Texas Turnpike Authority Division
2009 AASHTO2009 AASHTORight of Way & Utilities Committee ConferenceRight of Way & Utilities Committee Conference
Wednesday – April 22, 2009Wednesday – April 22, 2009
Public-Private PartnershipsPublic-Private Partnerships Comprehensive Development AgreementsComprehensive Development Agreements
Request for ProposalsRequest for Proposals&&
Scope of Service DocumentsScope of Service Documents
Donald C. Toner Jr., SR/WA
Director – Turnpike Right of Way
Texas Turnpike Authority Division
Texas Department of Transportation
125 E. 11th Street
Austin, Texas 78701-2483
Office: (512) 334-3834
Fax: (512) 334-3901
TxDOT’s PLANTxDOT’s PLAN
1. Reduce Congestion
2. Enhance Safety
3. Expand Economic Opportunity
4. Improve Air Quality
5. Increase the Value of Transportation Assets
Four Strategies: • Use all financial options to build
transportation projects.
• Empower local and regional leaders to solve local and regional transportation problems
• Increase competitive pressure to drive down the cost of transportation projects
• Demand consumer-driven decisions that respond to traditional market forces
Transportation Transportation ProjectProject
1.1. DevelopDevelop
2.2. DesignDesign
3.3. ConstructConstruct
4.4. FinanceFinance
5.5. OperateOperate
6.6. MaintainMaintain
• Global companies bring resources to the state to help Texas travelers realize the future of safer, smoother, and more efficient transportation sooner.
• The private sector plays a major role in developing Texas’ transportation system
CDA MethodologyCDA Methodology
1. Comprehensive Development Agreement (CDA) is a tool TxDOT uses to enable private investments in the Texas transportation system.
2. CDAs provide competitive selection process for developing regional projects.
3. A public-private partnership opens the door to accelerated financing, design, construction, operations and/or maintenance of a project.
Request for ProposalsRequest for Proposals
Request for ProposalsRequest for Proposals
The Private-Sector is provided the
opportunity to earn TxDOT Business
through a competitive selection
process.
Private Companies Submit Private Companies Submit Their QualificationsTheir Qualifications
1. Describe their technical and engineering experience
2. Provide a conceptual strategy explaining how the project could be completed
3. Submit a Financial Plan
RFP Detailed ProcessRFP Detailed Process
1.1. Authorization by the Texas Transportation Authorization by the Texas Transportation Commission to issues request for proposals Commission to issues request for proposals and qualifications.and qualifications.
2.2. TxDOT issues request for proposals and TxDOT issues request for proposals and qualificationsqualifications
3.3. Deadline to submit proposals and Deadline to submit proposals and qualificationsqualifications
4.4. TxDOT evaluation and short list teamsTxDOT evaluation and short list teams
5.5. Authorization by the Texas Transportation Authorization by the Texas Transportation Commission to issue request for detailed Commission to issue request for detailed proposalsproposals
6.6. TxDOT issues Request for ProposalTxDOT issues Request for Proposal
7.7. Deadline to submit Detailed ProposalsDeadline to submit Detailed Proposals
8.8. TxDOT EvaluationTxDOT Evaluation
9.9. Selection of best-value proposal.Selection of best-value proposal.
10.10. RFP Addendums RFP Addendums
RFP Detailed ProcessRFP Detailed Process
RFP - Series of RFP - Series of AddendumsAddendums1. Cover Letter
2. Instructions to Proposers
3. Book 1 - Comprehensive Development Agreement
4. Book 2 – Project Specific
5. Book 3 – Technical Provisions
The Programmatic Approach Concessions & Design-Build
Book 1Terms and Conditions
Book 2Project Specific requirements
Book 3Programmatic requirements
and Library of Required Standards
Reference Information Documents
(RID)All Books together make up the CDA Contract Documents
Review & EvaluationReview & Evaluation
1. Pass/Fail Analysis Separation of Financial Information from
Qualifications
2. Evaluation Committee Level of Expertise
– Intentional Misrepresentation of “Specifications” or “Scope”
– Specialized Skill– Time/Dedication
3. System to record each lessoned learned Benefit from the pain and agony of the lesson that you
just learned or “experienced”
CDA Evaluation CDA Evaluation ProcessProcess
Proposals Received
A – TechnicalB - Price
Proposals Received
A – TechnicalB - Price
Technical Pass/Fail Reviews
Technical Pass/Fail Reviews
Pricing Alternatives Analysis
Pricing Alternatives Analysis
Technical Subcommittee
Review of Technical Proposals
Technical Subcommittee
Review of Technical Proposals
Pricing Committee Review of Cost Proposals
Pricing Committee Review of Cost Proposals
Technical Evaluation Committee
Reviews
Technical Evaluation Committee
Reviews
Director of TTA Division
Combines Cost and Tech. For Final Scoring
Director of TTA Division
Combines Cost and Tech. For Final Scoring
CDAs delegate risk to the parties best able to manage it:– Assign to Owner– Assign to Developer– Share– Concessions differ from D/B
Risk AllocationRisk Allocation
Risk Allocation & ContractingRisk Shifting Inherent in CDAs
“Traditional” Contracts1. Owner bears risk of constructability and
efficiency of design
2. Designers not accountable for cost
3. Owner responsible for QA/QC
CDAs1. Developer bears risk of constructability and
efficiency of design
2. Developer accountable for cost
3. Developer responsible for QA/QC *
Right of Way Risk Allocation and Risk Shifting in CDAs
“Traditional” Contracts1. Owner bears risk of Right of way
Acquisition
2. Owner responsible for moving utilities
CDAs1. Developer bears risk of right of way
acquisition and schedule
2. Developer responsible utility adjustment and coordination *
Risk Allocation & ContractingAllocating Other Risks
Who can best control the risk?
Who can best manage the risk?
Are contractors willing to assume the risk?
How much will it cost?
Differing site conditions
Force majeure Hazardous materials Paleo/archaeo/bio Permits Railroads Right of way Utility relocations
Confidentiality • Conflict of Interest
• Ethics
• Proprietary Information
Writing the PERFECTPERFECT Document?
-There is no such thing.
Writing a BETTERBETTER document?
-There is the possibility.
•Carefully recording lessons learned
•Managing amendments to the contract
•Preventing precedent setting procedures
Scope of Service Scope of Service DocumentsDocuments
Protecting State InterestProtecting State Interest
Develop a procurement contract that
addresses the unique nature of the
partnership while at the same time
protecting the State's interest.
Scope of Service Document
1. Establishes the business agreement made between a Government Entity and Private Sector
2. Provides project justification derived by the States’ strategic objectives and plans.
3. Describes the opportunity to be benefited or obtained by the transportation project
4. Becomes the basis for evaluating future benefits to both parties involved
5. Set expectations with the Developer and Project Team
What Should Be Identifiedin a Scope of Service Document
1. Cost and Schedule
2. Definitions (also Define quantifiable criteria)
3. Quality Measures
4. Work required and necessary for completion of the project
5. Work that falls outside the Scope
Consideration to:Consideration to:
1. Transparency
2. Complicated Issues
3. Dedication to Project
4. Required Approvals
5. Ethics and Conflict of Interest
PPPs & CDAs are Not Solutions for Every Problem
Texas Turnpike Authority Division
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