ARTBA Engineering Issues Panel Handouts - (WASHTO, NASTO, MAASTO, SASHTO) 2019 AASHTO Regional Meetings
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ARTBA Engineering Issues Panel Handouts 2019 AASHTO Regional Meetings (WASHTO, NASTO, MAASTO, SASHTO) ARTBA 250 E Street, S.W. Suite 900 Washington, D.C. 20024 202.289.4434 artba.org 1
2019 WASHTO Conference Glendale, AZ June 10, 2019 Arizona Department of Transportation The department’s estimates on financial investment in transportation construction: We will be responsible for delivering $1B over next 2 years, but less than half of it is “ADOT/Fed” funding. 60% is local funding through sales tax in MAG and PAG regions (Phx and Tucson). Planning and design contracts and resident engineer construction inspection services you will be advertising over the next 24 months: 90-100M yearly Your state’s current position regarding design-build and public-private partnerships for trans- portation projects: We use APDM frequently for the right projects and we use P3 procurement California Department of Transportation The department’s estimates on financial investment in transportation construction: • Annual Statewide Caltrans’ financial Investment Prior to SB1 (April 2017) ✓ Capital Program ➔ $2.5B ✓ Maint Program ➔ $270M ✓ Total Program ➔ $2.8B • Annual Statewide Caltrans’ financial Investment Post SB1 ✓ Capital Program ➔ $2.5B + $1.9B = $4.4B ✓ Maint Program ➔ $270M + $430M = $700M ✓ Competitive SB1 ➔ $750M (Transit) +$300M (Trade Corridors) +$250M (Cong. Corridors) ✓ Total Program ➔ Approximately $6.4B • No sunset date for SB1 • Funds Type Composition = State + Fed + SB1 • Local Investment Not part of these number ➔ i.e. self-help counties & cities Planning and design contracts and resident engineer construction inspection you will be adver- tising over the next 24 months: • A&E Contract ➔ 10% of Caltrans workload • Next 2-years ➔ 1,000/yr of equivalent work to be contracted out • Average Annual A&E Contract ➔ $240M to $260M 2
Your state’s current position regarding design-build and public-private partnership for transporta- tion projects: • Caltrans is open to all forms of innovative delivery methods • Alternative delivery methods are becoming more widely used • Demonstrated significant benefits for appropriately selected projects • Caltrans has done Design Sequencing, CMGC, Design-Build & P3 • Design Sequencing authority expired in 2008 • CMGC now have unlimited authority since last year (2018) • Caltrans is legislatively limited to certain DB project slots • SB 4 (2009) ➔ authorized 10 DB slots ➔ gave 2 to locals ➔ total DB was $1.3B • AB 401 (2013) ➔ authorized 10 DB slots for Caltrans ➔ unlimited for local Transportation agencies • Currently ➔ 2 projects approved ➔ One is Sac 50 HOV and Rehab #300M is under procurement. • As for P3, public-private partnerships • Had one recently in 2010. • The Presidio Parkway, a 1.6-mile approach to the Golden Gate Bridge in San Francisco • Governor Schwarzenegger converted the project to P3 in 2010 • Had some challenges with project cost more than doubled to $1.3B • Besides the challenge, currently have no legislative authority to do P3 • The P3 legislative authority expired on Jan 1, 2017. • Would need new legislative authority • Would also need CTC approval to use P3 Idaho Transportation Department The department’s estimates on financial investment in transportation construction: Estimated Financial Investment in Transportation Construction (in millions, includes local systems eligible for federal aid and the state highway system) Contracted Contracted Preliminary Construction Contract Engineering Engineering Construction 2019 $47,845,084 $26,322,880 $488,622,407* 2020 13,798,657 21,640,334 455,326,308* 2021 4,933,000 17,532,900 423,891,361* 2022 1,362,000 10,725,200 335,037,500 2023 730,000 7,252,400 325,802,480 5-Yr. Avg. $13,733,748 $16,694,743 $405,736,011 *These three years include a total of $300 million GARVEE bonding from FY19- FY25 Approved Pro- gram (5-28-2019) 3
Your state’s current position regarding design-build and public-private partnerships for transpor- tation projects: Idaho has legislation enabling design-build and public-private partnerships (Sections 40-904 and 40- 9-905, Idaho Code) and is working with the Associated General Contractors and the American Coun- cil of Engineering Companies to actively promote and expand the use of design-build and public-pri- vate partnerships in the state. Design-build and public-private partnerships are tools that ITD uses, depending on which will create the best return on investment for each individual construction project. The 2019 Northgate interchange project, located north of Pocatello, is a public-private partnership that is currently under construction. ITD will continue to pursue opportunities in the future to implement design-build and public-private partnerships, but due to the rural nature of Idaho, design-bid-build will likely continue to be the best tool for most projects in the foreseeable future. Montana Department of Transportation The department’s estimates on financial investment in transportation construction: We estimate approximately the following expenditures: Federal Aid Construction - $325 million State funded Construction - $6 million Consultant payments - $17 million Planning and design contracts and resident engineer construction inspection services you will be advertising over the next 24 months: It is unknown about specific projects, but we annually contract for about $10 - $15 million in consul- tant work. We are also in the process of initiating Consultant Construction Contract Administration/ Consultant Engineering Inspection. We plan to contract 2 – 5 projects starting in 2020 with an estimated expen- diture of $3 - $5 million. Your state’s current position regarding design-build and public-private partnerships for transpor- tation projects: Design – Build – We award between 5 – 10 projects each year with an annual cost of $20 - $30 mil- lion. This year we are proposing a project that will require the firm to acquire R/W which is unique for our program. We also received approval from the 2017 legislature to begin using CM/GC as an alternative con- tracting mechanism. We have awarded two contracts for design and are in the process of awarding a third within the next couple of months. Our Public-Private partnerships are fairly small scale. Most of our P3 projects are coordination ef- 4
forts with developers and having them mitigate their impacts on our system. They typically con- sist of intersection improvements such as signals or turning lanes. Nebraska Department of Transportation The department’s estimates on financial investment in transportation construction: Given the significant damage to Nebraska’s transportation system due to spring flooding, (March 2019 ER) the 2020 Construction Program is currently still being evaluated. Generally speaking, NDOTs annual construction program is between $500-600 million: • NDOT’s annual goal is to do preservation work on 500 miles of the state highway system (20% of 10,000 network miles). • 10-15% of the construction program is dedicated to Capital Improvement (construct high- way or bridges that weren’t there before, or add new lanes or structures to the system), • 5-10% of the construction program is dedicated to light surface maintenance (such as fog seals or crack seals) done primarily by State Forces. • 75-85% of the construction program is dedicated to Asset Preservation which includes preserving and modernizing existing interstate, highways and bridges on the state system, contracted with external construction companies. In Nebraska, Federal Aid is used to fund 80-90% of the preservation and modernization construc- tion on the State’s interstate, highways and bridges. If federal re-authorization is not addressed in the next year, the impact will be felt on projects that make up over 75% of our annual construc- tion program (projects used to preserve and modernize the system). Planning and design contracts and resident engineer construction inspection services you will be advertising over the next 24 months: The annual Engineering Consultant services budget is approximately $37 million per year. • Typically, NDOT has contracted out approximately 40-50% of all of its professional services. • There has been an upward trend on professional services contracted, as high as 60% - mostly due to initiation of a large Design-Build contract and multi-service project contract- ing (contracting all services for 20+ projects, in addition to individual services. • Historically $3 million paid on Construction Engineering services annually (for state and local federal aid projects), expect that to continue or increase with letting of Lincoln South Beltway, where we may have a larger CE contract due to size and aggressive nature of con- struction schedule. • Expect to contract $30-40 million annually and pay out $25-35 million annually – this is con- sistent with latest 5 year trend. • Professional services contracts will increase in near term due to 2019 flood event response. 5
Your state’s current position regarding design-build and public-private partnerships for trans- portation projects: • Governor Ricketts believes in applying the same principals of efficiencies and effectiveness found in business to the public sector. The NDOT supports Public Private Partnerships and utilizes them where efficiencies can be found. • Legislation recently changed in Nebraska, allowing us to use DB and CMGC. • The majority of Nebraska’s construction is asset preservation, which don’t lend themselves to these types of procurement tools as well as Capital Improvement projects. • NDOT currently has one DB project and has plans to pilot one CMGC for Wetland Bank cre- ation to determine if that is a good tool for this type of project. • We will use DB or CMGC periodically for certain projects. Both tools will be used sparingly, we don’t expect it to be used widespread in Nebraska. South Dakota Department of Transportation The department’s estimates on financial investment in transportation construction: Planned FY2020 - $500 million/year with approximately $350 M of that on preservation mainte- nance. Planning and design contracts and resident engineer construction inspection services you will be advertising over the next 24 months: Approx. 15% of our program uses consultant services. Your state’s current position regarding design-build and public-private partnerships for trans- portation projects: None to very limited. Texas Department of Transportation The department’s estimates on financial investment in transportation construction: • 10 year plan is $76.9 Billion => $7.7Billion/year Planning and design contracts and resident engineer construction inspection services you will be advertising over the next 24 months: • Planning and Design = $1.285 Billion/year => $2.570Billion/24 months • CEI = $222 Million/year => $444 Million/24 months Your state’s current position regarding design-build and public-private partnerships for trans- portation projects: • Design-Build = 6 per Biennium (Minimum of $150Million per project) 6
Utah Department of Transportation The department’s estimates on financial investment in transportation construction: Total department investment of $1,300 million in construction: $820 million on capacity enhance- ments, $252 million dedicated to pavement preservation, rehabilitation & management, & another $228 million programmed to safety, structures & enhancements. Planning and design contracts and resident engineer construction inspection services you will be advertising over the next 24 months: The UDOT forecast for consultant services over the next few years is generally constant. We have experienced a significant growth in PE Services over the past several years due to a growth in our program, specifically mid-size Design Build, CMGC, and Progressive Design Build Projects ($100- $600M) and large Design-Build-Build Projects ($100M). The Planning and Design Services will continue in the range of $90M/year and the Construction Engineering Services will continue in the $22M ranges. See attached expenditure slide Specific information on our upcoming known and projected consultant services contracts can be found on the UDOT webpage (udot.utah.gov) by searching for “Consultant Marketing Report) Your state’s current position regarding design-build and public-private partnerships for trans- portation projects: UDOT uses Design-Build as well as other innovative contracting methods frequently as a way to provide value to the traveling public. Design-Build has provided innovation, time/cost savings and has minimized traffic impacts during construction. UDOT intends to continue to use Design-Build as well as other innovative contracting methods (such as CMGC and Progressive Design Build) to provide value to the traveling public. Utah recently passed legislation (63g-6a-712) that allows for unsolicited proposals for a public-pri- vate partnership infrastructure project. UDOT then recently developed an administrative rule (R926-16) related to Unsolicited Proposals for Transportation Infrastructure Public-Private Partner- ships. UDOT has not received any unsolicited proposals to date. Washington Department of Transportation The department’s estimates on financial investment in transportation construction: • WSDOT will have an estimated $4.7 billion of transportation construction expenditures over the next 24 months; i. Highway Construction $3.7 billion ii. Ferry Terminal & Vessel Construction $450 million iii. Other Construction $545 million • The 2003, 2005, and 2015 revenue packages fund projects with estimated expenditures of 7
$3.6 billion over the next 24 months: i. 2003 Nickel $55 million ii. 2005 TPA $502 million iii. 2015 CWA $3 billion • The 2015 Connecting Washington revenue package includes an additional $7.7 billion of planned expenditures through the 2029-31 biennium. • Over the next 24 months the estimated Highway Construction Program expenditures for: State of Good Repair is $817 million Safety is $137 million and Capacity is $2.7 billion Planning and design contracts and resident engineer construction inspection services you will be advertising over the next 24 months: • The design/inspection services portion of the Highway Construction Program’s next 24 month’s expenditures is estimated to be $690 million $400 million is for preliminary engineering services (PE) $350 million is for construction engineering services (CN) Over $50 million for design contracts will be awarded over the next 24 months. This does not include design services provided under a Design/Build contract. The Consultant Services Office currently maintains a list of On-Call Construction Manage- ment, Inspection, Change Order Management & Scheduling Services agreements worth $32 million. This does not include services provided under a Design/Build contract. Your state’s current position regarding design-build and public-private partnerships for transporta- tion projects: • 19 design/build project are currently underway with a total contract value of $3.7 billion. Top three projects are: SR 99/Tunnel Alternative, Tunnel Design Build ($1.6 billion) I-405/SR 167 Renton to Bellevue – Corridor Widening & ETL (Stage 2) ($700 million) SR 520/Montlake to Lake Washington - I/C and Bridge Replacement ($455 million) • 46 currently planned design/build project with a total estimated contract value of $4.6 billion. Top three projects are: I SR 167/I5 to SR 509 Stage 1B ($400 million) SR 509/I5&SR516 I/C to 28th/24th Ave S – SR509 Stage 1 ($350 million) I-5 Mounts Rd to Steilacoom-DuPont Rd – Corridor Improvements ($200 million • No Public/Private Partnerships (P3) due to complex statutory framework: i. For a transportation project to be executed as a P3, the proposal must go through a vetting process where there are six opportunities for the project to be approved or denied. ii. Potential private sector partners are not willing to invest the time and/or money to develop a proposal (or response to a P3 opportunity) because WSDOT’s current 8
authorization is too cumbersome and there is little to no chance of approval. • There is growing interest in using various P3 models, where appropriate, on some of our proj- ects. i. We continue to discuss revising current statutory restrictions governing the use of P3’s. ii. On a smaller scale, WSDOT is piloting efforts to deploy P3’s on “social infrastruc ture” projects. For example, the we’ve been authorized to move forward with the construction of a Transit Oriented Development facility at our Kingsgate park and ride. This project, when completed, will increase parking capacity for transit riders and provide much needed additional housing stock – both affordable and market rate. 9
2019 NASTO Conference Wilmington, DE July 10, 2019 Connecticut Transportation Department The department’s estimates on financial investment in transportation construction: The potential installation of tolls on CT highways was vigorously debated during this year’s leg- islative session. Governor Lamont has stated his intention to call a special legislative session on this topic. Toll revenue has the potential to add significantly more revenue for highway improve- ments. Without tolls, the CTDOT capital program will be about $1.5 to $1.6 billion per year (state + federal). With tolls, the CTDOT capital program could be approximately $2 billion per year (again total $). Planning and design contracts and resident engineer construction inspection services you will be advertising over the next 24 months: The Department posts current consultant solicitations on its web site at https://www.ct.gov/dot/ cwp/browse.asp?a=1527&bc=0&c=24461. Future consultant assignments (for approximately the next 6 mos.) may be found at https://www.ct.gov/dot/lib/dot/Solicitation_Look_ahead_-_6.12.19. pdf. Construction projects advertised by CTDOT as well as municipally advertised projects fund- ed by CTDOT (for the next 6-12 mos.) may be found at https://www.ct.gov/dot/cwp/view.as- p?a=1399&q=260048. Your state’s current position regarding design-build and public-private partnerships for trans- portation projects: CTDOT has completed 1 DB project, the second is nearing completion, and several more are in development. Information on future DB projects is posted at https://www.ct.gov/dot/cwp/view. asp?a=4453&q=534602. District Department of Transportation The department’s estimates on financial investment in transportation construction: DDOT has over $4 billion in current federally and locally funded infrastructure projects. Planning and design contracts and resident engineer construction inspection services you will be advertising over the next 24 months: DDOT has a project forecast website where all near term projects are listed. It can be accessed here: https://ddot.dc.gov/page/ddot-projects-forecast 10
Your state’s current position regarding design-build and public-private partnerships for trans- portation projects: DDOT currently has one active design-build construction project and one P3 in procurement. The agency is exploring opportunities to use both procurements methods for future projects. New Hampshire Department of Transportation The department’s estimates on financial investment in transportation construction: For FFY18, the Department advertised $150M worth of construction contracts (80 contracts). For FFY19, the Department anticipates to advertise $211M worth of construction contracts (81 con- tracts). Planning and design contracts and resident engineer construction inspection you will be adver- tising over the next 24 months: We look out and post a 6-month look ahead of possible consultant selection projects. This infor- mation is posted at https://www.nh.gov/dot/org/projectdevelopment/highwaydesign/consultants/ fyiprojects.htm. Over the next six months, it looks like we will be soliciting for 23 contracts with an approximate total value of $22M. Your state’s current position regarding design-build and public-private partnership for trans- portation projects: The Department advertised one design-build construction contract in FFY18 and looking at one design-build construction contract in FY20. We are also evaluating two other projects in FY21 as to whether design-build approach makes sense. The Legislature established a P3 Commission in NH to review and evaluate P3 approach for transportation projects. Two P3 projects are moving forward to RFQ/RFP stage with another two on the horizon. NHDOT is very open to sensible P3 projects as private investment to sustain and promote growth in transportation infrastructure is very much needed. New Jersey Department of Transportation The department’s estimates on financial investment in transportation construction: NJDOT plans to put out $900M in construction awards. (Operations - $300M / Capital Program Management - $650M) Planning and design contracts and resident engineer construction inspection services you will be advertising over the next 24 months: Please see attached anticipated solicitations for consultant professional services (in the next 24-months) for NJDOT. 11
Your state’s current position regarding design-build and public-private partnerships for trans- portation projects: Although P3s have thus far been focused on vertical construction settings in New Jersey, there is potential for this funding method to be used for a wide variety of projects ranging from infrastruc- ture to transportation. In 2018 New Jersey enacted legislation that allows for statewide road P3 projects. The legislation allows for a small number (8) of statewide roadway or highway projects that re- quire not only private investment, but also public support (at least $100 million). For local proj- ects this limit is significantly lower ($10 million). A private entity is required to establish a construction account to fully capitalize and fund the project. NJDOT does not have statutory authority for design-build project delivery. Pennsylvania Department of Transportation The department’s estimates on financial investment in transportation construction: PennDOT construction letting program will be approximately $2.2 billion down slightly from the past two years (approximately $2.5 billion) Planning and design contracts and resident engineer construction inspection services you will be advertising over the next 24 months: PennDOT anticipates roughly $550 million in consultant payouts; of which $410 million for plan- ning and design contracts and $140 million for construction inspection services Your state’s current position regarding design-build and public-private partnerships for trans- portation projects: PennDOT is currently limited to low-bid selection on design-build procurement, which reduces the ability to use more innovative design-build procurement such as best value, CMGC or pro- gressive design-build. The P3 office accepts unsolicited in the spring and fall of each year. We have 4 unsolicited pro- posal from 2018 and 7 from 2019 that are being reviewed. Currently there are 3 active projects within the P3 office and 2 Projects under procurement. 12
2019 MAASTO Conference Indianapolis, IN August 14, 2019 Iowa Department of Transportation The department’s estimates on financial investment in transportation construction: Amounts projected for primary highway right-of-way and construction in our 5-year transportation program include: • FY 2020 = $786.5 million • FY 2021 = $749.6 million • FY 2022 = $675.3 million • FY 2023 = $719.4 million • FY 2024 = $695.8 million Planning and design contracts and resident engineer construction inspection you will be adver- tising over the next 24 months: • Bridge Inspection • Bridge Design • Road Design • Survey (photogrammetry, aerial photography, LIDAR, land survey) • Location and Environment T&E Species • GIS services • Asbestos abatement services • Support Services • Construction Inspection Your state’s current position regarding design-build and public-private partnership for trans- portation projects: In Iowa, state law does not allow design-build and we have not been involved with any public-pri- vate partnerships for transportation projects. Kansas Department of Transportation The department’s estimates on financial investment in transportation construction: • KDOT plans to spend about $600 Million a year for the next two years • We will be proposing a program to the state legislature in the spring to increase that amount 13
Planning and design contracts and resident engineer construction inspection services you will be advertising over the next 24 months: • We anticipate spending about $24 Million a year on Planning and design contracts over the next two years • We anticipate spending about $15 Million a year on construction engineering contracts over the next two years Your state’s current position regarding design-build and public-private partnerships for trans- portation projects: • Currently KDOT does not have legislative authority to use alternate delivery. We will be working in the next legislative session to obtain that authority. • In the spring, KDOT plans to seek authority to procure transportations infrastructure proj- ects using alternative project delivery such as design build, CM-CG, and EPC and alternative financing options such as public-public partnerships and public-private partnerships. Kentucky Transportation Cabinet The department’s estimates on financial investment in transportation construction: Based on current revenue projections, KYTC anticipates annual construction investment over the next 2-3 years at approximately $850 Million/year. We have had revenue enhancement bills introduced in the last two annual legislative sessions. Neither passed, but they have furthered the discussion. We anticipate this will be revisited in the 2020 legislative budget session. Planning and design contracts and resident engineer construction inspection services you will be advertising over the next 24 months: KYTC averages 200 contracts and contract mods for about $140 Million annually. These typically pay out about $80-$90 Million per year. Again, barring additional revenue we would anticipate these numbers to remain relatively the same. Your state’s current position regarding design-build and public-private partnerships for trans- portation projects: Kentucky modified our Design-Build legislation in 2017 to allow expanded capacity. We are cur- rently leveraging that legislation on 4 projects of varying size ($40 Million to $180 Million). Our approach has been to use Design-Build when we believe it can add significant value to the pro- ject(s). The Cabinet has not entered into a P3 yet. Kentucky also just recently (2016) passed enabling legislation for P3s. The current legislation limits these to projects over $100 Million. We have been examining some of our larger projects as possible candidates. 14
Michigan Department of Transportation The department’s estimates on financial investment in transportation construction: 15
Planning and design contracts and resident engineer construction inspection services you will be advertising over the next 24 months: MDOT CSD creates the ‘Anticipated Quarterly Advertisement’ which documents projects that may be advertised for the next quarter. The most current one that is published is for the period 7/1/19 – 9/30/19. We reach out to Regions to obtain the information. Beyond 9/30/19, MDOT does not have an indication of what will be advertised until we receive it. There is also no guarantee that: The projects on the list will be advertised; or that projects not on the list will be advertised during that timeframe. The current listing is linked below. https://www.michigan.gov/documents/MDOT_Qrtly_RFPs_010106-033106-post- ed_121505_145035_7.pdf?20070622 Your state’s current position regarding design-build and public-private partnerships for trans- portation projects: The Michigan Department of Transportation (MDOT) utilizes various alternative contracting meth- ods to deliver projects. These methods include Design-Build (DB) and Public Private Partnership (P3) delivery, when appropriate. MDOT has a mature Innovative Contracting Unit, having success- fully implemented numerous DB and 2 P3 projects, and having benefitted from lessons learned on these projects. MDOT understands the value and efficiency that can be achieved through partnering with Industry on these projects and the volume of projects MDOT delivers through al- ternative contracting methods is increasing. Information related to MDOT’s Innovative Contracting Program including currently advertised projects can be found on MDOT’s website at the following location: https://www.michigan.gov/mdot/0,4616,7-151-9625_21539_53226---,00.html. Guidance on MDOT’s Innovative Contracting Program can be found here: https://www.michigan.gov/docu- ments/mdot/Innovative_Construction_Contracting_340000_7.pdf. Minnesota Department of Transportation The department’s estimates on financial investment in transportation construction: 16
Planning and design contracts and resident engineer construction inspection services you will be advertising over the next 24 months: MnDOT does not know which construction projects will require consultants until shortly before construction begins. Our use of consultants for construction contract administration (defined as at least one consultant inspector per project) was about 40% this year, and is expected to be ap- proximately the same next year. MnDOT typically hires consultants to supplement our own staff. We use consultants for construction inspection and oversight but it is hard to predict which jobs/ projects will be utilizing consultants unless they have specialty expertise needs. The vast majority of that 40% usage is through our pre-qualification program and GEC program (as opposed to the full Request for Proposals process). Those two programs serve our quick turn-around design needs so it is also hard to predict which projects will be consulted out. As noted in investments above, our investment in consultant agreements averages about 10% of our 17
construction program investments. A list of upcoming, potential projects that will need consul- tant contracts can be found on MnDOT’s website at: http://www.dot.state.mn.us/consult/notices. html Your state’s current position regarding design-build and public-private partnerships for trans- portation projects: Minnesota uses Design-Build partnerships when it appears to be the best method to address a particular project’s goals. The method is best suited for unique, complicated, and/or accelerated projects. Such projects are often large, but we have found that it can work well for small tech- nical and/or unique projects as well. We believe that, when used on appropriate projects, De- sign-Build can offer the best overall value to the department in terms of total project cost, quality, time, and other factors. MnDOT currently lets about three to four design build projects per year. These projects usually large, with estimates between $25-250 million, but we have let DB projects as small as $500,000. The three to four project-per-year average will likely hold steady or grow slightly as we move into the future. We view ourselves as having a ‘mature’ program, and we utilize almost all of the Best Practices recommended by the Design-Build Institute of America (DBIA). MnDOT does not make use of public-private-partnership (P3) projects. We have studied P3s and believe we have the technical expertise necessary to do so, however, we believe that bonding is a generally superior method to raise funds to advance projects. Furthermore, the Minnesota public does not favor general-purpose toll lanes and, while there are other ways to raise funds for P3 projects, tolling is the easiest and most common. Without tolling, we do not see significant op- portunities for P3 projects. MnPASS lanes are an exception, but we already have an organization in place for those lanes and the proceeds from them would be unlikely to support a significant amount of construction in any case. Missouri Department of Transportation The department’s estimates on financial investment in transportation construction: We will average $900 million to $1 billion in construction awards for the next 5 years. This as- sumes Congress passes a new Transportation bill that is at least equal to the Fast Act. If Congress doesn’t act our awards will reduce by $330 million a year. Planning and design contracts and resident engineer construction inspection services you will be advertising over the next 24 months: We will average $40 million a year for the next 24 months for consultant services. About 5% will be for construction administration and the rest will heavily be focused on bridge design. Your state’s current position regarding design-build and public-private partnerships for trans- portation projects: We are very involved with design build as a delivery method. We have 3 DB projects under con- struction, one in procurement, and several more on the horizon. 18
2019 SASHTO Conference Savannah, GA August 20, 2019 Alabama Department of Transportation The department’s estimates on financial investment in transportation construction: We estimate that we will let $700m to $750m to contract in FY 2020. Planning and design contracts and resident engineer construction inspection you will be adver- tising over the next 24 months: ALDOT executes contracts for consultant services using individual, lump sum contracts for a single project and through the execution of on-call, indefinite delivery contracts that are used as needed. Typically, only a little more than half the amount of the on-call services agreements is expended. Below are the values that ALDOT typically executes for consultant services over a 24 month period. On-Call Construction E&I $60 million Design $32 million Geotechnical $20 million Planning $ 8 million Lump Sum Project Specific Construction E&I $ 6 million Design $18 million On-call services contracts that we will advertise during the next 24 months include: • Environmental Management • Public and Community Relations • Building Construction Management Services • Coastal Engineering Services • Architectural Services for projects with Federal Participation. Your state’s current position regarding design-build and public-private partnership for trans- portation projects: ALDOT has the ability to use design build contracting methods on projects greater than $100m. The design-build legislation would allow P3 contracting methods, however, if tolling is involved, the project must be authorized through the Alabama Road and Bridge Toll Authority. The state’s position on design build and P3 partnership is that there are limited projects in Alabama that would be eligible. The Mobile River Bridge is one such project that is being advanced as a P3 venture. 19
Arkansas Department of Transportation The department’s estimates on financial investment in transportation construction: 2019: $1.4 billion (includes projects already let and $570 million for the 30 Crossing Project) 2020: $684 million (includes $95 million from Act 416) 2021: $653 million (includes $95 million from Act 416) 2022: $539 million (includes $95 million from Act 416) Planning and design contracts and resident engineer construction inspection you will be adver- tising over the next 24 months: Currently, there are two transportation funding initiatives underway in Arkansas. They are the Connecting Arkansas Program and the Interstate Rehabilitation Program. Due to the workload over the past few years from these programs, along with our regular federally funded projects, we have increased our use of consultant design and inspection services. The use of these ser- vices has enabled us to accomplish this additional workload. However, when our 2019-2022 Statewide Transportation Improvement Program was developed, we made a substantial effort to focus on system preservation projects with our regular Feder- al-Aid. Since the scope of system preservation projects does not require the same level of proj- ect development and inspection as widening or new location projects, we will not need the same level of consultant design and inspection services in the future as we have in the past. Listed below is a summary of our consultant services currently under contract and the anticipated needs. Planning On-call planning consultants were advertised and selected in 2018 for studies to be accomplished from 2019 to 2021. We currently have seven on-call firms under contract. We anticipate the next advertisement for on-call planning firms in 2021. Design On-call design consultants were advertised and selected in 2016 for design projects to be accom- plished from 2017 to 2020. We currently have five on-call firms under contract. We anticipate the next advertisement for on-call design firms in 2019. Construction Inspection On-call construction inspection consultants were advertised and selected in 2018 for construc- tion to be accomplished from 2019 to 2021. We are currently negotiating contracts with seven firms. This includes construction inspection, construction management for utilities and roadway improvements, Critical Path Method scheduling, and ability for firms to provide inspector support as well as full-service resident engineer office support. We anticipate the next advertisement for on-call construction and inspection firms in 2021. 20
Your state’s current position regarding design-build and public-private partnership for trans- portation projects: The Department is currently in the process of delivering our first design-build and construction manager/general contractor projects. Although these projects are still in the early phases of delivery, we have already recognized the benefits of the delivery methods, especially in the areas of innovative contracting, project schedule, and impact on the traveling public. Looking forward, alternative delivery will continue to be an important tool in our project delivery toolbox as we consider how to best address the pressing needs of our transportation system. We expect to see an increased use of alternative delivery on urban projects with tight corridors and complex maintenance of traffic scenarios as well as on bundled system preservation proj- ects. Although a public-private partnership has not yet been attempted by the Department, this method of project delivery is being explored and will be considered if a relevant project is identi- fied in the future. Georgia Department of Transportation The department’s estimates on financial investment in transportation construction: For the State Fiscal Year 2020 (7/1/19 – 6/30/20) the Georgia Department of Transportation will authorize approximately: • $1.5 billion in construction funds • $582 million in right-of-way funds • $116 million in preliminary engineering funds Planning and design contracts and resident engineer construction inspection services you will be advertising over the next 24 months: The Department plans to advertise and award 12 separate A&E contracts in fiscal year 2020. These include 4 multi-phase project specific contracts and 28 bridge replacement projects bun- dled into 8 contracts. The Department will advertise and award 2 separate design-build contracts. These design build contracts will be for the reconstruction of an interchange on I-16 and two bridge replacements. Additionally the Department plans to procure 3 separate contracts for right- of-way acquisition services. The Department will also advertise 17 on-call contracts for: • Construction Engineering Inspection services for District 3 • Maintenance Engineering and Inspection Services for District 7 (Metro Atlanta) • Maintenance Engineering and Inspection Services Statewide • Bridge Load Rating Services • Emergency Management Services • Transit On-Call Services • Planning Support Services • On-Call Statewide Aviation Planning and Engineering Services • Roadway and Laboratory Testing (District 7) • Vibration Monitoring, Video Inspection, and Geophysical Testing (Statewide) • Traffic Control (Statewide) • Regional Traffic Operations Program (RTOP) 21
• Signal and ITS on-call engineering (3 regional contracts) Your state’s current position regarding design-build and public-private partnerships for trans- portation projects: • Georgia uses both design-build (DB) and public-private partnerships (P3) • Design-build continues to be an excellent complement to the delivery toolbox on select projects that are a good fit. A delivery/risk assessment is appropriate always before moving forward. • The P3 approach adds financial innovation to technical innovation in a competitive environ- ment. Georgia uses design-build finance (DBF) as a P3, which only leverages short term gap financing. This works nicely to ‘right size’ large projects into an already robust program, on a multiyear funding basis. Less impact to the regular program. • Currently, Georgia has approximately $2 Billion in construction using this method, including both DBF and DB. Kentucky Transportation Cabinet The department’s estimates on financial investment in transportation construction: Based on current revenue projections, KYTC anticipates annual construction investment over the next 2-3 years at approximately $850 Million/year. We have had revenue enhancement bills introduced in the last two annual legislative sessions. Neither passed, but they have furthered the discussion. We anticipate this will be revisited in the 2020 legislative budget session. Planning and design contracts and resident engineer construction inspection services you will be advertising over the next 24 months: KYTC averages 200 contracts and contract mods for about $140 Million annually. These typically pay out about $80-$90 Million per year. Again, barring additional revenue we would anticipate these numbers to remain relatively the same. Your state’s current position regarding design-build and public-private partnerships for trans- portation projects: Kentucky modified our Design-Build legislation in 2017 to allow expanded capacity. We are cur- rently leveraging that legislation on 4 projects of varying size ($40 Million to $180 Million). Our approach has been to use Design-Build when we believe it can add significant value to the pro- ject(s). The Cabinet has not entered into a P3 yet. Kentucky also just recently (2016) passed enabling legislation for P3s. The current legislation limits these to projects over $100 Million. We have been examining some of our larger projects as possible candidates. Louisiana Department of Transportation & Development The department’s estimates on financial investment in transportation construction: The below list shows the capital program amounts for the current year plus three future years. 22
These program amounts do not include GARVEE bonds or debt service. Louisiana averages about 400 projects per year. • FY19-20: $856 million • FY20-21: $935 million • FY21-22: $952 million • FY22-23: $979 million Planning and design contracts and resident engineer construction inspection services you will be advertising over the next 24 months: • We have 50 projects/contracts currently known to be advertised in the next 24 months. The actual number advertised in the next 24 months will probably be greater due to unexpected workload at the time of project initiation. http://wwwsp.dotd.la.gov/Inside_LaDOTD/Divisions/Engineering/CCS/Pages/Projected_Ads.aspx • 28 of the 50 are IDIQs (retainers) 7 Geotechnical services 2 Critical Path Method (CPM) services 3 Alternative Delivery Procurement Support services 8 Survey services 2 Electrical design services 2 Underwater Bridge Inspection services 1 ITS Maintenance Design services 2 Bridge Replacement Design services 1 Pavement Preservation services 4 of the 50 are project specific CEI contracts 12 of the 50 are project specific design services 6 Bridge related design services 4 Road related design services 1 Interstate Overpass with Roundabouts at ramp terminals 1 Sidewalk design services 6 of the 50 are specialty type services 3 Project Management services for SRTPP, LRSP 1 Tunnel Inspection services 1 TMC Operations 1 Statewide Aviation Program update Your state’s current position regarding design-build and public-private partnerships for trans- portation projects: Louisiana has done a number of design-build projects and currently have at least three in con- struction and one pure design build in procurement. The state is also in the final stages of its first infrastructure Public Private Partnership, which is a DBFOM, and has recently begun at DBF pro- curement. Additionally, there state is procuring two CMAR projects of different scale, one large, rural type project that replaces bridge structures, and an urban interstate redevelopment in Baton Rouge. As an agency that embraces innovative delivery, we do not anticipate a scenario where the majority of the work is procured differently that the traditional design Bid Build model. We do have a few large projects on the horizon where the delivery will be considered innovative be- 23
cause of the large nature of the project, or the need to leverage innovation and private equity. North Carolina Department of Transportation The department’s estimates on financial investment in transportation construction: NCDOT’s estimated construction lettings will be $2-$2.5B over the next 12 months on capital and maintenance projects. Planning and design contracts and resident engineer construction inspection you will be adver- tising over the next 24 months: NCDOT anticipates the following design and construction inspection advertisements over the next 2 years. • Planning, Design and GESC Limited Services Contracts for NCDOT’s Central Units. (February 2020 Advertisement) • Statewide On-call Construction Engineering and Inspection Contracts. • (May 2020 Advertisement) • Construction Engineering and Inspection Contract for the widening of I-95 to eight lanes in Cumberland and Harnett Counties. • (INFRA project) (Anticipated advertisement Fall 2019) • Construction Engineering and Inspection Contract for a design-build project along US 70 at James City. • (INFRA project) (Anticipated Advertisement Winter 2019) Your state’s current position regarding design-build and public-private partnership for trans- portation projects: • NCDOT’s Design-Build program is active and has been since the early 2000’s on projects that lend themselves to innovation. An average of 5-8 projects are let per year through the Design-Build process. While these projects make up a small percentage of the overall num- ber of projects, they tend to be larger, more complex projects with a high dollar value. • NCDOT was given the legislative authority to pursue up to three projects through the pub- lic-private partnership program. To date, NCDOT has implemented the public-private part- nership process on one project. South Carolina Department of Transportation The department’s estimates on financial investment in transportation construction: With the passage of the Roads Funding Bill by the legislature in 2017, SCDOT’s construction program has grown almost 4 times in the last 5 years from $1Billion to almost $4Billion. The increased revenues are phased in at 2 cents/year over 6 years for a total increase of 12 cents. As such we expect to see our construction program to continue to grow accordingly. We have sev- 24
eral projects, in excess of over $1 Billion, slated to begin in the next 1-5 years. Our construction program is strong and growing. Planning and design contracts and resident engineer construction inspection you will be adver- tising over the next 24 months: As previously mentioned, our construction program has grown almost 4 times over the last 5 years without any increase in SCDOT positions. SCDOT has relied on our consultant partners to deliver and inspect this increase in our program. SCDOT generally procures our professional services in one of three ways; turn-key (project specific), on-call (generally 3-year terms), and small purchase. Over the next 24 months, we anticipate procuring approximately 40 – 45 design and planning contracts totaling approximately $50 - $60 Million for both turn-key and on-call. Likewise, over the next 24 months, we anticipate procuring approximately 15 – 20 CE&I contracts totaling $100 - $120 Million for both turn-key and on-call. Your state’s current position regarding design-build and public-private partnership for trans- portation projects: SCDOT very much uses the Design/Build procurement approach. Most of our interstate widening and interchange projects are design/build and range in from $75 Million to $400 Million. In addi- tion, SCDOT bundles small bridge replacement projects together into a design/build package that ranges between $10 Million to $40 Million. We are also using Design/Build on some of our larger, complicated bridge replacement projects. Finally, our upcoming $1 Billion interstate-to-interstate interchange/widening projects will go Design/Build. SCDOT has had 2 PPP projects in South Carolina, one failure and one with moderate success. We are not opposed to PPP, but this process should be utilized on projects that make sense and pro- vide a financing plan that is advantageous to the project owner. Texas Department of Transportation The department’s estimates on financial investment in transportation construction: 10 year plan is $76.9 Billion => $7.7Billion/year Planning and design contracts and resident engineer construction inspection you will be adver- tising over the next 24 months: • Planning and Design = $1.285 Billion/year => $2.570Billion/24 months • CEI = $222 Million/year => $444 Million/24 months Your state’s current position regarding design-build and public-private partnership for trans- portation projects: Design-Build = 6 per Biennium (Minimum of $150 Million per project) 25
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