ALTERNATIVE CONTRACTING

1. ALTERNATIVE CONTRACTING

2. ALTERNATIVE CONTRACTING • LUMP SUM • DESIGN BUILD • CM@RISK

3. LUMP SUM

4. Lump Sum • What is it? • Project Selection • Construction Contract Administration

5. What is it? • Method of Contracting upon which Contractor submits a LS Bid for all work vs. bidding individual Pay Items • Intended to reduce design & contract administration costs

6. Project Selection • “Simple” Projects • Well Defined Scope • Low risk of unforeseen conditions • Low possibility of changes during all phases

7. Construction Contract Administration • Payments based on approved payout schedule (SoV) • Inspection Personnel should not be required to document quantities (except for those subject to adjustments i.e. asphalt) • Focus on Inspection, Quality and Conformance with contract

8. LUMP SUM Project plans preparation • Desired Elements • Typical Sections • Milling/Resurfacing (and overbuild where appropriate) details • Summary boxes when work not shown on Plan Sheets • Plan Sheets depict existing conditions & detail work to be performed

9. LUMP SUM Project plans preparation • Desired Elements (continued) • Plan Sheets detail all work not covered by Typical Section and/or Design Standards • Cross Sections (when shoulder point is moved) • Signing/Pavement Marking, Signalization and Lighting Plans: • Include Pay Items for Reference Purposes Only • Include Note: “Pay item number provided only for purpose of describing work to be performed”

10. LUMP SUM STANDARD SPECIFICATIONS • 2-3.1 – INTERPRETATION OF QUANTITIES (Lump Sum Contracts) • Bidder responsible for determination of quantities

11. LUMP SUM STANDARD SPECIFICATIONS • 105-2 ADDITIONAL REQUIREMENTS FOR LUMP SUM PROJECTS • Job Guide Schedule • Project specific list of materials & quantities • Submit 21 days prior to commencement of construction • Update Monthly • No Commencement until Department Approval • Final JGS at Final Acceptance

12. LUMP SUM SPECIAL PROVISIONS • SP0030100LS – Award & Execution of Contract • 3-1 For the purpose of award, after opening and reading the proposals, the Department will consider the total Contract Lump Sum Price as the bid. On this basis, the Department will compare the amounts of each bid and make the results of such comparison available to the public. Until the actual award of the Contract, however, the Department reserves the right to reject any or all proposals and to waive technical errors that the Department may deem best for the interest of the State. In the event of any discrepancy in the two entries of the Contract Lump Sum Price, the Department will evaluate the bid based on the lump sum price shown in words.

13. LUMP SUM SPECIAL PROVISIONS • SP0040100LS – Scope of Work • 4-1 Intent & Scope • LS Contract w/1 Pay Item Listed in Contract • Pay Item Number References superseded by the LS Pay Item • Payment for all work made under LS Pay Item • Pay Adjustments don’t apply (except for those in 9-2)

14. LUMP SUM SPECIAL PROVISIONS • SP0040100LS – Scope of Work • 4-3.1 General • Defines term “significant change” as Engineer determination • Deletes reference to 125% increase / 75% decrease of “original Contract quantity”

15. LUMP SUM SPECIAL PROVISIONS • SP0050501LS – Control of the Work • 5-1.1 • Adds “All reference to separate payment for individual items of work will not apply. The cost for various items of work will be included and paid for under the Contract Lump Sum Price.”

16. LUMP SUM SPECIAL PROVISIONS • SP0060100LS – Control of Materials • 6-1.3.3 • Establishes material sampling & testing acceptance requirements are in accordance with 105-1 & 105-2 for the following: • Earthwork • Base • Hot Bituminous Mixtures • Portland Cement Concrete • Reinforcing Steel • Fabricated Metals

17. LUMP SUM SPECIAL PROVISIONS • SP0060100LS – Control of Materials • 6-1.3.4 • Establishes specific certification requirements for QPL Products • Notarized Certification prior to material utilization • Manufacturer Letterhead • Product Name & Batch Number • FPID & Contract Number • County • Test Result • Certification Statement

18. LUMP SUM SPECIAL PROVISIONS • SP0060100LS – Control of Materials • 6-1.3.5 • Establishes specific certification requirements for Non-QPL Products • Notarized Certification prior to material utilization • Manufacturer Letterhead • Material Identification • Material Type • FPID & Contract Number • County • Test Result • Certification Statement

19. LUMP SUM SPECIAL PROVISIONS • SP0080401LS – Prosecution & Progress • 8-7.3.1 – Increased Work • Department may grant time extension when adding new work or providing for unforeseen work rather than overruns in original contract items.

20. LUMP SUM SPECIAL PROVISIONS • SP0090103LS – Measurement & Payment • 9-1.3 • Establishes criteria for the determination of Pay Reductions

21. LUMP SUM SPECIAL PROVISIONS • SP0090103LS – Measurement & Payment (cont.) • 9-2.1 • Establishes those items included in LS Payment • Furnishing all materials • Performing all work • Loss / damage arising out of nature of work • Overhead • Profit • Direct / Indirect Cost

22. LUMP SUM SPECIAL PROVISIONS • SP0090103LS – Measurement & Payment (cont.) • 9-2.1.1 • Establishes criteria for Fuel Adjustments on Contracts with an Original Contract Time in excess of 120 Calendar Days

23. LUMP SUM SPECIAL PROVISIONS • SP0090103LS – Measurement & Payment (cont.) • 9-2.1.2 • Establishes criteria for Bituminous Adjustments on Contracts with an Original Contract Time in excess of 365 Calendar Days or more than 5,000 Tons of Asphalt

24. LUMP SUM SPECIAL PROVISIONS • SP0090103LS – Measurement & Payment (cont.) • 9-2.2 • Establishes Pay Adjustment criteria for: • Deficiencies (9-2.2.1) • Spread Rate (9-2.2.2) • Overbuild (9-2.2.3) • Foundations (9-2.2.4) • Quality (9-2.2.5) • Deleted Work (9-2.2.6)

25. LUMP SUM SPECIAL PROVISIONS • SP0090103LS – Measurement & Payment (cont.) • 9-5.5.2 • Establishes Partial Payment criteria • Partial Payments less than $5,000 in any one month are not processed • No Partial Payment for aggregate or base material received after paving / base construction begins unless Department suspends paving or base operations • Deletes item bid price limitations placed on: • Structural Steel / Precast Pre-stressed Items (85%) • Other Items (75%)

26. LUMP SUM SPECIAL PROVISIONS • SP0090103LS – Measurement & Payment (cont.) • 9-11.1 • Establishes Invoice Submittal Requirements: • Contractor prepares Invoice & submits to Engineer • Engineer approves Invoice prior to making payment

27. LUMP SUM SPECIAL PROVISIONS • SP0090103LS – Measurement & Payment (cont.) • 9-11.2 • Establishes Invoice Submittal Requirements: • Submit by 12:00 on Monday following estimate cut-off date • Invoice based on work completed • Invoice must include: • Contract/FPID/Invoice Number • Invoice Date & period covered

28. LUMP SUM SPECIAL PROVISIONS • SP0090103LS – Measurement & Payment (cont.) • 9-11.2 • Establishes Invoice Submittal Requirements(cont): • Basis of Progress Invoice amount: • Approximate Quantities • Less Previous Payments • Less amounts previously retained or withheld • Contract Summary: • % dollar value of completed work • % of days used based on present Contract Days • Certify: • Fuel & Bituminous Gallons • Steel weight for Indexed items

29. DESIGN-BUILD

30. Design-Build • Authorization • Project Selection • Criteria • Warranties

31. DESIGN-BUILD AUTHORIZATION

32. Authorization • Design Build (D-B) Contracting Authorization – • FLORIDA STATUTES • D-B Major Projects Authorization – 337.11(7) F.S. • Buildings • Major Bridge • Limited Access Facilities • Rail Corridor • Estimated cost exceeds $10M

33. Authorization • Design Build (D-B) Contracting Authorization • FLORIDA STATUTES • Minor D-B Projects Authorization –337.025 F.S. • Innovative Contracting Statute – Annual Cap of $120M • Minor Bridge • Resurfacing (no widening/shoulder work) • Projects not covered by 337.11(7) F.S. • Estimated Cost less than $10M

34. DESIGN-BUILD PROJECT SELECTION

35. Project Selection • Design Build (D-B) contracting should be considered on the following types of projects: • Demand an expedited schedule and can be completed earlier • Require minimal Right of Way acquisition and utility relocation • Well defined scope • Allow for innovation in the design and/or construction effort • Low risk of unforeseen conditions • Low possibility of significant changes

36. Project Selection • Examples of projects which may be good D-B contracting candidates: • Major Bridges • Minor Bridges • ITS (computer signalized traffic) • Intersection improvement (with known utilities) • Buildings-office building, rest areas, welcome stations, etc.

37. Project Selection • Examples of projects which may be good D-B contracting candidates (continued): • Interstate widening • Rural Widening • Fencing • Landscaping • Lighting • Signing • Signalization • Guardrail

38. Project Selection • Examples of projects which may not be good • D-B contracting candidates are: • Major bridge rehab/repair with significant unknowns • Rehab of movable bridges • Urban construction/reconstruction with major utilities, major subsoil, R/W or other major unknowns

39. DESIGN-BUILD CRITERIA

40. Developing Design-Build Criteria • Adjusted Score or Low Bid? • Adjusted Score • Want (or need) to have input by evaluating the D-B firm and Technical Proposal (prior to bid time) • Innovation or potential alternatives exist • Scope is more versatile

41. Developing Design-Build Criteria • Low Bid • Straight forward projects • (guardrail, noise walls, milling and resurfacing, etc.) • Scope is well defined

42. Request for Proposals • Much of the language is standard from SCO website • Grading Criteria • Decide what is important • Innovation • Maintenance of Traffic • Aesthetics • Environmental • Schedule • Assign Points Accordingly

43. Two Phase Adjusted Score Design-Build Procurements • ASDB procurement – Two phase process which combines evaluation scores of • Phase I - Expanded Letters of Interest (ELOI) • Phase II - Technical proposal

44. Two Phase Process Phase I Phase II ELOI RFP Evaluate & Score Technical Proposals Short List Evaluate & Score Award Contract Calculate Lowest Adjusted Score Using Price Proposal from D-B Firm Select Design-Builder

45. Issue Escalation & Resolution • RFP sets a hierarchy for design issues and construction issues to be resolved through a defined chain of command • D-B Firm will be required to set a similar escalation process for both design and construction

46. Issue Escalation & Resolution Design Project Manager Construction Project Mgr District Design Engineer District Const. Engineer Director of Development Director of Operations District Secretary District Secretary

47. STIPENDS Only on ASDB Projects

48. Stipends for unsuccessful firms • The Department intends to compensate eligible unsuccessful short-listed Firms for submitting a proposal • The eligible unsuccessful short-listed Firms may receive compensation (lump sum) for their efforts in preparing a proposal if the proposal is determined to be responsive • The intent to compensate and the amount of compensation will be noted in the RFP • This decision will be at the discretion of the contracting District or Central Office.

49. Stipends for unsuccessful firms • Federal funds MAY be used. • A Stipend is not intended to compensate the Firms for the total cost of preparing the proposal package. • In return, the Department reserves the right to use any of the concepts or ideas within the technical proposals, as the Department deems appropriate.

50. CM@Risk