6/15/2010
ITD maximizing efficiency and savings with new highway contracting process
BOISE - The Idaho Transportation Department this summer will embark on an experimental way of awarding highway contracts - a method that has the potential to save taxpayers and the department money and time while making the bidding process more efficient.
It's called "Fixed Price/Best Value" contracting - a form of alternative contracting that will be used first on an Idaho 21 bridge rehabilitation. Potential contractors can choose from a group of eight bridge deck projects, only one of which is mandatory - the Boise River Bridge near Diversion Dam. The eight bridges are all located between Diversion Dam and Idaho City, a 34-mile stretch.
Contractors will bid on the maximum number of bridge deck jobs they can accomplish within a fixed budget. The contract then will be awarded to the lowest responsible bidder - the bidder providing the lowest price per square yard of deck rehabilitation. Each bidder also must indicate how long it will take to do the work. The low bidder will be held to the time requirement, and it will be used as a tiebreaker, if needed, in awarding the contract.
Bids from potential contractors are scheduled to be opened Tuesday (June 22).
If the new bidding method proves to be successful, the transportation department could use the technique on other projects. Although it would primarily be used to save time and/or money on highway projects, it potentially could be used for other applications.
Loren Thomas, ITD's assistant chief engineer/development, called the District 3 Idaho 21 bridge rehab project the "trainer" project, and said ITD eventually could expand it statewide on other projects.
"Regardless of the types of projects this method is applied to in the future, ITD will continue to partner with the Federal Highway Administration for input and approvals," said Monica Crider, assistant roadway design engineer. Thomas, Crider and FHWA were instrumental in making the utilization of this alternative contracting method a reality for ITD.
"It is an exciting opportunity," Crider adds. "As with anything new, there will be some things to iron out along the way, but this method provides ITD the opportunity to maximize current funding through innovation."
As with any highway construction project, potential contractors must consider many different construction aspects, such as equipment mobilization, traffic control set up and maintenance and location of suppliers/materials when bidding on the project.
The process really can capitalize on a contractor's competitive advantages, which in turn, allows ITD to capitalize.