Florida’s Partnerships with FDOT and FICE Presentation Overview • • • • • • History of FICE Development of relationships Committees with FDOT Operating Margins Value of FICE & FDOT Relationships Future impact of these relationships In the Beginning… History of FICE Connecting the Partnerships FICE Transportation Committee • Committee started with concerns consultant community had with the Operating Margin the FDOT allowing at the time. • FICE went to the FDOT Secretary with concerns. • FDOT suggested formation of the FICE/FDOT Liaison Committee. FICE Transportation Committee • Quarterly meetings in each district. • Small group meets with individual sub-committees, then reports back to larger membership committee. • Committee meetings are ONLY available to members. • Provides members with advanced information about projects and issues. Keys to success • Idea came from FDOT. • Benefits both FDOT and Consultants. • FICE is a resource to help solve problems and enhance relationship between FDOT and private sector. • Bottom line figures and finances are off limits in discussion. FDOT & Private Consultants Partnerships • FICE Ben Watts Partnership Award – Established in 2001. – Honors the individual who made an extraordinary contribution to the development of the effective partnership between FDOT and the consultant community. – In alternate years the recipient is selected from the staff of FDOT by consultants and vice versa. FDOT & Private Consultants Partnerships • FICE MBE/DBE Utilization Award – Established in 2004. – Presented annually to a non-DBE/MBE prime consulting firm that has made the most significant use of DBE/MBE sub-consulting firms. – Award Criterion • Must be a FICE member firm. • Have at least 3 contract awards during previous year. • Have at least $1 million in prime fees during previous year. • Have a grade ‘B’ or higher the previous year. • Have the highest DBE utilization of firms that meet the above noted qualifications. FDOT & Private Consultants Partnerships • Provides consulting engineering industry an opportunity to review and provide input on department specifications before they are finalized. • Communications is key. All parties bring forward issues that stand in the way of optimizing the transportation system. • Problems are identified and work begins on a successful resolution • Relationship with all the industry groups and independent contractors, as well as FICE, are vital to achieving the Department’s goals. FDOT & Private Consultants Partnerships FTBA/FDOT Specifications Subcommittee Structures FTBA/FDOT Specifications Subcommittee LESS FTBA/FDOT Specifications Subcommittee MOT Henry Fuller Task Team (FTBA, FDOT, FICE) Florida Greenbook Committee (FDOT & Local Government Representatives) FICE/FDOT Transportation Committee FDOT & Private Consultants Partnerships Production Right of Way DBE/MBE Project Management Alternative Contracting CEI Specifications Review FDOT & Private Consultants Partnerships FTBA – Project Awards (13 Categories) FTBA MBE/DBE Utilization Awards ACAF Paving Award Program (6 Categories) FDOT/ FPCA Liaison Committee Flexible Pavement Committee Asphalt Smoothness Committee ATSSA/FDOT Pavement Marketing Committee Operating Margins Overview • Negotiated based on: – – – – Complexity of the project Degree of financial risk assumed by the Consultant Project schedule Consultant cost control. • The table summarizes how these factors should be weighted and considered in developing the cost control portion of the operating margin for each individual contract. For cost control efforts, a formula SHALL NOT be used to calculate the percentage to be applied. Operating Margins Complexity of Project Prime Consultant Name: FM Number: Date: Criteria % Range Complexity of 5% - 7% Project: The degree of difficulty associated with the project. Are there unique aspects to the project? OPERATING MARGIN % CALCULATION TABLE FOR DIRECT SALARIES Suggested Standards Typical Project Types Low - Simple Straight forward Bridge Inspection: All bridge inspection except scourl; CEI: 3R Rural, projects. Small and specific Painting, CEI signalization, simple and straight forward projects; Design: scope of services, very minor Simple 3R-Rural; 3R Urban ride only; Geotechnical: standard; PD&E: issues/improvements Small simple projects with specific scopes; Planning: Data/traffic Counts; Survey: Resurfacing 3R rural/urban; Traffic Operations: turn-lane projects (design) Medium - Projects with some specialized areas requiring some specialized skills. Moderate improvements on a project Bridge Inspection: generally not applicable; CEI: CEI resurfacing with some improvements; Design: 3R Urban with some improvements, intersection improvements with safety, Category 1 bridges; PD&E: widening with limited issues and bridge replacement with limited impacts; Railroads: All; Survey: survey in water areas; Traffic Operations: traffic operations studies and signal design projects High - Complex multi-disciplined projects requiring specialized skills with significant management issues. Major improvements on a project Bridge Inspection: bridge scour; CEI: CEI for multisections in a corridor, MOT Issues, specialized skills, ITS, construction on new alignments, and signal system timing, development and implementation; Design: new alignments, major widening, major reconstruction; railroad bridge design; Segmental/Class 2 bridges, Movable Bridges, PD&E: PD&E with Feasibility study, multiple disciplines, significant issues; Planning: large planning (multimodal); Survey: pilings and bridges; Traffic Operations: ITS Prime Sub 1 Su Operating Margins Degree of Risk Criteria Degree of Risk: The amount of financial risk assumed by the consultant in relation to the project. OPERATING MARGIN % CALCULATION TABLE FOR DIRECT SALARIES % Range Suggested Standards Typical Project Types Prime Sub 1 3% - 5% Low - Contracts with well defined and Bridge Inspection: bridge inspections; CEI: CEI subconsultants specific scopes, minimal probability of providing support personnel, ITS, maximum limiting amount contracts; cost overruns and low financial risk Design: Simple 3R Rural, 3R urban ride only; Geotechnical: All; PD&E: exposure. Scope clarification meeting accurate and specific scope & pre-negotiation meetings; Planning: Most held, if applicable Planning; Survey: all, including SUE; Traffic Operations: traffic operations studies; traffic counts Medium - Projects with potential for additional coordination efforts with outside agencies/parties; coordination with several Districts, multiple municipalities, etc. Bridge Inspection: bridge scour; CEI: Standard CEI; Design: design for new alignments, major reconstruction, and widening; PD&E: experimental design and broad scopes; Planning: some planning; Railroads: All; Traffic Operations: traffic signal projects, ITS design High - lump sum contracts with possibility of overrunning costs; experimental design; projects involving significant financial risk, potential for significant unknown issues. CEI: high visibility, lump sum contracts, multiple projects; Design: projects with multiple bridges; PD&E: multiple alternatives, multiple agency approval required; Planning: large multimodal projects (airports, seaports, railroads, transit) Operating Margins Project Schedule Criteria Project Schedule OPERATING MARGIN % CALCULATION TABLE FOR DIRECT SALARIES % Range Suggested Standards Typical Project Types Prime Sub 1 1% - 3% Low - no critical short term deadlines Bridge Inspection: Bridge Inspection; Bridge Scour; CEI: ITS; stand or requirements for large staffing alone resurfacing; ride only, support services; Design: all 3R projects, concentrations, unfunded projects to standard schedule; PD&E: no design phase scheduled in Work Program; go on the shelf Planning: All; Railroads: All; Traffic Operations: ITS; Survey: all 3R projects Medium - Standard schedule Bridge Inspection: generally not applicable; CEI: districtwides; push button construction; Design: standard design; bridges, large corridors; Traffic Operations: traffic counts; Survey: increased number of crews needed High - High visibility projects with short durations and aggressive schedules requiring large commitment of staff. Fast track projects with high profile and quick implementation schedule Bridge Inspection: generally not applicable;CEI: multiprojects, construction bonus, CEI Urban (day & night), high visibility; short duration, utility reallocation by others; Design: Mobility/ Economic Stimulus; PD&E: design phase funded in the work program, bridge replacements Operating Margins Cost Control Efforts OPERATING MARGIN % CALCULATION TABLE FOR DIRECT SALARIES Prime Typical Project Types Suggested Standards % Range Criteria 3% - 27% Low (3% - 6%) - Lower or minimal cost The cost control is not generally dependent upon the type of project. Cost Control Factors to be considered in negotiating this criteria: control efforts Efforts: The degree to which the Consultant controls its costs for wage rates (by region), overhead, Medium (7% - 15%) - Moderate cost burdened salary rates by region and classification, specialized services requiring specialized staff, reasonableness of the proposed distribution of control efforts staff hours, expenses and FCCM. High (16% - 27%) - Substantial cost control efforts Total 12% - 42% Sub 1 reimbursed or excluded premium overtime, and other project specific items TOTAL FDOT 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% TOTAL CONSULTANT This is intended only as a guideline - not a fixed formula. Overhead Expense FCCM Salary Multiplier Consultant Value • Provides open communication between consultant community and FDOT. • Allows member firms to help make changes with FDOT in doing business with the consultants. • Gives members direct access to FDOT. F F L O O R E T I A E M T D R A E P O R T A T N IO A D S T FDOT Value N P T S N O A F R T • FDOT relies on consultant engineers for 80% of their design and inspection work. • Partnering with FICE can effectively help FDOT deliver the work program. • With a work program that equals or exceeds 2.5 billion in lettings each year, regular discussions occur concerning consultant contract procurements, contract negotiations, operating margins, overhead, escalation, longlisting/shortlisting process, etc. F F L O O R E T I A E M T D R A E P O R T A T N IO A D S T FDOT Value N P T S N O A F R T • Frequent discussions on technical matters related to design, construction inspection, R/W acquisition, planning etc on lessons learned, improvement opportunities, etc. • At the liaison meetings discussion is held on the upcoming work program, FDOT support needs, alternative contracting types, specifications, DBE program, policy and procedure proposed changes, etc. • FDOT cannot deliver the work program without FICE. Future Value... • Provided open communications between FICE and FDOT. • Support given to FICE programs and FDOT programs. • FICE has built a reputation with FDOT as a reliable resource for the consulting engineer profession in FL. Wrap up and Questions Questions? Comments? Thank you for attending. www.fleng.org