Mark Robinson, Ph.D., P.Eng., PMPSAIC January 22, 2007
PowerPoint Version (479 kb)
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Overview
- Why Performance Contracting for Construction?
- Framework Purpose
- Stakeholder Involvement
- Framework Contents
- Relation to the Highways for LIFE Program
- Lessons Learned
- Pilot Program
- Next Steps
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Why Performance Contracting for Construction?
- Much of America's transportation infrastructure is reaching the end of its design life and needs to be re-constructed
- Traffic levels and the resulting congestion levels continue to increase
- FHWA is developing, identifying, and promoting new methods to reconstruct highways and bridges safer, faster, and better
- Using performance contracting will allow 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
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Some Pros and Cons
- Pros
- 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
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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
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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
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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
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FHWA Subject Matter Experts
- Jim Sorenson
- Mary Huie
- Byron Lord
- Ken Jacoby
- King Gee
- Jerry Yakowenko
- Tracy Scriba
- Chung Eng
- Rudy Umbs
- John Baxter
- Mark Swanlund
- Peter Kopac
- Christopher Schneider
- David Geiger
- Tom Deddens
- Gus Shanine
- Rob Elliott
- Evan Wisniewski
- Jim Hatter
- John Bukowski
- Fred Skaer
- Shari Schaftlein
- Myint Lwin
- And others
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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
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Relation to the Highways for LIFE (HfL) Program
- HfL's mission is to improve the driving experience of the American public
- HfL is looking for new ways to build highways and bridges safer, faster, better, and less costly
- Performance contracting will be a tool in the HfL toolbox
- HfL projects are not required to use performance contracting
- Additional consideration will be given to projects that propose to use performance contracting
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Lessons Learned
- Each project will be different - Processes, goals, and materials will need to be tailored to the individual application
- Performance goals should be SMART - Specific, Measurable, Achievable, Results-Oriented, and Timely
- Performance goals MUST be under the influence of the contractor
- The contractor must have flexibility in how they perform the work
- Ideally, the performance-based environment will start at the concept or design stage
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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 for funding under the Highways for LIFE Program
- For more information on becoming a pilot agency, contact Mary Huie at Mary.Huie@dot.gov or 202-366-3039
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Next Steps
- Perform outreach to recruit agencies to pilot the framework
- Provide technical assistance to 4 to 8 pilot projects
- Capture information on successes and lessons learned
- Prepare case study documents on each pilot application
- Revise and update the Framework for broader release
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For More Information
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Performance Contracting for Construction: Framework for Implementation