MoDOT s Approach to Program Management Kathy Harvey State Design Engineer Missouri Department of Transportation
Current Climate 80.0% Percent Increase in Price of Steel, Concrete, Asphalt (compared to 2003) Percent 70.0% 60.0% 50.0% 40.0% 30.0% 29.6% 56.6% 38.4% 29.6% 62.7% 52.7% 42.3% 20.0% 10.0% 0.0% -10.0% 13.3% 0% 2003 2004 2005 2006 Calendar Year Pavement Concrete (per cubic yard) All Mixes Asphalt (per ton) Reinforcing Steel (per pound) Example: 05 concrete is 56% higher than in 03!
Total Revenue Millions $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Fiscal Year Motor Fuel MV Licenses & Fees MV Sales & Use Tax Interest & Misc. Federal (Available to Obligate) 3
Results $5.3 billion program over 5+ years (FY02-07) delivered within 0.3 percent of estimate As of April, FY 2007 project awards are 6.0 percent ($66m) under budget
A Change in Culture Radically control cost Maximize competition Seek innovation
Radical Cost Control
What we used to do BRIDGE TO BE REPLACED
Practical Design Saved $139,000 BEFORE Farmers elated with ability to cross with large equipment. AFTER
Practical Design Saved $95,000 BEFORE AFTER
Practical Design Four-lane freeway proposed to improve traffic flow through major tourist area. $ 137 Million Original plan called for full median template with structurally designed retaining walls in order to minimize rather expensive R/W. $ 99 Million Redesign compressed the median and used rock stabilization for steeper slopes. SAVE $ 38 Million
Practical Design Add-a-lane project to upgrade major route to four-lane expressway. $ 18 Million Original plan called for existing lanes to undergo full replacement. $ 7 Million Redesign narrowed outside shoulder of existing lane to allow for asphalt overlay as opposed to full replacement. SAVE $ 11 Million
Other Benefits MoDOT s Tracker is a tool to assess how well we deliver services and products to our customers MoDOT s Mission and Value Statements provide the basis for the Tracker. The 18 results are outcomes that our customers expect to see as we fulfill our mission The Tracker will be published quarterly to ensure accountability and allow our customers to see the progress we are making towards those results that they expect
Value Engineering Annual Dollar Amount Saved by Value Engineering - Const. phase Dollars (in millions) 6 5 4 3 2 1 0 3.27 0.74 0.17 0.79 2003 2004 2005 2006 Federal Fiscal Year FY07 Goal: $10-15M savings for MoDOT and contractors alike.
Employee incentive for delivering projects within 1 percent (or less) of contract award Individual incentive up to $2,000 per year
Maximize Competition Alternate bidding Concrete or asphalt? Let the marketplace decide.
Maximize Competition Alternate bidding Not just pavements pipes, structures, bridges.
Number of Bidders 6 5 4 3.7 4.2 5.2 Bids/Call 3 2 1 0 2005 2006 Alt. Paving Projects Oct 03 to Present 25 percent more bidders. 9-10 percent decrease in costs.
Innovation Performance specifications Eliminate method specifications where possible.
Design-Build
We re Producing Results! Smooth Roads Initiative Now, 74% of major roads in good condition!
Success by the Numbers 173 lives saved in 06 14 percent drop 3 rd largest decrease in fatalities in U.S. according to USA Today 29 percent reduction in run-off-the-road accidents 79 percent of newspapers editorials are positive 85 percent of customers believe projects are right transportation solution
Rave Reviews MOST IMPROVED ROADS 1. I-40 Arkansas 2. I-44 MISSOURI I-80 Pennsylvania 3. I-70 MISSOURI 4. I-30 Arkansas 5. I-10 Texas
Bottom Line MoDOT has been wowing our customers with the way we manage their money. By building good projects, instead of great projects, we are able to deliver a great statewide system that is safer and in better condition.
Questions? For More Information: Kathryn Harvey State Design Engineer 573-751-2876 kathy.harvey@modot.mo.gov Joseph Jones Engineering Policy Administrator 573-751-3813 joseph.jones@modot.mo.gov Practical Design Implementation Guide www.modot.mo.gov/business/practicaldesign.htm