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 billion in Design-Build contracts that saved taxpayers over $359 million and were completed more than 111.5 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. 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 2023, one Design-Build project was awarded in the Southeast District. The Chester Bridge Design-Build Project includes replacement of the existing 1930’s bridge which spans the Mississippi River, connecting the cities of Perryville, Missouri and Chester, Illinois via Missouri Route 51/Illinois Route 150. This major river bridge is vital to agricultural traffic, area industries and travelers. The new Chester Bridge will upgrade this vital connection between Missouri and Illinois, reducing the number of flood-related closures to better serve today’s traffic. MoDOT used innovative contracting to deliver six of 457 projects in fiscal year 2023, accounting for approximately 16.1% of the $1.8 billion program. The target of 10% of the annual program for use of innovative contracting was achieved. 

MoDOT pursues value throughout the life of a project utilizing the Value Engineering Program and uses design-phase value analysis to identify opportunities for innovation, reduce project costs and improve project flexibility. MoDOT analyzed 26% of projects during design phase in FY 23. MoDOT also partners with industry to find more cost-effective solutions during the construction phase. MoDOT approved 25 Value Engineering Change Proposals at a 96% approval rate, resulting in a savings of $2.31 million. The target to review 25% of projects in the design-phase, and the target for increasing VECP savings from the previous year were both met this reporting period. 

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