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Ohio Department of Transportation. BART Presentation AASHTO Trns•port Users Group 18 th TEA/TUG Conference and Workshop Daytona Beach, FL . November 2 - 10, 2005 . What / Who is BART ?. BART- TEA/TUG Daytona November 2005. No, Wrong BART. Don’t have a Cow Man !. ODOT NEWS.
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Ohio Department of Transportation BARTPresentation AASHTO Trns•port Users Group 18th TEA/TUG Conference and Workshop Daytona Beach, FL November 2 - 10, 2005
What / Who is BART ? BART- TEA/TUG Daytona November 2005
No, Wrong BART Don’t have a Cow Man ! ODOT NEWS BART- TEA/TUG Daytona November 2005
BidAnalysis Review Team The sharing of BART ideas and activities with other agencies, departments and friends. BART- TEA/TUG Daytona November 2005
BARTBid Analysis Review Team • ODOT – Office of Estimating • Jeff Hisem – Administrator • Three person diverse group • Tim Pritchard • Michael Guckes • David Buhn BART- TEA/TUG Daytona November 2005
Introduction “A Single Focused Mindset” can be like a … One Legged Stool BART- TEA/TUG Daytona November 2005
Where does BART sit ? • Seat - DSS (Decision Support System) • The data & tools support and sustain the group’s activities • Legs - Activities • Bid history products • Collusion and Questionable activity detection • Market Analysis • Surface beneath the stool • Activities exist upon an uneven & changing foundation. Imagine : BART- TEA/TUG Daytona November 2005
Collusion & Questionable Activity Detection Bid Analysis Review Team DSS connects to all activities Bid History Products Market Analysis Uneven & Changing Ground ODOT Environment BART- TEA/TUG Daytona November 2005
The Seat • DSS (Decision Support System) database • Necessary on-going support activities • Data is checked, re-checked, then checked again • Examples of data verification • Project coordinates • Missing rejected contract bid tabs • Changing field definitions, i.e. spec changes, vendor ids • Update approved asphalt plant & aggregate pit info • Vendor affiliate tracking • Pre-qualification • Asphalt / Aggregate inspections (QC) and approval • Use external sources i.e. ODNR, Associations, Contractors BART- TEA/TUG Daytona November 2005
1st Leg • Bid History Products • FHWA / PR45 Reports & FHWA Bridge Report • Bid History Catalog for CES and Estimator • Historical Bid Data for Estimating • Annual Report “Summary of Contracts Awarded” • Requests for Information (Internal & External) BART- TEA/TUG Daytona November 2005
FHWA / PR45 Reports • Two Quarterly Reports for the FHWA • Projects on the NHS • Firstly, a hardcopy report that provides information and $’s bid from the three lowest bidders for each project. • Secondly, a computerized Focus report that provides 1) $ split between pavement and bridge and 2) $ amounts associated with different concerned commodities for each project. • i.e. Asphalt, Excavation, Rein. Steel, Structural Concrete BART- TEA/TUG Daytona November 2005
FHWA / Bridge Reports • Annual Report for the FHWA • Criteria for report: • Determine NHS bridges and Non-NHS bridges • Only New bridge decks or removed bridge decks • Provide Info: • Type of bridge • Cost of bridge deck area (Sq Ft or Sq M) • No. of Spans • Special Conditions: i.e. locations, height, complexity, etc. BART- TEA/TUG Daytona November 2005
Bid History Catalogs • Catalogs for CES & Estimator • DSS HIREG created • Built using weighted averages or regression estimates BART- TEA/TUG Daytona November 2005
Historical Bid Data • Tool used by Estimators • Select “Item of Work” and returns following attributes • Project Number • County Route & Section • Type • Quantity • Estimated Price • Awarded Bid • Low Bid • High Bid • Average Bid BART- TEA/TUG Daytona November 2005
Historical Bid Data BART- TEA/TUG Daytona November 2005
External Contractors, OIG, AG, State Agencies, OTC SAS, Excel Spreadsheets, Geomedia Maps Quantities, Avg Pricing, Worktypes, Areas Internal Director, Construction, Accounting, Finance Presentations, Meetings, Projections/Forecasts Bundling, Asphalt Pricing, Aggregate Control, Market Shares, Cost Indices Information Requests BART- TEA/TUG Daytona November 2005
2nd Leg • Collusion & Questionable Activity Detection • Line Item Profiles (LIP’s) • 80/20 Analysis • Asphalt Analysis BART- TEA/TUG Daytona November 2005
A Tool used to determine Unbalanced Bids Front- end Loading Complementary Bidding ODOT’s current LIP method Plotting bid line items Any bidder who’s bid $ amount (of each line item) is => +/- 1% of the total estimate of the project Sham Bids Inaccurate Estimates Line Item Profiles BART- TEA/TUG Daytona November 2005
Line Item Profiles BART- TEA/TUG Daytona November 2005
80/20 Analysis • Collusion Pre-Test: Where to look first • Technique: • Analysis by contract work-type • Select items of work that have 80% of $ in work-type • Remove as-per-plan, lump sum, and each • Statistically standardize item price information (Price Change/Distribution Value) • Compare different items of work (apples to oranges) BART- TEA/TUG Daytona November 2005
Blending Price Movement with Bidding Behavior • Compare the nature of the median price change by year. • Red flag items with “too much” price change from year to year for a given price range. Method not effective for items with “each”, “lump sum” or other hard-to-measure units. BART- TEA/TUG Daytona November 2005
Asphalt Analysis • Track ownership changes from 2000 to present • Record mergers and acquisitions among paving firms • Changes in bidding behavior • Ownership of approved asphalt mfg. facilities • Ownership of approved aggregates sources • Search for collusion or other questionable behavior • Follow Info Tech methodology BART- TEA/TUG Daytona November 2005
Present Day Vendor “A”Pits/DF’s and Asphalt Facilities Pit and Asphalt Facility Pit Only Asphalt Facility Only
Vendor “B” 2001-8/2004 Wins and Losses Black – 2004 Green – 2003 Red – 2002 Blue - 2001 Shelly & Sands: 3
Vendor “B” 2001-8/2004 Wins with Number of Bidders Black – 2004 Green – 2003 Red – 2002 Blue - 2001
Single Bid Asphalt Contracts 2001-8/2004 B - contractor B G - contractor G J - contractor J K - contractor K S - contractor S S&S - contractor SS JV - joint venture O - Other Vendors [R indicates a rejected bid] Black – 2004 Green – 2003 Red – 2002 Blue - 2001
3rd Leg • Market Analysis • ODOT Cost Index: “Basket of Goods” Approach • Asphalt Bundling Project • OTC Bid Analysis BART- TEA/TUG Daytona November 2005
Asphalt Project Bundling • Scenario: A single owner gains market control of Aggregate and/or Asphalt in a specific area • Strategy: promote more than a single bid • Bundle (combine) similar Asphalt Projects in and around the market controlled area • Locate projects to bundle near competitive companies asphalt facilities • Select projects in areas with different bidders • Cross boundaries i.e. district, county • Increase size of project by $ value and/or quantity for economies of scale BART- TEA/TUG Daytona November 2005
Ohio DOT Cost Index • Primary Question: • How will inflation and market fluctuations affect future construction costs? • Develop an Index (FY01-FY05): • Used bid data in DSS for analysis to create Laspeyres type index like Consumer Price Index • Selected largest expenditure items for each commodity • “Basket of Goods” Approach • Determined composite index for each commodity “Basket” • Developed an overall ODOT composite cost index of all the individual commodity indices BART- TEA/TUG Daytona November 2005
Ohio DOT Cost Index Graph BART- TEA/TUG Daytona November 2005
Ohio Turnpike Commission - OTC • OTC: • The OTC separate from ODOT (similar operations) • The Commission manages 241-mile toll road spanning Northern Ohio • Project: • Analyze each bid item within each OTC 3-lane widening project • To include all projects, bids, and items BART- TEA/TUG Daytona November 2005
(Cont’d) Ohio Turnpike Commission - OTC • BART: • Current work: • Develop an item master of all OTC related items • Align pertinent data for useful future analyses • Download all OTC data into the DSS database • Future work: • Line Item Profiles – Analysis of bidding patterns of projects • Vendor Competition – Analysis of competitors who bid on projects or why bidders did not • Also, analysis of vendor markets, market shares and price analysis BART- TEA/TUG Daytona November 2005
The Surface…Uneven & Changing Ground • Factors that influence BART activities • Today’s newspaper articles • Tomorrow’s newspaper articles • Collusion found in neighboring states • Perceived inflation increases • Inter-office collaborations • Data availability • Requests for information BART- TEA/TUG Daytona November 2005
Wrap Up • Summary • DSS Database necessary starting point • Multiple types of activities for sustainable team • Collusion and Questionable Activity Detection • Bid History Products • Market Analysis • Discussion BART- TEA/TUG Daytona November 2005