Pavement Marking Contract Renewal 2008

1. Pavement Marking Contract Renewal 2008

2. Ministry of Transportation Pavement Marking Contract Renewal 2008 Objectives of Presentation Introduce opportunity to Industry Clarify requirements Meet with new prospective respondents Get feedback from Industry Exciting new opportunity for Pavement Marking Contractors Longer Term Known Values Long Term Planning Clarification with requirements of new contract as well as bidding process Nice to see the new faces and faces we have been fortunate to work with before It�s your chance to have your voice heard Exciting new opportunity for Pavement Marking Contractors Longer Term Known Values Long Term Planning Clarification with requirements of new contract as well as bidding process Nice to see the new faces and faces we have been fortunate to work with before It�s your chance to have your voice heard

3. Ministry of Transportation Pavement Marking Contract Renewal 2008 History Before 2004 Ministry of Transportation operated program Specialized teams from Lower mainland 7 ministry crews for long line painting Typical April � October season Provincially Provincially

4. Ministry of Transportation Pavement Marking Contract Renewal 2008 History 2004 �Present Alternative Service Delivery program initiated in 2004 3 year contracts 2 year extension & amendment 3 Regions South Coast (included thermoplastic) Southern Interior Northern Region Same period as Electrical and Inland Ferries Extension Uncertainty of Federal Regs of VOCs Cost adjustments Language clarification Same period as Electrical and Inland Ferries Extension Uncertainty of Federal Regs of VOCs Cost adjustments Language clarification

5. Ministry of Transportation Pavement Marking Contract Renewal 2008 History 2004 �Present (cont�) Approx. 28,000 line kilometers per year Initial requirement was to take on incumbent staff & equipment Present contracts expire December 15th, 2008 Contractors purchased equipment and employed MoT staffContractors purchased equipment and employed MoT staff

6. Ministry of Transportation Pavement Marking Contract Renewal 2008 Objectives of New Proposal Create an open and competitive market Create an agreement that allocates the risk to those best able to manage it. Provide an environment that fosters innovative thinking and positive partnerships Different SA boundaries Economic analysis Experience Other Jurisdictions Ensure clarity and evaluate risks Even though prescriptive, we are hoping that some innovations will arise We want your experience with us to be a positive one Different SA boundaries Economic analysis Experience Other Jurisdictions Ensure clarity and evaluate risks Even though prescriptive, we are hoping that some innovations will arise We want your experience with us to be a positive one

7. Ministry of Transportation Pavement Marking Contract Renewal 2008 Features of New Proposal Call Term of contracts 5 years � Dec 16/2008 to Dec 15/2013 Economic analysis Viable size of contract Reasonable length of contract for return Consultation with Bonding agencies Allows for life cycle management by contractor Contractor is better able to forecast into the future Consultant did comparison to several jurisdictions Bonding companies are comfortable with 5 years 5 years allows contractors to get a good feel for the inventoryConsultant did comparison to several jurisdictions Bonding companies are comfortable with 5 years 5 years allows contractors to get a good feel for the inventory

8. Ministry of Transportation Pavement Marking Contract Renewal 2008 Features of New Proposal Call Contract Areas Approx. $9 million in provincial contracts per annum 7 Areas Order of proposal calls North West & North East Thompson Cariboo & Kootenay Lower Mainland, Vancouver Island & Okanagan Maximum number of contract areas per contractor 4 areas per contractor Refer to map on next pageRefer to map on next page

9. Ministry of Transportation Pavement Marking Contract Renewal 2008

10. Ministry of Transportation Pavement Marking Contract Renewal 2008 Features of New Proposal Call Thermoplastic and Crosshatching are not included in contracts Quantities are variable from year to year Will be tendered in the traditional method Contract Structure Routine Quantified Additional Routine varies from 93% to 35% Routine is similar to R & B where there is the same location that receives the same service on a scheduled basis.(Inspections, R/A Maintenance) Quantified varies from 65% to 7% Additional Works that are above and beyond the contract value (extra work) Historic Additional values will be presented at RFP stageRoutine varies from 93% to 35% Routine is similar to R & B where there is the same location that receives the same service on a scheduled basis.(Inspections, R/A Maintenance) Quantified varies from 65% to 7% Additional Works that are above and beyond the contract value (extra work) Historic Additional values will be presented at RFP stage

11. Ministry of Transportation Pavement Marking Contract Renewal 2008 Features of New Proposal Call Contract Structure Routine (Defined Inventory) Category 1 � All lines on Class 1 roads that will need to be painted on an annual basis. Category 2 � Centre, median, and lane lines for class 2 & 3 roads to be painted on an annual basis. Routine is a known value with known locations from year to year which will allow better planning of contractor resources This is a Lump Sum component Routine varies from 93% to 35% Routine is similar to R & B where there is the same location that receives the same service on a scheduled basis. Inspections, R/A Maintenance�etc Example of Routine Cat 1 Freeways, roads with 10,000 per day Example of Routine Cat 2 Higher volume roads over 1,000 per day - Numbered routesRoutine varies from 93% to 35% Routine is similar to R & B where there is the same location that receives the same service on a scheduled basis. Inspections, R/A Maintenance�etc Example of Routine Cat 1 Freeways, roads with 10,000 per day Example of Routine Cat 2 Higher volume roads over 1,000 per day - Numbered routes

12. Ministry of Transportation Pavement Marking Contract Renewal 2008 Features of New Proposal Call Contract Structure Quantified (Category 3) All other longitudinal lines not included in Routine. Side roads Edge lines on Category 2 roads Quantified Value represents only a part of over all inventory Implies cyclical painting requirements Quantified varies from 65% to 7% Quantified values are based on roughly half of the inventory that would be classed as Quantified Expectation is that the contractor will not be painting the same roads every year.Quantified varies from 65% to 7% Quantified values are based on roughly half of the inventory that would be classed as Quantified Expectation is that the contractor will not be painting the same roads every year.

13. Ministry of Transportation Pavement Marking Contract Renewal 2008 Features of New Proposal Call Contract Structure Quantified (Category 3) Cont� Planned based on need/priority annual inspection of the inventory to base decisions on. (LCR) A quantified plan by contractor Some ministry input Quantified is a known quantity from year to year which will allow better planning This is a lump sum component with a derived unit price The over all inventory is greater than the annual Quantified value Painting will be cyclical Expectation is that the contractor will prioritize on an annual basis Contractor will develop plan with the input of the coordinatorsThe over all inventory is greater than the annual Quantified value Painting will be cyclical Expectation is that the contractor will prioritize on an annual basis Contractor will develop plan with the input of the coordinators

14. Ministry of Transportation Pavement Marking Contract Renewal 2008 Features of New Proposal Call Contract Structure Additional Works not included in Upset Price New Longitudinal Line on New Pavement (Projects) with separate bid price. Additional work from new funding sources but paid for at derived unit rates for additional works Considering including a mobilization allowance for Gulf Islands & QCI Extra Work These units are for 2 separate activities New Long Line for projects includes layout payment by bid price 2 coats We will have historical values in order for the contractor to have a better sense on what may be expected. Other Additional is when more funding becomes availableExtra Work These units are for 2 separate activities New Long Line for projects includes layout payment by bid price 2 coats We will have historical values in order for the contractor to have a better sense on what may be expected. Other Additional is when more funding becomes available

15. Ministry of Transportation Pavement Marking Contract Renewal 2008 Contractor�s Quality Plan Will include Processes and procedures for significant elements of work With one activity it can be short and easy to understand and use. Painting work instructions QC/QA processes Traffic Management Safety Plan WI for crew on Trucks How you are doing your QC/QA Who�s responsible When your going to do it More outlined in RFPWI for crew on Trucks How you are doing your QC/QA Who�s responsible When your going to do it More outlined in RFP

16. Ministry of Transportation Pavement Marking Contract Renewal 2008 Materials and adoption of neighboring jurisdictions RPLs British Columbia Ministry of Transportation Alberta Department of Transportation and Utilities Washington State Department of Transportation Idaho Transportation Department Alaska Department of Transportation and Public Utilities Volatile Organic Compound (VOC) Concentration Limits for Architectural Coatings Regulations Effective 3 years from published date < 150 vocVolatile Organic Compound (VOC) Concentration Limits for Architectural Coatings Regulations Effective 3 years from published date < 150 voc

17. Ministry of Transportation Pavement Marking Contract Renewal 2008 Testing requirement and criteria Minimum 2 per day per crew (14 days later) Representative of the line type accomplishments Standard, well defined tests for elements such as; Dimensions Night Time Retro-Reflectivity Durability 2 tests per operational day for every crew If 90% of work that day was on edge line- test should be on edge line These will be outlined in our Introduction to the Specifications2 tests per operational day for every crew If 90% of work that day was on edge line- test should be on edge line These will be outlined in our Introduction to the Specifications

18. Ministry of Transportation Pavement Marking Contract Renewal 2008 Digital Pavement Marking Measuring Instrument (DPMMI) Date Time Location (GPS Capability) Speed of vehicle Paint application thickness (wet mils) Distance painted Glass bead application rate Road temperature and air temperature Provides QC/QA benefits to contractor and Quality Audit information to Ministry MoT ability to monitor from time to time Only 3 PM Coordinators Will provide evidence of accomplishments and conformance level We will be asking for Raw data Could provide contractors with useful operational infoMoT ability to monitor from time to time Only 3 PM Coordinators Will provide evidence of accomplishments and conformance level We will be asking for Raw data Could provide contractors with useful operational info

19. Ministry of Transportation Pavement Marking Contract Renewal 2008 Specifications Longitudinal Pavement Markings Longitudinal Markings.doc Longitudinal Pavement Markings on New Projects New Longitudinal Markings Establish passing zones for new works and maintenance of existing zones Review Specs � Highlights Passing Zones In our Manual of Signs and Pavement Markings Contactors resp. Const. contractor will supply some controlReview Specs � Highlights Passing Zones In our Manual of Signs and Pavement Markings Contactors resp. Const. contractor will supply some control

20. Ministry of Transportation Pavement Marking Contract Renewal 2008 Payment schedule Jan 15% Mar 15% May 15% July 20% Sept 20% Dec 15% Additional Works paid by invoice Ask Industry if this make sense to them Additional Works paid by InvoiceAsk Industry if this make sense to them Additional Works paid by Invoice

21. Ministry of Transportation Pavement Marking Contract Renewal 2008 Annual Adjustment Process Indices & Weights Paint Index weighted @ 50% Labour Index weighted @ 21% Accommodation Index weighted @ 7% Fuel Index weighted @ 2% Other 20% resides in costs which are not as susceptible to inflation or are considered at time of bid Calculated annually each year when the indices have been published for the prior year. �Paint Index� means the monthly industry price index for chemical products and miscellaneous manufactured products, Canada, produced by Statistics Canada as Table 329-0048 and available on CANSIM as vector v1576108, Canada, Industrial Paints �Labour Index� North American Industry Classification System (NAICS), produced by Statistics Canada as Table 281-0039 and available on CANSIM as vector v1606354, �Accommodation Index� means the monthly traveler accommodation services price index, British Columbia, Government clients, produced by Statistics Canada as Table 326-0013 and available on CANSIM as vector v2333954, British Columbia, Government clients Fuel Index" means the monthly industry price index for non-metallic mineral products and petroleum and coal products, the annual average of the British Columbia, diesel fuel, produced by Statistics Canada as Table 329-0047 and available on CANSIM as vector v1575891, British Columbia, Diesel Fuel, Draw date January 31 after contract year Weights add up to 80% as the remainder are capital costs that are not influenced by inflation�Paint Index� means the monthly industry price index for chemical products and miscellaneous manufactured products, Canada, produced by Statistics Canada as Table 329-0048 and available on CANSIM as vector v1576108, Canada, Industrial Paints �Labour Index� North American Industry Classification System (NAICS), produced by Statistics Canada as Table 281-0039 and available on CANSIM as vector v1606354, �Accommodation Index� means the monthly traveler accommodation services price index, British Columbia, Government clients, produced by Statistics Canada as Table 326-0013 and available on CANSIM as vector v2333954, British Columbia, Government clients Fuel Index" means the monthly industry price index for non-metallic mineral products and petroleum and coal products, the annual average of the British Columbia, diesel fuel, produced by Statistics Canada as Table 329-0047 and available on CANSIM as vector v1575891, British Columbia, Diesel Fuel, Draw date January 31 after contract year Weights add up to 80% as the remainder are capital costs that are not influenced by inflation

22. Ministry of Transportation Pavement Marking Contract Renewal 2008 Fleet Policy Colour of equipment Lights Decals The exact requirements will be identified in the schedules within the RFPThe exact requirements will be identified in the schedules within the RFP

23. Ministry of Transportation Pavement Marking Contract Renewal 2008 Contract Administration Completion Dates Completion of Routine & Quantified Line Dates may vary by Service Area Routine � July Quantified - OctoberRoutine � July Quantified - October

24. Ministry of Transportation Pavement Marking Contract Renewal 2008 Contract Administration Ministry�s Quality Plan Purpose To confirm products and services conform to Agreement To ensure effectiveness of the contractor�s Quality Plan To ensure consistency in the frequency, methods, and application of Quality Assessments This is the ministry�s QP Will demonstrate the process for MoT Will ensure provincial consistency Will be shared with the contractors once completedThis is the ministry�s QP Will demonstrate the process for MoT Will ensure provincial consistency Will be shared with the contractors once completed

25. Ministry of Transportation Pavement Marking Contract Renewal 2008 Contract Administration Ministry�s Quality Plan Monitoring Performance Testing Quality Audits Quality Audit Documentation Monitoring The ongoing observation by assessment staff of the Pavement Marking Services and/or the Contractor�s Quality Plan. Performance Testing Random sampling of the pavement markings Measures taken of any or all of the Detailed Performance Specifications Contractor performance will dictate frequency Increasing for areas of concern Decreasing in areas where performance is good Both positive and negative observations from monitoring activities are to be recorded and shared with the contractor. Quality Audits To verify performance 2 audits per month to start Audit frequency will be adjustable Review of all documentation for Operational day. Quality Audit Documentation DPMMI (Quality Control data) Performance Tests by the contractor (QA data) Monitoring records Any NCR�s and follow-up documentation Location that the documentation pertains to Date and crew the documentation represents Special conditions such as inclement weather, road conditions, etc. NCR Process Description of Non-Conformance Response Dates, Signatures, and Paper Flow Required Correction Root Cause Analysis Corrective Action Plan Monitoring The ongoing observation by assessment staff of the Pavement Marking Services and/or the Contractor�s Quality Plan. Performance Testing Random sampling of the pavement markings Measures taken of any or all of the Detailed Performance Specifications Contractor performance will dictate frequency Increasing for areas of concern Decreasing in areas where performance is good Both positive and negative observations from monitoring activities are to be recorded and shared with the contractor. Quality Audits To verify performance 2 audits per month to start Audit frequency will be adjustable Review of all documentation for Operational day. Quality Audit Documentation DPMMI (Quality Control data) Performance Tests by the contractor (QA data) Monitoring records Any NCR�s and follow-up documentation Location that the documentation pertains to Date and crew the documentation represents Special conditions such as inclement weather, road conditions, etc. NCR Process Description of Non-Conformance Response Dates, Signatures, and Paper Flow Required Correction Root Cause Analysis Corrective Action Plan

26. Ministry of Transportation Pavement Marking Contract Renewal 2008 Existing BCGEU Agreement MOU #5 - Regarding Privatization and Alternative Service Delivery (ASD) http://www.bcgeu.bc.ca/files/FourteenthMasterAgreementFinal.pdf Process will be started after all contracts are awarded. MOU #5 REGARDING PRIVATIZATION AND ALTERNATIVE SERVICE DELIVERY (ASD) This Memorandum of Understanding pertains to contracts for ASD initiatives pursuant to Memorandum of Understanding #6 and contracts which have been minuted as a privatization pursuant to Article 36 of the Master Agreement which expire and are re-tendered during the term of the 14th Master Agreement. If re-tendered the Employer will stipulate that the successful bidder will offer employment to incumbent members of the previous employer's operation to fill available employment opportunities which are not assigned to the bidder's current employees. Such offers shall be made in order of seniority to staff currently performing the work of the available positions. This Memorandum of Understanding will remain in effect for the term of the 14th Master Agreement. MOU #5 REGARDING PRIVATIZATION AND ALTERNATIVE SERVICE DELIVERY (ASD) This Memorandum of Understanding pertains to contracts for ASD initiatives pursuant to Memorandum of Understanding #6 and contracts which have been minuted as a privatization pursuant to Article 36 of the Master Agreement which expire and are re-tendered during the term of the 14th Master Agreement. If re-tendered the Employer will stipulate that the successful bidder will offer employment to incumbent members of the previous employer's operation to fill available employment opportunities which are not assigned to the bidder's current employees. Such offers shall be made in order of seniority to staff currently performing the work of the available positions. This Memorandum of Understanding will remain in effect for the term of the 14th Master Agreement.

27. Ministry of Transportation Pavement Marking Contract Renewal 2008 RFP Process Electronic Bidding Process BC Bid http://www.bcbid.gov.bc.ca Proponents are required to register Will receive BCe ID Hotline available to contractors Documents to be submitted electronically $150 Per annum Hotline has proved to be quite helpful QP and Price submitted electronically 3rd Party are not electronic$150 Per annum Hotline has proved to be quite helpful QP and Price submitted electronically 3rd Party are not electronic

28. Ministry of Transportation Pavement Marking Contract Renewal 2008 RFP Process Evaluation 3rd Party Documentation Letter of Support from Bank Undertaking to Provide Liability Insurance Bid Security Consent of Surety Statutory Declaration Format of documents must not be changed Proposal will not be evaluated without 3rd Party Docs These are to be submitted to Project Office (Signed hard copies) Bid Security $75,000These are to be submitted to Project Office (Signed hard copies) Bid Security $75,000

29. Ministry of Transportation Pavement Marking Contract Renewal 2008 RFP Process Evaluation Quality Plan 15% Upset Price 70% Routine Value Quantified Value Additional Work Unit Price 15% Unit Price for (Projects) Will be some requirements in developing a quality plan Will be providing a checklist To be used as a guide Upset Price 100% of work for 100% of U.P 100% of work for ??% of UP Reduction of quantified work for Upset price Additional work Bid item for new line on new pavement (projects) Will supply historical values for PMSAWill be some requirements in developing a quality plan Will be providing a checklist To be used as a guide Upset Price 100% of work for 100% of U.P 100% of work for ??% of UP Reduction of quantified work for Upset price Additional work Bid item for new line on new pavement (projects) Will supply historical values for PMSA

30. Ministry of Transportation Pavement Marking Contract Renewal 2008 Tentative RFP Schedule This includes 3rd Party document evaluation QP evaluation Price evaluation Independent review Proponents will know in the 3rd round whether they were successful in the 1st round This includes 3rd Party document evaluation QP evaluation Price evaluation Independent review Proponents will know in the 3rd round whether they were successful in the 1st round

31. Ministry of Transportation Pavement Marking Contract Renewal 2008 Questions? For questions after presentation Contact Dianne Froese Dianne.Froese@gov.bc.ca Nicole has handed out her card Dianne Froese is the Maintenance Programs Procurement Manager Nicole has handed out her card Dianne Froese is the Maintenance Programs Procurement Manager