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More . . . Better . . . Different

Performance Based

Maintenance Contracting –

An Asset Management

Approach

More . . . Better . . . Different

THE CHALLENGE

DOING MORE WITH LESS

GOVERNMENTDOWNSIZING

INCREASING MAINTENANCE NEEDS

INCREASED OUTSOURCING

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

More . . . Better . . . Different

BEST-VALUE SELECTION

LONG TERM MENTALITY

CRITICAL SUCCESS FACTORS

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

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 BESTVALUE SELECTION

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

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

More . . . Better . . . Different

QUESTIONS ?

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