Write Up:

MoDOT has delivered more than $1.7 billion in Design-Build projects that saved taxpayers over $277 million. When combined, these projects were completed more than 74 months ahead of schedule. MoDOT partners with the public and private sectors to deliver projects that maximize available resources into collaborative solutions that achieve goals. This effort challenges the way projects are delivered driven by innovation, speed and efficiency. MoDOT pushes the boundaries to execute projects delivering amazing results

MoDOT evaluates project risks such as size (cost), type (preservation, rehabilitation or reconstruction) and complexity (opportunity for innovation and speed) when determining project delivery methods. The advantages of MoDOT’s innovative contracting methods are as follows:

• Design-Build contracts include design and construction under one contract, procured using a two-phased selection process. MoDOT scores proposals using a best-value or “build-to-budget” selection.

• Cost-plus-time bidding (A+B) aims to expedite project completion through competitive bidding on construction time (days).

• Alternate Technical Concepts give the contractor the opportunity to provide a more cost-effective alternative design prior to the bid. Alternate Technical Concept discussions are held in a confidential environment which maximizes competitive bidding. The low bid is awarded the contract.

In fiscal year 2019, one Design-Build project was awarded in the Southwest District. The I-44 Project Bridge Rebuild will repair critical bridge assets on I-44 between Springfield and Joplin while improving safety on the corridor.  This approach to bundle 19 bridge improvement projects into one streamlined Design-Build Project allows for efficient delivery that saves MoDOT’s resources by allowing the contracting partner to deliver incredible results.    

Based on the 2019 Statewide Transportation Improvement Program, MoDOT delivered three out of 434 projects statewide using innovative contracting methods. One was delivered using Design-Build and two were delivered using the A+B process. The Design-Build project accounted for $31.1 million and the two A+B projects accounted for $18.3 million of the $758.6 million programmed budget (6.5%). The target of two projects per year was met, but the percentage of programmed STIP dollars awarded was below the 10% target. MoDOT will continue to look for opportunities to further develop the innovative project delivery program as part of a FOCUS strategic initiative.

The goal of value engineering is to build the right project at the right time, meeting the project need with the appropriate project scope. MoDOT uses its value engineering program to ensure the public receives great value for every tax dollar invested in Missouri’s transportation system. MoDOT has been increasingly focused on smaller, maintenance-type projects that are not traditionally targeted by the VE program. Still, MoDOT must be innovative in using the VE process to search for solutions to reduce project costs and provide additional value.

MoDOT uses design-phase value analysis to remove unnecessary scope, reduce project costs and improve project flexibility. For fiscal year 2019, 23% of applicable projects underwent some form of value analysis during design, which is currently just below the 24% target for design-phase value analyses. Value engineering is an important strategic initiative, and MoDOT is committed to adding value and identifying savings in every project possible.

Programmatic value analysis studies associated with the level-course and seal-coat programs continue to account for a large portion of this percentage. Two traditional design value engineering studies and one practical analysis value engineering study were completed in two districts this fiscal year. Districts continue to use the Practical Value Analysis tool to add value and cost savings to projects.

MoDOT partners with industry to find more cost-effective solutions during the construction phase. Value Engineering Change Proposals engage contractor ideas to deliver improved projects. For FY 2019 there were 23 VECPs approved resulting in a MoDOT savings of $1.35 million. This represents a 92% approval rate. Post-Award Value Engineering workshops have been held in two districts this fiscal year.

Nationally, VE studies save millions of dollars every year. In FY 2017, state Departments of Transportation saved over $1.08 billion through value engineering.

Purpose of the Measure:

This measure tracks the use of innovative contracting methods on MoDOT projects including: Design-Build Contracts, A+B contracts, 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 percent 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 through MoDOT’s Value Engineering Proposal database.  The target for this measure is updated annually in July at the end of the fiscal year.