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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

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Request for Proposals


Scope of Service Documents

Public-Private Partnerships

Comprehensive Development Agreements

donald c toner jr sr wa
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


Office: (512) 334-3834

Fax: (512) 334-3901

txdot s plan
  • Reduce Congestion
  • Enhance Safety
  • Expand Economic Opportunity
  • Improve Air Quality
  • Increase the Value of Transportation Assets
four strategies
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
Transportation Project
  • Develop
  • Design
  • Construct
  • Finance
  • Operate
  • 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
CDA Methodology
  • Comprehensive Development Agreement (CDA) is a tool TxDOT uses to enable private investments in the Texas transportation system.
  • CDAs provide competitive selection process for developing regional projects.
  • A public-private partnership opens the door to accelerated financing, design, construction, operations and/or maintenanceof a project.
request for proposals11
Request for Proposals

The Private-Sector is provided the

opportunity to earn TxDOT Business

through a competitive selection


private companies submit their qualifications
Private Companies Submit Their Qualifications
  • Describe their technical and engineering experience
  • Provide a conceptual strategy explaining how the project could be completed
  • Submit a Financial Plan
rfp detailed process
RFP Detailed Process
  • Authorization by the Texas Transportation Commission to issues request for proposals and qualifications.
  • TxDOT issues request for proposals and qualifications
  • Deadline to submit proposals and qualifications
  • TxDOT evaluation and short list teams
rfp detailed process14
RFP Detailed Process
  • Authorization by the Texas Transportation Commission to issue request for detailed proposals
  • TxDOT issues Request for Proposal
  • Deadline to submit Detailed Proposals
  • TxDOT Evaluation
  • Selection of best-value proposal.
  • RFP Addendums
rfp series of addendums
RFP - Series of Addendums
  • Cover Letter
  • Instructions to Proposers
  • Book 1 - Comprehensive Development Agreement

4. Book 2 – Project Specific

5. Book 3 – Technical Provisions

the programmatic approach concessions design build
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

Reference Information Documents (RID)

All Books together make up the CDA Contract Documents

review evaluation
Review & Evaluation
  • Pass/Fail Analysis
    • Separation of Financial Information from Qualifications
  • Evaluation Committee
    • Level of Expertise
      • Intentional Misrepresentation of “Specifications” or “Scope”
      • Specialized Skill
      • Time/Dedication
  • System to record each lessoned learned
    • Benefit from the pain and agony of the lesson that you just learned or “experienced”
cda evaluation process
CDA Evaluation Process

Technical Pass/Fail Reviews

Technical Subcommittee Review of Technical Proposals

Technical Evaluation Committee Reviews

Proposals Received

A – Technical

B - Price

Director of TTA Division Combines Cost and Tech. For Final Scoring

Pricing Alternatives Analysis

Pricing Committee Review of Cost Proposals

risk allocation
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
Risk Allocation & ContractingRisk Shifting Inherent in CDAs

“Traditional” Contracts

  • Owner bears risk of constructability and efficiency of design
  • Designers not accountable for cost
  • Owner responsible for QA/QC


  • Developer bears risk of constructability and efficiency of design
  • Developer accountable for cost
  • Developer responsible for QA/QC *
right of way risk allocation and risk shifting in cdas
Right of Way Risk Allocation and Risk Shifting in CDAs

“Traditional” Contracts

  • Owner bears risk of Right of way Acquisition
  • Owner responsible for moving utilities


  • Developer bears risk of right of way acquisition and schedule
  • Developer responsible utility adjustment and coordination *
risk allocation contracting allocating other risks
Risk Allocation & ContractingAllocating 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
  • 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
protecting state interest
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
Scope of Service Document
  • Establishes the business agreement made between a Government Entity and Private Sector
  • Provides project justification derived by the States’ strategic objectives and plans.
  • Describes the opportunity to be benefited or obtained by the transportation project
  • Becomes the basis for evaluating future benefits to both parties involved
  • Set expectations with the Developer and Project Team
what should be identified in a scope of service document
What Should Be Identifiedin a Scope of Service Document
  • Cost and Schedule
  • Definitions (also Define quantifiable criteria)
  • Quality Measures
  • Work required and necessary for completion of the project
  • Work that falls outside the Scope
consideration to
Consideration to:
  • Transparency
  • Complicated Issues
  • Dedication to Project
  • Required Approvals
  • Ethics and Conflict of Interest