me so I can offer to the task force for consideration. 

FP&C Complexity Factors - At the beginning of the year, ACECL submitted a recommendation to FP&C to consider modifying the complexity factors applied to their advertised projects. Those firms who have done FP&C work, know that the complexity factors in the procedural manual lack detail and are more applicable to architectural/vertical design. More often than not, projects administered by FP&C with civil scopes will receive a .85 complexity factor regardless of the circumstances.

FP&C is open to the idea of possibly modifying the complexity factors, but they first asked us and AIA to send them examples of projects our members have undertaken that should have received a higher complexity factor. Again, please email me specific project examples (can be any type of project not just civil) that I may share with Director Husser and his team. 

Federal Efforts

RISEE Act - As a reminder, the RISEE Act would primarily accomplish two major policy changes related to revenue sharing: remove the cap on GOMESA revenues and initiate revenue sharing for offshore wind starting from lease sales in 2022.

Prior to Congress reaching an agreement to avoid a governmental shutdown last week, it looked promising that RISEE would pass passage through the Senate Committee on Energy & Natural Resources. However, once the compromise was reached to continue funding the federal government, the committee meeting was cancelled allowing members to consider the funding legislation. This means no action will be taken on RISEE until November and more than likely not until the next Congress convenes.