Transcript TonerWed130 - American Association of State Highway

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
Director – Turnpike Right of Way
Texas Turnpike Authority Division
Texas Department of Transportation
125 E. 11th Street
Austin, Texas 78701-2483
[email protected]
Office: (512) 334-3834
Fax: (512) 334-3901
TxDOT’s PLAN
1.
2.
3.
4.
5.
Reduce Congestion
Enhance Safety
Expand Economic Opportunity
Improve Air Quality
Increase the Value of Transportation Assets
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
Transportation Project
1. Develop
2. Design
3. Construct
4. Finance
5. Operate
6. Maintain
• 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
CDA Methodology
1.
Comprehensive Development Agreement
(CDA) is a tool TxDOT uses to enable private
investments in the Texas transportation
system.
2.
CDAs provide competitive selection process
for developing regional projects.
3.
A public-private partnership opens the door to
accelerated financing, design, construction,
operations and/or maintenance of a project.
Request for Proposals
Request for Proposals
The Private-Sector is provided the
opportunity to earn TxDOT Business
through a competitive selection
process.
Private Companies Submit
Their Qualifications
1. Describe their technical and
engineering experience
2. Provide a conceptual strategy
explaining how the project could be
completed
3. Submit a Financial Plan
RFP Detailed Process
1.
Authorization by the Texas Transportation
Commission to issues request for proposals
and qualifications.
2.
TxDOT issues request for proposals and
qualifications
3.
Deadline to submit proposals and
qualifications
4.
TxDOT evaluation and short list teams
RFP Detailed Process
5.
Authorization by the Texas Transportation
Commission to issue request for detailed
proposals
6.
TxDOT issues Request for Proposal
7.
Deadline to submit Detailed Proposals
8.
TxDOT Evaluation
9.
Selection of best-value proposal.
10. RFP Addendums
RFP - Series of Addendums
1. Cover Letter
2. Instructions to Proposers
3. Book 1 - Comprehensive
Development Agreement
4. Book 2 – Project Specific
5. Book 3 – Technical Provisions
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
All Books together make up the CDA Contract Documents
Reference
Information
Documents
(RID)
Review & Evaluation
1. Pass/Fail Analysis

Separation of Financial Information from
Qualifications
2. Evaluation Committee

Level of Expertise
–
–
–
Intentional Misrepresentation of “Specifications”
or “Scope”
Specialized Skill
Time/Dedication
3. System to record each lessoned learned

Benefit from the pain and agony of the lesson that you
just learned or “experienced”
CDA Evaluation Process
Technical
Pass/Fail
Reviews
Proposals
Received
A – Technical
B - Price
Pricing
Alternatives
Analysis
Technical
Subcommittee
Review of
Technical
Proposals
Technical
Evaluation
Committee
Reviews
Director of TTA
Division
Combines Cost
and Tech. For
Final Scoring
Pricing Committee Review of
Cost Proposals
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
Risk Allocation & Contracting
Risk Shifting Inherent in CDAs
“Traditional” Contracts
1. Owner bears risk of constructability and
efficiency of design
2. Designers not accountable for cost
3. Owner responsible for QA/QC
CDAs
1. Developer bears risk of constructability and
efficiency of design
2. Developer accountable for cost
3. Developer responsible for QA/QC *
Right of Way Risk Allocation and Risk
Shifting in CDAs
“Traditional” Contracts
1. Owner bears risk of Right of way
Acquisition
2. Owner responsible for moving utilities
CDAs
1. Developer bears risk of right of way
acquisition and schedule
2. Developer responsible utility adjustment
and coordination *
Risk Allocation & Contracting
Allocating 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
Confidentiality
• Conflict of Interest
• Ethics
• Proprietary Information
Writing the PERFECT Document?
-There is no such thing.
Writing a BETTER document?
-There is the possibility.
• Carefully recording lessons
learned
• Managing amendments to
the contract
• Preventing precedent
setting procedures
Scope of Service
Documents
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.
Scope of Service Document
1.
Establishes the business agreement made between
a Government Entity and Private Sector
2.
Provides project justification derived by the States’
strategic objectives and plans.
3.
Describes the opportunity to be benefited or
obtained by the transportation project
4.
Becomes the basis for evaluating future benefits to
both parties involved
5.
Set expectations with the Developer and Project
Team
What Should Be Identified
in a Scope of Service Document
1. Cost and Schedule
2. Definitions (also Define quantifiable
criteria)
3. Quality Measures
4. Work required and necessary for
completion of the project
5. Work that falls outside the Scope
Consideration to:
1. Transparency
2.
3.
4.
5.
Complicated Issues
Dedication to Project
Required Approvals
Ethics and Conflict of Interest
PPPs & CDAs are Not Solutions for Every Problem
Texas Turnpike Authority Division