Georgia Department of Transportation Recommended Guide for Next Generation of Transportation Design-Build Procurement and Contracting in the State of Georgia Russell McMurry, P.E. Chief Engineer Georgia Department of Transportation rmcmurry@dot.ga.gov Georgia DOT is very pleased to be recognized for this research, which was conducted by Georgia Tech under the technical direction of our Office of Innovative Program Delivery and managed by our Office of Research. The Design-Build (DB) project delivery system offers state DOT’s the opportunity to accelerate critical phases of projects with the goal of delivering transportation projects more cost-effectively.

Research Objective Research objective: develop a systematic approach to help evaluate appropriateness of DB for a project DB is a useful tool but State DOT’s should select DB for projects only if it is expected to produce the best outcomes, for example: reduced project delivery schedule; reduced project delivery cost; and use of innovation The overall objective of this research project was to develop a transparent, defensible method of evaluating the appropriateness of DB for a transportation project.

Research Performed Comprehensive review of academic and professional literature Scanning process on state DOT websites re: DB state of practice Structured interviews with state DOT representatives The research itself entailed a comprehensive review of academic and professional literature to identify: Benefits of DB from the state DOT’s standpoint Significant factors in the selection of DB for a project Existing processes for the assessment of project delivery systems The researchers scanned numerous state DOT websites regarding the documented state of practice related to DB and conducted structured interviews with state DOT representatives to identify and analyze the approach of these state DOT’s for selecting DB for their transportation projects

Key Finding of State DOT Scanning Process Based on the state DOT scanning process, this graph shows the main factors motivating state DOT’s to select DB. The in-depth structured interviews with three DOT’s also showed that: State DOT’s benefit from an effective and transparent evaluation process that explicitly shows how using DB can produce the best outcome for the project Efficient and effective risk allocation is critical for the success of DB projects Successful implementation of a DB project highly depends on the procurement method used for DB team selection Main Factors that Motivate State DOT’s to Select DB (Source: 29 State DOT’s DB Guidelines and Manuals)

Major Deliverables of Research Project DB guidebook to improve efficiency of DB selection and implementation A DB selection tool was developed that helps GDOT to: Determine suitability of DB for projects Assess whether project risks can be managed if DB selected Evaluate procurement methods and select most appropriate Implement DB transparently and consistently A DB guidebook was developed to improve the efficiency of DB selection and implementation for GDOT highway projects. A DB computerized selection tool was also developed that guides GDOT in determining suitable projects for DB, while also looking at risk management and specific procurement methods. We feel this guidebook and the tool allow us to implement DB more effectively

Implementation Post-research workshop held to share and facilitate adoption of DB tool GDOT Office of Innovative Program Delivery is currently using DB selection tool A post-research workshop was held to facilitate adoption of DB contracting in Georgia. Workshop participants were guided through various steps of this systematic approach as described in the DB selection tool. GDOT is currently using the DB selection tool to achieve transparent and consistent implementation of DB.

Value of Research Information provided from research made possible the following Georgia legislative changes: July 1, 2012: DB cap raised by 50% ($), based on total awards in previous fiscal year July 1, 2013: DB code revised to allow for Best Value DB contracting Besides the tool itself, the information that was gathered as part of the research provided us with data that we were able to share with our Legislature, and last year the Georgia legislators raised the previous cap for DB by 50%. Additionally, effective July 1, 2013, Georgia legislators revised the DB code to allow for Best Value DB contracting, previously we were required to award DB projects using lowest bid. We are very pleased to be moving forward with DB on an even larger scale by implementing this research.

Systematic Approach NO YES Are there deal breakers? Conduct SWOT Analysis Project Delivery Schedule Innovation Level of Design Project Delivery Cost Staff Experience Marketplace Competition &DB Team Experience SWOT Score over 60? Design Build is not a proper Project Delivery System NO YES Set Project Goals Assess Deal-Breaker Issues Are there deal breakers? Define Project Characteristics Identify the Department’s Strategic Goals and Assess the Institutional Alignment of Design Build Project Delivery System with these Strategic Goals Project Quality

Systematic Approach Analyze Benefits and Challenges Perform initial risk identification and allocation High DB Risk? Design Build is a proper Project Delivery System Design Build is not a proper Project Delivery System Yes YES NO Analyze Benefits and Challenges Assess Benefits and Challenges of Selection Based on Price Consideration Only Vs. Selection Based on Price and Technical Considerations Assess Benefits and Challenges of Single-Phase Selection Process Vs. Two-Phase Selection Process Select the appropriate Selection Method Since 1999 -- first DB projects had prequalified designer – had to choose one DB code 2004 Rules 2006 KIA – First under design build code

Selection Tool

Risk Allocation

Thank You rmcmurry@dot.ga.gov This is a picture of one of our DB openings- I-20 eastbound CD ribbon cutting.  This DB project opened to traffic on schedule this summer and produced outstanding results exceeding our expectations.