1. 2011 Nevada Transportation Conference
Welcome everyone. Looks like I am the last session. I am going to run through NDOT’s Pioneer Program which includes all of our Alternative Project Delivery methods. Then open it up for any questions you may have.

2. Pioneer Program
The Pioneer Program is a result of NDOT’s efforts to find solutions to our transportation funding shortfall and to meet the state's growing needs
All innovative delivery projects
Design Build (DB)
Construction Manager/General Contractor (CMGC/CMaR)
Public Private Partnerships (P3 - DBF, DBFOM, etc)
We developed our Pioneer Program based on recommendations from the Blue Ribbon Task force to pursue Public-Private Partnerships. It has evolved to include all of our alternative project delivery methods.
With these delivery methods we have developed guidelines for the different roles and responsibilities of all involved.

3. Pioneer Program
Common themes for the Pioneer Program are shown on this slide.
What you don’t see in this list is low bidder. The lowest bidder doesn’t necessarily get the project. Instead, the proposing team that has the Best Value proposal does.

4. Organizational Structure
Transportation Board
Director
Pioneer Program Director
Deputy Director–Chief Eng
Pioneer Program Manager
(Project Management Chief)
Project Manager
External Consultants
Technical, Legal, and Financial
Unsolicited Proposal
Advisory Committee
Walk through the organizational structure and emphasize which parts of org chart may interest the audience.
Oversight by Board.
Consider discussing what the “Advisory Committee” does as well as what each of the “teams” do.
These are unique projects, some we’ve never done before (in the case of P3); therefore, we need consultant experts.
Project Review Team
Development Team
Implementation Team

5. Pioneer Program Guidelines
Detailed internal project development and delivery processes
Delivery method selection
Procurement: process, roles and responsibilities and required approvals (Board, FHWA, Director, etc)
Stipend criteria
NDOT does DBB really well and can probably do it while asleep because it is so familiar. Pioneer Program projects comes with new and different roles and responsibilities for all involved in the development and delivery of them. These guidelines will be a tremendous support for each time we go through this process.
The guidelines provide guidance on delivery method selection and how to calculate a stipend.
Allows NDOT to own the ideas of unsuccessful proposers and incorporate them into the ultimate design/project, provided the unsuccessful proposer accepts the stipend by signing the “document”.
Provides for a minor amount of compensation for the work that goes into preparing these proposals. Could say that proposers can spend millions on these, and the stipend doesn’t cover all costs by a long shot. Stipend for I-80 which was approximately a $70M project was $100K.

6. Traditional vs Innovative Delivery
Construction
Preliminary
Design
Final
Design
Bid
DBB
Preliminary
Design
Procurement
Final Design
(Risk & constructability)
Legend DB
Construction
NDOT
Contractor
Walk through process. Emphasize when “design” is done jointly with NDOT (CMGC) and when responsibility shifts to the contractor (DB team). Emphasize that design doesn’t have to be complete for construction to begin thus the time savings.
Preliminary
Design
Procurement
Final Design
CMGC
Contractor Input
(Risk & constructability)
Construction
Time
Savings

7. NRS 408 Design Build Costs less than another method; or
Completed sooner than another method; or
Project is unique, highly technical and complex
Transportation Board/FHWA approvals required
One project per fiscal year between $5 - $20 Million
Can’t use DB for any project we feel like. It must meet 3 criteria as specified in NRS 408.
Approvals are required.
We can do several DB projects >$20M per fiscal year but we can only do 1 DB project <$20M per fiscal year. It this year’s case, that was the I-15 ITS DB project.

8. Projects Design Build NDOT design build contracts
I-15 North Las Vegas - Complete
I-15 South Las Vegas – Under construction
I-15 ITS - In procurement
I-15 Mesquite - In procurement
I-80 Reno - In procurement
Board Meeting is April 4
Currently negotiating final contract terms for our 3 DB projects with the design builders.

9. Construction Manager / General Contractor (CMGC)
Plan
NDOT
Design
NDOT
Design
Consultants
Contractor
Negotiate GMP
Generally explain the CMGC process. Explain that “design” can be done in house or by a consultant.
GMP Not Achieved
Build
Contractor
Bid
Build

10. CMGC Process Max Price Partnering
Risk Assessment
Design Workshop
Estimate
Risk Mitigation
Max Price
Partnering
Explain the overall process. The entire team participates in the design workshops where the project is discussed, risks are identified and mitigated.
Explain what the ICE is and what their role is in this process:
Three separate estimates are prepared and compared a few times along this process.
The contractor’s (opinion of probable construction cost), the designer’s and then the ICE’s.
Approach to prices are discussed (assumed a hot plant x miles from the project, assumed excavated material can be re-used, etc), but specific unit prices ($100/ton of pbs) are not discussed.
Estimates are compared and when close enough, the GMP is established and the contractor gets to work.
NDOT will establish formal partnering with the CMGC.
Conduct design workshop along with risk identification and assessment
Facilitated by staff experienced in design and construction
ICE will be attending
Agree on risk allocations
Prepare Project Construction Costs:
OPCC
ICE
Designer
OPCC 1
OPCC 2
OPCC 3

11. NRS 338.169 CMGC Enabling legislation exists UDOT, ADOT, CalTrans
Public Works Board
Local cities & counties
Excludes NDOT
UDOT, ADOT, CalTrans
FHWA – Every Day Counts Initiative
Assembly Bill 69
Explain legislative restrictions and our efforts to use this delivery method.
Explain that this isn’t new and that our neighboring states are using this method.

12. Design & Constructability
Improve constructability, improve quality, reduce change orders and overruns, identify risk and assign an owner
Less time/detail required to communicate design (DB)
NDOT owns/controls design (CMGC)
Why innovative delivery vs traditional

13. Innovation
NDOT can select innovation independent of contractor experience or abilities
Contractor participation is expected to encourage innovation
Contractor participation is expected to moderate the risk of new technology innovations
Why innovative delivery vs traditional
NDOT has never done Accelerated Bridge Construction (ABC). Now, thanks to the I-15 Mesquite DB project where innovation is encouraged, NDOT gets to try this and not at our risk.

14. Schedule Procurement takes time
Overall less time in design and construction
Design is tailored to contractor’s abilities
Construction can begin before design is complete
Good for long lead items
Phased contract
MOT improves with contractor input
Why innovative delivery vs traditional

15. Risk Contractor will help identify and manage risks
Transfer some risks to contractor & shared risks
Allocation of risk is based on party that is best equipped to handle that risk
Why innovative delivery vs traditional

16. Public Relations Faster delivery time Improved Quality
Greater opportunities for innovation
Reduced impacts to the traveling public
Why innovative delivery vs traditional
Get it done quicker, more accurately and for less: win-win for the public

17. Cost Contractor input into MOT and utilities should reduce cost
Risk transfer comes with a cost
We are paying for contractor involvement during design phase
Stipend costs
Why innovative delivery vs traditional

18. The P3 Spectrum Fully Public Fully Private Build-Operate-Transfer
Design-Build-Finance
Operate-Maintain
Design-Build
Finance
Explain the spectrum and different types of P3 projects: they can be mostly public with some private or the mostly private with some public oversight.
In the U.S., unlike other developed countries, governments have traditionally provided highway infrastructure.
However, in the 1980’s this tradition began to change with early attempts by the states of California and Virginia to involve the private sector in developing new toll roads.
Since then, there has been gradual but continual growth in the number of states who have implemented Public-Private Partnership programs for delivering new highway infrastructure
Selected P3 Objectives:
Accelerated delivery of critical highway infrastructure.
Improved risk allocation.
Achieve lower life cycle costs.
Access improved skills, technologies, innovations, knowledge, resources, etc.
Access new sources of capital.
Operations &
Maintenance

19. How are P3s Different? Public Private Partnerships
Delivered in different ways
Design, Build, Operate, Maintain, Finance
Long term agreements
Tolling
Risk transfer
Payment structure
Unsolicited vs solicited proposals
Senate Bill 83
Explain different ways P3 can be delivered.
These can be long term agreements, up to 10, 20, 30, 40 etc years
They may or may NOT involve tolling
Risk of whether or not users choose to pay a toll to enjoy a predictable, repeatable travel time, so private partner can recoup his investment may be born entirely on the private partner.
Payment structure can vary from NDOT having to invest a large up front, to annual payments, to the private partner paying NDOT for the right to toll.
Can be unsolicited or solicited types of projects.

20. Why is the Pioneer Program Important to you?
Coming to a project near you
Different roles and responsibilities for everyone
Could probably delete this slide…or delete the “RE” bullet/sub-bullet

21. Future Steps Pioneer Program
Obtain approval of state legislators this Spring to utilize CMGC, solicit for P3 projects and allow tolling
Immediately move forward with the next stage of project development (pending legislative approval)
Scoping, screening, approval, procurement, etc.

22. Questions?