More... Better... Different

Performance Based Maintenance Contracting – An Asset Management Approach

More... Better... Different THE CHALLENGE DOING MORE WITH LESS GOVERNMENT DOWNSIZING INCREASING MAINTENANCE NEEDS INCREASED OUTSOURCING

More... Better... Different THE ASSET MANAGEMENT TRANSITION Original Highway Maintenance Model Traditional Outsourcing Model Total Highway Asset Management Model All Work Performed In-House by DOT Crews Short Duration Unit Price Single Service Low Bid Multiyear Lump-Sum Contracts Performance- Based Bundled Services RFP

More... Better... Different  BEST-VALUE SELECTION  LONG TERM MENTALITY CRITICAL SUCCESS FACTORS

More... Better... Different  BEST VALUE TAKES INTO QUALITY AND PRICE THROUGH SEPARATE TECHNICAL AND COST SUBMISSIONS  BOTH COMPONENTS ARE SEPARATELY EVALUATED AND THE CONTRACT IS AWARDED TO THE PROPOSER WITH THE HIGHEST OVERALL SCORE  CONTRACTING AGENCY DETERMINES WEIGHTING FACTOR FOR IMPORTANT ELEMENTS BEST-VALUE SELECTION

More... Better... Different  AWARD IS BASED ON PRICE AND QUALIFICATIONS  ENCOURAGES EXPERIENCED CONTRACTORS TO RESPOND AND ELIMINATES UNQUALIFIED BIDDERS  ALLOWS THE CONTRACTING AGENCY TO EVALUATE THE PROPOSERS’ KNOWLEDGE AND UNDERSTANDING OF THE SCOPE, GEOGRAPHY, AND DEMOGRAPHICS OF THE PROJECT BENEFITS OF BEST VALUE SELECTION

More... Better... Different  WHAT IS A LONG-TERM CONTRACT  One or Two Mutual Renewal Options  5 to 10 Year Term Depending on Asset Type  WHY A LONG-TERM CONTRACT?  Investment Mentality  Spreads Mobilization and Amortization Costs  Creates Alignment of Interests LONG-TERM MENTALITY

More... Better... Different  Creates one-source outsourcing  Offers lump-sum, fixed-price, multi- year contracts  Uniform and Consistent Outcomes  Operates to agreed performance standards  Reduces administrative workload  Assumes seen and unforeseen risks  Provides specialized resources  Flatten-out Peak Workloads  Guarantees cost savings ASSET MANAGEMENT ADVANTAGES

More... Better... Different QUESTIONS ?