INNOVATIVE PROJECT DELIVERY
TxDOT’s Strategic Projects Division (SPD)
Increase Efficiency in Project Delivery
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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Questions/Discussion 4
Increase Efficiency in Project Delivery
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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
Increase Efficiency in Project Delivery
$ 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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Increase Efficiency in 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
Transportation Code – 223
Subchapter F
Comprehensive Development
Agreement (CDA)
Transportation Code – 223
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
Increase Efficiency in Project Delivery
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
Increase Efficiency in Project Delivery
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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Increase Efficiency in Project Delivery
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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”
Increase Efficiency in Project Delivery
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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
Increase Efficiency in Project Delivery
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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
Increase Efficiency in Project Delivery
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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
Increase Efficiency in Project Delivery
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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
Increase Efficiency in Project Delivery
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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
Increase Efficiency in Project Delivery
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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)
Increase Efficiency in Project Delivery
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 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