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INNOVATIVE PROJECT DELIVERY

TxDOT’s Strategic Projects Division (SPD)

Increase Efficiency in Project Delivery


Increasing Efficiencies in Project Delivery

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Introduction - TxDOT Strategic Projects Division

Understanding Innovative Project Delivery

Increased Project Delivery Efficiency in Texas

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2

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Questions/Discussion 4

INTRODUCTION - TXDOT STRATEGIC

PROJECTS DIVISION


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TxDOT Strategic Projects Division (SPD)

Russell Zapalac

Chief Planning &

Project Officer

TxDOT Administration

Ed Pensock

Director of SPD

Katherine Nees

Deputy Director of SPD

Administration

& Contract

Management

Procurement &

Implementation

Coordination

Section

Strategic

Projects

Right of Way

Houston

Strategic

Project Office

South Central

Strategic

Project Office

DFW

Strategic

Project Office


$ 10.2 Billion

Nearly $25B in active P3 projects

Leveraged $6B (32%) in tax funds

to deliver $19B (100%) in projects

Successful bond issuance of $2.9B

for Grand Parkway in July 2013

Dedicated agency organization and

consultant support

$ 6 Billion

PRE-PROCUREMENT

$ 5.8 Billion

PROCUREMENT

DESIGN - CONSTRUCTION

$ 2.6 Billion

OPERATIONS & MAINTENANCE

SPD Program Overview

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Design-Build and Concession Project Map

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Future Design-Build and Concession Projects

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UNDERSTANDING

INNOVATIVE PROJECT DELIVERY


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Innovative Project Delivery Procurement Methods

TxDOT

Design-Bid-Build

Transportation Code – 223

Subchapter A and B

TxDOT Districts

Traditional Project Delivery

Strategic Projects Division

Innovative Project Delivery

Design-Build


Subchapter F

Comprehensive Development

Agreement (CDA)


Subchapter E


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Phased process of designing,

bidding, then building the project

– Design 2 years

– Bid 3 months

– Build 6 years

(through phased delivery)

– Estimated Delivery: 8.25 years

Concurrent process of delivery

through designing while building

– Design 2 years

– Build 4 years

(concurrent with design)

– Estimated Delivery: 4-5 years*

Potential Savings:

— Time – concurrent design and build

— Cost – from time, construction and

road user savings

*Estimated savings for a $1B project

Innovative Project Delivery

Traditional vs. Innovative Project Delivery Example

Traditional Project Delivery

INCREASED PROJECT DELIVERY

EFFICIENCY IN TEXAS


Project Delivery – Industry Outreach

Established a joint TxDOT/AGC Design-Build Task Force to promote efficiency in project delivery

Task force accomplishments:

– Developed Streamlined Procurement Documents for smaller Design/Build projects

– Created 2-day Design-Build Training Course (Conducted April 2014)

– Incorporated Safety Requirements

Ongoing collaboration efforts:

– Key Personnel

– Technical Requirements

– Lessons learned

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LBJ Express: Interstate 35E Interchange


Project Delivery – Innovative Capture Initiative

TxDOT sent a 14-question survey to 25 organizations in June 2013

With the help of these organizations, TxDOT was able to identify:

– Key barriers to integrating project innovation

– Potential solutions that promote efficiency in project delivery

Key Findings / Highlights

– Identify delivery model early

– Build flexibility into NEPA documents

– More accommodating ATC process

– Maximize performance-based design solutions

http://www.txdot.gov/inside-txdot/division/strategic-projects.html

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Project Delivery – Efficiency through ATCs

Alternative Technical Concepts (ATCs)

– Innovative ideas from proposers

– Confidential Process / Independent review

– Opportunity to incorporate ideas from

unsuccessful proposers

ATCs propose changes in:

– Design

– Construction

– Maintenance requirements, or

– Technical Provisions

“TxDOT has saved over

$210 million, in just 6

projects, with the

implementation of

Innovative Strategies

for Alternative

Technical Concepts”


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Project Delivery – Procurement Process Standardization

Documenting all steps in the procurement process

– Selection of evaluation teams

– Coordination between Divisions/Offices

– Procurement Schedules

– Document Control, preparation, release to industry

– Collaboration with Proposers (Q&A, One-on-one Meetings, ATCs)

Training staff on the procedures

Continuous improvement of the procedures


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Project Delivery –Program Scheduling (Procurement)

Standardizing Program and Project Schedules through Primavera

Identifying conflicts in resources & staffing through Program Schedule

Optimizing individual project schedules using standard templates

Considering time efficiency in ATC Process & scoring of proposals

Organizing geographically for project management & implementation

Requiring schedule updates from Developers prior to progress payments

Evaluate Project

Needs and

Assessment

Procurement

Qualification and

Shortlist

(RFQ)

Procurement

Proposal

Development and

Evaluation

(RFP)

Recommendation,

Selection and

Notification

Conditional

Award,

Contract

Negotiation

and Execution


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Reconstruction, rehabilitation, or repair of roadways and

bridges on the state highway system damaged by heavier

vehicles involved in the development and production of energy.

Utilizes HB 1025 funding provided by legislature for

energy sector road improvements

Construction of 31 roadways to occur in over 11

counties including the Eagle Ford Shale area

Aggressive 18 month construction schedule

Energy Sector Project (Eagle Ford Shale)

Design-Build

Efficiencies:

Project Cost

Contract Execution

Anticipated Final Acceptance

$183,000,000

February 2014

November 2015

Project Delivery - Faster Procurement


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Rebuilds the SH 114/SH 121 corridor through

Southlake, Grapevine and the north edge of the

Dallas/Fort Worth International Airport.

Best-value procurement included option pricing that

capitalized on fixed prices

Leveraged $250 million in Federal Stimulus Funds

Approved ATC Value – $31.4 M

Completed 10 months early!

Efficiencies:

DFW Connector – CDA Design/Build

Project Cost

Contract Execution

Final Acceptance

$1,267,002,195

April 2014

October 2009

Project Delivery - Reduced Delivery Time


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Approved ATC Value – $72.3 M

Successful bond issuance of $2.9B in July 2013

Successful sell of $733M bonds in January 2014 to

refinance a portion of the original bond issuance

Closed $840M TIFIA Loan in February 2014

A 38-mile new location (Greenfield) toll road with discontinuous

frontage roads, from US 290 to US 59/I-69 in Harris and

Montgomery Counties.

Grand Parkway - Segments F1, F2, and G

CDA Design-Build

Efficiencies:

Project Cost

Contract Execution

Anticipated Final Acceptance

$1,451,958,290

March 2013

December 2015

Project Delivery - Financing Leverage


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Project Delivery - Maintenance Agreements

Option for maintenance agreements if pricing acceptable

Achieves price certainty

Efficient for projects with unique features

Beneficial to achieving long-term ownership of design by the developer

Non-compliance handled through Noncompliance Points or Liquidated

Damages

Maintenance Agreements proposed on:

Loop 375 Border Highway West (El Paso)

US 181 Harbor Bridge (Corpus Christi)


Innovation Through Contracts and Project Delivery

TxDOT has increased project delivery efficiency by:

Industry Outreach

Innovative Capture Initiative

Efficiency through ATCs

Process Standardizations

Program Scheduling

Faster Procurement

Reduced Delivery Time

Financing leverage

Maintenance Agreements

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DFW Connector

QUESTIONS/DISCUSSION

Questions and Discussion

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Questions?

Dieter Billek, P.E. Procurement & Implementation Coordination Section Director

TxDOT Strategic Projects Division

Phone: 512-904-1688

E-Mail: [email protected]

TxDOT website: http://www.txdot.gov