Post on 27-Jun-2015
Strategies for Reducing Risk on Design-Build Public Transit Projects
Michael B. EidlinPrincipal Program Manager
Gannett Fleming, Inc.
Outline
• Introduction• Federally Funded Transit Projects• Unique Characteristics of Transit
Projects• Common Problem Areas• Scope Development Topics• Risk Allocation Strategies
FTA’s Project Development Process
• Alternatives Analysis (AA)• Environmental Analysis
(EIS/EA)• Preliminary Engineering
(PE)*• Final Design (FD)*• Full-Funding Grant
Agreement (FFGA)*• Construction*• Start-up and Testing
* Prior FTA approval required
New Starts and Small Starts
Capital Investment Grants
New Starts• Complex Process• Annual submission and rating by FTA• Local Match is Critical
Small Starts (<$75 million federal funding)
Very Small Starts (Project <$50 million)
Exempt Projects (Project <$25 million)
New Starts
Title 49 US Code Section 5309 (49 USC §5309)80% federal funding possible; 50% more likelyAnnual Submittals to FTA
Ridership Projections
Base Case
Cost Effectiveness Calculation
Project Financial Plan
New Starts
Evaluation Factors• Local Financial Commitment• Project Justification Criteria
Ratings: High, Med-High, Medium, Med-Low, Low
Must get an overall MEDIUM to advance
http://www.fta.dot.gov/planning/newstarts/planning_environment_2619.html
Small Starts
Total Project Cost < $250 million
Funding Request < $75 million
Be a fixed guideway for at least 50% of the project length in the peak period; and/or
Be a corridor-based bus project with minimum elements, e.g.,• Substantial Transit Stations• Signal Priority / Pre-emption (for Bus/LRT)• Low Floor / Level Boarding Vehicles
Very Small Starts
Total Project Cost < $50 million
Bus, Rail or Ferry Projects
Required Elements, e.g.,• Transit Stations; • Signal Priority/Pre-emption (for Bus/LRT); • Low Floor / Level Boarding Vehicles; Special
Branding of Service• Less then $3 million per mile (excl. vehicles)
FTA Funded Projects
Affects Third-party Contracts
Brooks Act - Qualifications based selection of architects and engineers
Davis – Bacon wage rates for construction workers
Buy America requirements – No Waivers!
FTA Circular 4220.1FThird-party Contracting Guidance http://fta.dot.gov/legislation_law/12349_8641.html
Standard Cost Categories
100 FINANCE CHARGES
90 UNALLOCATED CONTINGENCY
80 PROFESSIONAL SERVICES (applies to Cats. 10-50)
70 VEHICLES (number)
60 ROW, LAND, EXISTING IMPROVEMENTS
50 SYSTEMS
40 SITEWORK & SPECIAL CONDITIONS
30 SUPPORT FACILITIES: YARDS, SHOPS, ADMIN. BLDGS
20 STATIONS, STOPS, TERMINALS, INTERMODAL (number)
10 GUIDEWAY & TRACK ELEMENTS (route miles)
http://www.fta.dot.gov/13070_2580.html
FTA vs. FHWA
State DOTs get their money from a formula
Transit projects compete for funds nationally
DOTs generally experienced with contracting and D-B delivery
Transit agencies may have little contracting experience
FTA vs. FHWA
Highway project generally proceed after a Record of Decision (ROD)
FTA projects can buy ROW after ROD
DOTs generally require all ROW available before NTP; not true with transit projects
FTA involvement brings administrative burden
FTA stays involved in projects
FTA Project Management Oversight (PMOC)
Transit Project Characteristics
Linear corridors, sometimes 10 or more miles long
Multiple political jurisdictions with differing design and permitting requirements
Rights-of-way consisting of numerous parcels in differing ownerships
Projects in urban areas with significant existing utility infrastructure
Jurisdictions unfamiliar with rail transit
Transit Project Characteristics
Significant public involvement requirements throughout the project development process
Significant political interest and involvement in the project (often controversial)FTA funding brings additional regulatory requirements• NTP for Construction generally follows award of a Full-
Funding Grant Agreement (FFGA) or Project Construction Grant Agreement (PCGA)
Transit Project Characteristics
Project elements such as stations, bridges that require special aesthetic attention or incorporate public art elements
Project sponsors may lack experience in contracting and use of design-build delivery
Project sponsors may lack a thorough understanding of their project’s technical requirements
Common Problems
Claims associated with lack of access because all ROW is not available on NTP
Significant additional costs due to the discovery, relocation or reconstruction of utilities
Delays and additional costs common if freight railroads occupy the same corridor, intersect the rail transit line or form part of the rail transit line
Common Problems
Differing design and regulatory requirements imposed by multiple political jurisdictions
Unexpected conditions imposed by jurisdictions
Local jurisdictions unfamiliar with urban rail transit and its associated elements
Contract documents that inappropriately assign risks that are beyond the contractor’s ability to control or manage
Scope Development Topics
Environmental mitigation
requirements
Right-of-way availability
Jurisdictional obligations and
differences
Utility construction, relocation and
protection
Known hazardous materials
Special design or aesthetic
requirements
Owner furnished materials/ equipment
Beneficial occupancy of
completed work
Scope Development Topics
Moratoria and special events
Freight railroad coordination and
flagging costs
Coordinationwith other
work/contractors
Compatibility with existing
systems
Testing and start-up
responsibilities
Re-use of existing
structures(e.g., bridges)
Betterments or Concurrent Non-Project Activities
Risk Allocation Strategies
Industry review of contract documents
Identification of significant risks in proposal with mitigation and proposed allocationNarrative approach with key assumptions, inter-dependencies, work windows, etc.
Escrow of proposal documents
Geotechnical Baseline Report
Dispute Review Board
Risk Allocation Strategies
Alternate technical proposals – price and schedule
Responsibility for permitting of alternative concepts
Stipend or other consideration for use of alternate technical proposals
Legal and contractual requirements for JV dispute resolution in proposal
Establish intermediate schedule milestones
Risk Allocation Strategies
Best value selection/public opening of price proposalsUse of provisional sums for uncertain scopePricing for force account and additional workResponsibility for errors in owner supplied prescriptive specs
Excusable and Compensable delays
Payment for materials received on site
Risk Allocation Strategies
Unanticipated archeological and biological resources or hazardous materials
Obligation to discover utilities
Risk of delay due to unidentified utilities
Remedy for defects/warranty
Transit Technical Resources
Statutes• 49 U.S. Code Chapter 53 (Transit Laws)
Federal Regulations• Title 49 Code of Federal Regulations Chapter
VI(example: 49 CFR 611)
FTA Circulars
Other FTA Publications
Lessons Learned
FTA Circulars
4220.1F Third-party Contracting
Guidance
• http://fta.dot.gov/legislation_law/12349_8641.html
5010.1D Grant Management Requirements
• http://fta.dot.gov/legislation_law/12349_8640.html
5200.1A Full-funding Grant Agreements
Guidance
• http://fta.dot.gov/legislation_law/12349_4119.html
9300.1B, Capital Investment
Program Guidance and Application
Instructions
• http://fta.dot.gov/legislation_law/12349_8642.html
Other FTA Publications
Construction Project Management
Handbook (September 2009)
Focus is Small Starts
• http://www.fta.dot.gov/documents/Construct_Proj_Mangmnt_CD.pdf
Project and Construction Management
Guidelines (May 2003)
• http://www.fta.dot.gov/grants/grants_14122.html
Best Practices Procurement
Handbook
• http://www.fta.dot.gov/grants/12831_6037.html
FTA Capital Cost Database
• http://www.fta.dot.gov/12305_11951.html
Other FTA Publications
Project Management
Oversight Lessons Learned
• http://www.fta.dot.gov/grants/12840.html
Quality Assurance and Quality
Control Guidelines
• http://www.fta.dot.gov/grants/13923_3876.html
Project Management
Oversight Procedures
• http://www.fta.dot.gov/grants_12048.html
DISCUSSION
CONTACT INFORMATION
Mike EidlinPrincipal Program
ManagerGannett Fleming, Inc.
Seattle, WA503-679-0602 (cell)meidlin@gfnet.com