Financing: bonds

• In order to reduce interest expense, consider:
  1. Using bond anticipation notes (BANs).
  2. Combining variable rate with fixed rate debt.

• Long-term interest rate risk. Generally will result in lower interest costs.

Generating additional revenue

• Establish a State Infrastructure Bank (SIB) to operate as a revolving fund for the State to make loans to Cities/Counties.
• Consider high occupancy toll (HOT) lanes.
• Require developers to pay for some of these improvements through development impact fees and/or special assessments.

• Provides flexibility with loans.
• Local option taxes could be imposed to repay SIB loans.
• Technology of enforcement is a challenge.
• Determine whether use of toll revenue would be restricted to I-84 corridor.

Multi year financing plan (priority 4)

• Note that other State legislatures have approved multi year GARVEE bonds to finance corridor programs.

• Requires legislative approval.
• Multi year financing increases flexibility and expedites construction delivery.

Stewardship agreement

• Develop a separate agreement to allow concurrent PS&E and ROW obligational authority (advance construct).

• Determine if stewardship agreement with division can be revised or if Special Experimental Project (SEP) 15 is necessary.

Contract sizing

• Consider size of contract to facilitate speed of delivery.

• Larger contracts may facilitate earlier delivery.
• Local contractors' capabilities need to be considered.

Phased early work opportunities (priority 3)

• Look at phasing sound walls, utilities, grading and drainage.
• Consider job order contracting (pre-procurement of materials and equipment).

• Address the early critical path items in accordance with cash flow.
• Provides opportunity for smaller contracts.
• Enables award before design is 100 percent complete.
• Provides disadvantaged business enterprise (DBE) opportunities and small business opportunities.

Incentive contracting

• Consider A-plus-B bidding, multiple milestone incentives (i.e., travel time, worker and vehicular safety, incident response, etc.) and a "no excuse" bonus (priority 2).

• Do a cost-benefit analysis.
• Note incentives may be difficult to administer because of acceleration of the job.
• Promote public relations and highway user benefits.
• Research other States' experiences, i.e., Florida, Texas, Indiana, etc.

Contractor involvement in preconstruction activities

• Do constructability reviews.
• Hold mandatory pre-bid meetings to explain the project and speed up the production process.
• Conduct a VE workshop prior to advertisement.

• Determine if contractor participation in constructability reviews will preclude participation in the bidding process.
• Obtain contractor input on production sequencing, phasing and opportunities for accelerating construction.

Special prequalification

• Check contractor capabilities to deliver the project in an accelerated construction environment in advance of bid.
• Review equipment, materials, safety record, financial strength, etc.

• Ensures appropriate bidders for this type of project.
• Need to coordinate with the AGC.

Going to bid prior to final design (non D-B)

• Advertise initial bid package before final design and select contractor based on low bid.
• Contractor then provides input on completion of design.

• May be prohibited by permitting restrictions.
• List 100 percent packages on major bid items, and put estimates for design details that are not complete. (Use contingency amounts.)
• Get to finalize the design with the contractor building the project.
• Need to include a quantity variation clause in the contract.
• Can handle bid adjustments using bid escrow.

Design standardization and compatibility

• Utilize standard designs for all bridges.
• Would cut down the proposal, design, fabrication and erection time.

• Depict snappy logos on the bridges.

Performance-based contracting

• Consider performance-based contracts for construction of the sound walls, MSE walls and canal structures as well as for MOT.

• Implement with measurable criteria.
• Give the contractor flexibility to meet given performance standards for MOT.

D-B and best value (priority 1)

• Use this: it's a proven strategy for project acceleration.

• Requires legislative approval.
• Could set up trial project before seeking blanket legislation.
• CIP could initiate discussions with legislature for trial project.

Contract administration

• Have program manager handle construction oversight and coordinate corridor-wide contracts.
• Implement change management structure to fit the project.

• Need ITD personnel to be engaged in project decision-making.
• Need specific timelines for decisions, design reviews, etc.

QC/QA, material testing requirements

• Streamline testing requirements.

• Requires further study by technical teams.