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FHWA Update

FHWA Update. Butch Wlaschin, P.E. Director, Office of Asset Management. AASHTO Highway Subcommittee on Construction 2010 Annual Meeting Burlington, Vermont. Presentation Overview. Update on Recovery Act and Reauthorization Current Issues FHWA Programs & Initiatives. Update - Recovery Act.

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FHWA Update

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  1. FHWA Update Butch Wlaschin, P.E. Director, Office of Asset Management AASHTO Highway Subcommittee on Construction 2010 Annual Meeting Burlington, Vermont

  2. Presentation Overview • Update on Recovery Act and Reauthorization • Current Issues • FHWA Programs & Initiatives

  3. Update - Recovery Act

  4. Recovery Act Work Types by % of Contract Value

  5. Average Wage Rates for Recovery Act Contracts

  6. Recovery Act - Total Contractor Work Hours (Month)

  7. Recovery Act Expenditures vs. Obligations(by Improvement Type) Obligations Expenditures

  8. Update - Reauthorization • On-going discussions with Hill • OST principles to be issued • Funding continues to be the problem • Most likely to see focus on performance • Safety, Livable Communities, Sustainability, Performance • More to follow

  9. Current Issues • Project Labor Agreements • Pavement Marking Material Shortage • Alternate Bidding For Pavement Type Selection

  10. Project Labor Agreements • February 6, 2009 President Obama signed an Executive Order titled “Use of Project Labor Agreement for Federal Construction Projects.” • Encourages executive agencies to consider requiring the use of PLAs on large-scale direct Federal construction projects (defined as a project with a total cost of $25 million or more). • May 7, 2010 – FHWA Administrator Mendez signed a memo titled: “Interim guidance on the use of Project Labor Agreements” • Provides factors for agencies to use in evaluating whether a PLA is in the government’s interest • Allows Division Offices and States to approve PLAs on a project-by-project basis in accordance with the memo

  11. Pavement Marking Material Shortage • In June 2010, State DOTs began to experience shortages of four key raw materials used to produce waterborne traffic paint, extruded and spray thermoplastics, and epoxy • Only 50-60% of normal supply available; Industry indicated 6-8 week backlog in orders • Shortages may last until the end of the 2010 calendar year. • Not all states may perceive a shortage as paint suppliers honored long-term supply contracts for state maintenance contracts • FHWA encourages our Division Offices to work with State DOTs on a case-by-case basis in accordance with contract requirements.

  12. Alternate Bidding For Pavement Type Selection • Memo issued November 13, 2008 • Clarifies and consolidates FHWA policy • Applies to Federal-aid on the NHS • Alt Bidding is “not encouraged” but can be used in “rare instances”…. • Equivalent designs • Discount rate • Uncertainty • Rehabilitation strategy • Subjective factors • Commodity price adjustments • I/D provisions • Materials quantities • Approval process

  13. FHWA Programs & Initiatives • Every Day Counts Initiative • TCM Steering Committee Update • Construction Program Baseline Review • Construction Engineer Training Course

  14. Every Day Counts Shortening Project Delivery Initiatives in Design and Construction • Design-Build • Construction Manager/General Contractor (CM/GC) • Flexibilities in Utility Accommodation & Relocation

  15. Accelerated Project Delivery Task Force • AASHTO – ARTBA – AGC Task Force • Provides a two pronged approach for addressing APD that complements the FHWA Every Day Counts initiative • Provided initial recommendations to FHWA in March • Developing a work plan of APD activities – to be completed by August.

  16. Transportation Construction ManagementSteering Committee Update • TCM focus on quality, efficiency, risk management • Current TCM Activities • "A Guidebook for Selecting Highway Capital Project Delivery Methods and Alternative Contracting Strategies” • 2nd International Construction Management Conference February 2011, Orlando, FL (in conjunction w/ ARTBA) • Sponsored NCHRP 10-38 “Alternate Quality Systems” • Pooled fund program

  17. Construction Program Baseline Review - Formerly Construction Program Evaluations • Purpose – enhance the delivery of the construction program for improved performance of the NHS • Scope change – use of self assessment tool and regional peer exchange workshops to obtain construction program information • Why? – faster results, less resource demand • Regional workshops – to identify, discuss and recommend solutions to critical __construction-related topics (5 workshops planned)

  18. Construction Program Baseline Review Timeline - Oct 2010: Activity work plan Jan 2011: RFP for support contract Spring 2011: Self assessment tool development Spring 2011: Plan and coordinate 1st regional peer exchange workshop June 2011: Conduct self assessment for 1st regional group of states July 2011: Conduct 1st peer exchange Summer 2013 5 regional peer exchanges conducted over 2 years

  19. Construction Engineer Training Course • Phase 1 – an Academy concept originally scoped, work completed October 2009 • Scope being modified - training to be targeted towards CM’s and management practices • Development of a construction curriculum • Will look at developing a CM training course • New outline to be vetted with AASHTO and TCCC by Fall 2010 • Phase 2 - Plan to initiate in summer 2011

  20. LEADERS WANTED: Become a Pilot State! • Performance contracting is an approach where the owner agency specifies a set of clearly defined performance goals – rather than methods – for construction projects; and the contractor enjoys the freedom to define how to accomplish the goals. FHWA is piloting an implementation framework for Performance Contracting for Construction with up to six pilot states. • Become a Pilot State and receive: • Free technical assistance • Additional consideration for Highway for LIFE funds • Opportunity to be among the first to implement this new and innovative contracting approach • For more information on Performance Contracting for Construction or to learn how to become a pilot state, visit http://www.fhwa.gov/construction/library.cfm or contact: • Mary Huie, Federal Highway Administration • 202-366-3039 | mary.huie@dot.gov

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