Alternative Technical Concept (ATC)
A suggested change submitted by proposing teams to the contracting
agency's supplied basic configurations, project scope, design or construction
criteria. Must provide a solution that is equal to or better than the
requirements in the RFP document.
Asset Management
Systematic and coordinated activities and practices through which
an organization optimally and sustainably manages its assets and asset
systems, their associated performance, risks and expenditures over their
life cycles for the purpose of achieving its organizational strategic
plan.
Asset Lifecycle
Time interval that commences with the identification of the need
for an asset and terminates with the decommissioning of the asset or
any associated liabilities.
Availability Payment (AP)
This is a type of financial arrangement in P3. The agency agrees
to make regular payments to the private sector entity based on the facility's
availability and level of service achieved for operations and maintenance.
Unlike shadow tolls, availability payments do not depend on traffic
volume.
Concession Period
Total of construction and operating periods.
Concessionaire
Private entity that assumes ownership and/or operations of a given
public asset (e.g., roadway) under the terms of a contract with the
agency.
Contingency
An allowance included in the estimated cost of a project to cover
unforeseen circumstances.
Design-Bid-Build (D-B-B)
A project delivery method in which the agency procures design and
construction services from two separate entities. The agency either
performs design work in-house or procures services from a private engineering
services entity to perform the design work, and then undertakes a separate
procurement with a private construction services entity to perform the
construction work.
Design-Build (D-B)
A project delivery method in which the agency combines procurement
for both design and construction services into a single contract and
from the same private sector entity (the design-builder).
Design-Build-Finance (D-B-F)
A project delivery method in which the agency awards a single contract
to the same private sector entity for the design, construction, and
full or partial financing of a facility, while the agency retains the
responsibility for the long-term maintenance and operation of the facility.
Design-Build-Finance-Operations-Maintenance (D-B-F-O-M)
A service delivery method in which the agency awards a single contract
to the same private sector entity for the design and construction of
the facility, as well as for project financing and for operations and
maintenance of the asset over a given concession period.
Differing Site Condition
May include (i) subsurface or latent physical conditions at the site
which differ materially from those indicated in the contract, or (ii)
unknown physical conditions at the site, of an unusual nature, which
differ materially from those ordinarily encountered and generally recognized
as inherent in work of the character provided for in the contract
End Result Specification
Specifications that require the contractor to take the entire responsibility
for supplying a product or an item of construction
Essential Function
Defines how well the highway facility needs to perform and the objectives
for a successful delivery of the facility.
Function Analysis System Technique (FAST)
A technique to develop a graphical representation showing the logical
relationships between the functions of a project, product, process or
service based on the questions "How" and "Why".
Incentive/Disincentive (I/D)
A contract provision which compensates the contractor for each day
that identified critical work is completed ahead of schedule and assesses
a deduction for each day that completion of the critical work is delayed.
The primary function of an I/D provision is to motivate the contractor
to complete the work on, or ahead of, schedule, and recover damages
to the traveling public for late completion.
International Roughness Index (IRI)
A pavement roughness index computed from a longitudinal profile measurement
at a simulation speed of 50 mph (80 km/h).
Life Cycle Cost Analysis (LCCA)
A process for evaluating the total economic worth of a usable project
segment by analyzing initial costs and discounted future costs - such
as maintenance, user costs, reconstruction, rehabilitation, restoration,
and resurfacing costs - over the life of the project segment.
Performance-Based Specifications (PBS)
Improved Quality Assurance Specifications that specify the desired
levels of fundamental engineering properties (e.g., resilient modulus,
creep properties, and fatigue) that are predictors of performance.
Performance Criterion
A measure that demonstrate a specific owner requirement has been
met.
Performance Requirement
Defines what is needed to be done to accomplish the objectives of
the project.
Performance-Related Specifications (PRS)
Are improved Quality Assurance Specifications that correlate key
material attributes (Quality Characteristics) being measured to the
likely performance of the in-place product.
Prescriptive or Method Specification
Specifications that require the contractor to use specified means
and methods (e.g., materials in definite proportions, or specific types
of equipment and methods to place the material).
Project Scoping
A phase in highway project development that involves a series of
project-focused activities that develop key design parameters and other
project requirements to a sufficient level of definition such that scope
discovery is complete and a budget and project completion date can be
accurately established to minimize the risk of significant change and
project overruns.
Proprietary Specification
A specification that specifically calls out a brand name, model number,
manufacturer of a product, or a product or method of construction that
is patented. Typically used when no generic product is available to
achieve the technical intent.
Quality Assurance (QA)
All those planned and systematic actions necessary to provide adequate
confidence that a product or service will satisfy given requirements
for quality.
Quality Assurance Specifications
Specifications that require contractor QC and agency acceptance activities
throughout production and placement of a product. Final acceptance of
the product is usually based on a statistical sampling of the measured
quality level for key quality characteristics.
Quality Characteristic
That characteristic of a unit or product that is actually measured
to determine conformance with a given requirement.
Quality Control (QC)
The process of monitoring specific project results to determine whether
they comply with relevant quality standards, and identifying ways to
eliminate causes of unsatisfactory performance.
Quality Management Plan (QMP)
A document that describes the P3 private partner's plan comprehensively
on "how' quality will be achieved and managed through various phases
of the concession period.
Rejection or Acceptance Limit
The limiting upper or lower value, placed on a quality measure, which
will permit rejection or acceptance of a lot.
Risk
An uncertain event or condition that has negative consequence (i.e.,
threat) or positive consequences (i.e., opportunities) on project performance
if it occurs.
Risk Allocation
The process of assigning engineering, operational and financial responsibility
for specific risks to parties involved in the provision of services
under P3.
Risk Transfer
The process of shifting the risk and responsibility from one party
to another.
Shadow Toll
This is a type of financial arrangement in a P3. The agency agrees
to make payments to the private operator, in lieu of tolls paid by facility
users, based on usage of a facility. This gives the private sector an
incentive to maximize volume.
Spearin Doctrine
A legal principle that holds that the contractor is not liable for
any loss or damage resulting from defective plans and specifications,
when the contractor follows the plans and specifications provided by
the owner, and those plans and specifications turn out to be defective
or insufficient.
Special Purpose Vehicle (SPV)
A corporate body (usually a limited company of some type or, sometimes,
a limited partnership) created specifically to implement a P3 project,
primarily to isolate risks.
Verification
Process of validating the accuracy of test results by examining the
data and/or providing objective evidence.
Warranty
A written assurance that a product or service provided by a contractor
will meet certain specifications and provide desired performance over
a specified period of time, as well as the responsibility of the contractor
(or a subcontractor or supplier) for the repair or replacement of the
deficient product or service.
