FHWA Update

Butch Wlaschin, P.E.Director, Office of Asset Management

AASHTO Highway Subcommittee on Construction 2010 Annual MeetingBurlington, Vermont

Presentation Overview

• Update on Recovery Act and Reauthorization

• Current Issues• FHWA Programs & Initiatives

Update - Recovery Act

Recovery Act Work Types by % of Contract Value

4.5%

5.3%

2.3%

7.5%

2.9%

50.8%

17.8%

5.0%

4.0%

Bridge Improvement

Bridge Replacement

New Bridge Construction

New Construction

Other

Pavement Improvement

Pavement Widening

Safety/Traffic Management

Transportation En-hancements

Average Wage Rates for Recovery Act Contracts

PUERTO R

ICO

TEXAS

ARKANSAS

NEW M

EXICO

MIS

SISSIP

PI

NORTH C

AROLI

NA

INDIA

NA

SOUTH D

AKOTA

IOW

A

MARYLA

ND

NEW H

AMPSHIR

E

SOUTH C

AROLI

NA

VERMO

NT

WIS

CONSIN

LOUIS

IANA

DELAW

ARE

WEST V

IRG

INIA

OHIO

DISTRIC

T OF C

OLU

MBIA

ARIZO

NA

NEW Y

ORK

MIS

SOURI

CONNECTIC

UT

ILLI

NOIS

NEVADA

MASSACHUSETTS

CALIFO

RNIA

$0

$10

$20

$30

$40

$50

$60

$70

Recovery Act - Total Contractor Work Hours (Month)

Recovery Act Expenditures vs. Obligations

(by Improvement Type)

ObligationsExpenditures

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

Current Issues

• Project Labor Agreements• Pavement Marking Material Shortage• Alternate Bidding For Pavement

Type Selection

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

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.

Alternate Bidding For Pavement Type Selection

• Equivalent designs• Discount rate• Uncertainty• Rehabilitation strategy• Subjective factors

• Commodity price adjustments

• I/D provisions• Materials quantities• Approval process

• 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”….

FHWA Programs & Initiatives

• Every Day Counts Initiative• TCM Steering Committee Update• Construction Program

Baseline Review• Construction Engineer

Training Course

Every Day Counts

• Design-Build • Construction Manager/General

Contractor (CM/GC)• Flexibilities in Utility

Accommodation & Relocation

Shortening Project Delivery Initiatives in Design and Construction

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.

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

Construction Program Baseline Review

• 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)

- Formerly Construction Program Evaluations

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

Construction Program Baseline Review

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

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 Administration202-366-3039 | mary.huie@dot.gov

LEADERS WANTED: Become a Pilot State!