Transcript Document
Survey Responses Regarding Current Issues and Approaches for: Price/Supply Issues, Alternate Bidding Issues, Practices for Increasing Competition AASHTO Subcommittee on Construction Contract Administration Section January 2009 Prepared by . . . . Claude Oie, Nebraska DOR Ellis Powell, NC DOT Jeff Benefield, AL DOT Jerry Yakowenko, FHWA Transportation Agencies Responding – 40 (37 States, 3 other) DC Ontario Ministry of Transportation NY State Bridge Authority Puerto Rico Have you experienced project delays resulting from material shortages of any of the following? (Select all that apply) Other 3 Fuel 1 Reinforcing Steel 1 Number of Agencies Structural Steel Polymer Modified AC 9 5 8 Asphalt Cement Portland Cement 5 Have you granted contract time extensions or issued any suspensions of work for specific material shortages in the past year? Yes – LA, OH, MT, UT, KS, CO, NV, WV, FL, WA, TX, CT, NYSBA 14 Yes No 27 Selected reasons for time extensions Time extension granted for specialty steel (not industry wide) We suspended time on one project until the spring of '09 due to availability of polymer modified asphalt. Time extensions have been granted for approximately 6 projects. We allowed the contractor time before we issued the Notice to Proceed for asphalt materials to become available. Granted time extensions to allow for material availability (certain steel piling sizes) Have granted time extensions to contracts when it was demonstrated that the contractor did everything reasonable to obtain materials needed. We had a refinery change production rates for asphalt binder products which impacted three projects. We made adjustments to time and other suppliers were able to accommodate the shortfall. Has your state terminated any contract for public convenience or cancelled any contracts due to material supply issues? 1 Yes – UT – 2 contracts Yes No 40 Has your state developed a state-wide policy for substitution of binder where polymer modified asphalt cement is unavailable? 6 Yes –OH, MO, NJ, CO, TX, CT Yes No 35 Has your state used state-furnished material to address material availability issues? 4 Yes VT and KS– structural steel for fast track projects; Yes No WV – allow limited use of state stockpiles for certain traffic control and electronic devices; NYSBA – selected bridge components 37 Does your state use alternate pavement type bidding procedures? 17 Yes 24 No If so, approximately what percent of your paving projects use alternate pavement type bidding? 7 1% to 2% FL, AL, TX, OH, KS, MI, ONT 3% to 5% 3 AR, LA, VT 10% 3 MD, MT, WV 15% 1 100% 1 Number of Agencies NM MO If alternate pavement type bidding is used, do you use a bid adjustment to account for life-cycle-cost differences between bituminous concrete pavements and Portland cement pavement sections? Yes 12 LA, MT, UT, MO, KS, CO, MI, MS, FL, AL, ONT, NYSBA Yes No 28 If a bid adjustment is not used, which of the following might describe the industry’s opinion of this procedure? Other 8 Neither industry accepts the procedure but neither have formally lodged a complaint Neither industry accepts the procedure but believe it is better than a bid adjustment Both industries have accepted the prcoess 3 Number of Agencies 1 6 Does you state use alternate bridge type bidding? 15 Yes No 26 Approximately how many contracts per year use alternate bridge type bidding procedures? 35 contracts 20 contracts 4% TO 6% 1% TO 3% 1 NE Number of Agencies 1 MO CT, UT, CO 3 9 IN, OH, RI, MT, WA, TX, ND, WV, AR Selected comments on alternate bridge bidding Seems to be very effective in obtaining lowest cost. This is used almost exclusively on design-build projects where the proposer can propose bridge type as part of their bid. It engages the contractors and results in a more competitive nature and innovative solutions which in turns means a lower cost to taxpayers. Allows the contractor more flexibility and may save some money. Allows for innovation. Works well on larger structures. Does your state use bid alternates (contractor’s choice) for: Sign Posts 2 Pavement Markings 1 Piles 1 Retaining walls Culvert materials Number of Agencies 13 22 Which of the following techniques have been used to increase competition in your state? (Top ten listed) Rejecting non-competitive bids and re-advertising 29 Using price adjustment clauses for certain materials 28 Splitting large projects into smaller projects 28 Using recycled materials 25 Bundling projects (placing several smaller projects together) Allowing more time for bid advertisement 25 24 Updating construction cost estimate data 21 Reducing contractor's risk 21 Conducting additional pre-bid meetings/advertising 16 Number of Agencies Indicate the top five most frequently used techniques to increase competition and the extent of use in your construction program (percent of program) Technique Responses Average % Use Range in % Use Using Recycled materials 22 49.6 % 1%-100% Reducing contractor risk 18 50.3% 10%-100% Variable Notice to Proceed Date 16 37.8% 0%-90% Allowing more time for bid advertisement 20 21.3% 5%-50% Conduct additional advertising 16 18.1% 5%-to 50%