Skip to contentUnited States Department of Transportation - Federal Highway AdministrationSearch FHWAFeedback
Highways for LIFE

ArrowPerformance Contracting: A State Agency Perspective

<< PreviousContentsNext >>

Steven DeWitt, PE
Chief Engineer
North Carolina Turnpike Authority

PowerPoint Version (521 kb)

Slide 1

?

Slide 2

Agenda

  • Is There a Problem?
  • Contracting Industry?
  • Why Performance Contracting?
  • Benefits
  • National Activities
  • Challenges
Slide 3

Is There A Problem?

We Need...

  • Quality
  • Safety
  • Environmental Responsibility
  • Reasonable Cost
  • Schedule Certainty

Reality Doesn't Always Meet Expectations...

Slide 4

Is There A Problem?

State Agencies Don't Always Have the Best Solution to Get There...

We Do Have Expertise in:

  • Planning
  • Design
  • Contract Administration vs Construction?
  • Maintenance

We Do Not Always Pull Them Together Well...

Slide 5

Project Development & Implementation

  • Planning: I am sure this will work!
  • Design: I guess this is what they meant. I am sure they can build it this way!
  • Construction: I can't build this! Who the #&%$ dreamed this up!
  • Operations: I can't believe they left this %$#'en piece of *&^% for me to live with!

Typical "Silo" Approach

Slide 6

How About the Contracting Industry?

Low Bid...

  • Bid the Contract
  • Get the Project
  • Build the Project
  • Move on...

Low Bid Contract for Project 345657
The New Island to Nowhere Connector

What About Long Term Performance?

Slide 7

How About The Contracting Industry?

  • Rely on State Agency Specifications, Means & Methods, Inspection...
  • Quality Control? Quality Assurance? Who, Where, What...
  • Where is that DOT guy to tell me I am doing this right?
Slide 8

Can We Transition?

Means & Methods

Performance Specifications

Long Term Project Wide Warranties

Slide 9

Why Performance Contracting?

  • Design-Build?
  • Alternative Contracting?
  • Claims?
  • Added Work?
  • Public, Legislative, Etc. Pressures

A Changing Transportation World...

Slide 10

The New Island - Nowhere Connector

  • New Island Nowhere
  • Typical Section Station 132+00 to 256+32 -l-
  • Project Scope
    • AASHTO Design Guide
    • Specifications
    • Utility Manual
    • Noise Policy
    • NEPA Process
    • Asphalt Designs
    • Roadway Design Guide
    • Construction Manual
    • 404 Conditions
    • 401 Conditions
    • Parcel #35 Commitment
    • Parcel #46 Commitment
    • Pavement Conditions
    • E & C Requirements
    • R/W Constraints
    • Materials Requirements
    • Steel Design
    • Concrete Pavement
    • MPO Commitment
    • Water & Sewer Issues
    • Signing Policy
    • ITS Requirements
    • Hydraulic Openings
    • FEMA Requirements
Slide 11

Benefits

  • Innovation
  • Fewer Constraints - Planning & Execution
  • Streamlined Agency Project Development?
  • Cost Savings?
    • Less Inspection?
    • Less Testing?
    • Freedom = Better Prices?
  • Risk Apportionment
  • Life-Cycle Considerations
Slide 12

Benefits

More Industry Involvement

  • Value Engineering
  • Constructability
  • Clarity for Bidding?
  • Contractor View of "Engineering Economy"
    • Eliminate "Best Guess" Engineering
    • Efficiency in Execution
  • Contractors Will Get Better
Slide 13

Contractors Will Get Better?

Home Builders - Specifications, Plans, Details...

  • Inspection?
  • Means & Methods?

Transportation Contractors - Specifications, Plans, Details...

  • Inspection - Yes
  • Means & Methods - Yes

Knowledge Gained Through Staying Engaged

Slide 14

Existing Examples of Performance Specifications/Contracting

  • A + B Contracts
  • M & W Warranties
  • Traffic Control Specifications
  • Maintenance Contracts
  • Many Other Examples...
Slide 15

National Activities

  • Performance Specifications WG
  • Highways for LIFE
  • SHRP II
  • Construction Management ETG
  • Other "Stuff"
Slide 16

Challenges

  • Cultural Issues
  • Cost?
  • Performance Measures
  • Contract Issues
The image shows an employee dragging a sack of other employees up a fligh of stairs, representing change. The other employees complain "What's wrong with the old way?!?!" and have made a hole to escape from the bag.
Slide 17

Challenges

  • Scope Clarity
    • "You Will Get What You Tell Them You Want"
    • Needs Versus Wants
  • Risk!
  • Making the Business Case
Slide 18

Risk

  • DOT Gets "Stuck" With the Product & Must Maintain it...
  • Long Term Performance Contracting Could Open Doors for Much Greater Acceptance of Innovation.
Slide 19

Bottom Line

  • What Will it Cost?
  • Will It Produce the Results?
  • Can We Overcome the Cultural Hurdles?

Make The Business Case...

Slide 20

More Information

Events

Contact

Kathleen Bergeron
Highways for LIFE
202-366-5508
kathleen.bergeron@dot.gov

PowerPoint files can be viewed with the PowerPoint Viewer
Updated: 04/04/2011
 

FHWA
United States Department of Transportation - Federal Highway Administration