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Published byLogan Fitzpatrick Modified over 10 years ago
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DESIGN BUILD NATIONAL PERSPECTIVE by Dwight Horne FHWA
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WHAT IS DESIGN-BUILD ?? PROCUREMENT METHOD RISK SHARING TECHNIQUE INNOVATION QUALITY BASED SELECTION WARRANTY OPTIONS FINANCING OPTIONS
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Design-Build - Why is it Experimental? Design-Build 23 USC 112 (b)(1) Competitively Bid (Low bid) Construction Contracts 23 USC 112(b)(2) Qualifications based Selection, Engineering / Design Services
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STATE DOT CHALLENGES FEWER STATE DOT EMPLOYEES MORE $$ HIGHER PUBLIC EXPECTATIONS –MORE CUSTOMER FOCUS –MORE INNOVATIVE CONTRACTING
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Design / Build NOTIF NOT WHEN HOW
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Design-Build Selection Procedures Low Bid Modified Design-build Adjusted Bid Highest Composite Score Best Value Best Value / Fixed Budget
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Procurement Strategy
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Advantages of Design-Build (from Owner Perspective) Single Point of Responsibility Quality / Innovation Potential Time or Cost Savings Improved Risk Management Earlier Knowledge of Firm Costs Lower Incidence of Claims Reduced Project Administration
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Advantages of Design-Build to Industry INNOVATION CONSTRUCTABILITY DESIGN TO STRENGTHS BETTER SCHEDULING MORE COST AWARENESS SHORTER DECISION TIME
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DESIGN / BUILD State & Local Governments Private Companies Federal Agencies
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FHWA Design-Build Philosophy Give same Flexibility & Protection offered by FEDERAL ACQUISITION REGS. Allow D-B contracting techniques allowed under STATE LAW Comply with other Federal-aid Provisions Preserve the NEPA process Determine best entity to manage risk Protect the Public $$ –Competition - Best Value - Quality
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States Currently Using Design-Build
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SEP-14 Design-Build Contract Amounts
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TEA-21 Design-Build Legislation Section 1307 By June 2001 FHWA must develop regulations It will allow states to use D/B without HQ approval for : –ITS projects > $ 5 million –Other projects > $50 million Existing SEP-14 will be used in the transition period SEP-14 will continue for smaller projects
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ISSUES For Consideration when Structuring Procurement For FHWA Consideration in Rulemaking
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NEPA COMPLIANCE? RFP Release? Issue When should the RFP be released relative to the conclusion of NEPA? Public perception - bias for build/preferred alternate if RFP prior to ROD Contingencies Federal investment / risk Trade-off - time vs. risk of increased costs
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Procurement Issues Issue Basis of evaluation and award Low-Bid Two-Phase Process Best Value Decision based on %, design complete, risk, project uniqueness
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Procurement Issues - Weight of Price Issue Weight of price in the selection process Relative weight How to compare Consideration of other factors
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Standardized Changed Condition Clauses Issue For traditional Federal- aid construction projects, 23 CFR 635.109 applies. However, TEA-21 Section 1307(b) indicates SCCC are not necessary for design- build. Owner delays Differing site conditions Significant changes in character
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FHWA Authorization / Approvals Issue Timing of authorization Involvement in project approvals Timing relative to NEPA Prior to release of RFQ, RFP, Concurrence in award Existing stewardship agreements Clean Air Implications
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Conflict of Interest Issue Owners consultant? Owners subconsultants? Same consultant / different teams post award team changes /enhancement Competition Unfair advantage Bid shopping? Minimum team requirements/ enhancement?
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Owner Oversight Issue What is the appropriate level of owner oversight? Owners role Verification Applicability of 23 CFR 637 (acceptance testing, IA testing) Warranties
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Time Table NPRM - Fall 00/Early Winter Published in Federal Register Final Rule - Spring of 01 Published in Federal Register + 30 Days - Effective
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Additional Resources on SEP-14 Design-Build Projects FHWA HIPA-30 web page –http://www.fhwa.dot.gov/infrastructure/progadmin/cont racts/d_build.htm Utah State University web page –http://www.utaht2.usu.edu/projects/innovativecontracti ng/ICSearchpage.html –Run query for design-build projects WSDOT Design-Build Process for Highway Projects –http://www.wsdot.wa.gov/designbuild/db/index.htm#St ake
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GIVE US YOUR COMMENTS On THESE and OTHER DESIGN/BUILD ISSUES Important to you IN WRITING –as an Association –as a Company –as an Individual TO FHWA 400 SEVENTH STREET WASH. DC 20590
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