Details:

• Creators:
  Kosmopoulou, Georgia ; Zhou, Xueqi

  Kosmopoulou, Georgia ; Zhou, Xueqi Less -
• Corporate Creators:
  University of Oklahoma ; Langston University

  University of Oklahoma ; Langston University Less -
• Corporate Contributors:
  United States. Federal Highway Administration
• Subject/TRT Terms:
  [+]

  Bids Construction Projects Contracting Costs Disincentives Incentives Procurement Recommendations Surveys Transportation Departments
• Publication/ Report Number:
  FHWA-OK-14-12
• Resource Type:
  Tech Report
• Geographical Coverage:
  Oklahoma
• Corporate Publisher:
  Oklahoma. Dept. of Transportation. Materials and Research Division
• Abstract:
  A key challenge for Departments of Transportation around the country is to keep the cost of construction low
  
  while ensuring that projects will be completed in a timely manner. Those goals can often be conflicting. The
  
  purpose of this research project was to investigate the empirical relationship between project cost and project
  
  duration to offer recommendations to the Department of Transportation on the optimal use of time incentives in
  
  the procurement process.
  
  We first surveyed all Transportation Agencies on their rules of implementation of A+B and
  
  incentive/disincentive designs. A complete survey of A+B and I/D letting practice is presented. Policy details such
  
  as application, scope and parameter choice are included in the report.
  
  We utilized program evaluation techniques to assess the performance of A+B bidding in comparison to the
  
  standard contracting low bid practice. Using our statistical knowledge and information on alternative contracting
  
  methods adopted by ODOT and other state Departments of Transportation, we conducted economic evaluation
  
  of contracting practices. The end goal was to prepare guidelines for distinguishing between costly projects and
  
  those that are economically practical to speed up, and help ODOT to improve efficiency in highway construction.
  
  We found evidence that item bids respond to the time incentive asymmetrically. As an example, items
  
  202(C)0184 (Unclassified Borrow) and 619(B)2500 (Removal of Bridge Items) display especially favorable
  
  reactions to time incentives and hence projects that prescribe such items more heavily are desirable candidates
  
  for A+B letting consideration. There is evidence suggesting that bids (and the underlying cost) rise less steeply
  
  than for other items when time is a constraint. Naturally, acceleration on such items may be achieved at a
  
  relatively lower cost to the state department.
  
  
• Format:
  PDF
• Funding:
  ODOT SP&R Item Number 2257
• Collection(s):
  US Transportation Collection
• Main Document Checksum:
  [+]

  urn:sha256:a6c5245b8c564e94994343bdac1f4e2a47dfcaf615b55cab7f73daf2d65198a3
• Download URL:
  /view/dot/29124/dot_29124_DS1.pdf
• File Type:
  [PDF-1.24 MB]