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Texas Turnpike Authority Division

Texas Turnpike Authority Division. 2009 AASHTO Right of Way & Utilities Committee Conference. Wednesday – April 22, 2009. Request for Proposals & Scope of Service Documents. Public-Private Partnerships Comprehensive Development Agreements. Donald C. Toner Jr., SR/WA.

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Texas Turnpike Authority Division

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  1. Texas Turnpike Authority Division

  2. 2009 AASHTORight of Way & Utilities Committee Conference Wednesday – April 22, 2009

  3. Request for Proposals & Scope of Service Documents Public-Private Partnerships Comprehensive Development Agreements

  4. Donald C. Toner Jr., SR/WA Director – Turnpike Right of Way Texas Turnpike Authority Division Texas Department of Transportation 125 E. 11th Street Austin, Texas 78701-2483 dtoner@dot.state.tx.us Office: (512) 334-3834 Fax: (512) 334-3901

  5. TxDOT’s PLAN • Reduce Congestion • Enhance Safety • Expand Economic Opportunity • Improve Air Quality • Increase the Value of Transportation Assets

  6. Four Strategies: • Use all financial options to build transportation projects. • Empower local and regional leaders to solve local and regional transportation problems • Increase competitive pressure to drive down the cost of transportation projects • Demand consumer-driven decisions that respond to traditional market forces

  7. Transportation Project • Develop • Design • Construct • Finance • Operate • Maintain

  8. Global companies bring resources to the state to help Texas travelers realize the future of safer, smoother, and more efficient transportation sooner. • The private sector plays a major role in developing Texas’ transportation system

  9. CDA Methodology • Comprehensive Development Agreement (CDA) is a tool TxDOT uses to enable private investments in the Texas transportation system. • CDAs provide competitive selection process for developing regional projects. • A public-private partnership opens the door to accelerated financing, design, construction, operations and/or maintenanceof a project.

  10. Request for Proposals

  11. Request for Proposals The Private-Sector is provided the opportunity to earn TxDOT Business through a competitive selection process.

  12. Private Companies Submit Their Qualifications • Describe their technical and engineering experience • Provide a conceptual strategy explaining how the project could be completed • Submit a Financial Plan

  13. RFP Detailed Process • Authorization by the Texas Transportation Commission to issues request for proposals and qualifications. • TxDOT issues request for proposals and qualifications • Deadline to submit proposals and qualifications • TxDOT evaluation and short list teams

  14. RFP Detailed Process • Authorization by the Texas Transportation Commission to issue request for detailed proposals • TxDOT issues Request for Proposal • Deadline to submit Detailed Proposals • TxDOT Evaluation • Selection of best-value proposal. • RFP Addendums

  15. RFP - Series of Addendums • Cover Letter • Instructions to Proposers • Book 1 - Comprehensive Development Agreement 4. Book 2 – Project Specific 5. Book 3 – Technical Provisions

  16. The Programmatic Approach Concessions & Design-Build Book 1 Terms and Conditions Book 2 Project Specific requirements Book 3 Programmatic requirements and Library of Required Standards Reference Information Documents (RID) All Books together make up the CDA Contract Documents

  17. Review & Evaluation • Pass/Fail Analysis • Separation of Financial Information from Qualifications • Evaluation Committee • Level of Expertise • Intentional Misrepresentation of “Specifications” or “Scope” • Specialized Skill • Time/Dedication • System to record each lessoned learned • Benefit from the pain and agony of the lesson that you just learned or “experienced”

  18. CDA Evaluation Process Technical Pass/Fail Reviews Technical Subcommittee Review of Technical Proposals Technical Evaluation Committee Reviews Proposals Received A – Technical B - Price Director of TTA Division Combines Cost and Tech. For Final Scoring Pricing Alternatives Analysis Pricing Committee Review of Cost Proposals

  19. Risk Allocation CDAs delegate risk to the parties best able to manage it: • Assign to Owner • Assign to Developer • Share • Concessions differ from D/B

  20. Risk Allocation & ContractingRisk Shifting Inherent in CDAs “Traditional” Contracts • Owner bears risk of constructability and efficiency of design • Designers not accountable for cost • Owner responsible for QA/QC CDAs • Developer bears risk of constructability and efficiency of design • Developer accountable for cost • Developer responsible for QA/QC *

  21. Right of Way Risk Allocation and Risk Shifting in CDAs “Traditional” Contracts • Owner bears risk of Right of way Acquisition • Owner responsible for moving utilities CDAs • Developer bears risk of right of way acquisition and schedule • Developer responsible utility adjustment and coordination *

  22. Risk Allocation & ContractingAllocating Other Risks • Who can best control the risk? • Who can best manage the risk? • Are contractors willing to assume the risk? • How much will it cost? • Differing site conditions • Force majeure • Hazardous materials • Paleo/archaeo/bio • Permits • Railroads • Right of way • Utility relocations

  23. Confidentiality • Conflict of Interest • Ethics • Proprietary Information

  24. Writing the PERFECT Document? -There is no such thing.

  25. Writing a BETTER document? -There is the possibility.

  26. Carefully recording lessons learned • Managing amendments to the contract • Preventing precedent setting procedures

  27. Scope of Service Documents

  28. Protecting State Interest Develop a procurement contract that addresses the unique nature of the partnership while at the same time protecting the State's interest.

  29. Scope of Service Document • Establishes the business agreement made between a Government Entity and Private Sector • Provides project justification derived by the States’ strategic objectives and plans. • Describes the opportunity to be benefited or obtained by the transportation project • Becomes the basis for evaluating future benefits to both parties involved • Set expectations with the Developer and Project Team

  30. What Should Be Identifiedin a Scope of Service Document • Cost and Schedule • Definitions (also Define quantifiable criteria) • Quality Measures • Work required and necessary for completion of the project • Work that falls outside the Scope

  31. Consideration to: • Transparency • Complicated Issues • Dedication to Project • Required Approvals • Ethics and Conflict of Interest

  32. PPPs & CDAs are Not Solutions for Every Problem

  33. Texas Turnpike Authority Division

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