TXDOT ASSET MAINTENANCE

HOW TEXAS IS EXPANDING ITS ASSET MAINTENANCE PROGRAM

John Roberts TxDOT Maintenance Division Performance-Based Contracts

TxDOT TRANSPORTATION ASSET MANAGEMENT EXPANSION

I : DEVELOP PERFORMANCE-BASED TOTAL MAINTENANCE CONTRACTS

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INITIAL FOCUS FOR FUTURE TOTAL MAINTENANCE CONTRACTS 4

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Geographic Ramp Up 6

POTENTIAL SAVINGS OF $15-26M/YEAR By converting all contracts in the focus area to TMC’s 7

JOINT RESEARCH PROJECT: TxDOT/McKINSEY CO.

 TxDOT and McKinsey and Co. – Global management consulting firm  Intense 8-week study ending March 2013  Objective: to thoroughly assess the performance and opportunities associated with outsourcing road maintenance in Texas – Compare TMC costs to cost of traditional contracts  Publish results for use by other DOTs 8

TMC SOURCING SUMMARY - RECOMMENDATIONS  Conduct structured pre-bid contractor workshops  Tighten pre-qualification process  Identify and engage qualified contractors  Use modular contracting process  Request cost breakdown from contractors as part of bid 9

TO ASSESS AND OPTIMIZE TMC PERFORMANCE Track Four Metrics 10

TMC PAYMENT CRITERIA • Condition assessment  Level of service  Baseline condition assessment • Random times and locations  Sample at least 10 percent • 3 month rolling average • Unit items  Preventive maintenance  Snow and ice • Safety 11

EXPANDING ASSET MANAGEMENT PROGRAM

II. INTEGRATE ASSET MANAGEMENT BUSINESS PROCESSES FOR IMPROVED RESOURCE ALLOCATION

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ASSET BUSINESS PROCESS INTEGRATION

Asset types:

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Pavement

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Bridges and culverts

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Roadside

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Other

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CURRENT TxDOT TAM BUSINESS PRACTICES •

Support systems

 Pavement Management Information Systems (PMIS): pavement management processes/data  PONTIS Bridge Management System (BMS)  COMPASS – Maintenance Management System  TxMAP – condition assessment program; performance based budgeting supported by Compass  Asset inventory 14

TxDOT ASSET MANAGEMENT PROCESS IMPROVEMENT PLAN  Project timeline: Nine months • Assessment Phase • Determine asset management objectives • Identify asset inventory, condition and performance gaps • Assess TxDOT asset systems and data 15

BUSINESS PROCESS INTEGRATION BENEFITS • Cost savings • Improved efficiency • Improved productivity • Increased service to the public • Improved public safety • Better management 16

BUSINESS PROCESS INTEGRATION BENEFITS • Helps meet objectives • Optimizes investments • Increased asset life/lower life cycle costs • Informs cross-program decisions • Links management to policy and strategic goals • Achieves transparency, accountability, and credibility 17

BUSINESS PROCESS INTEGRATION  Consultant: Dye Management Group Inc., Bellevue, Washington 18

III. ASSET MANAGEMENT CHALLENGES: ACCELERATED TEXAS ENERGY SECTOR EXPANSION

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Energy Impacts 20

Energy Impacts 21

ENERGY IMPACTED ROAD: SAFETY STATISTICS  50 percent of statewide fatalities on rural roads 2012  In 2012, Eagle Ford Shale Counties- 249 fatalities  Year-to-date Aug. 2013 in Eagle Ford Shale - 103 fatalities  In 2012 in Permian Basin Counties—317 fatalities  Year-to-date Aug. 2013 in Permian – 279 fatalities 22

HB 1025 2013 TEXAS LEGISLATURE Supplemental Appropriations Bill $450M from Texas General Revenue Fund to TxDOT  $225M to State Highway Fund 6 for “maintenance and safety, including repairs to roadways and bridges within the state highway system for damage caused by oversize vehicles or overweight loads used in the development and production of energy or by above normal usage … by vehicles used in the development and production of energy.

 $225M to TxDOT to be deposited in the new Transportation Infrastructure Fund for the purposes of implementing SB 1747 23

URGENT SOLUTION: EMULSIFIED ASPHALT ROADS

Limited conversion to emulsified asphalt roads

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LIMITED CONVERSION TO EMULSIFIED ASPHALT ROADS

Next Steps in This Process

 Conduct public meetings in all impacted counties  Provide 60-day review period for counties interested in considering taking over responsibility for these highways  Consider any local options brought forward  Address immediate safety issues as they arise  Proceed with conversions as conditions and resources allow if counties do not offer alternative solutions 25

Safety Benefits of Conversion to Emulsified Asphalt Surface Unsafe Roadways: After Conversion: Increased roadway width Eliminated shoulder drop-offs Smoother surface Decreased speeds

Safety Issues After Conversion

Increased roadway width Eliminated edge drop-offs Smoother surface Decreased speeds 26