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ACTT Workshop: Wyoming
September 21-22, 2004, DuBois, Wyoming

Appendix C (continued): Skill Set Reporting Forms

Innovative Financing/Contracting

Innovative Financing/Contracting Team
Paul Bercich-WYDOT, Cheyenne
Shelby Carlson-WYDOT, Basin
Mark Eisenhart-WYDOT, Cheyenne
Robert Hundley-Texas Department of Transportation
Ken Spear-WYDOT, Cheyenne
Facilitator-Sid Scott-Trauner Consulting Services, Philadelphia
Pat Collins-WYDOT, Cheyenne
Prabhat Diksit-FHWA, Lakewood, Colo.
Jim Hatter-FHWA, Atlanta
Joe Mikesell-WYDOT, Cheyenne
Rick Jaffe-New Jersey Department of Transportation
Recorder-Karen Obermeier-WYDOT, Cheyenne
Notes - Innovative Financing/Contracting Skill Set
Idea (short name) Idea (detailed description) Implementation Details (barriers, skill set coordination, etc.)
Financing
Pay as you go
  • Traditional funding approach does not leverage future funds or use alternative financing strategies. If 5-year schedule cannot be shortened for reasons other than cash flow, then use a pay-as-you-go approach using grant funds.
  • Develop 5-year cash flow schedule.
  • Match financing plan with overall 5-year schedule-pay as you go.
Alternative financing
  • Project can be constructed in less than a 5-year schedule, then innovative financing techniques should be investigated to identify additional revenue to fund an accelerated schedule. The advantages would be to lessen the impact on the traveling public, reduce escalation and cost uncertainties related to bidding work in future time periods.
 
State infrastructure bank ($25 million)
  • Use State infrastructure bank to issue variable rate debt (less than 5 years).
  • Wyoming has a SIB in place. The SIB can be used to pay for State highway projects or as a revenue source to pay for bonds. Should investigate use of SIB to supplement funding.
Bonds
  • Issue revenue bonds.
  • Has statutory authority to issue bonds-this option is a last resort, have not issued highway bonds since 1930.
$60 million loan from general fund
  • Has the statutory authority under Title 9 to borrow from the State general fund to alleviate cash flow problems on a short-term basis.
  • Can be used as a safety net in the event of cash flow problems.
Flexible match
  • Use flexible match technique to cash flow State match.
  • Get approval under FHWA innovative financing program to use a flexible match to delay use of State funds.
Other agency funding sources-Forest Service/Game and Fish/USFWS
  • Discuss with the Forest Service and Game and Fish benefits of the project to their operations and possible additional funding. Monetary or in-kind donations could be used as State match.
  • Donations.
  • Game and Fish permits.
  • Registration for permits for hunters/four wheelers/snowmobilers-taxes back to recreation commission.
Local taxes-tourism/lodging

Shadow tolls National Park Service (NPS)
  • Lodging occupancy tax-allocate a portion to project.
  • NPS shadow toll/shared fee-the Togwotee improvement project enhances transportation to and from the National parks. Collect a toll or allocate a portion of entry fee for visitors accessing the parks, making an exception for local residents.
  • Need legislative approval. Issues with NPS roads that dead end into Yellowstone. Public relations issue with Legislature. Need DOT leadership to educate legislators and promote advantages of additional transportation investment.
Mineral trust fund (as part of long-term legislative strategy)
  • Allocate a portion of the mineral trust fund to transportation improvements to support long-term economic development.
  • Public relations issue with Legislature. Long-term Nov. 17, 2004 strategy. Need DOT leadership to educate legislators and promote advantages of additional transportation investment.
Statewide taxes:
  • Gas tax
  • Interstate toll (as part of long-term legislative strategy)
  • Dedicate additional taxes/tolls for transportation improvements to support long-term economic development.
  • Public relations issue with Legislature. Long-term strategy. Need DOT leadership to educate legislators and promote advantages of additional transportation investment.
Delivery Methods/Strategies
Design-bid-build (DBB)
  • No statutory authority for design-build (DB). Can amend STIP for emergencies.
  • Because of proposed number of section contracts and coordination issues, DBB time frame can be accelerated outsourcing design, bundling construction contracts, and implementing corridor management.
Design-build or contractor designs for specialty work
  • Geotechnical, tunnel or bridges.
  • Because DB is not allowed by statute, specialty items would typically be limited to preengineered features or temporary structures.
Early contracts
  • Stockpiling/staging.
  • Prefab items, MSE walls.
  • Early contracts (recommended by multiple skill sets) would allow quicker access to main section contracts and accelerate roadway reconstruction work.
Bundling contracts
  • Combining contracts under a DBB delivery will accelerate overall construction, and reduce coordination issues.
Option A:
  • Brooks Lake section (one contract).
  • Remaining sections (combine four into one contract).
Option B:
  • Brooks Lake Section.
  • Buffalo Fork, Togwotee Pass, and Four Mile Meadows sections.
  • Rosie's Ridge section.
Option C:
  • Brooks Lake section with elements of other projects.
  • Same as options A or B.
Outsourcing design for bundled contracts
  • If contracts are bundled (work performed more concurrently than sequentially), the design work will need to be accelerated, requiring outside consultant assistance.
  • Does not typically outsource design work. May require more oversight and training.
Procurement
Special prequalification
  • Ask for special qualifications for specialty work, time performance, adherence to environmental requirements, quality, etc.
  • Implement as a project-specific questionnaire supplementing std. prequalification.
A+B bidding
  • Set a daily road user cost and bid time (B) for project completion (calender days x daily rate). Could be applied to multiple contracts with separate B bids. Department needs to develop an overall time determination schedule.
  • Easier to implement for a bundled contract for overall corridor completion. If used for two or more contracts in sequence, include language such that early/late completion dates for the preceding contractor should not affect schedule for follow-on contractor(s).
Subcontracting limits
  • Adjust subcontracting limits to promote local contractor involvement.
  • FHWA limits.
Contract management
Incentive/disincentives (I/D) for time
  • Apply I/Ds in conjunction with A+B bidding, special closures, or critical milestones. The I/D amount is based on road user delay costs caused by construction and expressed as a daily rate.
  • I/Ds could be applied to interim milestones or project completion dates. Incentives are typically capped at 5-10 percent, disincentives are typically not capped. Also disincentives should not duplicate liquidated damages. When using I/Ds, ensure that project has minimal risk, complications, or issues that may result in delays to the completion date beyond the control of the contractor.
I/Ds for traffic mobility
  • Provide incentives for moving traffic through the work zone faster than specified target time, especially when one-way lane closures are used. I/D amount based on the cost of delay (for taking a lane out of service) in the work zone per unit of time, similar to a lane rental fee for taking lanes out of service.
  • Keep a tally of I/Ds and pay out/assess on a monthly basis or at end of contract.
Managing one-way lane closures
  • Use corridor management CM or hire a specialty contractor to coordinate lane closures.
 
Mandatory partnering
  • Use partnering as an alternative dispute resolution mechanism.
  • Make partnering mandatory and use follow-up partnering sessions and escalation procedures to manage issues.
Preconstruction workshops
  • Use mandatory prebid and preconstruction workshops to enhance coordination and scheduling.
  • Preconstruction workshops can be scheduled between award and mobilization for major segments or contract or for multiple contracts as a coordination tool.
Corridor management team:
  • Schedule management
  • Traffic management
  • Manage overall schedule, one-way lane closures, mobility, and night work.
  • Use internal staff. As an alternative, hire a traffic control consultant/contractor to coordinate night work, closures, mobility, etc.
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Updated: 11/06/2013
Federal Highway Administration | 1200 New Jersey Avenue, SE | Washington, DC 20590 | 202-366-4000