1. Performance-Based Maintenance Results AMOTIA Annual Conference – October 2, 2014 PERFORMANCE-BASED MAINTENANCE RESULTS John F. Obr, P.E. AMOTIA Annual Conference - October 2, 2014

2. Performance-Based Maintenance Results AMOTIA Annual Conference – October 2, 2014 Legislatively Mandated - Effective 09/01/1995  Texas Transportation Code  Sec. 223.042. Privatization of Maintenance Contracts.  (a) Of the amount spent in a fiscal year by the department for maintenance projects, the department shall spend not less than 50 percent through contracts awarded by competitive bids.

3. Performance-Based Maintenance Results AMOTIA Annual Conference – October 2, 2014 Background  1999 – Piloted Performance Based Contracting  120 miles of I-35 near Waco and 60 miles of I-20 near Dallas  Questionable success  Limited use –I-35 near Waco currently under 3 rd generation PBC –Rest Areas Contracts –Single Element Contracts – vegetation management, striping –Houston I-45 contract 3

4. Performance-Based Maintenance Results AMOTIA Annual Conference – October 2, 2014 IH 45 Contract – 282.204 Centerline Miles Galveston, Harris & Montgomery Counties  Work includes - Pavement repair, striping, litter, signs, illumination, mowing, landscape maintenance, storm sewer cleaning, MBGF, etc.  Unit costs for incident management and snow and ice.  Not included – pavement maintenance

5. Performance-Based Maintenance Results AMOTIA Annual Conference – October 2, 2014 Houston’s IH 45 Contract  RMC 6236-65-001  5 year term with ability to extend 36 months  Engineer’s Estimate $36,902,476.08  Base Bid – Traditional Unit Cost  Alternate – Performance-Based  Let June 2012 with 6 bidders  Low bid $26,974,243.67  Transfield Services North America, Transportation Infrastructure  Bids 2-5 ranged from $39,745,037.71 to $49,210,765.57  High bid $57,752,928.70 – Only bid on base bid

6. Performance-Based Maintenance Results AMOTIA Annual Conference – October 2, 2014 Future TxDOT Executive Director - Phil Wilson - Aug 27, 2012 “As TxDOT works hard to achieve its strategic goals, we are constantly looking for ways to create value, deliver high quality work and become more efficient with our available resources. With this in mind, later today, the department will announce its intention to issue a Request for Information (RFI) to privatize some of our routine maintenance work along the I- 35 and I-45 corridors and in the metropolitan cores of Dallas and Houston. “

7. Performance-Based Maintenance Results AMOTIA Annual Conference – October 2, 2014 Austin Metro Contract CCSJ 6262-18-001  Let December 2013 with 4 bidders  100.9 main lane centerline miles  IH 35 through district  Portions of Loop 1, US 183, & US 290/SH 71  Engineer’s Estimate $14,098,360  Low bid $11,375,544  ISI Contracting, Inc.  Work started in April 2014 7 CURRENT PB TOTAL MAINTENANCE CONTRACTS

8. Performance-Based Maintenance Results AMOTIA Annual Conference – October 2, 2014 Houston Metro Contract CCSJ 6262-50-001  Let January 2014 with 3 bidders  148.15 main lane centerline miles  Major highways inside Beltway 8 - IH 10, IH 610, US 59, US 290, US 90, US 90A, SH 225, SH 288, SPUR 5, SPUR 527, & SPUR 548  Engineer’s Estimate $27,074846.90  Low bid $23,084,824 Texas Tree & Landscape, LTD.  Work started June 2014 8 CURRENT PB TOTAL MAINTENANCE CONTRACTS

9. Performance-Based Maintenance Results AMOTIA Annual Conference – October 2, 2014 Bryan IH 45 Corridor Contract CCSJ 6262-53-001  Let February 2014 with 5 bidders  174.80 main lane centerline miles  IH 45 – south of IH 20 in Dallas County to Montgomery/Walker County Line  Engineer’s Estimate $17,525,663.29  Low bid $12,894,541.20  Texas Sterling Construction Co.  Work started July 2014 9 CURRENT PB TOTAL MAINTENANCE CONTRACTS

10. Performance-Based Maintenance Results AMOTIA Annual Conference – October 2, 2014 Dallas Metro Contract CCSJ 6264-64-001  Let July 2014 with 5 bidders  160.29 main lane centerline miles  IH 20, IH 30, IH 35E, IH 45, IH 345, IH 635, US 75, & HOV on US 67 and US 75  Engineer’s Estimate $21,834,488  Low bid $19,290,130  AMEY Consulting USA, Inc.  Work scheduled to start November 2014 10 CURRENT PB TOTAL MAINTENANCE CONTRACTS

11. Performance-Based Maintenance Results AMOTIA Annual Conference – October 2, 2014 Future 11  San Antonio Metro – November 2014 letting & April 2015 start  Yoakum IH 10 Corridor– Spring/Summer 2015 letting  Beaumont IH 10 Corridor – September 2015 letting  Waco & Dallas IH 35 Corridor – August 2015 +/- start (end of current contract)

12. Performance-Based Maintenance Results AMOTIA Annual Conference – October 2, 2014 TxDOT’s Planned Program 12

13. Performance-Based Maintenance Results AMOTIA Annual Conference – October 2, 2014 Summary 13 Centerline Miles (CLM) Main Lanes Frontage RoadsTotalContract $$/CLM Austin100.90196.10297.00$14,098,360.00$47,469.23 Houston148.16201.44349.60$27,074,846.90$77,445.21 Bryan174.80252.69427.49$12,894,541.20$30,163.38 Dallas160.29150.59310.88$19,290,130.00$62,050.08 Totals >>1,384.97$73,357,878.10 Average Cost per centerline mile is $52,967.12

14. Performance-Based Maintenance Results AMOTIA Annual Conference – October 2, 2014 Performance to Date  3 new generation contracts active  10 estimates paid through 08/31/14  Total paid to contractor = $7,336,315  Total incentives paid for Safety KPI’s only = $294 – 2 occurrences  Total disincentives withheld for Safety & Time KPI’s = $519,269 – 4 occurrences for Safety – 3 occurrences for Time 14

15. Performance-Based Maintenance Results AMOTIA Annual Conference – October 2, 2014 Questions 15 John F. Obr, P.E. (512) 416-2559 John.Obr@txdot.gov