design cost study : technical assistance report.
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1998-05-01
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Alternative Title:Louisiana Department of Transportation and Development in-house versus consultant;design cost study.;
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Abstract:State transportation agencies commonly use consultant firms for some of their highway and bridge design. For example, the Louisiana Department of Transportation and Development (hereafter referred to as the "Department" or "LaDOTD") currently uses both consultants and in-house staff in designing state transportation facilities. However, the relative cost of doing so is unknown.
Past studies in other states strongly suggest that consultants are more expensive than in-house staff in providing the design services needed by the Department (Wilmot, 1995). These studies also reveal that it is difficult to make an accurate comparison of individual cost items within the public and private sector with complete equity. This is particularly true for indirect costs. The public sector, for example, has cost items such as the advertising of contracts. Similarly, the private sector has costs not borne by public sector agencies, including taxation, marketing, and compliance with public sector organization procedures and standards. Moreover, costs incurred for office rental, utilities, senior administrative staff, and insurance are usually not incurred uniformly across private and public organizations.
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