FHWA Update Butch Wlaschin, P.E. Director, Office of Asset Management AASHTO Highway Subcommittee on Construction 2010 Annual Meeting Burlington, Vermont

Presentation Overview Update on Recovery Act and Reauthorization Current Issues FHWA Programs & Initiatives

Update - Recovery Act

Recovery Act Work Types by % of Contract Value

Average Wage Rates for Recovery Act Contracts

Recovery Act - Total Contractor Work Hours (Month)

Recovery Act Expenditures vs. Obligations (by Improvement Type) Obligations Expenditures

Update - Reauthorization On-going discussions with Hill OST principles to be issued Funding continues to be the problem Most likely to see focus on performance Safety, Livable Communities, Sustainability, Performance More to follow

Current Issues Project Labor Agreements Pavement Marking Material Shortage Alternate Bidding For Pavement Type Selection

Project Labor Agreements February 6, 2009 President Obama signed an Executive Order titled “Use of Project Labor Agreement for Federal Construction Projects.” Encourages executive agencies to consider requiring the use of PLAs on large-scale direct Federal construction projects (defined as a project with a total cost of $25 million or more). May 7, 2010 – FHWA Administrator Mendez signed a memo titled: “Interim guidance on the use of Project Labor Agreements” –Provides factors for agencies to use in evaluating whether a PLA is in the government’s interest –Allows Division Offices and States to approve PLAs on a project-by-project basis in accordance with the memo

Pavement Marking Material Shortage In June 2010, State DOTs began to experience shortages of four key raw materials used to produce waterborne traffic paint, extruded and spray thermoplastics, and epoxy Only 50-60% of normal supply available; Industry indicated 6-8 week backlog in orders Shortages may last until the end of the 2010 calendar year. Not all states may perceive a shortage as paint suppliers honored long-term supply contracts for state maintenance contracts FHWA encourages our Division Offices to work with State DOTs on a case-by-case basis in accordance with contract requirements.

Alternate Bidding For Pavement Type Selection Equivalent designs Discount rate Uncertainty Rehabilitation strategy Subjective factors Commodity price adjustments I/D provisions Materials quantities Approval process Memo issued November 13, 2008 Clarifies and consolidates FHWA policy Applies to Federal-aid on the NHS Alt Bidding is “not encouraged” but can be used in “rare instances”….

FHWA Programs & Initiatives Every Day Counts Initiative TCM Steering Committee Update Construction Program Baseline Review Construction Engineer Training Course

Every Day Counts Design-Build Construction Manager/General Contractor (CM/GC) Flexibilities in Utility Accommodation & Relocation Shortening Project Delivery Initiatives in Design and Construction

Accelerated Project Delivery Task Force AASHTO – ARTBA – AGC Task Force Provides a two pronged approach for addressing APD that complements the FHWA Every Day Counts initiative Provided initial recommendations to FHWA in March Developing a work plan of APD activities – to be completed by August.

Transportation Construction Management Steering Committee Update TCM focus on quality, efficiency, risk management Current TCM Activities –"A Guidebook for Selecting Highway Capital Project Delivery Methods and Alternative Contracting Strategies” –2 nd International Construction Management Conference February 2011, Orlando, FL (in conjunction w/ ARTBA) –Sponsored NCHRP “Alternate Quality Systems” –Pooled fund program

Construction Program Baseline Review Purpose – enhance the delivery of the construction program for improved performance of the NHS Scope change – use of self assessment tool and regional peer exchange workshops to obtain construction program information Why? – faster results, less resource demand Regional workshops – to identify, discuss and recommend solutions to critical __construction-related topics ( 5 workshops planned) - Formerly Construction Program Evaluations

Timeline - Oct 2010: Activity work plan Jan 2011: RFP for support contract Spring 2011: Self assessment tool development Spring 2011: Plan and coordinate 1 st regional peer exchange workshop June 2011: Conduct self assessment for 1 st regional group of states July 2011: Conduct 1 st peer exchange Summer regional peer exchanges conducted over 2 years Construction Program Baseline Review

Construction Engineer Training Course Phase 1 – an Academy concept originally scoped, work completed October 2009 Scope being modified - training to be targeted towards CM’s and management practices –Development of a construction curriculum –Will look at developing a CM training course New outline to be vetted with AASHTO and TCCC by Fall 2010 Phase 2 - Plan to initiate in summer 2011

Performance contracting is an approach where the owner agency specifies a set of clearly defined performance goals – rather than methods – for construction projects; and the contractor enjoys the freedom to define how to accomplish the goals. FHWA is piloting an implementation framework for Performance Contracting for Construction with up to six pilot states. Become a Pilot State and receive: Free technical assistance Additional consideration for Highway for LIFE funds Opportunity to be among the first to implement this new and innovative contracting approach For more information on Performance Contracting for Construction or to learn how to become a pilot state, visit or contact: Mary Huie, Federal Highway Administration | LEADERS WANTED: Become a Pilot State!