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


Performance Contracting for Construction

Acronyms and Abbreviations

Acronym/Abbreviation Meaning
AGC The Associated General Contractors of America
CLIN Contract Line Item Number
CO Contracting Officer
COTR Contracting Officer's Technical Representative
DOTs State Departments of Transportation
dBA A-weighted decibels
FHWA Federal Highway Administration
HfL Highways for LIFE
ID/IQ Indefinite Delivery/Indefinite Quantity
IFB Invitation for Bids
IR Incident Rate
IRI International Roughness Index
LIFE Longer-lasting highway infrastructure using Innovations to accomplish the Fast construction of Efficient and safe highways and bridges
MOT Maintenance of Traffic
MoDOT Missouri Department of Transportation
mph Miles per Hour
PE Project Engineer
PEB Performance Evaluation Board
PM Project Manager
QM Quality Management
QA/QC Quality Assurance/Quality Control
RFP Request for Proposals
RTMS Remote Traffic Microwave Sensor
SEP-14 Special Experimental Project Number 14
SMART Specific, Measurable, Achievable, Results-Oriented, Timely
STA State Transportation Agency
TBD To Be Determined
A+B Bidding A method of bidding that includes both cost and time in determining the successful contractor.
Baseline The initial set of conditions measured before the project and used for comparison or as a control.
Best Value Award A 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 Officer The 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 Representative The 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 Hierarchy Three 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 Bid A procurement process where there are prequalification criteria for the contractors wishing to participate in a low bid procurement.
Highways for LIFE A program to advance Longer-lasting highway infrastructure using Innovations to accomplish the Fast construction of Efficient and safe highways and bridges
Invitation for Bids A 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 Performance A defined condition or response time. For example, there are 5 levels of performance defined for each Performance Measure in Table 1.
Moving Queue Traffic speed is 20% less than the posted speed.
Owner Agency The State Department of Transportation developing the performance contract.
Partnering Formal facilitated meetings between the Owner Agency and the contractor to discuss project goals, issues, and project-level conflict resolution.
Project Engineer The 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 Board A 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 Contracting An approach where a private contractor is responsible for achieving a defined set of goals, and where performance goals are specified instead of methods.
Performance Goal The 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 Measure A 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 Manager The person from the Owner Agency assigned to manage the contract (also see Project Engineer and Contracting Officer's Technical Representative)
Project A temporary endeavor, with a definite beginning and end, undertaken to create a unique product or service.
Quality Index A measure computed based on the Contractor's performance on project-specific quality goals defined and weighted by the Owner Agency.
Request for Proposals A 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 14 A 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 Band A 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 Queue Traffic speed is less than 10 miles per hour.

More Information


Jerry Yakowenko
Office of Program Administration
E-mail Jerry

Updated: 08/28/2012

United States Department of Transportation - Federal Highway Administration