1. AD/AB - LCCA 2 nd Session Wednesday, January 29th

2. AD/AB - LCCA (Alternate Design – Alternate Bid/Life Cycle Cost Analysis) Changes in Pennsylvania Issues under discussion

3. SEP-14 FOR AD/AB 2009 – 2011 9/10 went asphalt Only 2/10 had concrete bids

4. FHWA AB Guidelines Do not encourage Since DOTs want to use Equivalent designs and performance over the same period No longer experimental

5. Alternate Bidding A + C, where: A is the bid for initial construction C is the cost of future maintenance

6. C = summing the PW of future maintenance and M&PT (50 year evaluation period)

7. DOT/FHWA/Industry Committee Formed Spring 2012

8. GAO Report on LCCA June 2013 Evaluate states LCCAs Required by MAP-21 Surveyed 13 selected states 8/13 included User Delay in LCCA

9. Evaluation period ranged from 25 to 55 years States do comply and variability is justified

10. Pavement Policy Manual Publication 242 New Chapter 3 Pavement Type Determination

11. When is AD/AB and LCCA applicable? Construction, reconstruction or major rehabilitation 30,000 sq yds or greater of main line Pavement design and LCCA

12. What are some exclusions to having to bid pavement alternates? Difference of 10% or more without UDC Difference of 20% or more with UDC...

13. Exclusions (continued) Engineering judgement Adjacent pavement types Subgrade condition Right-of-way constraints

14. How are User Delay costs considered in LCCA process? UDC will not be included in C-factor Calculated for initial construction and each maintenance activity and brought to PW If 20% or greater difference including UDC, exception to AD/AB

15. What discount rate should be used in LCCA? 6, 4, 2%? 5 year rolling average of OMB Circular 94 (published annually)

16. Should Price Adjustment Clauses be used with alternate bidding? PACs have been used in PA for decades Proven benefit to owner and industry…

17. PACs (continued) Equates pavement types on a risk basis Change threshold for PACs from 10% to 20% and greater

18. How are Residual Life and Salvage Value considered in LCCA? Currently only residual life for concrete (5 years) Proposal to eliminate residual life and make treatment cycles come out equal to the evaluation period

19. How are maintenance treatment and cycles established? Historical performance data State preferences…

20. Established (continued) Proposed AC goes from 10 years to 15 years Concrete goes from 1 grind and 2 overlays to 2 grinds and 1 overlay

21. What about production rates and unit cost inputs? PennDOT and industry teams for both asphalt and concrete updated this data

22. Give the engineers/administrators latitude to make good decisions! LCCA just a tool!

23. Give credence to relative performance and motorists preference!