Potential Pre-Qualification Policy Revisions

Bill McNary

Proposal Management Section Chief

Possible Policy Changes

Include Safety Component

Unlimited - raise ceiling or eliminate it completely

Revising deadline for submittal prior to a letting

Possible Policy Changes

Remove financial pages from the form

Who can sign the form (3M e.g.)

Requests to revise prequal

Possible Policy Changes

Frequency of re-evaluations (annual, semi-annual etc.)

Improve pre-qual information on the web site (examples, FAQs)

Example FAQ Topics:

Variable Interest Entities (VIE)

Guaranties

Self imposed limits

MISC. Items

Insurance for JVs, naming the other entity

Work classifications (street or airport lighting) change to “electrical”

MISC. Items

Common problem on insurance certificate submittals

The limits for general liability coverage must be $2 million per occurrence with an annual aggregate limit of $4 million

Emergency Contracting

John KinarState Maintenance Engineer

Definition of Emergency(American Heritage Dictionary)

…a sudden, urgent, usually unexpected occurrence or occasion requiring immediate action

Authority 84.07 (1b)(1b) Emergency repair and protection of state trunk highways. To

accomplish prompt repair, protection or preservation of any state trunk highway which has been closed or is being jeopardized by extraordinary damage by flood, structure failure, slides, or other extraordinary condition of necessity and emergency, the department may, if it is deemed for the best interest of the state, proceed at once to repair or protect the highway with forces and services of private constructors and agencies, summarily engaged by the department and cause said work to be done by negotiated contract or agreement without calling for competitive bids, provided that any such contract or agreement involving an estimated expenditure in excess of $10,000 shall be subject to approval of the governor before it becomes effective.

Must require a prompt response to safely re-open or keep open a facilityGovernor’s Office must give verbal approval if over $10,000

When Used (Criteria)

Time is of the Essence:

Safety is jeopardized (immediate need to secure site)Mobility is severely compromisedCommerce is significantly impactedExpedited or normal let would take too long

Philosophy Remains that “Let is Best”

Examples of Emergency Contracts

Bridge HitCulvert failure (could be catastrophic)Pavement blow-up Concrete barrier repairFlooding or other natural disaster (slope failure)Obstacles on the road (downed power lines, trees, etc.)

Request Approval Process1. Region informs Bureau of Highway

Operations & Bureau of Project Development of need, with written justification:Basic facts of what happenedScope and extent of repair neededEstimated time to repairEstimated cost to repairRecommendation on how to fund repairConsequences if not repaired as an emergency project

Request Approval Process

2. When central office concurs, request is forwarded to Administrator

3. If Administrator concurs, request is forwarded to Secretary’s Office

4. If Secretary’s Office concurs, request is sent to the Governor’s Office

5. Once we get verbal approval from Governor’s Office the work can begin

Contractor Solicitation Process

While approval process proceeds, Region does the following:

Obtain quotes from at least 3 prospective contractors (not always possible and not required)Quick turnaround time for obtaining quotes, usually a few days

Contractor Solicitation Process

Evaluate quotes based on criteria for that specific projectInform contractors of decision to awardSelected contractor signs and returns contract

Contractor Solicitation Process

Contractor can begin work immediatelyRegion submits signed contract and DT-25 to central office for contract processing

Elements of Contract

Description of work to be doneSpecial conditions or reference to Special ProvisionsCompletion date or working daysWork restrictions

Elements of Contract

Special construction techniquesReference to Department’s Standard SpecificationsEstimate of materials and quantitiesEstimated cost

Elements of Contract

Method of workMethod of PaymentNon-discrimination clause

Things Which May be Considered When Awarding the Contract

Time to mobilize and begin workEstimated time to complete workExpertise of contractor or crewSpecialized expertise required (steel beam heat straightening)Size of contract and capacity of contractors

Central Office Processes ContractBureau of Highway Operations reviews documents and forwards them to Bureau of Project Development for DT-25 processPDS logs project and forwards DT-25 for Governor’s signatureOnce DT-25 is approved the contract is signed by AdministratorSigned contract is returned to contractor

While the above process is underway, the contractor continues to work on the emergency project with complete confidence of payment for work

Funding

State funds are typically used, but federal funds may be used if eligible and all federal requirements are metState Maintenance funds are typically usedRecover costs from insurance company – typically operations funds

Funding

Natural disaster – typically operations funds, but improvement funds may be used if warranted

Significant pavement work – typically improvement

Asset at end of useful life – could be improvement

Funding

WisDOT Policy is not to use Contract Change Orders

Bureau of Highway Operations and Bureau of Project Development

CoordinationAll projects will be jointly evaluated by BHO & BPD for expedited or normal letting potentialMost projects are small in scope and handled by BHOSome projects are significant in size and are handled jointly by BHO and BPD

Specific Examples Where Questions Have Arisen

Spring 2008 Pavement Repairs – SE & SW RegionsI-94 Crossover project in Jefferson County – due to summer flooding

Conclusion

Expedited Lettings

What are they for and when are they used?

What are they for?

The Expedited Letting Process is an EXCEPTION process. Very few projects will be let using expedited bidding.

What are they for?

The need(s) that the project will address requires an urgent response by the Department. Project needs cannot be met using the regular letting schedule.

When are they used?

If the region has enough time to develop the required contract documents an expedited letting may be requested.If there is not enough time to let the contract, an emergency contract may be required.

Timelines

Contract Requirements

Contract requirements remain the same with or without federal funding

NEPA and WEPA processes must be completed

Contract Requirements

Expedited lets may be federal oversight projects

Expedited Lets in 2008

NW Pavement replacement

STH A sheet piling in Lake Delton

SE pavement repairs

Expedited Lets on HCCI

WisDOT will place notices on the HCCI web site on normal advertisement dates

Obtaining Plans

Bidders are approved using the standard processPlans and proposals for expedited lets are available on the HCCI expedited let web page

Questions?