1. TEA, Portland, Maine Travis Koestner Missouri Department of Transportation October 20, 2006 Alternate Paving Update $$ Cost Control at MoDOT $$

2. Concept: Meeting our customers’ needs through sound engineering judgment. Practical Design = Chevrolet vs. Cadillac

3. Means building good – not great – projects to improve more of our system. We’re trying to make projects better – not perfect. We want to be flexible and build only what’s needed to solve a specific problem at a specific location.

4. Missouri has a very large and diverse highway system - 32,000 miles of road; 10,000 bridges. Our highway system ranges from 10-lane urban interstates carrying 200,000 cars a day to two-lane rural roads carrying 200 cars a day. This is why the “one size fits all” philosophy doesn’t work.

5. Have been too rigid in designing to standards for standards’ sake. This has created a “more is better” mentality - had become the design culture at MoDOT. Created a comfort zone – everyone (designers, lawyers) felt safe with excessive standards.

6. Our Practical Design philosophy has two ground rules: Every project will be safer. We will collaborate on solutions.

7. First brush of Practical Design in December 2004, we reduced the cost of projects in our five-year construction program by more than $400 million. That’s an average cost reduction of 13 percent per project.

8. Savings are equivalent to a five- year, three-cent gas tax increase. As an incentive, the districts get to spend the cost savings they generated for additional projects.

9. Additional improvements statewide will mean fewer fatalities and injuries. Fewer fatalities and injuries makes the Practical Design approach very defensible and easy to explain in court. It’s easier to defend conscious engineering judgment than “cookbook” design.

10. Reaction to Practical Design after two years has been very good. The public likes it – Missourians are frugal and want to see that their money is spent wisely – that’s why we’re known as the Show Me State.

11. We’ve received good feedback from politicians and the industry. Toughest sell has been with our own employees – but our culture is quickly changing.

12. Examples of changes we’ve made to our standards: –Facility selection is now based on level of service rather than an arbitrary volume threshold. –A range of lane widths can now be used. –We’re treating shoulders less like travel lanes - allows for lower widths and thinner pavements.

13. Project examples

14. Route 54 will be realigned around major tourist city. Original scope: four lanes, divided highway, retaining walls.

15. Revised scope: narrower medians, concrete barriers. Minimized grading and right of way costs. Original estimate:$136.5 million Redesign:$ 99.0 million Savings:$ 37.5 million Original R/W line Redesigned R/W line

16. Deteriorating box culvert needs to be replaced. Original scope called for a bridge and 1,500 feet of road reconstruction.

17. Revised scope calls for wider culvert. Reduces roadway improvements, right of way. Original estimate: $1.35 million Redesign: $284,000 Savings: $1.06 million

18. Original job estimate on this bridge replacement was based on relocation. By closing the road and replacing it on existing alignment, we save right of way, grading and paving costs.

19. Original estimate: $660,000 Redesign: $420,000 Savings: $240,000 Original design Redesign

20. Practical Design has been so successful, we plan to make it our long-term design philosophy. We’re currently modifying our policy and design standards to reflect this philosophy. We also plan to explore using this same concept on our own facilities and equipment.

21. Alternate Paving Update  50 Alternate Projects to Date ($705.0 mil) 45 Full Depth ($655.8 mil) 5 Rehabilitation ($49.2 mil)  Full Depth 20 Asphalt Awards ($296.7 mil) 25 Concrete Awards ($359.2 mil)  Rehabilitation 1 Asphalt Award ($2.6 mil) 4 Concrete Awards ($46.6 mil)

22. Alternate Pavement Update Low PC Bids vs. Low AC Bids LCCA Factor not Applied  PC Total – $345,318,000  AC Total - $350,702,000  Difference - $5,385,000 (1.56%) Low PC Bids vs. Low AC Bids LCCA Factor Applied  PC Total – $345,318,000  AC Total - $365,450,000  Difference - $20,132,000 (5.83%) LCCA Factor has Determined Low Bid 2 Times since October 2003.

23. Alternate Pavement Update

25. BOTTOM LINE MORE COMPETITION BETTER BIDS!