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Workplan for SEP-14 Project "Best Value Alternative (A - D) Bidding "

Iowa Department of Transportation

Introduction

The Iowa Department of Transportation submits this work plan for review and approval as a Best Value Alternative bidding procedure under the provisions of Special Experimental Project No. 14 (SEP-14) for use of innovative bidding practices.

Purpose

The purpose of this specification is to allow the Contracting Authority to obtain the most work, or the best options, for the available funds that have been allocated for the project.

Scope

The Contracting Authority has traditionally made pre-letting choices on their willingness to pay additional cost for one design or material over other designs or materials. In Best Value Alternative Bidding, the Contracting Authority expands the choices of designs or materials it is willing to award, and includes the basis for low bidder selection of these designs and materials in proposal.

The proposal will have Alternative Sections. The proposal will also list a dollar value (Alternative Differential) that the Contracting Authority bas pre-determined it will pay for each Alterative Section over the Base Alternative Section. For each set of alternatives, the contractor will be allowed to bid ONE Alternative Section (e.g. either the Base Alternative Section or Better Value Alternative Section. The basis for determining the low bidder for consideration for award will be the contractor who submitted the lowest Bid Total for minus the sum of the Alternative Differentials for that contractor (e.g. A - D Bidding)

A copy of the proposed specification language the Department plans to use is attached.

Schedule

The Iowa DOT is requesting approval to we this innovative contracting on selected projects for a two-year evaluation period, October 1,2006 to September 30,2008.

Evaluation

The Department will maintain records on projects where this innovative contracting procedure was used in the bidding of the contract. The Department will document the impacts on which contractor was awarded the contracts and the benefits 20 the contracting authority in using this innovative contracting method.

Reporting

A two-page final report will be submitted to FWA by December 31, 2008. The report will include an evaluation of the technique used, the industry and contracting authority's reactions and issues, and a recommendation as to whether this procedure should be continue to be used.

DS-01086 (New)

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Iowa Department of Transporation

Developmental Specifications for Best Value Alternative (A - D) Bidding


Effective Date December 19, 200 6

THE STANDARD SPECIFICATIONS, SERIES 2001, ARE AMENDED BY THE FOLLOWING MODIFICATIONS AND ADDITIONS. THESE ARE DEVELOPMENTAL SPECIFICATIONS AND THEY SHALL PREVAIL OVER THOSE PUBLISHED IN THE STANDARD SPECIFICATIONS.

01086.01 Description

This specification expands the number of options a bidder can bid and allows the Contracting Authority to receive the best value based on individual alternatives selected by each bidder.

The Contracting Authority has traditionally made pre-letting choices on their willingness to pay additional cost for one design or material over other designs or materials. In Best Value Alternative Bidding, the Contracting Authority expands the choices of designs or materials it is willing to award, and includes the basis for low bidder selection of these designs and materials in proposal.

1086.02 Definitions

Alternative Differential (D).
The dollar value the Contracting Authority has determined it is willing to pay for a Better Value Alternative Section over the Base Alternative for that work.

Alternative Sections.
Sections in the Schedule of Prices in the proposal form which the bidder has the choice of bidding the Base Alternative Section or the Better Value Alternative Section.

Base Alternative Section.
The section in the proposal form which includes the minimum requirements for an alternative of work.

Better Value Alternative Section.
The section in the proposal form which the Contracting Authority is willing to pay an Alternative Differential over the Base Alternative Section.

01086.03 Bidding Procedure

The proposal form will have Alternative Sections. The proposal form will also list a dollar value (Alternative Differential) that the Contracting Authority has pre-determined it will pay for each Alternative Section over the Base Alternative Section. For each set of alternatives, the bidder will be allowed to bid one Alternative Section (e.g. either the Base Alternative Section or Better Value Alternative Section.

01086.04 A - D Contract Award Procedure

The basis for determining the low bidder for consideration for award will be the bidder submitting the lowest Bid Total minus the sum of the Alternative Differentials for that bidder (e.g. A - D Bidding).

01086.05 Example

In the following example, the Contracting Authority is willing to pay $200,000 additional to have a Better Value Alternative Section X2 built over the Base Alternative Section X1. In addition the Contracting Authority is willing to pay an additional $400,000 to have a Better Value Alternative Section Alternative Y2 built over the Base Alternative Section Y1.

Although Bidder AAAA submitted the lowest Bid Total (A), Bidder BBBB will be considered the low bidder because they have the lowest (A - D) total.

Bidder $ bid on non-Alternative Sections Items Alt Bid X Bid Alt Bid Y Bid Bid Total for Proposal (A) Sum of Alternative Differential s (D) Basis for Award ( A - D)
AAAA $1,000,000 X1 $200,000 Y1 $200,000 $1,400,000 $ 0 $1,400,000
BBBB $1,050,000 X2 $250,000 Y1 $250,000 $1,550,000 $200.000 $1,350,000
CCCC $1,300,000 X2 $300,000 Y2 $400,000 $2,000,000 $600,000 $1,400,000
DDDD $1,250,000 X1 $300,000 Y2 $300,000 $1,850,000 $400,000 $1,450,000

Contact

Jerry Yakowenko
Office of Program Administration
202-366-1562
E-mail Jerry

 
 
Updated: 04/07/2011
 

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