TEA, Portland, Maine Travis Koestner

Missouri Department of Transportation

October 20, 2006

Alternate Paving Update

$$ Cost Control at MoDOT $$

• Concept: Meeting our customers’ needs through sound engineering judgment.

• Practical Design = Chevrolet vs. Cadillac

• Means building good – not great – projects to improve more of our system.

• We’re trying to make projects better – not perfect.

• We want to be flexible and build only what’s needed to solve a specific problem at a specific location.

• Missouri has a very large and diverse highway system - 32,000 miles of road; 10,000 bridges.

• Our highway system ranges from 10-lane urban interstates carrying 200,000 cars a day to two-lane rural roads carrying 200 cars a day.

• This is why the “one size fits all” philosophy doesn’t work.

• Have been too rigid in designing to standards for standards’ sake.

• This has created a “more is better” mentality - had become the design culture at MoDOT.

• Created a comfort zone – everyone (designers, lawyers) felt safe with excessive standards.

• Our Practical Design philosophy has two ground rules:

• Every project will be safer.

• We will collaborate on solutions.

• First brush of Practical Design in December 2004, we reduced the cost of projects in our five-year construction program by more than $400 million.

• That’s an average cost reduction of 13 percent per project.

• Savings are equivalent to a five-year, three-cent gas tax increase.

• As an incentive, the districts get to spend the cost savings they generated for additional projects.

• Additional improvements statewide will mean fewer fatalities and injuries.

• Fewer fatalities and injuries makes the Practical Design approach very defensible and easy to explain in court.

• It’s easier to defend conscious engineering judgment than “cookbook” design.

• Reaction to Practical Design after two years has been very good.

• The public likes it – Missourians are frugal and want to see that their money is spent wisely – that’s why we’re known as the Show Me State.

• We’ve received good feedback from politicians and the industry.

• Toughest sell has been with our own employees – but our culture is quickly changing.

• Examples of changes we’ve made to our standards:– Facility selection is now based on level

of service rather than an arbitrary volume threshold.

– A range of lane widths can now be used.– We’re treating shoulders less like travel

lanes - allows for lower widths and thinner pavements.

•Project examples

• Route 54 will be realigned around major tourist city.

• Original scope: four lanes, divided highway, retaining walls.

• Revised scope: narrower medians, concrete barriers.

• Minimized grading and right of way costs.

• Original estimate: $136.5 million• Redesign: $ 99.0 million• Savings: $ 37.5 million

Original R/W line

Redesigned R/W line

• Deteriorating box culvert needs to be replaced.

• Original scope called for a bridge and 1,500 feet of road reconstruction.

• Revised scope calls for wider culvert.

• Reduces roadway improvements, right of way.

Original estimate: $1.35 million

Redesign: $284,000

Savings: $1.06 million

• Original job estimate on this bridge replacement was based on relocation.

• By closing the road and replacing it on existing alignment, we save right of way, grading and paving costs.

Original estimate: $660,000

Redesign: $420,000

Savings: $240,000

Original design

Redesign

• Practical Design has been so successful, we plan to make it our long-term design philosophy.

• We’re currently modifying our policy and design standards to reflect this philosophy.

• We also plan to explore using this same concept on our own facilities and equipment.

Alternate Paving Update50 Alternate Projects to Date ($705.0 mil)

45 Full Depth ($655.8 mil)

5 Rehabilitation ($49.2 mil)

Full Depth

20 Asphalt Awards ($296.7 mil)

25 Concrete Awards ($359.2 mil)

Rehabilitation

1 Asphalt Award ($2.6 mil)

4 Concrete Awards ($46.6 mil)

Alternate Pavement Update Low PC Bids vs. Low AC Bids LCCA Factor not Applied

PC Total – $345,318,000 AC Total - $350,702,000 Difference - $5,385,000 (1.56%)

Low PC Bids vs. Low AC Bids LCCA Factor Applied PC Total – $345,318,000 AC Total - $365,450,000 Difference - $20,132,000 (5.83%)

LCCA Factor has Determined Low Bid 2 Times since October 2003.

Alternate Pavement Update

Asphalt $/Ton

$47.99 $48.49

$41.68$40.92

$36.00

$38.00

$40.00

$42.00

$44.00

$46.00

$48.00

$50.00

2-yearAverage

2-year Non-Alt Average

2-year AltAverage

AlternateJobs Since.Oct. 2003

Alternate Pavement Update

Concrete $/CY

$130.60$149.96

$123.77 $114.34

$0.00$20.00$40.00$60.00$80.00

$100.00$120.00$140.00$160.00

2-yearAverage

2-year Non-Alt Average

2-year AltAverage

Alternate JobsSince. Oct.

2003

Alternate Pavement Update

3.88

5.12

3.64

0

1

2

3

4

5

6

FY2005 FY2006 Alt. Paving Projects Oct '03to Present

Bid

s/C

all

BOTTOM LINE MORE COMPETITION BETTER BIDS!