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ARTBA digital Washington Newsline for December 5, 2011
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Dec. 12 Market Forecast & Transportation Reauthorization Bill Outlook Webinar: Register Today! ARTBA Washington Newsline DECEMBER 5, 2011 Newsline Washington House Delays Highway/Transit Bill Until 2012 Dec. 14 ARTBA Webinar on ConstructionManager General Contractor FHWA Supports Use of Innovative Products in Highway/Bridge Market Continued on page 3 Continued on page 2 Continued on page 4 ADVERTISEMENT House Transportation and Infrastructure (T&I) Committee Chairman John Mica (R-Fla.) November 30 said House Republicans would not unveil a proposal to reauthorize the federal surface transportation programs until after the New Year. Mica and House Speaker John Boehner (R-Ohio) had previously indicated the House would act on a bill before the end of the year. Mica said, “Somehow, this system works best with a little pressure. You’ve got to have a deadline. It’s like high school students, they put off the paper until the last minute and then they do an all-nighter” Meanwhile, House Democrats on the T & I Committee December 1 introduced H.R. 3533, the “Invest in American Jobs Act,” which would increase and tighten existing Buy America restrictions for transportation improvement projects. T&I Committee Ranking Member Nick Rahall (D-W.Va.) urged House Republicans to incorporate the proposed Buy America changes into any proposed reauthorization language expected in January. Finally in the Senate, several sources report Banking Committee Chairman Tim Johnson (D-S.D.) is ready to move forward on his committee’s section of the Senate reauthorization plan. The Senate Environment and Public Works Committee November 9 approved S. 1813, the Moving Ahead for Progress in the 21 st Century (MAP-21) Act, which would reauthorize Hundreds of innovative products aimed at increasing the safety and durability of the nation’s highways and bridges should find their way more quickly into state highway projects thanks to a clarification of procurement guidance issued this week by the Federal Highway Administration (FHWA). The agency made clear in a November 30 memorandum Is your firm prepared to work in a procurement environment that includes “Construction Manager General Contractor” (CMGC) as the delivery method? FHWA is actively promoting the use of CMGC by state transportation departments as a way to accelerate project delivery. The current highway reauthorization bill being considered in the Innovative software for the construction industry.
Transcript
Page 1: 12_05_News

Dec. 12 Market Forecast & Transportation Reauthorization Bill Outlook Webinar: Register Today!

ARTBA Washington Newsline

D E C E M B E R 5 , 2 0 1 1

NewslineWashington

House Delays Highway/Transit Bill Until 2012

Dec. 14 ARTBA Webinar on Construction Manager General Contractor

FHWA Supports Use of Innovative Products in Highway/Bridge Market

Continued on page 3

Continued on page 2

Continued on page 4

A D V E R T I S E M E N T

House Transportation and Infrastructure (T&I) Committee Chairman John Mica (R-Fla.) November 30 said House Republicans would not unveil a proposal to reauthorize the federal surface transportation programs until after the New Year. Mica and House Speaker John Boehner (R-Ohio) had previously indicated the House would act on a bill before the end of the year. Mica said, “Somehow, this system works best with a little pressure. You’ve got to have a deadline. It’s like high school students,

they put off the paper until the last minute and then they do an all-nighter”

Meanwhile, House Democrats on the T & I Committee December 1 introduced H.R. 3533, the “Invest in American Jobs Act,” which would increase and tighten existing Buy America restrictions for transportation improvement projects. T&I Committee Ranking Member Nick Rahall (D-W.Va.) urged House Republicans to incorporate the proposed Buy America changes into any proposed

reauthorization language expected in January.

Finally in the Senate, several sources report Banking Committee Chairman Tim Johnson (D-S.D.) is ready to move forward on his committee’s section of the Senate reauthorization plan. The Senate Environment and Public Works Committee November 9 approved S. 1813, the Moving Ahead for Progress in the 21st Century (MAP-21) Act, which would reauthorize

Hundreds of innovative products aimed at increasing the safety and durability of the nation’s highways and bridges should find their way more quickly into state highway projects thanks to a clarification of procurement guidance issued this week by the Federal Highway Administration (FHWA).

The agency made clear in a November 30 memorandum

Is your firm prepared to work in a procurement environment that includes “Construction Manager General Contractor” (CMGC) as the delivery method? FHWA is actively promoting the use of CMGC by state transportation departments as a way to accelerate project delivery. The current highway reauthorization bill being considered in the

Innovative software for the construction industry.

Page 2: 12_05_News

2 ARTBA Washington Newsline

Upcoming EventsVisit our Events Page for more information.

2012Transportation Construction Project Management Academy January 30 - February 3Washington, D.C.

4th Annual Construction Law & Regulatory ForumApril TBDWashington, D.C.

Global Innovations in Work Zone Safety Virtual Conference & ExpositionApril 24–26

Global Safe Roads Virtual Conference & Exposition April 24–26

Federal Issues Program & TCC Fly-InMay 29 - 31 Washington, D.C.

Young Executive Development ProgramMay 29 - June 1Washington, D.C.

TransOvation WorkshopJune TBD

National ConventionSeptember 11–14 Memphis, Tenn.

P3s in Transportation ConferenceOctober 11–12 Washington, D.C.

Reauthorization Work Continues With Some DelaysContinued from page 1

the federal highway and research programs for two years at current investment levels (plus adjustments for inflation since 2009). The Senate Banking, Commerce, and Finance Committees are responsible for the remaining pieces of the full Senate bill. ARTBA will provide more details about legislative developments as they occur.

The current short-term authorization of the highway and public transportation programs expires March 31, 2012. These latest developments reinforce the need to continue talking to all Senators and Representatives about the importance of moving forward with a multi-year surface transportation bill as soon as possible.

Find your elected official: www.artba.org/grassroots

Seminar on the 2012 U.S. Transportation Construction Market Forecast & Transportation Reauthorization Bill Outlook

Monday, December 12 from 1:00 - 2:30 p.m. • What are the chances Congress will pass a multi-year federal highway/transit investment

bill soon?• What are the resulting market impacts from continued congressional delays on a long-

term bill?• With the end of the stimulus money and continuing state budget challenges, is the

transportation construction market poised to “crash and burn” in 2012?• Which states offer the best opportunity for market development in 2012?• What is the long-range market forecast through 2016?

ARTBA Senior Vice President of Government Relations Dave Bauer, and Vice President of Policy and Senior Economist Alison Premo Black will answer these questions and any others you may have, and also offer additional market insights during a special 90-minute briefing for analysts, investors and construction industry executives.

If you track domestic and foreign firms with a stake in the U.S. transportation infrastructure market, this comprehensive webinar is for you. It provides a “behind the scenes” look at the political and economic factors that will impact the transportation design and construction market sector in 2012. All registrants will receive a copy of the PowerPoint presentation.

Register today! $325 members; $450 non-members; $600 group rate (more than 2 participants)

Page 3: 12_05_News

3ARTBA Washington Newsline

Jim McMinimee

Continued from page 1

Products & Services

Purchase the ARTBA Highway Construction Salary & Wage Guide

As you plan for your 2012 budgets and consider your personnel needs, you will want to purchase the most comprehensive guide providing salary and wage information for 112 occupations in the transportation design and construction industry, including management, engineering, construction, finance, administrative and safety-related positions.

The “2011 U.S. Highway, Street & Bridge Construction Salary & Hourly Wage Guides” utilize just released U.S. Department of Labor data for national, state, urban and rural areas so that you can benchmark your company’s wages against competitors.

Check out a sample report. Order the national or state guides. Contact ARTBA’s Peter Embrey with questions.

ARTBA Webinar: Are You Prepared for CMGC Procurement & Project Delivery?

Senate would explicitly enable states to use CMGC at will and you will want to be well-versed in this emerging procurement

method. The three-hour

educational webinar, scheduled from 1-4 p.m., EDT, on December 14, will neither promote nor discourage the use of CMGC. Presenter Jim McMinimee, a CMGC

expert and 25-year industry veteran who worked at Utah DOT, will provide an overview of the CMGC process, and its anticipated risks and benefits. The distinctions between “Construction Manager at Risk” (CMAR) and CMGC, as well as many other details about how CMGC is being applied to highway design and construction, will be covered.

Additional course topics include:• Differences in the owner-contractor

relationship among the three major

contracting methods; • Tips to identify the most favorable

project parameters for applying CMGC; • CMGC selection and pricing options;

and • Case studies of successful CMGC

implementation and lessons learned.

Register today! $300 members and $425 non-members. Contact ARTBA’s Jim Colleton at 202.289.4434 with any questions.

Prepared by ARTBA’s expert economics and research team, these value-added reports are best-sellers. With monthly and quarterly reports, we help to cover the market from every angle, including the highly sought after “Contract Awards” data. This premium subscription service provides the most current information on the transportation construction market so that analysts and industry firms are armed with the data they need to make smart, well-informed decisions.

There are two options available to you, including:

#1 • Monthly Transportation Construction Contract Awards • Monthly Value of Transportation Construction Put in Place • Monthly Federal Highway Obligations • Monthly Transportation Construction Employment • Quarterly Market Conditions Survey

Annual Subscription: $3,500, $4,000 (non-member)

#2 • Quarterly Market Conditions Survey: $750/year, $900 (non-member) • Monthly Value of Transportation Construction: $750/year, $900 (non-member) • Monthly Federal Highway Obligations $750/year, $900 (non-member)

To purchase, visit: www.artbastore.org. Contact ARTBA Director of Sales Peter Embrey at [email protected] or 202.289.4434 with any questions.

TRANSPORTATION CONSTRUCTION MARKET INTELLIGENCE REPORTS

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4 ARTBA Washington Newsline

FHWA Supports Use of Innovative Products

sent to its division administrators that a federal regulation covering the use of proprietary and patented products on federally-aided projects does not prohibit state transportation departments from using federal funds to pay for them—even if they are initially more expensive. The product may be used, according to the new guidance, if a state certifies that it is uniquely suitable for particular purposes or projects.

“It is crucial in this austere economic environment that all roadblocks to the use of new technologies be removed,” said ARTBA President & CEO Pete Ruane. “FHWA is to be commended for recognizing this reality. All citizens will directly benefit from safer and more durable roads and bridges as a result, and taxpayers will see a greater return on their investment.”

ARTBA, which aggressively promotes innovation in the transportation construction market, had sought clarification from FHWA on the treatment of proprietary and patented products.

“There will be a few points that will raise some eyebrows.”

House T&I Committee Chairman John Mica (R-Fla.) in referring to the still-to-be released House surface transportation reauthorization bill.

“We are no longer buying just cheap trinkets from China – we are literally buying bridges and major

transportation infrastructure, while outsourcing innovation and capabilities that could be fostered and strengthened in the U.S.”

House T&I Committee Ranking Democrat Nick J. Rahall (W.Va.) in introducing the “Invest in American Jobs Act of 2011,” which strengthen “Buy America” requirements.

Overheard

“ ”

TRB Newsletter: November 29, 2011ARTBA is pleased to make available another service for members that highlights new research, technologies, industry best practices and information resources available to the transportation design and construction industry. This material comes from the Transportation Research Board. Read the most recent newsletter.

Fostering Innovation

Legislative & Regulatory News

Continued from page 1

Super Committee Failure May Spare Some Transportation Funds The much publicized failure of the so-called “super committee” last month to find more than a trillion dollars in budget savings over the next 10 years sets in motion a process that will require new across-the-board spending cuts to trim the budget deficit beginning January 2013.

U.S. DOT Announces Distracted Driving Rule for Heavy TrucksAs part of the Obama Administration’s initiative to end distracted driving, U.S. Transportation Secretary Ray LaHood November 23 proposed a rule specifically

The legislation that created the super committee, however, also included a list of exemptions from those reductions that includes most federal spending from federal transportation trust funds. However, it is important to note there are already efforts underway to alter the budget cuts and the federal transportation trust funds could lose the current exemptions.

Finally, even if the transportation programs are exempt, the Highway Trust Fund is projected to be unable to support current investment levels beyond FY 2012. This means that without action to provide new resources, the federal highway and transit programs would face reductions of 30 percent or more three months before any across-the-board spending cuts would be implemented.

As such, ARTBA remains focused on trying to secure as soon as possible the enactment of a multi-year surface transportation program reauthorization bill with a stable source of revenues to support the Highway Trust Fund.

U.S. DOT Provides $215 Million For Damaged RoadsU.S. Secretary of Transportation Ray LaHood announced November 28 the U.S. Department of Transportation will provide more than $215 million to 37 states and territories to cover costs associated with repairing roads and bridges damaged by natural disasters. The money, part of the Federal Highway Administration’s emergency relief program, will reimburse states for fixing or replacing highways, bridges and other roadway structures. Costs associated with detours, debris removal and other immediate measures necessary to restore traffic flow in impacted areas are also eligible. View the list of recipients.

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5ARTBA Washington Newsline

Download a PDF copy of the digital “Washington Newsline.”

prohibiting interstate truck (including construction industry vehicles) and bus drivers from using hand-held cell phones while engaged in interstate commerce. Drivers who violate the restriction will face federal civil penalties of up to $2,750 for each offense and disqualification from operating a commercial motor vehicle for multiple offenses.

Additionally, states will suspend a commercial driver’s license (CDL) after two or more serious traffic violations. Commercial truck and bus companies that allow their drivers to use hand-held cell phones while driving will face a maximum penalty of $11,000. Approximately four million commercial drivers would be affected by this final rule.

The DOT announcement also acknowledged driver distraction studies have produced mixed results, but that Federal Motor Carrier Safety Administration research shows: “using a hand-held cell phone while driving requires a commercial driver to take several risky steps beyond what is required for using a hands-free mobile

phone, including searching and reaching for the phone. Commercial drivers reaching for an object, such as a cell phone, are three times more likely to be involved in a crash or other safety-critical event. Dialing a hand-held cell phone makes it six times more likely that commercial drivers will be involved in a crash or other safety-critical event.” The proposed rule does not cover use of Citizens’ Band or other forms of communication.

Comments are due February 22. View the final hand-held cell phone ban rule.

House Panel Examines Proposed Hours of Service Rule Witnesses told the House Regulatory Affairs Subcommittee November 30 a proposed rule to further restrict the number of hours a driver can operate a commercial truck would impose a cost of nearly $1 billion on the trucking industry, which would be passed on to consumers. The proposed rule would limit truck drivers to 10 consecutive hours of driving instead of the current 11 hour

ARTBA held two of its four annual regional meetings last week, the Northeast in New York City and the Southern in Tampa, Fla. ARTBA senior staff provided attendees with information about nearby state market conditions, a 2012 economic forecast, and a status report on the House & Senate surface transportation bills.

Industry leaders such as, Rich Raczynski, chief engineer, New Jersey Turnpike Authority, and Brian Blanchard, assistant secretary for engineering and operations, Florida Department of Transportation were among the speakers on hand.

More information: www.artba.org/regionalmeetings

ARTBA Members Gather for Southern and Northeast Regional Meetings

period. The rule would also alter mandatory rest periods before drivers could resume their weekly schedule. The Federal Motor Carrier Safety Administration says the rule is designed to increase safety and reduce fatigue related incidents on highways.

ARTBA has long argued the revised Hours of Service rules should not apply to drivers in the transportation construction industry as our industry’s drivers generally operate short-haul routes of less than 20 miles and receive frequent driving breaks throughout the work day when performing other tasks. Both of these realities differentiate this sector from the long-haul commercial truckers at which the rule is focused. Read comments filed by ARTBA March 4.

Economic News

North America Surface Trade Up Almost 14 PercentTrade using surface transportation between the U.S., Canada, and Mexico was 13.8

percent higher in September 2011 than in September 2010, totaling $77.7 billion, according to the U.S. Bureau of Transportation Statistics (BTS). Surface transportation, among other things, includes freight movements by truck and rail. In September, 85.6 percent of U.S. trade by value with Canada and Mexico moved via land, 9.8 percent moved by boat, and 4.5 percent moved by air.

Highway and Bridge Employment Ticks UpEmployment in highway and bridge construction grew 1.2 percent in October 2011 (the latest sector specific data available) compared to the same month in 2010, according to the latest data from the U.S. Bureau of Labor Statistics. Overall construction unemployment was 13.1 percent last month, showing little movement. The U.S. economy added 120,000 jobs in November and the unemployment rate fell to 8.6 percent, according to the Department of Labor’s monthly jobs report.