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Questionnaire Regarding State DOT Approaches for Dealing with Unsatisfactory Contractor Performance . AASHTO Subcommittee on Construction / Contract Administration Task Force. Jerry Yakowenko Task Force Secretary FHWA, Headquarters 202.366.1562 gerald.yakowenko@fhwa.dot.gov. Agenda.

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Questionnaire regarding state dot approaches for dealing with unsatisfactory contractor performance l.jpg

Questionnaire Regarding State DOT Approaches for Dealing with Unsatisfactory Contractor Performance

AASHTO Subcommittee on Construction / Contract Administration Task Force

Jerry Yakowenko

Task Force Secretary

FHWA, Headquarters

202.366.1562

gerald.yakowenko@fhwa.dot.gov


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Agenda with Unsatisfactory Contractor Performance

  • Results of survey

  • Example States

  • Other experience

  • Conclusion


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State Transportation Agency Responses with Unsatisfactory Contractor Performance

WFLHD

CFLHD

EFLHD

PR



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Definition of “unsatisfactory progress” prosecution and progress?

  • % time - % completion

    • 25% - AL,

    • 20% - MS, OK,

    • 15% (HI, NM, TN,

    • 10% - EFLHD

  • Expiration of time / work not complete (FL, HI,

  • Case-by-case – NV, VT,

  • Other – IA, UT, GA, LA*


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Louisiana - “unsatisfactory progress” prosecution and progress?

Non-CPM projects

CPM projects


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2) prosecution and progress? List the methods currently available in your agency for dealing with unsatisfactory contract prosecution and progress.


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3) prosecution and progress? Which method in Question #2 is used the most in your state to deal with unsatisfactory contract prosecution?


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4) Does your state generally inform the contractor's bonding company when it is determined that the contractor's prosecution and progress is unsatisfactory?


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5) If the answer to question No. 4 is yes, does the involvement of the bonding company generally result in improved contract prosecution and progress?



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7) How does the State use contract performance evaluation data?

  • Performance evaluations directly lead to an adjustment of prequalification capacity rating with the completion of every contract (7)

  • Performance evaluations indirectly lead to an adjustment of prequalification capacity rating only when consistent or below average performance is noted over several contracts (18)

  • Removal from the prequalification list (15)

  • Increase retainage on future contracts (3)

  • Initiate termination procedures (13)

  • Other (23)


8 does your state have a process for rewarding above average performance other than qa specs l.jpg
8) Does your state have a process for rewarding above average performance (other than QA specs)?

  • No – 32, Yes – 14, Other – 3

  • Examples:

    • early completion incentives (8)

    • congratulation letters from the contract engineer to the top 15 performers – no $ (IA)

    • increase prequalification rating (IL, KS, MA, WA)

    • Reduction in retainage (MD)

    • Financial incentive (up to 5%) being developed (NJ)

    • Yearly recognition awards for quality, prosecution and contract compliance (MO, PA, )


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9) Does your state have a contractor prequalification process?

  • No – 12, Yes – 34, May be used on individual projects –2, Other (1)

  • Qualifications:

    • some states rely on licensing and bonding requirements in-lieu-of prequalification

    • Others make responsibility determinations

    • some may require specific qualifications (SSPC)


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10) If your state has a contractor prequalification process, is contractor performance a criterion that is used in the adjustment of ratings or in a non-responsibility determination?

  • No – 7, Yes – 20, Other explanation–3

  • Unique qualifications:

    • NC – utilize bonding capacity and safety rating


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Example States is contractor performance a criterion that is used in the adjustment of ratings or in a non-responsibility determination?


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  • Project manager completes an evaluation for each project is contractor performance a criterion that is used in the adjustment of ratings or in a non-responsibility determination?

  • Contractor may appeal the evaluation rating to the ODOT Area Manager

  • ODOT evaluates a 12-month rolling average of scores for corrective actions (potential removal from prequalification list)

  • Two page evaluation form available

  • References: http://landru.leg.state.or.us/ors/home.html (279.041); administrative rules http://arcweb.sos.state.or.us/rules/alpha_index.html (734 division 10)


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  • Pilot program started in 2001 is contractor performance a criterion that is used in the adjustment of ratings or in a non-responsibility determination?

  • Resident Engineer completes project check lists / evaluations (up to 46 pages)

  • Low ratings may affect prequalification rating; high ratings may result in an incentive payment up to 5%


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  • Since 1991, project questionnaire to evaluate quality, contract compliance, prosecution

  • Statistical analysis of all summaries

    • Excellent = mean + 2 std. dev.

    • Average = mean +/- 1 std. dev.

    • Below average = mean – 1 std. dev.

    • Unacceptable = mean- 2 std. dev.

  • Implementation

    • Unacceptable rating in 1st year – probation; 2nd – suspension for one year; 3rd - debarment

    • Awards (certificates and plaques) by category: Heavy/medium/light volume, specialty contractors, etc.

  • Evaluation forms available (10 pages)


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Missouri Results contract compliance, prosecution

  • For 2001:

    • notices of suspension - 2 contractors

    • probationary notices - 4 contractors

    • continue on probation from previous years - 10 contractors

    • achieved significant improvement and are reinstated to good standing - 7 contractors

    • Upon review, the Chief Engineer waived disciplinary action against seven (7) contractors.

  • Reference – MO Code of State Regulations: http://www.sos.state.mo.us/adrules/csr/current/7csr/7c10-10.pdf

  • Jerry Hirtz, MODOT, 573.751.7600


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Federal Contracting contract compliance, prosecution

  • Emphasis on “Best Value” since 1994

  • BV used for over 50% of projects (applied to over 66% of Federal construction $)*

  • Projects range from $50,000 to over $1 billion

* Gerard Waites, “Overview of Best Value Contracting Process”


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AGC Position contract compliance, prosecution

  • Neutral appeals process for a contractor to question an adverse evaluation. (due process)

  • Evaluations should not rely on the opinion of one individual

  • One negative project should not negate an otherwise positive performance record. Should be a process to eliminate or at least mitigate a single poor performance evaluation.


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Additional references contract compliance, prosecution

  • Office of Federal Procurement Policy – “Best Practices for Collecting and Using Current and Past Performance Information” http://www.arnet.gov/Library/OFPP/BestPractices/pastpefguide.doc

  • “Quality-Based Performance Rating of Contractors for Prequalification and Bidding Purposes” – NCHRP D10-54


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Additional references contract compliance, prosecution

  • “Guide to Collection and Use of Past Performance Information”, The Deputy Under Secretary of Defense (Acquisition Reform); Includes: “Past Performance Top Ten Tips”;http://www.acq.osd.mil/ar/doc/ppiguide.doc