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Performance Contracting 2008 WASHTO – CMS Meeting April 8, 2008.
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Transcript of Performance Contracting 2008 WASHTO – CMS Meeting April 8, 2008.
Performance Contracting
2008 WASHTO – CMS Meeting
April 8, 2008
Overview
• What is Highways for LIFE?• What is Performance Contracting?• Why Performance Contracting for Construction?• Why Performance Contracting for a Highways for LIFE Project• Framework Purpose• Stakeholder Involvement • Framework Contents• Lessons Learned• Pilot Program• Seeking the Best Solutions Workshops
What is Highways for LIFE (HfL)?
• HfL is a Federal Program driving the concept that we can build highways:
• Faster
• With less congestion
• With better safety and quality
• At lower cost, and
• With better user satisfaction
The Highways for LIFE Philosophy
• Set motorist-focused stretch goals
• Identify and use innovative practices and technologies to meet or exceed those goals
• Interact/communicate with customers
The Highways for LIFE Program
• Projects
• Technology Partnerships
• Technology Transfer Workshops
• Information Dissemination
• Monitoring and Evaluation
• Stakeholder Involvement
Oregon’s Highways for LIFE Project
• Replacing five bridges on Oregon 38
• Goal is to minimize disruption to the traveling public
• Will use prefabricated bridge elements made with high-performance concrete
• Will move the prefabricated structures into place overnight with self-propelled modular transporters
• Anticipated total project cost is $47,554,000
What is Performance Contracting?
• Innovative contracting technique
• Contractor is responsible for achieving a defined set of goals
• Performance goals are specified instead of prescriptive methods
Why Performance Contracting for Construction?
• Allows State and local agencies to define and communicate to contractors specifically what they want to achieve
• Contractors will have the flexibility to determine how they do the work
Why Performance Contracting for a Highways for LIFE Project?
• Someone needs to be responsible for meeting the goals that are set for the project
• If the goals are under the influence of the contractor, why not make the contractor responsible for meeting them?
• Performance contracting provides a mechanism for assigning that responsibility to the contractor
Relation to the Highways for LIFE Program
• Performance contracting is a tool in the HfL toolbox
• HfL projects are not required to use performance contracting
Some Pros and Cons of Performance Contracting
• Pros Contractor is
responsible for meeting the goals that they can influence
Introduction of Innovation
Defined Outcomes Contractor Flexibility Share of risk and
rewards
• Cons New approach that
requires a culture shift
May not be applicable to all projects
Performance Contracting Framework - Purpose
• To provide State and local agencies with processes and materials that they can use to accelerate the development of a performance contract solicitation package for construction contracts
• Meant to be used as a reference guide
• Should help agencies to avoid common obstacles and pitfalls
Performance Stakeholder Involvement
• The project team developed the materials working with: A select group of stakeholders from State DOTs
and Industry
• Provided guidance and review at the 30%, 60%, and 90% stages
Subject matter experts from FHWA
State DOT and Industry Stakeholder Group
• Scott Jarvis - Caltrans• Chuck Suszko - Caltrans• Gene Mallette - Caltrans• Peggy Chandler - Texas DOT• Steve DeWitt - North Carolina
DOT• Kevin Dayton - Washington
State DOT• Dexter Newman - the
Kentucky Cabinet
• Sid Scott - Trauner Consulting
• Brian Deery - AGC• Bob Lanham - Williams
Brothers Construction-• Brian Burgett - Kokosing
Construction• Rich Juliano - ARTBA
Note: Participation did not involve formal endorsement of the final product
Framework Contents
• Overall process for performance contract development• Guidance on selecting appropriate projects• Processes, lessons learned, and sample solicitation
package materials for: Performance Goals Measurement Methodology Enhanced Low Bid Award Process Best Value Award Process SEP-14 Process
Pilot Program
• FHWA is currently seeking 4 to 8 agencies that are interested in piloting the Performance Contracting Framework.
• Pilot states will receive tailored technical assistance to help them implement this approach
• Pilot states can propose the use of the framework as an innovative approach when applying under the Highways for LIFE Program
• For more information on how an agency can become a pilot agency, talk to Mary Huie at [email protected] or 202-366-3039
Seeking the Best Solutions Workshops
• A one-day workshop for State DOTs• Instructs participants how to use the HfL, ACTT
workshop and performance contracting concepts to deliver a project better, faster and cheaper.
• Leads participants through the process of: identifying goals that respond to motorists’, highway
users’ and the agency’s highest priorities and seeking the best ways to achieve those goals.
• For more information on hosting a workshop, contact Mary Huie at [email protected] or 202-366-3039
For More Information
• Mary Huie, [email protected], 202-366-3039
• Chris Schneider, [email protected], 202-493-0551
• Jim Sorenson, [email protected], 202-366-1333
• Mark Robinson, [email protected], 703-676-2384
Questions