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Performance Contracting for Construction: Framework for Implementation. Mark Robinson, Ph.D., P.Eng., PMP SAIC 1/22/07. Overview. Why Performance Contracting for Construction? Framework Purpose Stakeholder Involvement Framework Contents Relation to the Highways for LIFE Program

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performance contracting for construction framework for implementation

Performance Contracting for Construction: Framework for Implementation

Mark Robinson, Ph.D., P.Eng., PMP

SAIC

1/22/07

overview
Overview
  • Why Performance Contracting for Construction?
  • Framework Purpose
  • Stakeholder Involvement
  • Framework Contents
  • Relation to the Highways for LIFE Program
  • Lessons Learned
  • Pilot Program
  • Next Steps
why performance contracting for construction
Why Performance Contracting for Construction?
  • Much of America’s transportation infrastructure is reaching the end of its design life and needs to be re-constructed
  • Traffic levels and the resulting congestion levels continue to increase
  • FHWA is developing, identifying, and promoting new methods to reconstruct highways and bridges safer, faster, and better
  • Using performance contracting will allow State and local agencies to define and communicate to contractors specifically what they want to achieve
  • Contractors will have the flexibility to determine how they do the work
some pros and cons
Pros

Introduction of Innovation

Defined Outcomes

Contractor Flexibility

Share of risk and rewards

Cons

New approach that requires a culture shift

May not be applicable to all projects

Some Pros and Cons
framework purpose
Framework Purpose
  • To provide State and local agencies with processes and materials that they can use to accelerate the development of a performance contract solicitation package for construction contracts
  • Meant to be used as a reference guide
  • Should help agencies to avoid common obstacles and pitfalls
stakeholder involvement
Stakeholder Involvement
  • The project team developed the materials working with:
    • A select group of stakeholders from State DOTs and Industry
      • Provided guidance and review at the 30%, 60%, and 90% stages
    • Subject matter experts from FHWA
state dot and industry stakeholder group
Scott Jarvis - Caltrans

Chuck Suszko - Caltrans

Gene Mallette - Caltrans

Peggy Chandler - Texas DOT

Steve DeWitt - North Carolina DOT

Kevin Dayton - Washington State DOT

Dexter Newman - the Kentucky Cabinet

Sid Scott - Trauner Consulting

Brian Deery - AGC

Bob Lanham - Williams Brothers Construction-

Brian Burgett - Kokosing Construction

Rich Juliano - ARTBA

State DOT and Industry Stakeholder Group

Note: Participation did not involve formal endorsement of the final product

fhwa subject matter experts
Jim Sorenson

Mary Huie

Byron Lord

Ken Jacoby

King Gee

Jerry Yakowenko

Tracy Scriba

Chung Eng

Rudy Umbs

John Baxter

Mark Swanlund

Peter Kopac

Christopher Schneider

David Geiger

Tom Deddens

Gus Shanine

Rob Elliott

Evan Wisniewski

Jim Hatter

John Bukowski

Fred Skaer

Shari Schaftlein

Myint Lwin

And others

FHWA Subject Matter Experts
framework contents
Framework Contents
  • Overall process for performance contract development
  • Guidance on selecting appropriate projects
  • Processes, lessons learned, and sample solicitation package materials for:
    • Performance Goals
    • Measurement Methodology
    • Enhanced Low Bid Award Process
    • Best Value Award Process
    • SEP-14 Process
relation to the highways for life hfl program
Relation to the Highways for LIFE (HfL) Program
  • HfL’s mission is to improve the driving experience of the American public
  • HfL is looking for new ways to build highways and bridges safer, faster, better, and less costly
  • Performance contracting will be a tool in the HfL toolbox
  • HfL projects are not required to use performance contracting
  • Additional consideration will be given to projects that propose to use performance contracting
lessons learned
Lessons Learned
  • Each project will be different – Processes, goals, and materials will need to be tailored to the individual application
  • Performance goals should be SMART – Specific, Measurable, Achievable, Results-Oriented, and Timely
  • Performance goals MUST be under the influence of the contractor
  • The contractor must have flexibility in how they perform the work
  • Ideally, the performance-based environment will start at the concept or design stage
pilot program
Pilot Program
  • FHWA is currently seeking 4 to 8 agencies that are interested in piloting the Performance Contracting Framework.
  • Pilot states will receive tailored technical assistance to help them implement this approach
  • Pilot states can propose the use of the framework as an innovative approach when applying for funding under the Highways for LIFE Program
  • For more information on becoming a pilot agency, contact Mary Huie at [email protected] or 202-366-3039
next steps
Next Steps
  • Perform outreach to recruit agencies to pilot the framework
  • Provide technical assistance to 4 to 8 pilot projects
  • Capture information on successes and lessons learned
  • Prepare case study documents on each pilot application
  • Revise and update the Framework for broader release
for more information
For More Information
  • Jim Sorenson, FHWA

[email protected], 202-366-1333

  • Mary Huie, FHWA

[email protected], 202-366-3039

  • Mark Robinson, SAIC

[email protected], 703-676-2384

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