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
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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
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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%