Innovative Contracting and Value Engineering -3e

The goal of innovative contracting and value engineering is to  partner with the public and private sectors to deliver projects that maximize available resources into collaborative solutions that achieve goals. MoDOT uses innovative contracting and value engineering programs to ensure the public receives great value for every tax dollar invested in Missouri’s transportation system.

 

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Write Up:

MoDOT has delivered more than $3.5 billion in Design-Build contracts that have saved taxpayers over $373 million and were completed nearly 13 months ahead of schedule. MoDOT leads the nation in partnering with the public and private sectors to deliver projects that maximize available resources into collaborative solutions that achieve goals. Leveraging private-sector resources has resulted in the realization of over 800 innovations into projects using the design-build program in Missouri. MoDOT’s Innovative Contracting Program includes Design-Build, A + B Contracting, Fixed Price Variable Scope and Design-Bid-Build using Alternate Technical Concepts (ATC).

In fiscal year 2024, four Design-Build projects were awarded in the St. Louis, Northwest and Central districts. The I-55 Corridor Design-Build Project in Jefferson County will expand I-55 to six lanes between Route 67 and Highway Z and improve safety and mobility for travelers. The Northwest Bridge Bundle program will replace 31 bridges on critical farm-to-market roads. The Safety Improvements Design-Build Project is cutting-edge innovation to using a data-driven approach to implement countermeasures on Missouri highways. This effort is anticipated to reduce over 170 fatal and serious-injury crashes equating to a societal benefit of $1.2 billion in savings. A generational investment by the Missouri Legislature and signed by Gov. Mike Parson to widen I-70 between St. Louis and Kansas City led to the first Improve I-70 Design-Build Project between Columbia and Kingdom City to be awarded nine months from execution.

MoDOT used innovative contracting to deliver 10 of 453 projects in FY 2024 accounting for approximately 41.6% of the $1.6 billion program. The target goal of utilizing innovative contracting on two projects per year and 10% of program value were both achieved.

MoDOT pursues value throughout the life of a project utilizing the Value Engineering Program. MoDOT uses design-phase value analysis to identify opportunities for innovation, reduce project costs and improve project flexibility. MoDOT analyzed 25% of projects during the design phase in FY 2024. MoDOT also partners with industry partners to find more cost-effective solutions during the construction phase. The department approved 19 Value Engineering Change Proposals (VECP) at a 73% approval rate, resulting in $3.19 million in taxpayer dollars for MoDOT. The target to review 25% of projects in the design-phase was met this period. The target for increasing VECP savings from the previous year was met this period as well.

Purpose of the Measure:

This measure tracks the use of innovative contracting methods on MoDOT projects including Design-Build contracts, A+B contracts, Fixed Price Variable Scope contracts, and Alternate Technical Concept contracts. This measure also tracks the use of value engineering during design and construction on traditional MoDOT projects including value analysis during the design phase and construction value engineering proposals.  

Measurement and Data Collection:

MoDOT projects utilizing innovative contracting methods are reported during the fiscal year in which they are awarded. Contract award values are collected through MoDOT’s bid opening summaries and project records. A target of 10% of the programmed Statewide Transportation Improvement Program, or two projects per year, is an appropriate target for utilizing innovative contracting methods in Missouri. Information on value analysis during design is gathered from MoDOT’s Statewide Transportation Improvement Program information management system. Construction value engineering change proposal information is gathered from Value Engineering data is collected through MoDOT’s Value Engineering Proposal database.

https://www.modot.org/design-build-information

Results Driver

Contact Photo
Brandi Baldwin
Brandi Baldwin
Title
State Construction and Materials Engineer
Department
Construction and Materials
Contact Info

Email: Brandi.Baldwin@modot.mo.gov 

Phone: (573) 751-7455

Measurement Driver

Contact Photo
dave photo
David J Simmons
Title
Design Liaison Engineer
Department
Design
Contact Info

Email: david.simmons2@modot.mo.gov

Phone: (314) 453-1878