Presentation is loading. Please wait.

Presentation is loading. Please wait.

CMAA Owners Forum May 3, 2010 Ronaldo T. Nicholson, P.E. Chief Engineer District Department of Transportation.

Similar presentations

Presentation on theme: "CMAA Owners Forum May 3, 2010 Ronaldo T. Nicholson, P.E. Chief Engineer District Department of Transportation."— Presentation transcript:

1 CMAA Owners Forum May 3, 2010 Ronaldo T. Nicholson, P.E. Chief Engineer District Department of Transportation

2 Past, Present, and Future USA Past –National Road 1806 - 1839 –The Federal Aid Road Act of 1916, (established a federal-state partnership) –USA 1920’s and 1930’s Toll roads or “free” roads? Needs based or public works programs? –Federal-Aid Highway Act of 1956

3 Past, Present, and Future The funding debate –Toll roads or free [taxed] roads? –A public works program or a needs based system? Bureau of Public Roads [FHWA] –1939 Report to Congress –Fundamental premise of the Interstate Highway System –Toll roads would not satisfy all needs –Promoted tax based system of funding

4 Past, Present, and Future Current Nationwide Transportation Fund Trends Reliance on Federal funds increased Revenue was static Buying power diminished Maintenance and Operations Cost increased Transportation needs increased

5 Past, Present, and Future Present Challenges The highway system is aging Maintenance requires increasingly larger share of budget Population and economy are growing Current needs exceed available funds A strong economy requires efficient transportation For FY-10 Maintenance cost increased as services decrease Construction funding remained static; Down turn in economy was reflected by reduced state revenues

6 Owner’s Challenges Funding 100-year tradition –Design – Bid – Build Means and methods Design-Bid-Build are DOT’s most common project delivery method Match delivery method to project needs D-B-B and DB and P3 are Fundamentally different

7 DB Time Savings

8 Public-Private Partnerships Policy –A public need for timely transportation development –Current methods may not be adequate –Private development or operation may be more timely or more efficient or less costly – thereby serving the public interest Intent is to encourage private investment in transportation facilities –Innovative improvements –Investment of private funds/equity of funds not otherwise available –Risk sharing Such partnerships are for carefully selected projects

9 Project Delivery Options Design Bid Build Private Contract Fee Services Design Build Design Build Operate Maintain (DBOM) Long Term Lease Agreement Design Build Finance Operate (DBFO) Design Build Own Operate (BOO) Public Agency ControlledConcessions / Privatizations More Private Sector Control Public Pays Tax Exempt Financing Public Control Public Equity User Pays Taxable Financing Private Control Private Equity Public Private Partnerships

10 Degree of Risk Time Project’s Life Cycle Risk Profile DevelopmentDesign and ConstructionOperations & Maintenance LegalFinancing Political Environmental ScheduleCost Changes Quality O&M Costs Performance Availability Traffic and Revenue Financial Close Startup- Turnover

11 P3 Risk/Cost Management P3 – lowest cost program delivery –Parallel interests with Owner –DB a phase prior to O&M –Rewarded for managing life-cycle costs –Business deal must make sense, but successful relationship is essential

12 PPTA DB Contract Issues Concession agreement between owner and concessionaire DB terms –Contract between Concessionaire and DB –Concession agreement describes Scope Reference standards Relationship between Owner’s IA/IV and Concessionaire’s independent engineer

13 PPTA Concession Agreement A comprehensive DBOM or O&M contract with single- source delivery Applies to various funding schemes –Public funds –Private financing –Mixed funding sources –Not limited to revenue positive projects Concessionaire is responsible for service delivery

14 Past, Present, and Future Future PPTA or P3s - A fundamentally different way of doing business –Long-term partnerships that accommodate change –Shared risks/rewards based on effective, long-term successful performance –An important part of a DOT’s solutions – applicable to select few projects

15 Industry’s Challenges What is your business objective? –Design - construct - get out –DBOM - long-term stake in outcome –P3 is fundamentally different Primary project delivery methods –Design-Bid-Build –Design-Build –PPTA Private companies can succeed or fail, and they do both equally well Engineering is the easy part …

16 Public Perceptions P3 is not a panacea –Most roads are not attractive as an investment –Choose projects carefully –Create a fair and competitive procurement environment –Optimize use of public and private funds

17 Other Virginia PPTA Efforts Mid-Town Tunnel, Petersburg Va Dulles Corridor Metro Extension, Fairfax Virginia US 460 Corridor Improvements, City of Suffolk Virginia to Prince George County Virginia Route 28 Improvements, Fairfax & Loudoun County Va

18 Current PPTA Virginia Hot Lanes Two separate projects in different stages: –Capital Beltway –I-95/395 Proposed 70-mile, seamless network Adds new lanes to region’s most congested routes Expands public transportation and carpooling Provides new option to pay a toll for faster, more reliable trip time with a free alternative always available

19 Capital Beltway Hotlanes Contractual Arrangements Capital Beltway Express LLC Design-Build Contractor Operations & Maintenance Consultants/Subcontractors Subcontractors TMS Integrator – TBD ETC System Integrator - TBD Amended Reinstated Comprehensive Agreement Design-Build Contract O&M Contract

20 14-miles of two new lanes in each direction Beginning this summer construction is expected to take 4-1/2 years Scheduled to begin operation in 2013 Replacement of more than $260 million of aging infrastructure, including more than 50 bridges & overpasses, with pedestrian and recreational facilities. 70,000 lf of Soundwalls. Average toll expected to be $5-$6 during rush hour Capital Beltway HOT Lanes

21 11th STREET BRIDGE PROJECT 11 th Street Bridge Project 11 th street over the Anacostia River



24 KEY 11 TH STREET BRIDGE PROJECT ASPECTS 24 Improve mobility through separate new freeway and local connections Provide shared pedestrian/bicycle path and streetcar rails Provide alternative evacuation route from Nation’s capital Include environmental investments SOUTHEAST/SOUTHWEST FREEWAY M STREET SE NAVY YARD MARITIME PLAZA FREEWAY BRIDGES LOCAL BRIDGE GOOD HOPE ROAD ANACOSTIA PARK DC 295/I-295 ANACOSTIA RIVER MARTIN LUTHER KING JR AVENUE SE


26 DESIGN-BUILD-TO-BUDGET Performed by an integrated construction contractor and designer (design-build team) Increases opportunities for innovation, flexibility, and cost-savings Allows construction to begin sooner after the project is awarded Differs from the traditional design-bid-build method in which project awarded to the lowest bidder for construction. $260 million design-build contract 26

27 DESIGN AND CONSTRUCTION CONTRACTOR 27 A joint venture of Skanska USA Civil of Alexandria, Va., and Facchina Construction of La Plata, Md

Download ppt "CMAA Owners Forum May 3, 2010 Ronaldo T. Nicholson, P.E. Chief Engineer District Department of Transportation."

Similar presentations

Ads by Google