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Work Plan for Special Experimental Project 14
Contractor Selection Using Best Value Practices
for Highways for LIFE

On M-115 from Lake Station north to Clare/Osceola County Line and M-115 over the Doc & Tom Creek (B01 of 18011) and M-115 over Norway Creek (B02 of 18011) in Freeman Township, Clare County, Michigan Michigan JN 84169 & 85241

Proposed by the Michigan Department of Transportation

September 13, 2007

Contact Person:

Jack Hofweber, P.E.
Mt Pleasant Development Engineer
Phone: (989) 775-6104 ext 302
Email: hofweberj@michigan.gov

  1. Introduction & Background

    This project was selected by the Michigan Department of Transportation (MDOT) and U.S. Department of Transportation Federal Highway Administration to be a demonstration construction project under the Highways for Life (HfL) Pilot Program for FY 2008.

    The HfL program is based on the need to address new methods to reconstruct the nation's infrastructure. HfL program will supplement MDOT's funds and in return through FHWA will receive alternative innovational processes and techniques from MDOT and private industry that will identify and promote new methods to reconstruct highways and bridges safer, faster and better.

    The contract method MDOT and FHWA is seeking to develop, is a performance contracting approach to the award. Performance contracting is where a private contractor is responsible for achieving a defined set of goals, and where performance goals are specified instead of methods. Using a performance contracting approach will allow MDOT to define and communicate to the contractors, performance goals and allow the contractors to achieve or exceed those goals based on their initiatives. Using this contracting approach the contractors will share the risks and rewards as a project partner, and the defined performance goals and measurement methodologies will provide a basis for applying incentives and disincentives.

    This contract shall not be awarded solely on price, but it will be awarded to the contractor whose proposal represents the best value to MDOT considering price, goals, plans and innovations.

    The Construction Influence Area (CIA) will include the right-of-way of M-115 from approximately 700 feet southeast of Lake Station Avenue northwest 5.56 miles to the Clare/Osceola County Line.

    This work plan outlines the steps MDOT will follow to implement "Best-Value" contractor selection, and how the Department will document the experience, such that other agencies who may have similar projects might consider the advantages and disadvantages of "Best-Value" contracting methods.

  2. Purpose

    The purpose of this work plan is where a private contractor is responsible for achieving a defined set of goals, and where performance goals are specified instead of methods. This method is designed to promote new innovational processes and techniques from MDOT and private industry. As a result identify new methods to reconstruct highways and bridges safer, faster and better.

  3. Scope

    The "Best-Value" contracting concept incorporates components of both the low bid process and contractors whose proposal represents the best value to MDOT considering price, goals, plans and innovations.

    The technical proposal will require the bidder to describe his methods in achieving the six goals as defined below.

    Goal #1 - Open to Traffic - M-115 travel lanes are fully open to traffic (no flag control/lane closures or signal operations) on or before the BASELINE date of August 2, 2008. Pavement marking operation and daytime shoulder closures will be allowed after open to traffic date.

    Goal #2 - Construction & Cleanup Completion - All construction and cleanup roadway and bridges are complete on or before the set BASELINE of 15 calendar days after the actual Open to Traffic Date.

    Goal #3 - Pavement Performance - Meeting the goal of pavement performance will be broken up into three different areas:

    • Initial Pavement Acceptance
    • Pavement Performance Warranty
    • Ride Quality

    Goal #4 - Worker Safety During Construction - Worker injury rate (total recordable case rate) less than the rate of 4.0 based on the OSHA 300 rate for this project.

    Goal #5 - Work Zone Crashes - Maintain the total number of pre-construction crashes of 4 on this 5.55 mile section of roadway for the duration of the project.

    Goal #6 - Motorist Delay - Stage operations to minimize motorist delay. No vehicle shall be delayed due to contractor's operations more than 10 minutes beyond its normal travel time. Change work operations as needed, to maintain delays below this maximum.

    Because of the unique nature of the bidding process, MDOT has taken additional steps to coordinate with construction industry representatives. Furthermore, MDOT will incorporation of advanced notification of the project and mandatory pre-bid meetings to help clarify the process and requirements to potential bidders.

    This process will be evaluated twice; first, after the scoring and bidding process and second, after construction completion. These evaluations will determine if the objective of low bid with best value contractor selection and if goals were achieved. The evaluation will described how the process deviated from the normal low bid process relative to time and cost.

    Schedule

    The following is the schedule for events to implement these Highways for Life with "Best-Value" contracting process and to construct the project.

    April to Aug., 2007 Initiate early coordination with industry representatives. Conduct HfL workshops and define project goals and measurements.

    Sept., 2007 Prepare contract package and receive project approvals.

    Oct. - Dec., 2007 Official advertisement of project and contract documents.

    Nov. 15, 2007 Mandatory pre-bid meeting

    Dec 14, 2007 Technical proposal and price bids due

    Dec 17-21, 2007 Review and score technical proposal. Determine "Best-Value" bid.

    Dec 24, 2007 Notify bidders of results

    Jan 24, 2008 Award contract (estimated).

    Feb 4, 2008 Initial Work Plan Report

    April 1, 2008 thru August 15, 2008 Construct project

    October 1, 2008 Post Construction Work Plan Report

  4. Measures

    MDOT proposes to evaluate the "Best-Value" contracting method by evaluating and scoring the above six goals. In the attached "Notice to Bidders", each goal states a Method of Measurement. This clearly defines how each goal will be measured.

    1. Cost

      The contractor will submit a lump sum cost for the complete project. After the Contractor has been evaluated for each goal by the evaluation team, a score will be calculated. Using the Contractor's total score, a score factors will be calculated. The score factor will then be multiplied to the Contractor's submitted bid price. The multiplied adjusted bid will be the best value price. The lowest best value price Contractor will be awarded the project. See attached "Notice to Bidders" for more details and examples.

    2. Time

      In goal #1 and #2 open to traffic dates and number of day to cleanup will be submitted by the Contractor and scored by the evaluation team.

    3. Quality

      For goals #4, #5, and #6, the Contractor will provide to the evaluation team a work plan. The work plan will be evaluated and the Contractor will be scored base off the submitted work plans. Goal #3 will have a minimum warranty of 5 years.

  5. Reports

    MDOT will issue two reports for this project. The initial Work Plan Report will consist of the results of the submitted bids and summaries evaluation teams score and adjusted best value price for each Contractor. The Post Construction Report will evaluate contractor performance and end product quality, cost and time as compared to what would be expected from normal contracting methods.

Notice to Bidders
Highways for LIFE Contractor Proposal Using Best Value Practices

Table of Contents

  • Introduction & Background
  • Historical Roadway Information
  • Definitions
  • Traffic Information
  • Contact Person (Project Manager)
  • Project Requirements
  • Project Goals
    1. Open to Traffic
    2. Construction & Cleanup Completion
    3. Pavement Performance
    4. Worker Safety during Construction
    5. Work Zone Crashes
    6. Motorist Delay
  • Best Value Contractor Selection
    1. General Information
    2. Process Steps
    3. Instructions for Submitting the Contractor Proposal Package/Electronic Bid
    4. Contractor Proposal Package Requirements
    5. Contractor Proposal Package Information, Scoring and Award
  • Appendix A - Historic Hourly Traffic Volumes
  • Appendix B - Motorist Delay Summary
  • Appendix C - Form: Numerical Submittal for Evaluation Factors A.1., A.2., and A.3.
  • Appendix D - Center Line Corrugations
  • Appendix E - Shoulder Corrugations

Description

Introduction & Background

This project was selected by the Michigan Department of Transportation (MDOT) and U.S. Department of Transportation Federal Highway Administration (FHWA) to be a demonstration construction project under the Highways for Life (HfL) Pilot Program for FY 2008.

The HfL program is based on the need to address new methods to reconstruct the nation's infrastructure. The HfL program will supplement MDOT's funds and in return through FHWA will receive alternative innovational processes and techniques from private industry that will identify and promote new methods to reconstruct highways and bridges safer, faster and better. MDOT reserves the future rights to use any proposed innovation or methods.

MDOT reserves the right to use any proposed innovation or method on future projects. All or any part of the proposed Contractor's innovation or method may use or disclose on future projects without obligation or compensation to the Contractor.

MDOT has provided a Log of Project, Bridge Plans, and Maintaining Traffic Special Provision. Other than the items required as stated in the Project Requirements section, these documents, demonstrate a typical MDOT design without HfL features.

The contract method that MDOT is using for this project is a performance contracting approach to the award. Performance contracting is where a private contractor is responsible for achieving a defined set of goals, and where performance goals are specified instead of methods. Using a performance contracting approach will allow MDOT to define and communicate to the contractors, performance goals and allow the contractors to achieve or exceed those goals based on their initiatives. Using this contracting approach the contractors will share the risks and rewards as a project partner, and the defined performance goals and measurement methodologies will provide a basis for applying incentives and disincentives.

This contract shall not be awarded solely on price, but it will be awarded to the contractor whose proposal represents the best value to MDOT considering price, goals, and innovations.

The following best value contract with set goals was established with input from a Stakeholder Group that included MDOT, FHWA, and Road Builders Industry Groups.

This contract will stress goals rather than techniques; however there will be requirements for this project due to the law, AASHTO Standards and agreements made in the development of the project. These requirements are clearly defined in the Project Requirements.

The Construction Influence Area (CIA) will include the right-of-way of M-115 starting from approximately 700 feet southeast of Lake Station Avenue and proceeding northwest 5.56 miles to the Clare/Osceola County Line.

MDOT will work with law enforcement for an increased presence on the project.

Historical Roadway Information

The project is located on M-115 from the Clare/Osceola County Line to approximately 700 feet southeast of Lake Station Avenue in Clare County. This is a rural two lane road. The original roadway material is 22 feet of concrete which was placed in 1940. The concrete pavement was overlayed with Hot Mix Asphalt (HMA) in 1957. In 1976, the concrete roadway was crack and seated and resurfaced with a 5.5 inches HMA and 3 feet wide HMA shoulders were added. In 1999, Capital Preventive Maintenance (CPM) project was completed which cold-milled approximately 1½ inches of old pavement and replaced with 1.5 inches HMA overlay. The HMA pavement was crack sealed in 2000.

In 2006 a 7.1 mile section of M-115 just south of Lake Station Avenue was rehabilitated under Job Number 79875A. This project included a 3 inches HMA crack relief layer. By request, plans are available.

Soil boring information is located in the Log of Project sheet 33 & 34.

At the request of the bidder, all available "As Constructed Plans" will be provided. All requests must be made through the contact person.

Definitions

Goals - The minimum acceptable level of performance for a given performance measure.

Baseline - The expected level of achievement for each performance goal set by MDOT or proposed by the Contractor as part of Evaluation Factors.

Innovation - Things such as new materials, design, equipment, manufacturing processes, or contracting methods that add value and meet or exceed the HfL project goals.

Best Value - Contract awarded to the Contractor whose proposal offers the greatest (best) value in terms of performance, safety, risk management, cost or price, and other factors.

Evaluation Factors - The criteria used by the Selection Team to determine the best value.

Consensus Scoring - There will be an independent review followed by agreement between all Selection Team Members on a single score for each evaluation factor.

Traffic Information

The 2005 Average Daily Traffic (ADT) is 5,940 with 14 percent commercial traffic. The 200 High Hour Report for 2006 shows peak traffic northwest bound on Fridays and Saturdays, during the summer and fall, and southeast bound on Sundays and Mondays, during the summer and fall.

In Appendix A - Historic Hourly Traffic Volumes, the measured hourly volumes from April 2005 to November 2005 are recorded in the table. These volumes were taken from the Permanent Traffic Recorders (PTR) located just north of Lake Station Avenue. The hourly traffic volumes recorded with the expected Motorist Delay Summary table in Appendix B, can be used by the Contractor, to determine the type of traffic control operation to employ and when to use it to minimize the motorist delay.

From the Crash Analysis and Safety Review dated March 22, 2006, this 5.56 mile roadway segment experienced a total of 58 crashes, including 11 injuries and no fatalities over the four year period from January 1, 2002 to December 31, 2005. The majority of the crashes consisted of 38 (66 percent) animal, seven (12 percent) fixed-object, six (10 percent) miscellaneous single vehicle, and three (5 percent) overturn type collisions. The remainder includes one crash each of head-on, rear-end, side-swipe, and head-on left turn collision types. No section of this roadway appeared on MDOT's current 2000-2002 Bay Region Surveillance Report.

A review of the fixed-object crashes indicated that the objects struck were, four trees, two ditches, and one mailbox. Of the seven fixed-object crashes, five (71 percent) occurred during wet or icy/snowy roadway conditions.

Contact Person (Project Manager)

All inquiries concerning this package are to be directed to the MDOT Project Manager:

Jack Hofweber, P.E., Development Engineer
Mt. Pleasant Transportation Service Center
1212 Corporate Drive
Mt. Pleasant, MI. 48858
Phone: (989) 775-6104 ext 302
Email: hofweberj@michigan.gov
Fax: (989) 775-6329

The above contact person is available Monday through Friday, 7:30 a.m. to 12:00 p.m. / 12:30 p.m. to 4:00 p.m. All inquiries must be made by E-mail. Telephone inquiries will not be answered. To be able to process and distribute an addendum, if required, all inquiries shall be made at least 7 calendar days before the proposal package due date. Inquiries made after this date will be considered by MDOT, but will not require a response.

Project Requirements

This contract focuses on achieving a defined set of goals instead of methods, however some requirements are necessary. The following requirements are needed to meet defined items such as; AASHTO standards, MDOT policies and pre-arranged agreements such as DEQ permits, driveways types, and other miscellaneous items outlined in this section. The proposal submitted by the Contractor must meet the minimum project requirements. Any proposal submitted that does not meet these requirements may be rejected.

All costs associated with meeting the following requirements shall be included in the overall bid price.

Attendance at the Pre-Bid Meeting

All bidders will be required to attend a pre-bid meeting at the following time and location:

Date: Monday, November 5, 2007
Time: 9:00 a.m.
Location: Mt. Pleasant Transportation Service Center
1212 Corporate Drive
Mt. Pleasant, MI. 48858

The purpose of this meeting is to answer questions on the Contractor Proposal and project requirements and expectations, therefore all attendees MUST read this document completely before the meeting.

Contractor's Innovations/Changes The Contractor shall clearly describe within the submitted project proposal package any innovations or changes to the Log of Project, bridge plans, Maintaining Traffic Special Provision, cross sections, or any other items that do not fall under the Project Requirements.

Pre-Construction Meeting A Pre-construction meeting will be required. At the Pre-construction meeting, the Contract shall supply all proposed engineering modifications to the Log of Project, Bridge Plans, and Special Provisions within this project package. All engineering modifications must be stamped and signed by a Licensed Michigan Professional Engineer. The shop drawing process detailed in section 104.02 of the Standard Specifications shall apply.

Project "As Constructed Plans" The Contractor shall provide to MDOT a complete set of "As Constructed Plans" for the two bridges and the typical cross section for M-115. The plans and typicals shall use MDOT's current version of Bentley MicroStation V8 for CADD applications and comply with all MDOT CADD standards and file naming conventions.

Special Provisions and Supplemental Specifications All Special Provisions and Supplemental Specifications in this proposal are required unless stated "Information Only" on the document. Any reference to pay items associated with the Special Provisions or Supplemental Specifications are to be disregarded.

Notice To Bidders All Notice to Bidders contains information required for this project.

Standard Plans and Special Details Where items are required they are to be constructed according to the Standard Plan or Special Details listed on page 11 and 12 of the Log of Project.

Traffic Restrictions: Traffic shall be maintained in accordance with Sections 103.05, 103.06 and 812 of the 2003 Standard Specifications for Construction, including any Special Provisions and/or Supplemental Specifications, and as herein specified.

All traffic control devices and their usage shall conform to the 2005 Michigan Manual of Uniform Traffic Control Devices (MMUTCD), the Quality Guidelines for Work Zone Traffic Control Devices, latest edition, and as specified herein.

The Contractor shall coordinate this work with any other contractors performing work within the Construction Influence Area (CIA) or adjoining areas to avoid conflicts in the maintenance of traffic, construction signing and the orderly progress of contract work. . The Contractor shall notify in writing, the resident engineer, local emergency authorities, local schools, and the Clare County Road Commission a minimum of 3 working days prior to the implementation of any lane restrictions.

No work and all lanes open (with the exception of traffic signals at the bridges) for Memorial Day, Independence Day and Labor Day holiday periods.

Memorial Day and Labor Day holiday periods shall be defined as beginning on Thursday at 6:00 pm until Tuesday at normal starting time. The Independence Day holiday period shall be defined as beginning on Thursday, July 3, 2008 at 6:00 pm until Tuesday, July 8, 2008 at normal starting time.

During construction, access to business and residential drives shall be maintained at all times.

No M-115 detour will be allowed. Traffic must be maintained through the work zone for both directions. The Contractor will be allowed to propose signing for an alternative route advisory to reduce construction congestion.

Note - In Osceola County, a Capital Preventive Maintenance (CPM) project is scheduled on US-10 from M-66 to the east. The expected time of construction is September 2008. For more details call the Cadillac Transportation Service Center at (231) 775-3487.

Recreational Properties The contractor shall not park any vehicles or store any equipment on any public recreational property. Access to the recreational site must be maintained at all times.

Permanent Traffic Recorders (PTR) Upgrade to Piezo Classification System: As defined in the Log of Project page 3 and Detail sheets 25-32, the upgrading of the PTR is required.

Stream Work As defined in the Log of Project page 4, M-115 Miscellaneous Details page 19, and M-115 Miscellaneous Details, Bank Armoring page 20, all stream work is required.

Culvert Upgrades As defined in the Log of Project page 5 and Driveway Approach Table pages 6 & 7 all culvert work is required.

Driveway/Intersection Improvements As defined in the Log of Project page 5 and Driveway Approach Table pages 6 & 7, Miscellaneous Details sheets 23 & 24, all drive/intersection work is required.

Department of Environmental Quality (DEQ) Permits Any additions or changes to DEQ permits to facilitate a design alternative will be the contractor's responsibility to obtain approval for the DEQ.

Road water Discharge All roadwater outlets or spillways shall be a minimum of 40 feet from a stream or river.

Roadway Cross Section The proposed roadway width, pave lane and shoulder widths, cross slopes, and super elevations shall be as defined in the Log of Project page 15-18.

Weekly Progress Meeting/Updates The Contractor and Subcontractors with major work items within the current schedule will be required to attend weekly progress meetings setup by the resident engineer.

Bridge Loading The bridge loading design shall be HL-93

Center and Shoulder Rumble Strips Center and shoulder rumble strips shall be installed, as per the Appendix D and E.

Material Transfer System The Contractor will be required to utilize a material transfer system when placing the HMA leveling and top courses (may exclude shoulders). The Contractor shall submit a detailed description within the "Innovations" section that describes which material transfer system they propose to use.

Seed Mixture to Reduce Deer Crashes This project requires a special seed mixture in effort to reduce deer/car crashes. The Special Provision Turf Establishment - Seeding is required and can not be modified by the Contractor.

Pavement Performance Warranty This project requires a minimum of 5 years for the performance warranty.

Bridge Deck Grinding: To satisfy one of the HfL criteria's, the Contractor will be required to pour the bridge deck high then grind to achieve a smoother transition with the roadway approaches.

Final Acceptance The contractor shall notify the Engineer at least 3 work days for a post construction inspection. The purpose of this inspection is to develop a checklist of work items remaining to be completed. A list of greater than 15 items indicates the project is not complete enough to warrant a final inspection. Upon completion of the items on the list, the Contractor shall contact the Engineer for the Final Acceptance inspection, with FHWA representation. If accepted, the Final Acceptance date shall be the last date the contractor worked on the project including final cleanup

Contractor Staking The Contractor is required to provide all staking and surveying, including preservation of monuments boxes.

Project Goals

The following set of performance goals are focused on what this project wants to achieve. These goals were setup with the Stakeholder Group input and each goal will have a method of measurement and incentive and/or disincentive. Each goal will be scored as part of the Best Value factor in the overall selection of the Contractor. See Evaluation Factors section for more information.

When a goal states a set BASELINE, the Contractor may elect to either meet or exceed the set BASELINE. The BASELINE submitted in the Contractor's proposal shall become the BASELINE.

1. Open to Traffic

M-115 travel lanes are fully open to traffic (no flag control/lane closures or signal operations) on or before the set BASELINE date of August 2, 2008. Pavement marking operation and daytime shoulder closures will be allowed "after open to traffic date". See note below.

Method of Measurement: Actual open to traffic date.

Incentive/Disincentive: User delay costs for average weekday with flag control = $7,000.

Incentive for Open to Traffic prior to the BASELINE date = $7000/calender day.

Disincentive for Open to Traffic after the BASELINE date = $7000/ calendar day.

Maximum Incentive = $98,000 (14 calendar days).

Maximum Disincentive = Unlimited.

Example: The set BASELINE is August 2, 2008. Contractor proposes an open to traffic date of July 2, 2008, which will now becomes the BASELINE. Open to Traffic incentives and disincentives will be base on the BASELINE date of July 2, 2008.

Note - Except for labor disputes, no extension of time will be allowed for any reason, including weather. The Contractor will be expected to adjust his work forces or work hours to compensate for any circumstance.

2. Construction & Cleanup Completion

All construction and cleanup roadway and bridges are complete on or before the set BASELINE of 15 calendar days after the actual Open to Traffic Date.

Method of Measurement: Actual Final Acceptance date as defined in the Definitions and Project Requirements sections.

Incentive/Disincentive: $2,650/calendar day

Incentive for construction & cleanup before the BASELINE number of calendar days = $2,650/calendar day. Maximum Incentive shall be $37,100.

Disincentive for construction & cleanup after the BASELINE number of calendar days = $2,650/calendar day. Maximum disincentive is unlimited.

Example: The set BASELINE is 15 calendar days after the actual Open to Traffic Date. If the Contractor proposes a construction and cleanup complete of 10 calendar days, the proposed 10 calendar days will now becomes the BASELINE. Construction and Cleanup incentives and disincentives will be based off the BASELINE of 10 calendar days.

Note - Incentive/Disincentives is in lieu of the Liquidated Damages section 108.11 of the Standard Specification for Construction book. Restricted workdays due to the holiday periods as defined in the Traffic Restrictions will not be included in the calculations for incentive and disincentives.

3. Pavement Performance

Meeting the goal of pavement performance will be broken up into three different areas:

  • Initial Pavement Acceptance
  • Pavement Performance Warranty
  • Ride Quality

Below is an explanation of each of these.

Initial Pavement Acceptance The Pavement Acceptance shall be as specified in the Special Provisions included in the proposal package.

Pavement Performance Warranty The set BASELINE warranty period is five years. This allows the Michigan Department of Transportation (MDOT) to waive acceptance testing which reduces inspection requirements. Contractors are encouraged to offer a longer warranty period. This will provide value to the contractor's proposal and will be accounted for in the determination of the best value aspect of the bid proposal.

Ride Quality The ride quality is set with an incentive as listed below and there is no disincentive. The contractor will be required to meet the minimum ride quality specifications. See Special Provision for Ride Quality. Ride Quality Index (RQI) units are inches per mile.

  • Incentive per ½ Mile Direction
    Ride Quality Incentive Dollar Amount
    20-30 $2,500 *
    0 < 20 $5,000 *
  • Bonus Incentive Entire Project
    Ride Quality Incentive Dollar Amount
    <30 $25,000 *
  • Disincentive

    None, the ride of record must meet a Ride Quality Index of 30 or less.

  • No diamond grinding or other modifications to the Top Course will be allowed other than 25 feet from the POB and POE, and from 75 feet of the bridge reference lines to be eligible for incentive.

Ride Quality Example:

5.56 Mile project with 22 segments, 2 segments must grind
2 segments <20
18 segments 20-30
18 x $2,500 = $45,000
2 x $5,000 = $10,000
0 x $25,000 =$0
_____________________
Total Incentive $55,000

4. Worker Safety During Construction

Worker injury rate (total recordable case rate) less than the rate of 4.0 based on the OSHA 300 rate for this project.

Method of Measurement: Form OSHA 300A

See more information at the following web link: http://www.osha.gov/recordkeeping/new-osha300form1-1-04.pdf

Incentive/Disincentive:

Disincentive - $5000 if actual rate is higher than the goal for the duration of the project.

Incentive - $5000 if actual rate is less than the goal for the duration of project.

5. Work Zone Crashes

Maintain the total pre-construction crash rate of no more then 1.0 crash per month on this 5.56 mile section of roadway for the duration of the project.

Method of Measurement: Transportation Management System (TMS) crash data. The crash data pulled from TMS is from the state-wide data base of actual police crash reports. . The data used for measurement will be from actual construction start date to project Final Acceptance date as defined in the Definitions and Project Requirements sections. All crashes during this period will be used, regardless whether there is active construction or not.

Incentive/Disincentive:

Incentive = $20,000 if equal to or less than 1.0 crash per month.

Disincentive = $5,000 if equal to or more than 2.0 crashes per month.

Example: If the Contractor's work duration was from April 15, 2008 to August 15, 2008 (four months). The recorded crashes will be taken from the TMS database within this period. If the total number of crashes is 4.0 or less, the contractor will be eligible for the incentive. If the total number of crashes is 5, 6 or 7, no incentive or disincentive will apply. If the total number of crashes is 8.0 or more, the contractor will be assessed the disincentive.

6. Motorist Delay

Stage operations to minimize motorist delay. No vehicle shall be delayed due to contractor's operations more than 10 minutes beyond its normal travel time. Change work operations as needed, to maintain delays below this maximum.

Method of Measurement: On-site total travel time measurements from Dover Road to 13 Mile Road. The random on-site delay measurements will be taken four times per week, twice during the weekdays (Monday - Thursday) and twice on the weekend (Friday - Sunday). Each measurement will include both directions of travel. The measurement for the direction with the highest delay will be used for determining incentive / disincentive. The random on-site measurement will occur between 10:00 am - 1:00 pm and 3:00 pm - 6:00 pm, with a +/- 30 minute variance.

Normal travel time @ 55 MPH for 11 miles = 12 minutes

Example: A random measurement was taken on Tuesday at 3:30 pm. Travel time was measured for each direction of travel. Total time from Dover Road to 13 Mile Road was 20 minutes (8 minute delay). Total time from 13 Mile Road to Dover Road was 23 minutes (11 minutes delay). The higher delay of 11 minutes is used to determine incentive/disincentive, and there would be a $200 disincentive for this occurrence. This would also count as one of the three allowable occurrences of delay over 10 minutes and less than or equal to 15 minutes, as it applies to the Bonus Overall Incentive.

Incentive / Disincentive per Measurement:

Measured Delay Incentive/Disincentive (dollars)
0-5 min +1000
6 min + 800
7 min + 600
8 min + 400
9 min + 200
10 min 0
11 min - 200
12 min - 400
13 min - 600
14 min - 800
15 - 20 min - 1000
+ 20 min - 5000 + Contractors operations may be Shut down

Maximum Incentive = $50,000

Bonus Overall Incentive: If there are no more than 3 measured occurrences exceeding 10 minutes and less than or equal to 15 minutes delay for the duration of the project, the contractor will be eligible for the Bonus Overall Incentive. Any one measurement exceeding 15 minutes will cause the Bonus Overall Incentive to not apply.

Bonus Overall Incentive = $50,000

See Appendix A - Historic Hourly Traffic Volumes and Appendix B - Motorist Delay Summary for more information on expected traffic volumes and level of delays.

Any time the random on-site delay measurements are greater than 20 minutes due to the Contractors operation, the Contractors operations may be shut down until all issues are resolved and may receive a $5000 penalty.

Outside of the random measurement, any delay that exceeds 20 minutes due to the Contractors operation is cause for the Contractors operations to be shut down until all issues are resolved.

Best Value Contractor Selection

  1. General Information

    This section describes the procedures MDOT will follow to determine the Best Value selection.

  2. Process Steps

    The following are the process steps used in determining the Best Value selection.

    1. A Selection Team will be assembled. The anticipated Selection Team Members will consist of the following:
      • Two (2) members from the MDOT Mt. Pleasant Transportation Service Center
      • One (1) member from the MDOT Bay Region Office
      • One (1) member from the MDOT Lansing Central Office (or C&T)
      • One (1) member from the MDOT Central Selection Review Team (CSRT)
      • One (1) member whom is a MDOT Bridge Engineer
    2. The project will be advertised under the normal MDOT advertising process. However, the advertisement period is expected to be approximately 8 weeks.
    3. Prequalification requirements will apply and will be stated in the advertised proposal. Disadvantage Business Enterprises (DBE's) participation will not be required for this project.
    4. During the advertisement period, there is a mandatory Pre-Bid Meeting for Contractors that will bid on this project.
    5. Interested Contractors will submit a Contractor's Proposal Package, which shall include the lump sum bid in a separate sealed envelope, in accordance with the guidance provided in this document by the deadline date and time indicated. The Contractor may incur costs in developing the information for this submittal, however, reimbursement will not be allowed. Scoring will not be based on the appearance of the submitted package, but on evaluation of the Contractors response to the Evaluation Factors.
    6. After the letting date, the Selection Team will evaluate each Contractors Proposal Package in accordance with the selection criteria described in this document. The Selection Team Members will not see the Contractor's lump sum bid.
    7. The Selection Team will determine each Contractor's overall score from the information provided by the Contractor in their respective submitted proposal packages and calculate the "Cost Multiplier".
    8. The Selection Team will provide scores and the sealed bid from each Contractor along with their associated "Cost Multiplier" to Finance. Finance will apply each Contractor's "Cost Multiplier" to each Contractor's respective bid to determine the Best Value.
    9. MDOT will seek to contract with the selected Contractor that has provided the Best Value.
    10. Debriefing may be allowed for each Contractor; however, this will not occur until after the bid results are posted. The perspective Contractor will have 30 days after the bid results are posted to submit a written debriefing request to the MDOT Project Manager, in which feedback will be given. The debriefing will only pertain to the requesting Contractor's own score (overall and each Evaluation Factor if requested) and proposal package, except that overall scores from other bidders can be shared. No individual Contractor names or proposal package details will be provided.
  3. Instructions for Submitting the Contractor Proposal Package/Electronic Bid

    The Contractor must submit ten copies of the proposal package to the stated MDOT Project Manager by December 14, 2007, at 10:30 a.m. MDOT will date/time stamp and log the Contractors Proposal Package as received. The proposal package shall include the lump sum Bid in a separate sealed envelope.

    A Contractor mailing a proposal package should allow ample mail delivery time to ensure timely receipt of their proposal package. Proposal packages arriving after the response date and/or time will be disqualified from the selection process. Registered mail is suggested to ensure timeliness.

    All inquiries regarding the Best Value Contractor Selection process must be submitted to the MDOT Project Manager as directed in this document.

    The content of the Contractors Proposal Package and Contractors Bid will become contractual obligations for the selected Best Value. Failure of the successful Contractor to accept these obligations may result in cancellation of the contract.

  4. Contractor Proposal Package Requirements

    Formal proposal packages are required and shall include the information as outlined in the Best Value Contractor Selection.

    All Contractor Proposal Packages must comply with the following:

    1. Proposal packages are to be organized as defined in Part IV and Part V of this document.
    2. Clearly identify the Proposal package as "Contractor's Proposal Package for M-115, JN's 84169A and 85241A".
    3. Pages shall be 8 ½ inches by 11 inches.
    4. Font must be a minimum of 12 point.
    5. A Cover Sheet providing the name of the project, name of the owner (MDOT), and the identification of the Contractor. The identification of the Contractor shall contain the:
      1. Name of the Prime Contractor
      2. Mailing Address of the Prime Contractor
      3. Contact Person (Principal or Business Manager)
      4. Contact Telephone Number
      5. Contact Facsimile Number
      6. Contact Email Address
    6. Complete and attach Appendix C, "Form: Numerical Submittal for Evaluation Factors A.1., A.2., and A.3." after the Cover Sheet.
    7. Pages must be numbered continuously throughout, and in the format of "1 of __".
    8. All Contractor Proposal Packages shall be stapled in the upper left hand corner, at a minimum. Proposal packages may be bound and section tabbed and numbered.
    9. Graphics will be allowed.
    10. The submitted Contractors Proposal Package does not have a page limit requirement.
    11. A sealed envelope containing the lump sum Bid. The sealed envelope must be clearly marked as "Bid".

    The first page of the proposal package must be the Cover Sheet. Each proposal package must contain enough detail and information for the Selection Team to properly score each Evaluation Factor. The Selection Team will score each Evaluation Factor on the information provided only. The same/similar information may be needed and used at the Contractor's discretion in order to effectively answer each Evaluation Factors for the submitted proposal package.

  5. Contractor Proposal Package Information, Scoring, and Award

    This section addresses the information required in the proposal package that will be used to score and award the contract. The numbering in Section V. correlates to the score sheet shown below in "Table 1: Evaluation Factors". Therefore, the Contractor should format their proposal packages consistent with the outline provided for the Evaluation Factors.

    • Evaluation Factors

      The Selection Team will use the following criteria for each factor in evaluating proposals.

      • A.1.) Open to Traffic: The Contractor provides the necessary Open to Traffic date as outlined on the provided form in Appendix C, and includes supplemental information/description that demonstrates the type and level of effort required to ensure success in achieving the goal.

      • A.2.) Construction and Cleanup Completion: The Contractor provides the necessary day(s) after open to traffic as outlined on the provided form in Appendix C, and includes supplemental information/description that demonstrates the type and level of effort required to ensure success in achieving the goal.

      • A.3.) Pavement Performance Goal: The Contractor provides the necessary years for pavement performance warranty as outlined on the provided form in Appendix C, and includes supplemental information/description that demonstrates the type and level of effort required to ensure success in achieving the goal. A detailed description will be included if different than the enclosed Log of Project, and may include the proposed type of work to be performed, proposed pavements (excluding concrete), proposed pavement section, etc.

      • A.4.) Develop and provide a "Worker Safety Plan" as it relates to the goal of Worker Safety During Construction: The Contractors plan demonstrates experience, knowledge, and understanding of key worker safety issues for the project, and the implications of good or poor worker protection. The plan should be clear, concise, and have a high probability for success for completing the project goal.

      • A.5.) Develop and provide a "Work Zone Safety Plan" as it relates to the goal of Work Zone Crashes: The Contractors plan demonstrates experience, knowledge, and understanding of key safety issues concerning work zone safety. The plan should also describe the Contractors ability to respond to emergency circumstances and how non-vehicle incidents will be addressed. The plan should be clear, concise, and have a high probability for success for completing the project goal.

      • A.6.) Develop and provide a "Reducing Motorist Delay Plan" as it relates to the goal of Motorist Delay: The Contractors plan demonstrates experience, knowledge, and understanding of key motorist delay issues for the project, and the implications of a good or poorly designed and maintained work zone. The plan should also describe any proposed changes to the Special Provision for Maintaining Traffic, including staging, as well as proven traffic engineering tools and analysis to manage motorist delay. The plan should be clear, concise, and have a high probability for success for completing the project goal.

      • B.1.) Describe innovations that will be incorporated into the project including, but not limited to, Road Construction, Bridge Construction, Delay Reduction, and Materials: The Contractor demonstrates the necessary, knowledge, and understanding in using proposed innovative techniques, processes, or materials related to construction, including whether the Contractor's potential use of innovation is likely to enhance the ability to meet the goals set forth in this document. The description should be clear, concise, and demonstrate a high probability for success for completing the construction project goals. This could include work methods that will speed construction while reducing congestion, functional efficiency and flexibility, traffic management and protection, reduction in user costs and impact, etc.

    The Contractor's Responses to Evaluation Factors A.1., A.2., and A.3. shall include whole numbers only, were required. If the Contractor's response includes a fraction or decimal, it will be rounded up to the nearest whole number, which will be used for both scoring and, if the Contractor is awarded the project, in the approved contract.

    Table 1: Evaluation Factors

    Score Sheet ****All Contractors Must be Scored****
      CONTRACTORS NAME: Total Possible Rater's Score
       
        Best Value Best Value
    A. Factors      
    1. Open to Traffic
      • 0 points: August 2nd, 2008 (Baseline)
      • 1-5 points: August 1st - July 15th, 2008
      • 6-20 points: July 14th - July 2nd, 2008
    Reviewer's Comments: 20  
    1. Construction and Cleanup Completion
      • 0 points: 15 days after open to traffic (Baseline)
      • 1-5 points: 14 - 5 days after open to traffic
    Reviewer's Comments 5  
    1. Pavement Performance Goal
      • 0 points: 5 year pavement warranty (Baseline)
      • 15 points: 6 year pavement warranty
      • 30 points: 7 year pavement warranty
      • 50 points: 8 year pavement warranty
    Reviewer's Comments 50  
    1. Develop and provide a "Worker Safety Plan" as it relates to the goal of Worker Safety During Construction
      • 0 points: A generic "Worker Safety Plan" is provided with no/few specifics on how the plan will be followed to achieve the goal.
      • 1-2 points: An adequate general "Worker Safety Plan" is provided with some specifics on how the plan will be followed to achieve the goal.
      • 3-5 points: A clearly defined "Worker Safety Plan" is provided with a detailed description of how the plan will be followed to achieve the goal.
    Reviewer's Comments 5  
    1. Develop and provide a "Work Zone Safety Plan" as it relates to the goal of Work Zone Crashes
      • 0 points: A generic "Work Zone Safety Plan" is provided with no/few specifics on how the plan will be followed to achieve the goal.
      • 1-5 points: An adequate general "Work Zone Safety Plan" is provided with some specifics on how the plan will be followed to achieve the goal.
      • 6-10 points: A clearly defined "Work Zone Safety Plan" is provided with a detailed description of how the plan will be followed to achieve the goal.
    Reviewer's Comments 10  
    1. Develop and provide a "Reducing Motorist Delay Plan" as it relates to the goal of Motorist Delay
      • 0 points: A generic "Reducing Motorist Delay Plan" is provided with no/few specifics on how the plan will be followed to achieve the goal.
      • 1-15 points: An adequate general "Reducing Motorist Delay Plan" is provided with some specifics on how the plan will be followed to achieve the goal.
      • 16-30 points: A clearly defined "Reducing Motorist Delay Plan" is provided with a detailed description of how the plan will be followed to achieve the goal including proven traffic engineering tools and analysis to manage motorist delay.
    Reviewer's Comments 30  
    B. Innovations      
    1. Describe innovations that will be incorporated into the project including, but not limited to, Road Construction, Bridge Construction, Delay Reduction, and Materials.
      • 0 points: Innovations that most likely can't be used and provide no value.
      • 1-15 points: Innovations that could be used in the project and provide some value.
      • 16-30 points: Innovations that are usable in the project and provide significant value.
    Reviewer's Comments: 30  
      Maximum Total 150  
    SELECTION TEAM NAME SELECTION TEAM MEMBER SIGNATURE   DATE
    SELECTION TEAM NAME SELECTION TEAM MEMBER SIGNATURE   DATE
    SELECTION TEAM NAME SELECTION TEAM MEMBER SIGNATURE   DATE
    SELECTION TEAM NAME SELECTION TEAM MEMBER SIGNATURE   DATE
    SELECTION TEAM NAME SELECTION TEAM MEMBER SIGNATURE   DATE
    SELECTION TEAM NAME SELECTION TEAM MEMBER SIGNATURE   DATE
  6. Scoring the Evaluation Factors

    The Contractor's Proposal Package will be given to the Selection Team for review and scoring. The score, based on a maximum of 150 points, will be determined on consensus scoring between all of the Selection Team Members. Evaluation Factors A.1. and A.2. may require interpolation to determine the point value for the score and, if needed, will be rounded to the nearest hundredths. If the Contractor receives a score of zero (0) points for any factor, it is equivalent to what MDOT would normally expect for a standard construction project. Examples for Evaluation Factors A.1., A.2., and A.3. are provided below for information only. Evaluation Factors A.4., A.5., A.6., and B.1. are subjective in nature, and examples are not provided.

    • A.1.) Open to Traffic: Contractor A submits an "Open to Traffic" date of August 2nd, 2008, with information/description on how the goal will be achieved, and the resulting score given by the Selection Team is zero (0). Contractor B submits an "Open to Traffic" date of July 9th, 2008, with the necessary information/description on how the goal will be achieved, and the resulting score given by the Selection Team is 11.83. Contractor C submits an "Open to Traffic" date of July 2nd, 2008, with the necessary information/description on how the goal will be achieved, and the resulting score given by the Selection Team is 20.00.

    • A.2.) Construction and Cleanup Completion: Contractor A submits a "Construction and Cleanup Completion" of 15 days after the open to traffic date with information/description on how the goal will be achieved, and the resulting score given by the Selection Team is zero (0). Contractor B submits a "Construction and Cleanup Completion" of 10 days after the open to traffic date with the necessary information/description on how the goal will be achieved, and the resulting score given by the Selection Team is 2.78. Contractor C submits a "Construction and Cleanup Completion" of 5 days after the open to traffic date with the necessary information/description on how the goal will be achieved, and the resulting score given by the Selection Team is 5.00.

    • A.3.) Pavement Performance Goal: Contractor A submits a pavement warranty period of 5 years and includes information/description that demonstrates the type and level of effort on how the goal will be achieved, and the resulting score given by the Selection Team is zero (0). Contractor B submits a pavement warranty period of 7 years and includes information/description that demonstrates the type and level of effort on how the goal will be achieved, and the resulting score given by the Selection Team is 30.00. Contractor C submits a pavement warranty period of 8 years and includes information/description that demonstrates the type and level of effort on how the goal will be achieved, and the resulting score given by the Selection Team is 50.00.

  7. Derivation of Cost Multiplier

    The Selection Team Members will take the score for each qualifying Contractor and derive the "Cost Multiplier" thru linear interpolation, rounded to the nearest ten thousandths. Cost multipliers associated with available points scored is shown below in "Table 2: Cost Multiplier". . Table 2: Cost Multiplier

    AVAILABLE POINTS COST MULTIPLIER
    150 0.8000
    112.5 0.8500
    75 0.9000
    37.5 0.9500
    0 1.0000

    Two examples are as follows:

    1. The Selection Team scores Contractor A's Proposal Package with a score of 75 points. Therefore, the resulting "Cost Multiplier" would be 0.9000.

    2. The Selection Team scores Contractor B's Proposal Package with a score of 130 points. Therefore, the resulting "Cost Multiplier" would be 0.8267.

  8. Best Value Computations

    Once the "Cost Multiplier" is determined by the Selection Team for each qualifying Contractor Proposal Package, the Contractors score, sealed Bid, and associated "Cost Multiplier" will be provided to Finance. Finance will apply the appropriate "Cost Multiplier" to each Contractor's Bid to determine the Best Value, rounded to the nearest hundredths. Example Best Value computations are shown below in "Table 3: Example Computations for Best Value".

    Table 3: Example Computations for Best Value

    CONTRACTORS BID CONTRACTOR SCORE COST MULTIPLIER BEST VALUE
    $4,000,000.00 0 1.0000 $4,000,000.00
    $5,000,000.00 150 0.8000 $4,000,000.00
    $4,500,000.00 130 0.8267 $3,720,150.00
    $4,500,000.00 75 0.9000 $4,050,000.00
  9. Award

    The contract shall be awarded to the Contractor whose offer is technically acceptable, and provides the lowest Best Value dollar amount. However, the value of the contract will be the Contractor's Bid.

Updated: 05/14/2019
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