No.: 13460 USDOT Pub No.: FHWA-OP-01-020
Title: A CASE STUDY: USE OF A DESIGN/BUILD/WARRANTY CONTRACT MICHIGAN INTELLIGENT TRANSPORTATION SYSTEM CENTER
Author:   JEFFREY TROMBLY, TIMOTHY LUTRELL
Date: MAR 2000
Pages: 11
File Size:  861 KB

KEYWORDS:
ADVANCED METROPOLITAN TRAVEL MANAGEMENT SYSTEMS OR AMTMS, PROCUREMENT

ABSTRACT:
PROCUREMENT OF INTELLIGENT TRANSPORTATION SYSTEM (ITS) PROJECTS WITH FEDERAL-AID FUNDS CAN PRESENT CHALLENGES. ITS TECHNOLOGIES ARE IMPLEMENTED AS STAND-ALONE PROJECTS, EXPANSIONS OF LEGACY SYSTEMS, OR INCORPORATED AS PART OF TRADITIONAL ROADWAY CONSTRUCTION PROJECTS. ITS PROJECTS OFTEN INVOLVE THE APPLICATION OF COMPLEX TELECOMMUNICATIONS, COMPUTERS, SOFTWARE, SENSING, AND ELECTRONICS TECHNOLOGIES THAT ARE NOT FAMILIAR TO MANY TRANSPORTATION AGENCIES, MAKING IT VERY DIFFICULT TO DEVELOP THE APPROPRIATE SPECIFICATIONS FOR BIDDING PURPOSES. CONVENTIONAL FEDERAL-AID CONSTRUCTION PROJECTS ARE PROCURED USING A TWO-STEP PROJECT DELIVERY APPROACH: FIRST, A DESIGN CONTRACT IS LET TO DESIGN THE PROJECT, AND THEN A CONSTRUCTION CONTRACT IS LET TO BUILD THE PROJECT. UNDER FEDERAL-AID REGULATIONS, THE DESIGN CONTRACTOR CAN BE SELECTED USING A QUALIFICATIONS-BASED APPROACH, WHILE THE CONSTRUCTION CONTRACTOR MUST BE SELECTED BASED ON LOW BID. IN MANY CASES, HOWEVER, THE REQUIREMENTS OF ITS PROJECTS CANNOT EASILY BE SPECIFIED AT THE BEGINNING OF A PROJECT. THIS MAKES IT DIFFICULT TO ESTABLISH REALISTIC LOW BIDS AND ENSURE PRODUCT QUALITY.