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Value of Relationships

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Presentation on theme: "Value of Relationships"— Presentation transcript:

1 Value of Relationships
Florida’s Partnerships with FDOT and FICE

2 Presentation Overview
History of FICE Development of relationships Committees with FDOT Operating Margins Value of FICE & FDOT Relationships Future impact of these relationships

3 In the Beginning… History of FICE
FES began in 1916 as an individual member organization. In 1955 FES merged with the Florida Society of Professional Engineers (FSPE) and the National Society of Professional Engineers (NSPE). In 1956, NSPE Functional Section for Engineers in Private Practice was formed. It was the first practice section for NSPE and FES. In 1961, the Consulting Engineers of Florida (CEOF) was created as the Private Practice practice section of FES. Simultaneously a new professional organization of consulting firms was established, known as Consulting Engineers Council of Florida (CEC/F). This organization was a state Member Organization of the Consulting Engineers Council of the United States (CEC/US). CEC/US became the American Council of Engineering Companies (ACEC) when it consolidated with the American Institute of Consulting Engineers in 1973. In 1973, the CEC/F and CEOF merged together to form the Florida Institute of Consulting Engineers (FICE). Because of the organization started as a practice section of FES, the connection between FICE and FES is with at least one member of the firm maintaining an active membership in FES.

4 Connecting the Partnerships
FES supports FDOT individual engineers through the Florida Professional Engineers in Government (FPEG). Consultant members welcome the opportunity to interact with FDOT members. The FPEG practice section provides the engineers in government a voice outside of their public department. FES ensures that the engineers in government are represented on the Board of Directors and committee participation. FICE is connected to FES through the Professional Engineers in Private Practice (PEPP) practice section. At least one employee with each member firm has to be a member of FES. FICE is connected to FDOT through the Transportation Committee.

5 FICE Transportation Committee
Committee started with concerns consultant community had with the Operating Margin the FDOT allowing at the time. FICE went to the FDOT Secretary with concerns. FDOT suggested formation of the FICE/FDOT Liaison Committee. * Key point is that FDOT made it their idea.

6 FICE Transportation Committee
Quarterly meetings in each district. Small group meets with individual sub-committees, then reports back to larger membership committee. Committee meetings are ONLY available to members. Provides members with advanced information about projects and issues.

7 Keys to success Idea came from FDOT.
Benefits both FDOT and Consultants. FICE is a resource to help solve problems and enhance relationship between FDOT and private sector. Bottom line figures and finances are off limits in discussion.

8 FDOT & Private Consultants Partnerships
Awards and Awards Programs FICE Ben Watts Partnership Award Established in 2001. Honors the individual who made an extraordinary contribution to the development of the effective partnership between FDOT and the consultant community. In alternate years the recipient is selected from the staff of FDOT by consultants and vice versa. Presented annually at the FICE Transportation Conference

9 FDOT & Private Consultants Partnerships
Awards and Awards Programs FICE MBE/DBE Utilization Award Established in 2004. Presented annually to a non-DBE/MBE prime consulting firm that has made the most significant use of DBE/MBE sub-consulting firms. Award Criterion Must be a FICE member firm. Have at least 3 contract awards during previous year. Have at least $1 million in prime fees during previous year. Have a grade ‘B’ or higher the previous year. Have the highest DBE utilization of firms that meet the above noted qualifications. Presented annual at the FICE Transportation Conference.

10 FDOT & Private Consultants Partnerships
Goal of Joint Committees: Provides consulting engineering industry an opportunity to review and provide input on department specifications before they are finalized. Communications is key. All parties bring forward issues that stand in the way of optimizing the transportation system. Problems are identified and work begins on a successful resolution Relationship with all the industry groups and independent contractors, as well as FICE, are vital to achieving the Department’s goals. 

11 FDOT & Private Consultants Partnerships
Joint Committees: FTBA/FDOT Specifications Subcommittee Structures FTBA/FDOT Specifications Subcommittee LESS FTBA/FDOT Specifications Subcommittee MOT Henry Fuller Task Team (FTBA, FDOT, FICE) Florida Greenbook Committee (FDOT & Local Government Representatives) FICE/FDOT Transportation Committee Structures Sub Committee: FTBA and other affected parties review all major changes to the structural standards during development to assure that construction efficiencies are considered to obtain an economical solution. As noted below, construction groups are also included in the development of pay items, specification requirements, major policy, etc.  We converse with construction groups to evaluate  new technologies for application into Florida’s transportation system. These technologies include products and new bridge types.

12 FDOT & Private Consultants Partnerships
FICE/FDOT Transportation Sub- Committees Production Right of Way DBE/MBE Project Management Alternative Contracting CEI Specifications Review This committee maintains a liaison with the Florida Department of Transportation. This committee also proposes and implements transportation-related activities and programs of interest to FICE membership.

13 FDOT & Private Consultants Partnerships
Other Partnerships with FDOT FTBA – Project Awards (13 Categories) FTBA MBE/DBE Utilization Awards ACAF Paving Award Program (6 Categories) FDOT/ FPCA Liaison Committee Flexible Pavement Committee Asphalt Smoothness Committee ATSSA/FDOT Pavement Marketing Committee

14 Operating Margins Negotiated based on:
Overview Negotiated based on: Complexity of the project Degree of financial risk assumed by the Consultant Project schedule Consultant cost control. The table summarizes how these factors should be weighted and considered in developing the cost control portion of the operating margin for each individual contract. For cost control efforts, a formula SHALL NOT be used to calculate the percentage to be applied. The following table provides a guideline on how these factors should be weighted and considered. Table is only a guide, NOT A FIXED FORMULA, for negotiating operating margin. There is a large variation in operating margins within the range to account for the wide spectrum of cost control by various Consultants that conduct business with FDOT. There will be significant variation in operating margin from contract to contract. Negotiators SHALL NOT use a standard operating margin for all contracts. The factors to be considered in negotiating the cost control efforts percentage shall include: Burdened salary rates by classification, inclusive of overhead, expense percentage and Facilities Capital Cost of Money (FCCM) only; Specific services requiring specialized staff, qualifications of proposed team; Reasonableness of the proposed distribution of staffing for the project; Burdened salaries by geographic region; For CEI contracts, if the firm has Overhead or Direct Expense percentages that include Premium Overtime (reimbursed) or firms where the Premium Overtime is reimbursed directly on the contract (excluded); Other items specific to the contract being negotiated.

15 Operating Margins Complexity of Project

16 Operating Margins Degree of Risk

17 Operating Margins Project Schedule

18 Operating Margins Cost Control Efforts

19 Consultant Value Provides open communication between consultant community and FDOT. Allows member firms to help make changes with FDOT in doing business with the consultants. Gives members direct access to FDOT.

20 FDOT Value FDOT relies on consultant engineers for 80% of their design and inspection work. Partnering with FICE can effectively help FDOT deliver the work program. With a work program that equals or exceeds 2.5 billion in lettings each year, regular discussions occur concerning consultant contract procurements, contract negotiations, operating margins, overhead, escalation, longlisting/shortlisting process, etc. From Brian Blanchard, PE FDOT, Assistant Secretary for Engineering and Operations

21 FDOT Value Frequent discussions on technical matters related to design, construction inspection, R/W acquisition, planning etc on lessons learned, improvement opportunities, etc. At the liaison meetings discussion is held on the upcoming work program, FDOT support needs, alternative contracting types, specifications, DBE program, policy and procedure proposed changes, etc. FDOT cannot deliver the work program without FICE. From Brian Blanchard, PE FDOT, Assistant Secretary for Engineering and Operations

22 Future Value.. . Provided open communications between FICE and FDOT.
Support given to FICE programs and FDOT programs. FICE has built a reputation with FDOT as a reliable resource for the consulting engineer profession in FL.

23 Questions? Comments? Thank you for attending.
Wrap up and Questions Questions? Comments? Thank you for attending.

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