ODOT’s Design Build ProgramODOT’s Design Build Program

“OVERVIEW AND UPDATE”

• What is Design Build • Reasons to use DB• ODOT’s DB History• DB Stakeholder Committee• DB Changes• ODOT’s Design Build Future

Bob Pappe, PE, PLSODOT Design Build ManagerRobert.g.pappe@odot.state.or.us 503-986-3477

Design BuildDesign Build

What is Design Build?

• A contract with a single entity for both design and Construction

• Design Build can look different depending on size of project

• Design Build can look different depending on needs of owner

• ODOT’s Currently defines the Work (OTIA-sized DB) as: – Design, Construction, and Quality Management

Reasons for Design BuildReasons for Design Build• Schedule (Velocity)

– Award Contract earlier in Project life, before Design– Shorten on-site work period, concurrent design and construction– Velocity of delivery, project or program

• Funding– Obligate fed funds at RFP release, not PS&E– Total cost known at award (earlier, fixed cost)

• Cost– Minimize project cost (lump sum for design and construct)– Maximize project budget (competitive bid design + construct, efficiency

of contractor and designer working together)– Complete on budget (assure project cost by fixed price)

• Quality– Screen proposers with RFQ process, only short-listed teams propose– Select ‘Best’ Project Team and proposal / ‘Best’ Team = high quality

• Innovation– Opportunity for innovative thinking– Means and Methods / Outside Agency Design Standards– Agency can test new ideas easier with performance specifications

• Risk and Opportunity for both agency and DB

Understanding Design-Build and its Benefits

Design-Bid-Build

Planning &Program’g

PreliminaryEngineering

Final Engineering Contractor selection

Construction

Minimal Contractor Input Possible Contractor Input

Design-Build

Planning &Program’g

PreliminaryEngineering

Design-BuilderSelections

Final Engineering Construction DB Time Savings

Minimal Contractor Input Extensive Contractor Input

Award of Contract acceleration

DB DBB

I -84 Lower Perry Bridges• 9 Months – Kick-off to Contract• $8.2M (100% OTIA); 2- Interstate Br Replacements • 2 Years Const. –(Contractor completed early)• No Claims

I-84 Quarry Bridges• 8 Months – Kick-off to Contract• $19M (62% OTIA, 38% Fed); 4- Interstate Br Replacements • 3 Years Const. – Incentives reduced to 2• Eliminated Load restrictions – 2nd season• One Claim – UPRR coordination ($35K)

US20 Central Oregon Highway Bridges

• 12 Months – Kick-off to Contract

• $26M (15% OTIA, 85% Fed); 16 –Highway Br Replacements • ½ mile re-alignment- Jonesburo• 2 Years Construction-(No early incentives)• Eliminated Load restrictions – early 2nd season• No Claims

Current DB Projects List

Project Award Value Status1. Coast Fork May 02 $5.7m Complete2. Lower Perry May 02 $8.2m Complete3. Quarry Bridges Jan 03 $18.7m Complete4. COHB Mar 04 $25.6m Complete5. MHC Apr 04 $30.6m Complete6. SRS Nov 04 $37.7m Near Complete7. CBT Mar 05 $34.8m In Const.8. PME Jul 05 $129.9m In Const.9. WHI Apr 06 $23 m In Const.10. MRG May 06 $59.7m In Const.11. I-5 Weaver Oct 06 $51.3m In Const.

12. Elk-Hardscrab. Dec 06 $45 m In Const.

Total to date: $470 Million

HistoryHistoryDesign Build as Part of total Construction Design Build as Part of total Construction

ProgramProgramContract award amounts by year

_________________________________________________________________

Awards 2002 2003 2004 2005 2006 (approximate)

_______________________________________________________________________________________

Total $304m $366m $485m $486m ($600)ODOTAwards________________________________________________________________________________________________

DB $13.8 $18.7 $93.8 $163.7 ($178.7)ProjectAwards________________________________________________________________________________________________

DB 4.6% 5.1% 19.4% 33.7% (29.8%)AwardPercent________________________________________________________________________________________________

Design BuildDesign Build

Design Build Stakeholders Group

• Started November 2004• Core group – AGC, ACEC, ODOT, other Agency’s

Purpose Statement: “The purpose of the Design Build StakeholderCommittee is to assist in the development of a state ofthe art Design Build program that meets ODOT’s needsand allows for industry success.”

Nov 04 to Aug 05 – 8 meetingsDeveloped List of Issues to improve on

Design BuildDesign Build

Design Build Stakeholders GroupIssues:• Selection and evaluation process• Stipend amount• Shortlist to RFP time• Reduce Proposal effort• Consistency issues in ODOT documents• Project goals clearly defined in RFP?

• Project specific information in one location in RFP

• Roles, Responsibilities, Risks• Standard Documents • Proposal deficiencies- scoring vs non-responsiveness• Independent Quality Firm• …………• …………

Design BuildDesign BuildDesign Build Changes• Selection and evaluation

– PD Team at core of scoring, - Oral Presentations

• Shortlist to RFP time – link RFQ to RFP readiness• Reduce Proposal effort

– Limit number of pages, - narrative to check the box– eliminate duplication, - reduce project schedule size,– Move to DB Standards and DB Specials (Project specific)

• Concept Design - 4 major risks (R/W, Enviro., Utilities, RR)• Project specific information in one location in RFP• Base Documents on Web for comment• www.oregon.gov/ODOT/HWY/OPD/DB_Home.shtml Then click "Base Document" link

Stakeholder Subcommittees• Quality Management• Design Review• Progress Payments• Innovation• Design Build “Lite”

Original DB Projects ListProject Award Value Status1. Coast Fork May 02 $5.7m Complete2. Lower Perry May 02 $8.2m Complete3. Quarry Bridges Jan 03 $18.7m Complete4. COHB Mar 04 $25.6m Complete5. MHC Apr 04 $30.6m Complete6. SRS Nov 04 $37.7m Near Complete7. CBT Mar 05 $34.8m In Const.8. PME Jul 05 $129.9m In Const.9. WHI Apr 06 $23 m In Const.10. MRG May 06 $59.7m In Const.11. I-5 Weaver Oct 06 $51.3m In Const.

12. Elk-Hardscrab. Dec 06 $45 m In Const.13. I-5 Comstock (Nov 07) $34m future Change to DBB14. US30 –B415 (Jun 08) $17m future Change to

DBB15. OR126-B508 (Dec 08) $23m future16. US395-B414 (May 09) $25m future17. OR6-B507 (Nov 09) $34m future

ODOT’s Design Build Future 1. I-5 Cmstk-B309 (Nov 07) $34m future change- DBB2. US30 –B415 (Jun 08) $17m future change-

DBB3. OR126-B508 (Dec 08) $23m future4. US395-B414 (May 09) $25m future5. OR6-B507 (Nov 09) $34m future

Possible Changes to Schedule – move B414 forward to replace B309YEAR: ’07 ’08 ’09 ’10 ’11NTP: 3-08 12-08 11-09Bundle: B414 B508 B507

Future – need to: • Maintain ODOT’s ability to efficiently run DB procurement and

manage contract execution?• Maintain industry’s interest and ability to assemble teams, submit

proposals, and manage contract execution with DB mentality?

• Continue mainstreaming the DB method, - ODOT Culture, Industry culture, don’t lose what we’ve learned.

ODOT’s Design Build Future:

Stay Ready for Future Funding requiring quick start!

Look for larger STIP projects (OTIA- Sized) • OTIA sized DB, proportional procurement/execution efforts

Develop a DB-Lite for STIP sized projects• Develop desired attributes

– Velocity to award of contract– Reduce procurement time and effort (agency and industry)– Maintain concurrent design and construction (shortened on-site)– Augment ODOT resources (part of out-sourcing strategy)– Lower Design Builder’s risks– Attractive to industry (lots of DBB work, why take this?)– Eases new-comers to DB (agency and industry)– Does not sacrifice quality

• Develop optional processes to obtain attributes– Design – Conceptual Plans vs DAP– Procurement – 2-step best value vs minimum threshold then low bid– Quality Management after contract execution – DB or ODOT or mix

ODOT’s Design Build Future:Look for larger Region STIP projects (OTIA- Sized) • OTIA sized DB, proportional procurement/execution efforts

Develop a DB-Lite for STIP sized projects• Develop desired attributes

Velocity to award of contractReduce procurement time and effort (agency and industry)Maintain concurrent design and construction (shortened on-site)Augment ODOT resources (part of out-sourcing strategy)Lower Design Builder’s risksAttractive to industry (lots of DBB work, why take this?)Eases new-comers to DB (agency and industry)Does not sacrifice quality

• Develop optional processes to obtain attributes

Design – Conceptual Plans vs DAP

Procurement – 2-step best value vs minimum threshold then low bidQuality Management after contract execution – DB or ODOT or mix

Stay ready for future funding that requires quick start!

Understanding Design-Build and its Benefits

Design-Bid-Build

Planning &Program’g

PreliminaryEngineering

Final Engineering Contractor selection

Construction

Minimal Contractor Input Possible Contractor Input

Design-Build

Planning &Program’g

PreliminaryEngineering

Design-BuilderSelections

Final Engineering Construction DB Time Savings

Minimal Contractor Input Extensive Contractor Input

Award of Contract acceleration

DB DBB