Investigation into the impact of privatizing civil engineering operations in Louisiana DOTD.
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2013-06-01
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NTL Classification:NTL-PLANNING AND POLICY-PLANNING AND POLICY
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Abstract:The purpose of this study is to investigate the impact of privatizing all civil engineering operations in the Louisiana Department of Transportation and Development (DOTD). It was investigated by conducting a national and international literature review and a cost analysis. Privatization of all civil engineering operations in a state DOT has not been attempted in the U.S. but several other countries have privatized their entire state transport agencies. Most foreign privatization efforts report cost savings and improved delivery of service. However, not all applications have succeeded and all express concern with one or more aspects of their application, resulting in the privatization process remaining a “work in progress” in most applications. In this study, the cost comparison of conducting all civil engineering operations in-house versus by the private sector resulted in an estimate of no cost savings from privatizing the civil engineering operations in DOTD. The privatization of the civil engineering operations of DOTD is not recommended, although it is recommended that opportunities to outsource more individual tasks in DOTD be investigated.
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