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More... Better... Different. Performance Based Maintenance Contracting – An Asset Management Approach.

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Presentation on theme: "More... Better... Different. Performance Based Maintenance Contracting – An Asset Management Approach."— Presentation transcript:

1 More... Better... Different

2 Performance Based Maintenance Contracting – An Asset Management Approach

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

4 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

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

6 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

7 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

8 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

9 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

10 More... Better... Different QUESTIONS ?


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