2007 transportation research board performance contracting a state agency perspective steven dewitt,...
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2007 Transportation Research Board
Performance ContractingPerformance ContractingA State Agency PerspectiveA State Agency Perspective
Steven DeWitt, PE Steven DeWitt, PE
Chief Engineer Chief Engineer
North Carolina Turnpike AuthorityNorth Carolina Turnpike Authority
2007 Transportation Research Board
AgendaAgenda
• Is There a Problem?Is There a Problem?• Contracting Industry?Contracting Industry?• Why Performance Why Performance
Contracting?Contracting?• BenefitsBenefits• National ActivitiesNational Activities• ChallengesChallenges
2007 Transportation Research Board
Is There A Problem?Is There A Problem?We Need…We Need…
• QualityQuality• SafetySafety• Environmental ResponsibilityEnvironmental Responsibility• Reasonable CostReasonable Cost• Schedule CertaintySchedule Certainty
Reality Doesn’t Always Meet Reality Doesn’t Always Meet Expectations…Expectations…
2007 Transportation Research Board
Is There A Problem?Is There A Problem?
State Agencies Don’t Always Have the Best Solution to Get State Agencies Don’t Always Have the Best Solution to Get ThereThere……
We Do Have Expertise in:We Do Have Expertise in:• PlanningPlanning• DesignDesign• Contract Administration vs Construction?Contract Administration vs Construction?• MaintenanceMaintenance
We Do Not Always Pull Them Together Well…We Do Not Always Pull Them Together Well…
–
2007 Transportation Research Board
Bridge To
New Island
I am sure this
will work!
Bridge To
Nowhere
Bridge To
No Whelan
d
I guess this is what they
meant. I am sure they can build it this
way!
I can’t build
this! Who the
#&%$ dreamed
this up!
I can’t believe they left
this %$#’enpiece of *&^%
for me to live with!
Planning DesignConstructi
on
Operations
Project Development & Implementation
Typical “Silo” Approach
COLA
CO
LA
2007 Transportation Research Board
How About the Contracting How About the Contracting Industry?Industry?
Low Bid…Low Bid…
• Bid the ContractBid the Contract• Get the ProjectGet the Project• Build the ProjectBuild the Project• Move on…Move on…
What About Long Term Performance?What About Long Term Performance?
–
Low Bid Contract for
Project 345657
The New Island to Nowhere Connector
New Island
Nowhere
2007 Transportation Research Board
Rely on State Rely on State Agency Agency Specifications, Specifications, Means & Methods, Means & Methods, Inspection…Inspection…
Where is that
DOT guy to tell
me I am
doing this right?
How About the Contracting How About the Contracting Industry?Industry?
Quality Control?Quality Control?
Quality Assurance?Quality Assurance?
Who, Where, What…Who, Where, What…
2007 Transportation Research Board
Means & Methods
Performance Specifications
Long Term Project Wide Warranties
Can We Transition?
2007 Transportation Research Board
Why Performance Contracting?
• Design-Build?
• Alternative Contracting?
• Claims?
• Added Work?
• Public, Legislative, Etc. Pressures
A Changing Transportation World…
2007 Transportation Research Board
Project Scope
The New Island – Nowhere Connector
New Island
Nowhere
CL CL
Typical Section Station 132+00 to 256+32 –l-
AASHTO Design Guide
Specifications
Utility Manual
Noise Policy
NEPA Process
Asphalt Designs
Roadway Design Guide
Construction Manual
404 Conditions
401 Conditions
Parcel #35 Commitment
Parcel #46 Commitment
MPO Commitment
Water & Sewer Issues
Signing Policy
ITS Requirements
Hydraulic Openings
FEMA Requirements
Pavement Conditions
E & C Requirements
R/W Constraints
Materials Requirements
Steel Design
Concrete Pavement
2007 Transportation Research Board
BenefitsBenefits• InnovationInnovation• Fewer Constraints - Planning & ExecutionFewer Constraints - Planning & Execution• Streamlined Agency Project Development?Streamlined Agency Project Development?• Cost Savings?Cost Savings?
– Less Inspection?Less Inspection?– Less Testing?Less Testing?– Freedom = Better Prices?Freedom = Better Prices?
• Risk ApportionmentRisk Apportionment• Life-Cycle ConsiderationsLife-Cycle Considerations
–
2007 Transportation Research Board
BenefitsBenefits
More Industry InvolvementMore Industry Involvement
• Value EngineeringValue Engineering• ConstructabilityConstructability• Clarity for Bidding?Clarity for Bidding?• Contractor View of “Engineering Contractor View of “Engineering
Economy”Economy” Eliminate “Best Guess” EngineeringEliminate “Best Guess” Engineering Efficiency in Execution Efficiency in Execution
• Contractors Will Get BetterContractors Will Get Better
2007 Transportation Research Board
Contractors Will Get Better?Contractors Will Get Better?Home Builders – Specifications, Plans, Details…
• Inspection?
• Means & Methods?
Transportation Contractors – Specifications, Plans, Details…
• Inspection – Yes
• Means & Methods – YesKnowledge Gained Through Staying Engaged…
2007 Transportation Research Board
Existing Examples of Existing Examples of Performance Performance
Specifications/ContractingSpecifications/Contracting
• A + B ContractsA + B Contracts• M & W WarrantiesM & W Warranties• Traffic Control Specifications Traffic Control Specifications • Maintenance ContractsMaintenance Contracts• Many Other Examples… Many Other Examples…
2007 Transportation Research Board
National ActivitiesNational Activities
• Performance Specifications WGPerformance Specifications WG• Highways For LifeHighways For Life• SHRP IISHRP II• Construction Management ETGConstruction Management ETG• Other “Stuff”Other “Stuff”
–
2007 Transportation Research Board
ChallengesChallenges
• Cultural IssuesCultural Issues
• Cost?Cost?
• Performance MeasuresPerformance Measures
• Contract IssuesContract Issues
OUCH!
Rats!
AAARRRGGG!
That Son-of - a- &̂ %$!What’s wrong with the old way?!?!
%$#@*!!!
NOOOOOO!
OUCH!
Rats!
AAARRRGGG!
That Son-of - a- &̂ %$!What’s wrong with the old way?!?!
%$#@*!!!
NOOOOOO!
2007 Transportation Research Board
ChallengesChallenges
• Scope ClarityScope Clarity
– ““You Will Get What You Tell You Will Get What You Tell Them You Want”Them You Want”
– Needs Versus WantsNeeds Versus Wants
• Risk!Risk!
• Making the Business CaseMaking the Business Case
2007 Transportation Research Board
RiskRisk
DOT Gets “Stuck” With the DOT Gets “Stuck” With the Product & Must Maintain it…Product & Must Maintain it…
Long Term Long Term Performance Performance Contracting Could Contracting Could Open Doors for Much Open Doors for Much Greater Acceptance Greater Acceptance of Innovation. of Innovation.