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MD Concrete Conference

MD Concrete Conference. Concrete Pavement Performance Contracting “Managing the Asset”. Ted Ferragut, PE 3/22/10. Performance Contracting. What do you get when you combine: Concrete Pavement with Rehabilitation with Preservation with Maintenance, Planned and Unplanned with

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MD Concrete Conference

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  1. MD Concrete Conference Concrete Pavement Performance Contracting “Managing the Asset” Ted Ferragut, PE 3/22/10

  2. Performance Contracting What do you get when you combine: • Concrete Pavement with • Rehabilitation with • Preservation with • Maintenance, Planned and Unplanned with • Performance Measures and Specifications with • Delivery Methods and a little bit of a • Pricing and Financing and LCC?

  3. Performance Contracting You get: • My Job Description • Euro Craziness or

  4. Performance Contracting You get: Asset Management: Performance Contracting SHA’s True Role Industry’s Potential Role • From a supplier / contractor • To a contractor / asset manager

  5. Performance Contracting Ted Ferragut, PE • SHRP II Performance Specification Team • AMOTIA Executive Director • ACPA-MAC Board of Directors • Working Groups: TCM / PPP / ARTBA

  6. Safety, Renewal, Reliability, Capacity • Renewal: performed rapidly, causes minimum disruption, and produces long-lived facilities. • Performance Contracting / Specifications

  7. Association forManagement and Operations of Transportation Infrastructure Assets The Contractor’s Voicefor TransportationOperations andMaintenance

  8. Association for the Management and Operationsof Transportation Infrastructure Assets Formed in 2007 Represents contractors, engineers, product providers Mission: To promote the management, operations and maintenance of transportation assets using performance principles.

  9. Recognized Industry Leaders • Experienced in Service Delivery Methods • Public Private Partnerships • Asset Rehabilitation and Maintenance • Asset Maintenance • Roadways, Tunnels, Bridges,Operation Centers, Rest Areas • FL-DC-VA-MD-AK-NC-TXand growing

  10. TCM and PPP • Innovative Project Delivery • Innovative Financing • Innovative Ideas • US • Internationally

  11. TODAY’S SITUATION • Money is scarce • Needs are high • Public work force is thinning and • Private work force is …. • Over skilled • Under utilized

  12. CONVENTIONAL APPROACH Normally, DOT controls: • Pavement inventory and condition • Fix type and schedule • Structural design • Functional design • Performance standards and measures (normally implied) And also these: • Mix type selection (maybe even mix design) • Traffic (constructability) scheme • Bid Schedule (low bid, unit price) • Construction inspection • Construction acceptance • Life expectancy (implied)

  13. CONVENTIONAL APPROACH Contractor just … EXECUTES

  14. EMERGING APPROACH Rather that dictate, …. • DOT bids broad performance guidelines • Contractor designs, prices, builds, maintains • DOT pays based on availability** • Contractor meets turn back criteria

  15. Pyramid of Performance ride, friction, noise, spray, reflectivity, texture rutting, faulting, fatigue, cracking, scaling, drainage USER comfort, sustainability, investment value, context sensitive accessibility, delays, long lasting, safety RULES - MODELS FUNCTIONAL AS-CONSTRUCTED density, air, thickness, strength, modulus, time-to-construct, geometry, steel location CONSTRUCTION transport, placing, curing, sawing, recycling, clearance/load limitations, worker safety MIXING REQUIREMENTS charging, mixing, handling, automation precast, monitoring (QC) COMBINED MATERIALS mix methods, mix components, virgin vs. recycled, construction schedules BASIC MATERIALS aggregate, binder, cement, labor force, material availability, costs Redefine Roles and Responsibilities

  16. Design Const Maintenance Design Const Maintenance Performance PaymentInvolvement D-B-B & Warranty Anticipated Maintenance Design Const Maintenance Design Const Maintenance D-B & Warranty Performance PaymentInvolvement EMERGING APPROACH Material & Workmanship Short-Term Performance Long-Term Performance* Design-Build Finance Maintain*

  17. Design Design Design Performance Acceptance Funding Funding Funding EMERGING APPROACH

  18. PAVEMENT ASSET MANAGER • DOT describes performance over time and turnback condition. • Contractor proposes products, timing, work sequence, and performance (availability) payment. • They negotiate!!

  19. PAVEMENT ASSET MANAGER Project Delivery Method • Team Pre-qualification (Short list) • Best Value • Design-Build-Maintain-Operate

  20. PAVEMENT ASSET MANAGER Payment Model 10 – 20 year contract length: See your scheme work!!

  21. PAVEMENT ASSET MANAGER Understanding / Sharing Risk • Existing Surface Condition • Existing Structural Condition • Performance Standards • Functional: smoothness, friction, noise, aesthetics, cracks • Structural: support, load transfer, potholes, punchouts, faults • DOT audit / inspection • Future Traffic Projections • Roadway access • Payment Fee

  22. PAVEMENT ASSET MANAGER Risk Transfer • With more design, material, constructability freedom given to the Asset Manager, the DOT can mitigate its risk with higher performance standards and a longer performance period. • The more risk assumed by Asset Manager, the higher the fee.

  23. PAVEMENT ASSET MANAGER Contractor A vs Contractor B • Rehab Scheme • Length of Fix • Patching • Sealing • Grinding • Overlay • Quality of Work

  24. PAVEMENT ASSET MANAGER Incentive / Disincentive System • Above Targets (Year) • Bonus payments • Contract extension • Below Targets (Year) • Reduced Payments $$$$$$ $$$$$$

  25. PAVEMENT ASSET MANAGER Overcomes Shortfalls Of Design – Bid – Build And Warranties

  26. PAVEMENT ASSET MANAGER Pay For Performance

  27. TOTAL ASSET MANAGER But why just do the pavement? • Striping • Shoulders • Ditches • Mowing • Signing • Fencing • Guardrail

  28. TOTAL ASSET MANAGER But why leave out operations? • Snow and Ice • Emergency Response

  29. TOTAL ASSET MANAGER • Contract Length • Directed vs. Managed Work • Emergency/Disaster • Services • Snow/Ice • Hurricanes • Incident Response • Partnership Agreements • Bonding • NBIS Bridge Inspection/Fix Basics of PC Qualification-based Contracting Performance Specifications Cost Estimates Level of Service Oversight/Inspection Third Party Damage Prison Labor Bundled Work vs. Line Item

  30. TOTAL ASSET MANAGER Advantages • Promotes private sector innovation • Establishes performance as goal • Pavement, bridge, & routine maintenance • Competes asphalt vs concrete preservation • Commits funds • Move DOT resources to other critical areas • Allows DOT to govern and manage • Allows Private Sector to execute Disadvantages • Priorities change • Long term committment but minimal partnering between DOT and contractor • Changing performance requirements and testing methodologies

  31. Pyramid of Performance ride, friction, noise, spray, reflectivity, texture rutting, faulting, fatigue, cracking, scaling, drainage USER comfort, sustainability, investment value, context sensitive accessibility, delays, long lasting, safety RULES - MODELS FUNCTIONAL AS-CONSTRUCTED density, air, thickness, strength, modulus, time-to-construct, geometry, steel location CONSTRUCTION transport, placing, curing, sawing, recycling, clearance/load limitations, worker safety MIXING REQUIREMENTS charging, mixing, handling, automation precast, monitoring (QC) COMBINED MATERIALS mix methods, mix components, virgin vs. recycled, construction schedules BASIC MATERIALS aggregate, binder, cement, labor force, material availability, costs Redefine Roles and Responsibilities

  32. TOTAL ASSET MANAGER Applications Worldwide • UK, England Highway Agency • UK Cities • Denmark • France

  33. INNOVATIVE SPIRIT “AASHTO member states must embrace new strategies that demand accountability and performance measurement.” - Pete Rahn, MODOT; AASHTO October 2007

  34. INNOVATIVE SPIRIT “It’s more than just new technology. It’s more than a modulus. It’s using the creative energies of both the public and private sectors to deliver the best services possible to the traveling public. It’s about roles and responsibilities and risk sharing and partnering. It’s the future. And the future is now.” - Ted Ferragut, March 2010

  35. TOTAL ASSET MANAGER Next Steps ? • SHRP II Demonstration Project • AMOTIA Workshop • ACPA-MAC Assistance • Or just say ”Thank You, Ted. Our next speaker is..”

  36. MD Concrete Conference Concrete Pavement Performance Contracting “Managing the Asset” Ted Ferragut, PE 3/22/10

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