Stauber Reintroduces the Parity in Engineering Act

WASHINGTON, D.C. – Congressman Pete Stauber (MN-08) recently reintroduced the Parity in Engineering Act, legislation that will make it easier for engineering firms in our state to do business by eliminating Minnesota’s exemption from common federal procurement requirements.

Of his legislation, Congressman Stauber said, “For too long, an arbitrary cap on the cost of doing business has put engineering firms in Minnesota at a disadvantage. I am proud to reintroduce the Parity in Engineering Act to remove this barrier to business success, and I thank the American Council of Engineering Companies of Minnesota for working with me on this critical issue.”

Jonathan Curry, CEO of the American Council of Engineering Companies of Minnesota said, “By eliminating a decades-old barrier that has restricted competition and innovation, this bill will help retain engineering jobs in Minnesota, ensure MnDOT works with the most qualified professionals and firms on infrastructure projects statewide, and bring the state in line with national standards. We fully support this important initiative!"

BACKGROUND:

Prior to the mid-1990s, states had a patchwork of policies for the procurement, administration, and auditing of contracts for engineering and design services. Many states placed overhead cap rates on engineering firms that did not reflect the true cost of business.  

Through the passage of several pieces of legislation, Congress mandated that states must follow common federal procurement requirements to guide their respective Department of Transportation (DOT) contracts for engineering services on federal-aid projects. However, an exemption precluded Minnesota and West Virginia from following these federal requirements.

As a result, Minnesota’s Department of Transportation has developed practices that are inconsistent with federal regulations and run counter to the policies in other states.