News & Press: Member Update

TxDOT Annual Rate Negotiation Update

Monday, February 3, 2020  
Posted by: Michael Hancock
Share |


Member Update

February 3, 2020


TxDOT Annual Rate Negotiation Update


For firms in the TxDOT market, you may recall that the Transportation Commission last May adopted a new rule that made several changes to agency procurement procedures, including providing for annual rate negotiations on consultant contracts. The goal was to centralize the rate negotiation process and move away from repetitive, redundant negotiations that yield multiple rates depending on the area. Another goal was to help develop a process that is more “fact-based,” e.g, recognizes the reality of market conditions.

ACEC Texas and TxDOT have had a task force working collaboratively on the implementation of this rule since June of last year.In addition, work groups representing survey, geotechnical, CEI, right-of-way, PS&E and other industry providers have helped review labor categories, unit cost descriptions, and other direct expense (ODE) categories.

Most recently, the task force has helped develop a database of actual rates (submitted anonymously) for a cross-section of firms for a sample of labor classifications. This was compared with TxDOT's “first offer” data. Combined with salary survey information, this information can provide a baseline for actual industry conditions as a guide to negotiations.

TxDOT and ACEC Texas believe that the next step is to have a pilot project to test this process. It is the agency’s intent to do so on a recently selected set of PS&E ID contracts. Firms that were selected will have the option of participating in the annual negotiation process, using rates from a recent PS&E executed contract, or continuing with the current process. For firms that participate in the pilot project, negotiated rates will apply in subsequent selections during the year.

We believe that the annual process will offer significant advantages, not the least of which will be significant time savings for both sides and greater consistency. Also, sub-consultants will be able to negotiate directly with TxDOT.

This process is still a work in progress. For example, we continue to work on a consistent, statewide policy on escalation in multi-year contracts as well as consistent determinations of profit.

If you would like more information, please contact Steve Stagner or Peyton McKnight



ACEC Texas Public Policy Council (PPC) and Election News


 Today is the deadline to register to vote in the March 3rd primary election, so make sure you are registered! For more information on registering to vote, please click on the following link: VoteTexas - Register To Vote. Early voting begins on February 18th and runs through February 28th. Please watch and share with your employees and on social media the following video on the importance of voting in the primary: Texas Politics Are Made in March.

Three special elections to replace the unexpired terms of retiring members of the Texas House of Representatives were held last week. The winners and newly elected House members are:

· Gary Gates (R - Rosenberg) in House District 28 in Fort Bend County

· Lorraine Birabil (D – Dallas) in House District 100 in Dallas County

· Anna Eastman (D – Houston) in House District 148 in Harris County

All three winners will become members of the Texas House at least through December of this year. They will have to win full terms in November to serve during the next legislative session, which begins next January.

Speaker Dennis Bonnen appointed Rep. Giovanni Capriglione (R-Keller) as Chairman of the House Committee on Appropriations. The chairmanship has been vacant since early last fall when two-term chair, Rep. John Zerwas, retired from the legislature. Rep. Capriglione will serve as Chair of the committee at least through the interim. It is unclear whether he or any of the other current committee chairs will continue to serve in their current roles during the next session since there will be a new Speaker elected when the Legislature convenes next January.

Governor Abbott appointed Coleen Johnson, RPLS and reappointed Sina Nejad, P.E. to the Texas Board of Professional Engineers and Land Surveyors for terms to expire in 2025. The Governor also named Mr. Nejad Chair of the Board. Ms. Johnson is the Geospatial Area Manager for WGI in Austin.



2020 Calendar of Events

  • February 6: ACEC Texas Small Firm Council Workshop - Hilton San Antonio Airport Hotel - San Antonio, Texas
  • February 10th & 11th: ACEC Texas Project Management Training - Omni Colonnade Hotel - San Antonio, Texas
  • February 13: ACEC Texas TxDOT Audit Seminar - Austin Marriott South - Austin, Texas
  • March 29 & 30: ACEC Texas Annual Meeting - Four Seasons Hotel - Houston, Texas
  • March 30: ACEC Texas Engineering Excellence Awards - Four Season Hotel - Houston, Texas
  • April 25 - 28: ACEC National Annual Conference - Marriott Wardman Park - Washington, DC
  • May 6 & 7: ACEC Texas Business Conference - Omni Colonnade - San Antonio, Texas
  • June 11 - 14: ACEC Texas Summer Public Affairs Conference - Park Hyatt Beaver Creek - Beaver Creek, Colorado

In The News

Go to for current articles on construction, engineering, public works, transportation, politics and more including:

  • Underground: Freeway remodel could bury part of Southwest Fwy - KTRK ABC 13 Houston
  • City enters engineering agreement for street reconstruction - Greenville Herald Banner
  • Georgia planning first-in-nation truck-only interstate lanes -
  • High hurdles: BISD expansion prompts infrastructure plan - Temple Daily Telegram
  • TXDOT said the project should make traffic easier on the two highways, which are the most congested in the state - KHOU
  • Austin releases new land code draft - Austin American-Statesman
  • Bowie Lake Dam repairs could cause lake to be drained - KLTV 7
  • ANALYSIS: Fort Bend’s special election was just the first battle of the 2020 war between Texas Democrats and Republicans - KPRC NBC 2 Houston
  • and much more . . .




ACEC Texas Chapters


1001 Congress Ave., Suite 200 - Austin, Texas 78701

512-474-1474 - fax 512-474-1490

Follow Us On Social Media


Community Search
Sign In


ACEC San Antonio Chapter Meeting-08/19/20