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Performance Contracting Framework
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Acronyms and Abbreviations

AGCThe Associated General Contractors of America
CLINContract Line Item Number
COContracting Officer
COTRContracting Officer's Technical Representative
DOTsState Departments of Transportation
dBAA-weighted decibels
FHWAFederal Highway Administration
HfLHighways for LIFE
ID/IQIndefinite Delivery/Indefinite Quantity
IFBInvitation for Bids
IRIncident Rate
IRIInternational Roughness Index
LIFELonger-lasting highway infrastructure using Innovations to accomplish the Fast construction of Efficient and safe highways and bridges
MOTMaintenance of Traffic
MoDOTMissouri Department of Transportation
mphMiles per Hour
PEProject Engineer
PEBPerformance Evaluation Board
PMProject Manager
QMQuality Management
QA/QCQuality Assurance/Quality Control
RFPRequest for Proposals
RTMSRemote Traffic Microwave Sensor
SEP-14Special Experimental Project Number 14
SMARTSpecific, Measurable, Achievable, Results-Oriented, Timely
STAState Transportation Agency
TBDTo Be Determined
A+B BiddingA method of bidding that includes both cost and time in determining the successful contractor.
BaselineThe initial set of conditions measured before the project and used for comparison or as a control.
Best Value AwardA procurement process where price and other key factors (such as technical approach, management, staffing, etc.) are considered in the contractor evaluation and selection process.
Contracting OfficerThe Agency representative having full authority to execute and administer the contract on behalf of the Government, or a warranted delegate of that official who has been delegated some of that authority, e.g. contract administration.
Contracting Officer's Technical RepresentativeThe Agency employee or employees having onsite support authority on behalf of the Contracting Officer as provided in Agency delegations. For construction contracts, this person is normally the Project Engineer.
Dispute Resolution HierarchyThree levels of management personnel from the Owner Agency, the contractor, and FHWA, that work to solve problems that can not be solved by the project personnel. This hierarchy is formed during the formal partnering process.
Enhanced Low BidA procurement process where there are prequalification criteria for the contractors wishing to participate in a low bid procurement.
Highways for LIFEA program to advance Longer-lasting highway infrastructure using Innovations to accomplish the Fast construction of Efficient and safe highways and bridges
Invitation for BidsA public advertisement inviting bids, describing the project to be constructed, how to obtain the plans, specifications and bid forms, and giving bidding instructions including the time and place of bid opening.
Level of PerformanceA defined condition or response time. For example, there are 5 levels of performance defined for each Performance Measure in Table 1.
Moving QueueTraffic speed is 20% less than the posted speed.
Owner AgencyThe State Department of Transportation developing the performance contract.
PartneringFormal facilitated meetings between the Owner Agency and the contractor to discuss project goals, issues, and project-level conflict resolution.
Project EngineerThe engineer assigned to represent the Chief Engineer in the administration of the construction contract (also see Project Manager and Contracting Officer's Technical Representative).
Performance Evaluation BoardA group of Owner Agency and FHWA personnel that advises the Contracting Officer on the amount of the total incentive fee to be received by the Contractor or the disincentive fee to be applied to the Contractor.
Performance ContractingAn approach where a private contractor is responsible for achieving a defined set of goals, and where performance goals are specified instead of methods.
Performance GoalThe minimum acceptable level of performance for a given performance measure. For example, "Incident Rate for Worker Injuries is less than 4.0" is the Performance Goal for Performance Measure 1 in Table 1.
Performance MeasureA set of defined outcome-based conditions (for example - Peak period queue length is equal to typical pre-construction peak period queue length) or response times (for example - Non-injury incidents are cleared from the travel lanes within 20 minutes) that project personnel (Owner Agency and contractor) use to evaluate the success of the contractor.
Project ManagerThe person from the Owner Agency assigned to manage the contract (also see Project Engineer and Contracting Officer's Technical Representative)
ProjectA temporary endeavor, with a definite beginning and end, undertaken to create a unique product or service.
Quality IndexA measure computed based on the Contractor's performance on project-specific quality goals defined and weighted by the Owner Agency.
Request for ProposalsA public announcement soliciting proposals, generally describing the project to be constructed, how to obtain the plans, specifications, proposals instructions, evaluation factors and instructions for proposal delivery.
Special Experimental Project Number 14A program that provides the State DOTs with a vehicle for evaluating various types of non-traditional contracting on Federal-aid highway contracts. The objective is to evaluate project specific innovative contracting practices that have the potential to reduce the life cycle cost of projects, while maintaining product quality.
Speed BandA safety surrogate measure designed to promote monitoring and enforcement innovations by the contractor in an effort to keep drivers safely within a defined set of speeds.
Stopped QueueTraffic speed is less than 10 miles per hour.
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Jerry Yakowenko
Office of Program Administration

Updated: 04/04/2011

United States Department of Transportation - Federal Highway Administration