design-build overview – ashe potomac section vdot...
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Design-Build Overview – ASHE Potomac Section
VDOT Alternative Project Delivery (APD) Division
Jeff Roby, P.E., DBIA – Assistant State Engineer APD Division
March 13, 2019
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Route 7 over Dulles Toll RoadWagman/RDA(Awarded – June 2015 Completed – May 2018)
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Legal Authority for Design-Build
In 2001, the General Assembly amended Code of Virginia
§33.1-12 .(2).(b). and authorized Commonwealth Transportation Board (CTB) to award design-build contracts for construction projects.
Five projects per year <$20 million
Five Projects per year >$20 million
In 2006, the General Assembly modified the Code provision
HB 666 – Removes the current restrictions on the number of Design-Build projects the CTB may award
HB 671 – Would allow the use of design-build contracting by localities awarding transportation contracts
In 2014, the DB code section reference is revised to § 33.2-209 (b)
2016, the DB code further revised to allow Alternative Technical Concepts (ATCs)
Title 23: Highways, Part 636 – Design-Build Contracting
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2001 2005 2010 2015 2018
VDOT Design-Build Program Timeline
Code of Virginia amended to allow CTB authority to
award D-B contracts
Code of Virginia amended to remove restriction on number of D-B contracts awarded per FY
Code of Virginia amended to allow the use of Alternative Technical
Concepts (ATCs)
1st D-B Transportation Contract APM Terminal
Hampton Roads District
50th D-B Contract AwardedMark Center Ramp
Northern Virginia District
100th D-B Contract AwardedWarrenton Southern Interchange
Culpeper District
High Rise Bridge Awarded1st Project with ATC’s
Largest D-B Contract to Date ($410M)
Hampton Roads District
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VDOT Design-Build Projects Statewide
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DESIGN-BUILD PROGRAM(Through February 2019)
Number of Contracts
Total Value(in Millions)
COMPLETED CONTRACTS 73 $1944
ACTIVE CONTRACTS 14 $1445
ACTIVE PROPOSALS 5 $120
CANDIDATE PROJECTS 1 $100
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$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
$700,000,000
$800,000,000
$900,000,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
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Summary of D-B Contracts Advertised
Total Estimated DB Contract Value # of DB Contracts Advertised
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Design-Build Procurement Methods
VDOT program has matured over last 15 years and has developed processes for several procurement methods
• Single Phase, Low Bid - for low risk, non-complex projects
• Two-Phase, Low Bid – For non complex projects that still demand highly qualified firms
• Two-Phase, Best Value – For high risk, complex projects
• Two-Phase, Base Scope + Alternatives – For complex projects with additional scope items
• Exploring the use of Progressive Design-Build
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Rte 277/244 InterchangeShirley Contracting/Dewberry(AWARDED – SEPTEMBER 2011 COMPLETED – JULY 2015)
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Design-Build Guidance Documents
Documents available on VDOT’s APD Websitehttp://www.virginiadot.org/business/design-build.asp
• Design-Build Manual
• Design-Build Evaluation Guidelines
• Design-Build QA/QC Manual
• IIM-APD-1 (DB Deliverables for RFQ and RFP Advertisement)
• IIM-APD-2 (Conflict of Interest Guidelines for DB Procurements)
• IIM-APD-3 (Selection Process for DB Candidate Projects)
• IIM-APD-4 (Federal Authorization Process for DB Projects)
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VDOT’s Design-Build Contract
• Part 1 – Instructions for Offerors
• Part 2 – Technical Requirements
• Part 3 – Lump Sum Agreement
• Part 4 – General Terms & Conditions
• Part 5 – Amendments to Standard Specifications
• Design-Builder’s Technical and Price Proposal
• Includes any enhancements proposed by Design-Builder
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Route 29 SolutionsLane-Corman JV /RK&K(Awarded – February 2015 Completed – July 2017)
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INDUSTRY TOPICS
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VTCA DESIGN-BUILD COMMITTEE
Progressive Design-Build:
VDOT is laying the groundwork to be able to use “Progressive Design-Build” (PDB) as an additional project delivery tool.
Alternative Technical Concepts (ATC) :
“A Request for Proposal for transportation projects to be delivered on a design-build basis pursuant to this section may allow for the submission and consideration of alternative technical concepts in accordance with the procedures set forth in such Request for Proposal.”
Design-Build Performance Evaluations:
Construction Division has initiated performance evaluations to be completed quarterly by the VDOT Pm. Goal is to utilize the results as part of the selection process during procurement.
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VTCA DESIGN-BUILD COMMITTEE
Stipend Levels:
VDOT and Industry currently evaluating the process for determining stipend amounts which is provided to the unsuccessful Offerors.
As-Built Plans
VDOT is coordinating on effort to clearly defining the as-built plan development and submittal process.
Entrusted Engineer in Charge (EIC):
Formerly Responsible Charge Engineer (RCE)
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• 2018 QA/QC Guide – July 2018 Update
• Provides consistency with Department’s current contract documents
• Improves inspection practices on D-B projects
• Layered PDF of Technical Proposal Plans
• Comparison between RFP Conceptual Plan and Offeror’s Proposed Concept
• Electronic Signatures for Title Sheet
• Electronic Submittal of Title Sheets
• Eliminate the need for signing mylars
• VDOT DB Community of Practice
• Improves consistency with contract administration
• Quarterly Meeting with D-B Construction Project Managers
Design-Build Program Improvements & Innovations
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I-581/Valley View Boulevard Improvements Lane/STV(Awarded – March 2013 Completed – September 2016)
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Candidate Projects
• I-95 Rappahannock River Crossing - RFQ Spring/Summer 2019
• Popes Head Road Interchange
• Boundary Channel Road Interchange
Locally Administered Projects
• Rte 28 Widening (Fairfax County) RFQ Spring 2019
• Rte 234 Balls Ford Road (Prince William County) - May 2019
• Northstar Blvd (Loudon County) – RFQ late 2019
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Who is the “Engineer” for Design-Build Projects
• The Design-Builder is the Engineer of Record and responsible for the final design and construction
• In the Part 2 Technical Requirements and Design-Build Special Provisions you will see the terms:
• VDOT Project Manager
• Design-Builder
• Quality Assurance Manager
• Engineer
• Engineer is define as:
• “Engineer shall mean the Department’s Chief Engineer, who
acts directly or through his duly authorized representative, the
representative acts within the scope of the particular duties
assigned to him or the authority given to him.”
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I-581 & Elm Avenue InterchangeAmerican Infrastructure/RDA(Awarded – July 2012 Completed – July 2015)
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PROGRESSIVE DESIGN-BUILD
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PROGRESSIVE DESIGN-BUILD
Progressive Design-Build (PDB) facilitatesinvolvement of the design-build team during theearliest stages of the owner’s project development,ensuring they are part of the project teamdeveloping design solutions. This promotes thegreatest amount of collaboration between the threekey players in a construction contract – the owner,the designer and the contractor.
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• No contractor involvement during design development
• Price is the only consideration for selection
• Project is totally defined at time of award
• No contractor involvement in ROW acquisition
Design-Bid-Build Attributes
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• Some early contractor involvement
• Proprietary meetings
• Opportunities for innovation
• Alternative Technical Concepts
• Risk transfer in ROW acquisition and Utility Relocation
• VDOT selects the most highly qualified teams
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Design-Build Attributes (VDOT’s Two-Phase Best Value)
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A procurement tool that provides the following benefits onhigh risk, complex projects:
• Involvement of most qualified Design-Builder at theearliest point of project development
• Collaboration with the Design-Builder on key scope andrisk issues
• Owner’s involvement in the selection of subconsultants, subcontractors, vendors and suppliers (including DBE & SWaM)
• Transparency in cost development using open-bookpricing
As a result, PDB reduces project risk for Owner and Design-Builder
Progressive Design-Build (PDB)
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• Design-Builder becomes a strategic partner in planning and project definition
• Allows involvement of public and private stakeholders throughout design development
• Single point responsibility avoids Spearin liability (errors and omissions) as there is no design “handoff”
• Potential cost & schedule savings
• Preliminary Engineering - No duplication of effort as bridging documents are not required
• Use of early work packages (R/W acquisition and utility relocation)
• Expedited procurement
PDB Advantages
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• Design and Construction Challenges
• Interface with other planned construction
• Need for early contractor involvement
• Unproven technology
• Operational impacts during construction
• Input on specific performance parameters
• Urban areas with dense commercial and residential development
• Environmental Challenges
• NEPA
• Permits
• 4F Properties
• HAZMAT
• USACE
When to use PDB
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• Right of Way Challenges
• Large number of parcels impacted
• Federal and State property
• Third Parties (railroad and transit authorities)
• Utility Challenges
• High volume
• Unknown and/or dark utilities
• Stakeholder Involvement
• Extensive input during design development
• Advisory panels
• Business entities, developers
• Military, municipalities, governmental agencies, Homeowners Associations, Architecture Review Boards
• Public transit and airports
When to use PDB (cont.)
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RFQ RFPPhase 1A -
Proof of Concept
Phase 1B –Project
Development
Phase 2 –Final Design
and Construction
Progressive Design-Build Process
RFQ Advertisement
CTB Award(GMP)
GMP
Decision Point #1 Proof of Concept within
GMPor
Off Ramp
Decision Point #2Lump Sum Price Established
at 40-60% Designor
Off Ramp
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• Collaborative effort between Owner and Design-Builder
• Ongoing and transparent cost estimating process
• Goal is to stay below established GMP
• Similar to existing escrow information
• Real time quotes from Design-Builder, subcontractors and subconsultants
• Better understanding of risk
• High confidence in price throughout process
PDB – Open Book Pricing
• Quantity take-offs• Crew size and
shifts• Equipment• Direct labor
• Indirect costs• Bond rates• Insurance costs• Mark-up and contingency
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• Operates as a termination for convenience
• Commercial terms generally include:
• Right to use work product
• Design-Builder is paid for services rendered; VDOT owns design
• Right to contract directly with designer to finish the design
• Right to use any other type of delivery system
Owner’s Off-Ramp Rights
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CTB Objective Criteria
In October 2001 the CTB adopted Objective Criteria for the selection of Design-Build projects listed below:
1. Expedited Schedule
2. Established Budget
3. Well-defined scope
4. Risk Analysis
5. Prequalification of Design-Build Firms
6. Competitive Bidding Processesa. Best Value
b. Low Bid
c. Fixed Price
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Route 460 Connector (Phase I)Bizzack Construction/AMT/ENTRAN/Janssen & Spaans(Awarded – August 2009 Completed – May 2015)
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ALTERNATIVE TECHNICAL CONCEPTS & PROCESS
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ALTERNATIVE TECHNICAL CONCEPTS (ATC)
In 2016, the General Assembly amended Code of Virginia
§33.1-12 .(2).(b). and authorized CTB to allow the submission and consideration of alternative technical concepts under design-build contracts.
HB 501 - Alternative Technical Concepts (ATC) :
A Request for Proposal for transportation projects to be
delivered on a design-build basis pursuant to this
section may allow for the submission and consideration
of alternative technical concepts in accordance with the
procedures set forth in such Request for Proposal.
For the purposes of this subsection, "alternative technical
concepts" means proposed changes to agency-supplied
base design configurations, project scope, design, or
construction criteria that provide a solution that is equal
to or better than the requirements in the Request for
Proposal.36
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VDOT ATC PROCESS
The purpose of the ATC process is to allow for technical innovation, creativity, and flexibility to achieve the project’s goals and objectives which are equal to or better than the RFP requirements.
ATCs will not be accepted for :
• reduce scope, long term performance, quality or reliability
• changes to VDOT design standards and practices, such as those solely proposed for the purpose of relaxing a more stringent standard
• modify VDOT’s programmatic risk allocation procedures, such as responsibility for utility relocation, responsibility for ROW acquisition, QA/QC program requirements and minimum pavement section requirements
• impose an additional burden on VDOT for maintenance (i.e. purchase of specialized equipment)
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VDOT ATC PROCESS (CONT.)
Proprietary Meetings
• Each Offeror will participate in two (2) Proprietary meetings with VDOT and its representatives or consultants. The purpose of the Proprietary meetings is to give each Offeror, in a confidential setting, an opportunity to ask questions and discuss concerns related to the Project, details of the Project scope, administrative procedures, and for the Offeror to present and discuss conceptual ATCs.
• The meetings are also intended to enable VDOT to express, among other things, whether the Offeror is pursuing an approach that is unacceptable to VDOT and, when possible, to establish whether a proposed concept meets the definition of an ATC thereby requiring a formal ATC submittal.
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ATC PROCESS (CONT.)
Proprietary Meeting #1:
The purpose of Proprietary Meeting # 1 is to discuss general issues and questions related to the Project including any potential ATCs the Offeror is considering. Offerors may bring exhibits or prepared graphics to the Proprietary Meeting for use in conveying their conceptual ATCs to Department staff.
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ATC PROCESS (CONT.)
Proprietary Meeting #2:
The purpose of Proprietary Meeting #2 is for the Offerors to provide a presentation of the ATCs the Offeror plans to submit as Formal ATCs. Offerors may bring exhibits or prepared graphics to the Proprietary Meeting # 2 for use in conveying their conceptual ATCs to Department staff.
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ATC PROCESS (CONT.)
Formal Submission of ATCs :
• If an Offeror desires to submit a formal ATC proposal, it shall do so by completing and submitting the Alternative Technical Concept (ATC) Submittal Form for each proposed ATC.
• The Offeror will only be permitted to submit ATC proposals for ATCS presented at Proprietary Meeting #2.
• Any ATCs submitted as formal ATC proposal that was not presented at Proprietary Meeting #2 will be rejected without consideration.
• If for any reason an ATC an Offeror was considering is withdrawn after Proprietary meeting #2 than no new ATCs can be introduced
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ATC PROCESS (CONT.)
VDOT performs ATC Evaluation and Determination
• VDOT will issue final determinations in writing to the Offeror for all ATCs submitted on or before the ATC submission deadline as indicated in the RFP
• If at any time after formal ATC submission it is determined that clarifications or additional information are needed, VDOT will request the information from the Offeror prior to completing the ATC review.
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ATC PROCESS (CONT.)
Offeror includes approved ATC into their Proposal
• Offerors have the option of whether or not to include approved ATCs into their Proposal. The Offeror shall identify in the Technical Proposal any approved ATC(s) incorporated in its Proposal, identify where each ATC has been incorporated, and confirm agreement with all conditions that accompany the ATC approval(s).
Evaluation of ATC proposals
• ATCs will not be evaluated separately but rather will be considered to be part of the overall Proposal and graded/ranked accordingly to the evaluation criteria and project goals and objectives as established with the RFP.
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CONFIDENTIALITY OF THE ATC PROCESS
• ATC confidentiality is of the utmost importance to VDOT recognizing that Offerors invest a tremendous amount of effort into developing their ideas.
• ATC submissions are considered proprietary until the contract is awarded and unsuccessful Offerors have accepted stipends.
• The Department understands the importance of maintaining tight restrictions on the review and approval process during procurement and will adhere to the policies outlined in the Design-Build Evaluation Guidelines to ensure confidentiality is maintained.
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Zion Crossroads Interchange Improvements Corman Construction Co./Parsons Transportation(Awarded – September 2012 Completed – April 2014)
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• Nationally recognized program
• VDOT named 2016 Transportation Owner of the Year by Design-Build Institute of America (DBIA)
• D-B Project Awards
• 27/244 Interchange – 2016 DBIA Merit Award (Transportation)
• I-64 Capacity Improvements, Segment I – 2018 DBIA Merit Award (Transportation)
• I-66/Route 15 Interchange – 2018 DBIA Project of the Year Award (All Sectors)
• DBIA Mid-Atlantic Chapter – Numerous Awards
VDOT’s Design-Build Program
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I-66/Route 15 InterchangeLane Construction/RDA(Awarded – May 2014 Completed – August 2017)
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• President- Ed Stelter (Faulconer)
• Vice President - David Lyle (Phillips and Jordan)
• Secretary - Ryan Masters (RK&K)
• Programs and Events Committee Chair - Bryan Stevenson (VDOT)
• Membership Committee Chair - Muriel Rodriguez (Schnabel)
• Sponsorship Committee Chair/Treasurer - Linnell Stanhope (Crowder)
• Legislative Committee Chair - Dusty Holcombe (RS&H)
DBIA Central Virginia Chapter – formed April 2018
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Next Event: Thursday April 25th
Morning meeting at McGuire Woods in Richmond, Virginia
Speaker: L. Preston Bryant, Jr. (McGuire Woods Consulting, LLC)
Former Delegate and Secretary of Natural Resources will discuss the
General Assembly sessions and trends affecting our industry
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Thank You!!
Jeffrey A. Roby, PE, DBIA, PE, DBIA
Assistant State Engineer
Alternative Project Delivery Division
Phone: 804-786-1103
Email: [email protected]
Web: http://www.virginiadot.org/business/design-build.asp