Transcript Functional (Performance-based) Maintenance Contracting in

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:
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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?
Performance Contracting
You get:
 My Job Description
 Euro Craziness
or
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
Performance Contracting
Ted Ferragut, PE
1. SHRP II Performance Specification Team
2. AMOTIA Executive Director
3. ACPA-MAC Board of Directors
4. Working Groups: TCM / PPP / ARTBA
 Safety, Renewal, Reliability, Capacity
 Renewal: performed rapidly, causes
minimum disruption, and produces
long-lived facilities.
 Performance Contracting / Specifications
 Association for the Management and
Operations
of 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.
 Recognized Industry Leaders
 Experienced in Service Delivery
Methods
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Public Private Partnerships
Asset Rehabilitation and Maintenance
Asset Maintenance
Roadways, Tunnels, Bridges,
Operation Centers, Rest Areas
 FL-DC-VA-MD-AK-NC-TX
and growing
TCM and PPP
 Innovative Project Delivery
 Innovative Financing
 Innovative Ideas
 US
 Internationally
TODAY’S SITUATION
 Money is scarce
 Needs are high
 Public work force is thinning
and
 Private work force is ….
 Over skilled
 Under utilized
CONVENTIONAL APPROACH
Normally, DOT controls:
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Pavement inventory and
And also these:
condition
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Mix type selection (maybe
even mix design)
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Traffic (constructability)
scheme
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Bid Schedule (low bid, unit
price)
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Construction inspection
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Construction acceptance
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Life expectancy (implied)
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Fix type and schedule
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Structural design
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Functional design
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Performance standards and
measures (normally implied)
CONVENTIONAL APPROACH
Contractor just …
EXECUTES
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
Pyramid of Performance
USER
comfort, sustainability, investment value, context sensitive
accessibility, delays, long lasting, safety
FUNCTIONAL
ride, friction, noise, spray, reflectivity, texture
rutting, faulting, fatigue, cracking, scaling, drainage
AS-CONSTRUCTED
CONSTRUCTION
MIXING REQUIREMENTS
COMBINED MATERIALS
BASIC MATERIALS
density, air, thickness, strength, modulus,
time-to-construct, geometry, steel location
transport, placing, curing, sawing,
recycling, clearance/load limitations, worker safety
charging, mixing, handling, automation
precast, monitoring (QC)
mix methods, mix components,
virgin vs. recycled, construction schedules
aggregate, binder, cement, labor force,
material availability, costs
Redefine Roles and Responsibilities
EMERGING APPROACH
Material & Workmanship
Design Const
Maintenance
Short-Term Performance
Design Const
Maintenance
D-B & Warranty
D-B-B &
Warranty
Long-Term Performance*
Design-Build Finance Maintain*
Anticipated
Maintenance
Design Const
Maintenance
Performance Payment
Involvement
Design Const
Maintenance
Performance Payment
Involvement
EMERGING APPROACH
Design
Funding
Performance
Acceptance
PAVEMENT ASSET MANAGER
 DOT describes performance over time and
turnback condition.
 Contractor proposes products, timing, work
sequence, and performance (availability)
payment.
 They negotiate!!
PAVEMENT ASSET MANAGER
Project Delivery Method
 Team Pre-qualification (Short list)
 Best Value
 Design-Build-Maintain-Operate
PAVEMENT ASSET MANAGER
50
2/3 of
contractperiod
M ill. Kr.
40
Work
delivered
30
20
Payment Model
10
Yearly
payment
0
0
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5
6
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16
Year
10 – 20 year contract length: See your scheme work!!
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
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DOT audit / inspection
Future Traffic Projections
Roadway access
Payment Fee
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.
PAVEMENT ASSET MANAGER
Contractor A vs Contractor B
 Rehab Scheme
 Length of Fix
 Patching
 Sealing
 Grinding
 Overlay
 Quality of Work
PAVEMENT ASSET MANAGER
Incentive / Disincentive System
 Above Targets (Year)
 Bonus payments
 Contract extension
 Below Targets (Year)
 Reduced Payments
PAVEMENT ASSET MANAGER
Overcomes Shortfalls
Of
Design – Bid – Build
And
Warranties
PAVEMENT ASSET MANAGER
Pay
For
Performance
TOTAL ASSET MANAGER
But why just do the pavement?
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Striping
Shoulders
Ditches
Mowing
Signing
Fencing
Guardrail
TOTAL ASSET MANAGER
But why leave out operations?
 Snow and Ice
 Emergency Response
TOTAL ASSET MANAGER
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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
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Contract Length
Directed vs. Managed Work
Emergency/Disaster
 Services
 Snow/Ice
 Hurricanes
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Incident Response
Partnership Agreements
Bonding
NBIS Bridge Inspection/Fix
TOTAL ASSET MANAGER
Advantages
Disadvantages
 Promotes private sector innovation
 Priorities change
 Establishes performance as goal
 Long term committment but
 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
minimal partnering between
DOT and contractor
 Changing performance
requirements and testing
methodologies
Pyramid of Performance
USER
comfort, sustainability, investment value, context sensitive
accessibility, delays, long lasting, safety
FUNCTIONAL
ride, friction, noise, spray, reflectivity, texture
rutting, faulting, fatigue, cracking, scaling, drainage
AS-CONSTRUCTED
CONSTRUCTION
MIXING REQUIREMENTS
COMBINED MATERIALS
BASIC MATERIALS
density, air, thickness, strength, modulus,
time-to-construct, geometry, steel location
transport, placing, curing, sawing,
recycling, clearance/load limitations, worker safety
charging, mixing, handling, automation
precast, monitoring (QC)
mix methods, mix components,
virgin vs. recycled, construction schedules
aggregate, binder, cement, labor force,
material availability, costs
Redefine Roles and Responsibilities
TOTAL ASSET MANAGER
Applications Worldwide
 UK, England Highway Agency
 UK Cities
 Denmark
 France
INNOVATIVE SPIRIT
“AASHTO member states must embrace
new strategies that demand
accountability and performance
measurement.”
- Pete Rahn, MODOT; AASHTO October 2007
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
TOTAL ASSET MANAGER
Next Steps ?
 SHRP II Demonstration Project
 AMOTIA Workshop
 ACPA-MAC Assistance
 Or just say ”Thank You, Ted. Our next speaker
is..”
MD Concrete Conference
Concrete Pavement
Performance Contracting
“Managing the Asset”
Ted Ferragut, PE
3/22/10