WPCS Ö ^:8_:8==wg{f-V,1U6=bx+PO]=,;||zMoA`S=6=4؊9$_(Y;h95%:W<:`@"qA5@O`{f&RµyJ >R^LeYڱZ.p"F1@gCȵhAF Q#qGY~:٩;2彞T6}4B|8*g*ESNX`Ix#2UNY5 %5 0(5w54555f6a6 0@6 0DZ6 0]6 06f7 07 0r,8a9E.9 009M:M:f:a: 0-.:(: 1u: 0<Ja; 0@; 72; BJ<W:< 72= 0D=N> 1_ > 0Rh> 0C> 0Xb> 0 _? 0 ? 1u@ 1(A 0 A 0 vB 0 QC 0D@D 0NE 1 E 72]F 72F F 1F 72VGfGfGfGaG^ G 0'G 0H 0I 72fJ 0JazK 0KMmLfqL 0sLfOM 0QM 0*N 0O 0 FO 0"Q 0?HQ 0VCR 0R 0'oS 0vT 0 DwT 0T 0dU 0 8V 0W 0 X 0 Z 0 K\ 0 ^ 0^ 0_ 0 j` 1+b 72b 1b 72kcc 0lFeeg 0Ki 0 j 0k 0l 0 m 0Do 0U *fa 0, 0aDžDž 0ۅfaa 0ΆaD 0U>U @ 0V- A 0. 0< 0AA 0R6n 7 F 7 D-ȍfa 7 7  7 # 7 / 7 ;/GXv ΓΓ U > HHZ K 0Nۤ)& 1 0c!CZճճճ 0w/ D3ٴU>ee'U>ƽ 0sIMU>Q mS&jU>]]]U>jDDU>U>.M .WYaSUNfaU@U@ =LLL 0Y,,,  0 eeeeeeeeeeeee\KK OOOOOO[[[[)ZZZ'''''0 BU>[[<xM M G G   .   T7U>U@EU>wU>jOOOf'a))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))a=============================================================================================================================================================================================================fQHP LaserJet 5,,,,0(hH  Z 6Times New Roman RegularX($HM3|xTABLE A2 c0Quick --0 ($$  0  (2$ !    0  ڀ64 '4heading 2     XXX  <> .FooterFooter !>44 <DL!>2G+J 0_level1  X /%4 4 <DL/23  ..  2( 4 <DL2  TABLE B<OU:Body Text In    ," <DL,  2( 4 <DL2   TABLE C(U2$ !   P` XX  0  ڀ3#37=CIQYag1.a.i.(1)(a)(i)1)a)($  0  2b0Quick 0 i) d M $ P` XX  44  ڀ  _Foranexampleofagrantee'sthirdpartycontractInsuranceSpecifications,contactMr.Harry_Hower_,Manager  ofInsurance,MARTA,at(404)8484504.$/ (3$ !  -(),-.sn37;?CGKOS-*+x< :Definition T    (2C$ !  >$$"Small Circle0  "0` (#(#(xir$0  0` (#(#0 ` (#` (#2#(  0  )3  0 (# (#($0  0` (#(#0 ` (#` (#0 (# (#2#(  a  )3  0h(#(#-(),-.xI3MQUY]aeiBullets List(CEKQW]cioAutoList2A)A)A)A)A)A)A)A)(F$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#2#(   )3  0h(#h(#($0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#2#  0  )3  0(#(#({$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#0(#(#2#  a  )3  0p(#(#(F$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#0(#(#0p(#(#2#     )3  0p(#p(# >$Large Circle0  -(),-.p#Gaekosw{Bullet ListBullets ListA)+A)1/A6_40CEKQW]cioAutoList3A)A)A)A)A)A)A)A)5A)(~dTABLE EhM3  2D+J 0_level2   ," <DL,23  ..  2( 4 <DL2  2A+J 0_level3   ) <DL)23  ..  2( 4 <DL2  2>+J 0_level4  ` &<<DL&23  ..  2( 4 <DL2  */2;+J 0_level5   #DL#23  ..  2( 4 <DL2  TABLE G28+J 0_level6    DL 23  ..  2( 4 <DL2  25+J 0_level7  h DDL23  ..  2( 4 <DL2  ӐD22+J 0_level8   L23  ..  2( 4 <DL2  2/+J 0_level9    L23  ..  2( 4 <DL2  2GJ 0_levsl1  X /%4 4 <DL/23  Ԁ  2( 4 <DL2  6~ 4heading 1    ?%2A`Arial?     XXXS\  `&Times New RomanS  2DJ 0_levsl2   ," <DL,23  Ԁ  2( 4 <DL2  <:footnote ref  :8Body Text 2    2AJ 0_levsl3   ) <DL)23  Ԁ  2( 4 <DL2  <++:footnote tex  xXX  xXX(''&H3   XXX  (&H4    2>J 0_levsl4  ` &<<DL&23  Ԁ  2( 4 <DL2  6::4Body Text  /%  <DL/  /%  <DL/<+ :Outline001_1  , 2( 4 <DL2XXXA(\ Y`SymbolA23  ..  2( 4 <DL2XXXS\  `&Times New RomanS  2;J 0_levsl5   #DL#23  Ԁ  2( 4 <DL2  <+ :Outline002_1  , 2( 4 <DL2XXXA(\ Y`SymbolA23  ..  2( 4 <DL2XXXS\  `&Times New RomanS  <+ :Outline003_1  , 2( 4 <DL2XXXA(\ Y`SymbolA23  ..  2( 4 <DL2XXXS\  `&Times New RomanS  <+ jw:Outline004_1  , 2( 4 <DL2XXXA(\ Y`SymbolA23  ..  2( 4 <DL2XXXS\  `&Times New RomanS  28J 0_levsl6    DL 23  Ԁ  2( 4 <DL2  25J 0_levsl7  h DDL23  Ԁ  2( 4 <DL2  22J 0_levsl8   L23  Ԁ  2( 4 <DL2  <+ :Outline005_1  , 2( 4 <DL2XXXA(\ Y`SymbolA23  ..  2( 4 <DL2XXXS\  `&Times New RomanS  (CEKQW]cioAutoList4I)I)I)I)I)I)I)I)]I)0 CEKQW]cioAutoList5A)A)A)A)A)A)A)A)_A)  $ P` XX  35  ڀ  _IfaprojectisjointlyfundedwithFTAand_FHWA_Ԁgrantfunds,granteesshouldseektheadviceofcounselsince  the_FHWA_ԀandFTAstatutesdifferinwhenandhowtheFederalrequirementsdefertostatelaws.6 4heading 6        !  _ @  @ <( 4 <DLX<O @ XX   @ O}  XfXXXXXfL     45  L+  #mXX##m #mԀSeefootnoteabove. w $ P` XX  8  ڀ  _  4 O  5  http://constructioninstitute.org.XfX6O  7 Ԁ2/J 0_levsl9    L23  Ԁ  2( 4 <DL2  <+ :Outline006_1  , 2( 4 <DL2XXXA(\ Y`SymbolA23  ..  2( 4 <DL2XXXS\  `&Times New RomanS  2GJ 0_levnl1  X /%4 4 <DL/23   2( 4 <DL2  2DJ 0_levnl2   ," <DL,23   2( 4 <DL2  <+ :Outline007_1  , 2( 4 <DL2XXXA(\ Y`SymbolA23  ..  2( 4 <DL2XXXS\  `&Times New RomanS  <G+J :Outline008_1   /%` ` <DL/23  ..  2( 4 <DL2  2AJ 0_levnl3   ) <DL)23   2( 4 <DL2  <+ :Outline009_1  , 2( 4 <DL2XXXA(\ Y`SymbolA23  ..  2( 4 <DL2XXXS\  `&Times New RomanS  <+ :Outline010_1  , 2( 4 <DL2XXXA(\ Y`SymbolA23  ..  2( 4 <DL2XXXS\  `&Times New RomanS  <+ :Outline011_1  , 2( 4 <DL2XXXA(\ Y`SymbolA23  ..  2( 4 <DL2XXXS\  `&Times New RomanS  <+ :Outline012_1  , 2( 4 <DL2XXXA(\ Y`SymbolA23  ..  2( 4 <DL2XXXS\  `&Times New RomanS  <+ :Outline013_1  , 2( 4 <DL2XXXA(\ Y`SymbolA23  ..  2( 4 <DL2XXXS\  `&Times New RomanS  <+ :Outline014_1  , 2( 4 <DL2XXXA(\ Y`SymbolA23  ..  2( 4 <DL2XXXS\  `&Times New RomanS  <+ :Outline015_1  , 2( 4 <DL2XXXA(\ Y`SymbolA23  ..  2( 4 <DL2XXXS\  `&Times New RomanS  jjjjjjjj(35=EMU]em1(a)(a)(a)(a)(a)(a)(a)(a)XXXXXXXX(359=AEIMQ2PPPPPPPP\\\\\\\\(359=AEIMQ3PPPPPPPPnnnnnnnn(359=AEIMQ4PPPPPPPPVVVVVVVV(359=AEIMQ5PPPPPPPP2>J 0_levnl4  ` &<<DL&23   2( 4 <DL2  iiiiiiii(359=AEIMQ6PPPPPPPPTTTTTTTT(359=AEIMQ7PPPPPPPPWWWWWWWW(359=AEIMQ8PPPPPPPPqqqqqqqq(359=AEIMQ9PPPPPPPPmmmmmmmm(57;?CGKOS10PPPPPPPPpppppppp(57;?CGKOS11PPPPPPPPffffffff(57;?CGKOS12PPPPPPPPoooooooo(57;?CGKOS13PPPPPPPP)Hairline drrrrrrrr(57;?CGKOS14PPPPPPPPllllllll(57;?CGKOS15PPPPPPPP(\ Y`Symbol\  `&Times New Roman%2A`ArialTable_A2;J 0_levnl5   #DL#23   2( 4 <DL2  28J 0_levnl6    DL 23   2( 4 <DL2  TABLE A25J 0_levnl7  h DDL23   2( 4 <DL2  tTABLE DTABLE I22J 0_levnl8   L23   2( 4 <DL2  TABLE Fhttp://construction-institute.org2/J 0_levnl9    L23   2( 4 <DL2  \  `&Times New Roman(hH  Z(Times New Roman 6 4Heading 5   &Draw Object =8C HKKKK<OL:Definition L  , 8.4 <DL!8   5+ 4 <DL!5<:Default Para.UX ,Style    2( <DL!2   5+ 4 <DL!5  < :endnote text    http://www.forecastart.orgsTPhttp://www.americansforthearts.orgLevel 1Level 2Level 3Level 4Level 5sTP)!dxdx@TABLE JsVPt\PuWPvTPwXP % !  _<( 4 <DLX< @  @  @  @  @  @ O @ XX   @ O  XfXXXXXfL     46  LW  #mXX##m8#mԀTransportationInfrastructure:AdvantagesandDisadvantagesofWrapUpInsuranceforLargeConstruction  Projects,B281480,June1,1999.TheGAOreportmaybeaccessedat:O݌ t Ќ @ XXm  mXX4 O  5  http://www.gao.gov/archive/1999/rc99155.pdf6wO  7 #m#m#XXmX#.mXXԀOrdersmayalsobeplacedbycalling(202)5126000.#XXm#http://www.gao.gov/archive/1999/rc99155.pdf_Hlt55621314_Hlt55621597\  `&Times New Roman  !  _?+ 4 <DL!X?O @ XX  Oj    38  49_USC_Ԁ5325(b)demandsthatBrooksactproceduresbeusedfortheseserviceseventhoughtheyarenotroutinely  donebyA&Efirms(e.g.,surveying)anddonotrequirelicensedarchitectsorengineers.XfX  !  _<( 4 <DLX< @  @ O @ XX   @ O}  XfXXXXXfL     47  L+  #mXX##m #mԀSomeprojectownerssharetheinsurancerebateswiththeircontractors.Forexample,theBostonArteryproject  willshare20percentofanysavingswithcontractorsintheformofsafetyincentiveawards. @  !  _<(  <DL!X<O @ XX  Og  XfX  39  #XXf#ԀTheTransportationEquityActforthe21stCentury(TEA21)imposedregulationsaffectingtheadministration  ofcontractsawardedbygranteesforarchitecturalandengineeringservices.TheregulationsaffectingtheFederal t HighwayAdministration(_FHWA_)maybefoundin23U.S.C.112andthecorrespondingregulationsforFTA 8 granteesmaybefoundin49U.S.C.5325(b)._FHWA_ԀimplementedtheTEA21requirementsitsfinalrule, L "AdministrationofEngineeringandDesignRelatedServicesContracts,"datedJune12,2002  (4 O  5  "  http://_frwebgate.access.gpo.gov_/cgibin/_getdoc.c%  g%i?dbname_=2002_register&_docid_=0214751filed"1B  6  7 ').Thisfinalrule  hadbeenprecededbyaNoticeofProposedRulemaking,"AdministrationofEngineeringandDesignRelated H  ServicesContracts"publishedin65FR44486,July18,2000(4 O  5  "  http://frwebgate.access.gpo.gov/cgi  \ bin/getdo%  c%e.cgi?dbname=2000_register&docid=0017774filed"B  6  7 ).BecausethelanguageinFTA'ssectionoftheCode   wassubstantiallysimilartothatof_FHWA_,FTA'sOfficeofChiefCounselhasinterpretedthelanguageof49U.S.C.    5325(b)inamannerthatisconsistentwiththeprovisionsadoptedby_FHWA_ԀinitsNoticeofProposed_Rulemaking_ X   anditsfinalrule.Thereareseveralimportantaspectsofthesecontractingrequirementsthataffectthegrantee's  l  administrationofA&Econtracts:Og݌  0  Ќ @ XfX  O @ XXf  O   XfX(O$  $ P` XX  36  ڀ  _ @  @ XfXXXXXfO @ mXX   @ O  FTAaddedthisparagraphtoexplaintherequirementsthatapplytodesignbuildprocurementsbecausethey  involvesignificantarchitectural,engineering,orotherservicesthatnormallyrequirequalificationsbasedcompetitive t proposalsbutalsoincludesignificantworkthatdoesnotrequirethisextraordinaryprocurementmethod.Grantees 8 shoulddeterminewhichportionoftheworkispredominantandfollowthemethodforthattypeofprocurement.It L wouldnormallybeexpectedthattheconstructionportionofadesignbuildprocurementwouldbepredominantand,  inthatcase,normalprocurementmethodscanbeusedinlieuofqualificationsbasedcompetitiveproposals(the  BrooksActmethod). @ #mm##m#http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=2002_register&docid=02-14751-filedhttp://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=2000_register&docid=00-17774-filed(5hCEKQW]cioAutoList11.1.1.1.1.1.1.1.(;3$2#  0  .3  0    !  _?+ 4 <DL!X?O @ XX    Oj  L   XfX,  40  L   #XXf#ԀFAR53.301330.XfX  $ P` XX  37  ڀ  _ @  @ XfXXXXXfO @ mXX   @ O  LetterfromG.B.McBridetoNewYorkMTA,datedFeb2,2001.Theissuesaddressedinthislettermaybe  foundontheFTA_HelpLine_Ԁ(4 X O  5  _www.fta.dot.gov/ftahelpline/index.htm)_6O%  7 SԀundertheFrequentlyAskedQuestionstab(see t Architect&EngineeringContracts). @ #mm##m#  !  _?+ 4 <DL!X?O @ XX    Oj  L   XfX,  41  L   #XXf#ԀFAR53.301330.XfXhttp://www.fta.dot.gov/ftahelpline/index.htm(O;$0  2#  a  .3  0` (#(#'dxd  !  _?+ 4 <DL!X?O @ XX  Oj  L   XfX,  42  L   #XXf#ԀGranteesshouldconsiderusingatwostepprocedureinordertonarrowthenumberoffirmsallowedtosubmit  designproposals(tothosewitharealisticchanceofsuccess))andthustocontrolthecosttothegrantee.Stepone t mightbebasedonqualificationsstatementssuchasarenormallyusedtoselectA&Efirms,fromwhichalimited 8 numberoffirmswouldbeselectedandrequestedtosubmitdesignproposalsinsteptwo.XfX\  `&Times New Roman  !  _<( 4 <DLX< @  @  @  @ O @ XX   @ O  XfXXXXXfL     48  LA  #mXX##m"#mԀGAOalsonotesthatin1998anFTATransitConstructionRoundtablestudyof18membersindicatedthat  savingsof28percentwererealizedbypurchasingwrapupinsuranceformajorprojects. @   !  _?+ 4 <DL!X?O @ XX  Oj  L   XfX,  43  L   #XXf#ԀForadditionalinformation,contactMs.Ann_Geter_,CentralOhioTransitAuthority,at6142755903.XfX\  `&Times New Roman  !  _<( 4 <DLX< @  @ O @ XX   @ O}  XfXXXXXfL     49  L+  #mXX##m #mԀGAOnotedthatlargelaborintensiveprojectswithconstructioncostsbetween$50millionand$100million  wouldbeinabetterposition(i.e.,buyingpower)toobtainwrapupinsurance.B#c21, 2, 3,Numbers  .0 1, 2, 3,Level 1Level 2Level 3Level 4Level 5\  `&Times New RomanCU procurements  !  _<( 4 <DLX< @  @  @  @  @  @ O @ XX   @ O  XfXXXXXfL     50  LW  #mXX##m8#mԀTheBostonArteryprojectcitedalossratioof23percentcomparedtoahistoricnationalaverageofabout65  percentforthattypeofproject.TheMichiganBlueWaterBridgeprojectcitedalossratioof10percentcompared t toanationalaverageof50percentforthattypeofproject. @ \  `&Times New Roman  !  _<( 4 <DLX< @  @ O @ XX   @ O}  XfXXXXXfL     51  L+  #mXX##m #mԀWorkerscompensationinsurancepaysclaimantsincaseofinjury,disability,ordeathofemployeesresulting  fromworkonthejob. @ \  `&Times New Roman ` !  _XXXX<( 4 <DLX< @  @ O @ mXX   @ O  XXm#XfXXX+#XXXXfL     52  Lm  #mXX ##mN#mԀAccordingtoa1997GSAstudyofwrapupinsurance,NorthDakota,Ohio,Washington,WestVirginia,and  Wyominghaveastatefundintowhichallcontractorsmustpayandaprojectownercannotobtainseparateworkers t compensationinsurancecoverage.\  `&Times New Roman  !  _XXXX<( 4 <DLX< @  @ O @ mXX   @ O  XXm#XfXXX+#XXXXfL     53  Lm  #mXX ##mN#mԀForFTARegion1experiencewiththeCentralArteryProjectinBoston($11B),contactMr.RichardColeat  (617)4942395.\  `&Times New Roman  $ P` XX  54  ڀ  _GranteesmayaccessthisCircularat:4 O  5  6O  7 U"http://www.fta.dot.gov/legal/guidance/circulars/9000/433_1313_ENG_HTML.htm#"UI#http://www.fta.dot.gov C $ P` XX  55  ڀ  _Thesecasestudiesmaybefoundat:  4 O  5  6O  7 http://_www.fta.dot.gov_/_transit_data_info_/_reports_publications_/reports/_art_in_transit_/2260_ENG_HTML.htm.http://www.fta.dot.gov $ P` XX  56  ڀ  __LAMTA_,_NYMTA_,SEPTA,MetropolitanCouncilofMinneapolis,MN. O $ P` XX  57  ڀ  _ForfurtherinformationaboutthispublicartprogramcontactMr.DavidAllen,MetropolitanCouncil_Hiawatha_  PublicArtandDesignManagerat(612)2158221.  $ P` XX  58  ڀ  _Forfurtherinformation,contactElizabethMintz,ManagerofSEPTAsArtInTransitprogram,at  (215)5803633. W $ P` XX  59  ڀ  _R.S.MeansCompany,SquareFootCosts,23rdEdition,p.438.However,artistsmaynotnecessarilybasetheir  compensationratesonprovidingthesametypesofprofessionaldesignservicesaspracticedinanarchitectural t office,butbythetrackrecordofunique,oneofakindcommissionsthatrespondtocuratorialforcesoperatinginthe 8 curatorialworldofthegallery,themuseumandthebroaderartmarket. $ P` XX  23  ڀ  _FTAC9030.1C,ChapterIII,paragraph4.c. $ P` XX  24  ڀ  _FTAC9030.1C,ChapterV,paragraph9.b.3.  "'  _ "  "  XfXXXXXfBestPracticesProcurementManualChapter6ProcurementObjectTypes:SpecialConsiderationsf!f!!(#Page  1  #XfX#Ԉ  A)  xdEs xA#XfXXXfa# t  $ P` XX  25  ڀ  _C5010.1CinChapterIIManagementofRealProperty,EquipmentandSupplies,Subsection3.e(6).yv# Z6Times New Roman RegularTABLE H  $ P` XX  1  ڀ  _mmm?+ 4 <DL!X?ThisdocumentmaybeobtainedfromFTA,OfficeofProgramManagement,EngineeringandManagement  Division,_TPM_Ԅ42,at(202)3662440.#mm#(hH  Z(Times New Roman (hH  Z(Times New Roman  3 $ P` XX  2  ڀ  _SeeProjectandConstructionManagementGuidelines1996Update,Section3.2.2Configuration,  _Constructability_ԀReviews. z $ P` XX  3  ڀ  _TransportationResearchCircularNumber483,March1998.TransportationResearchBoard,NationalResearch  Council,NationalAcademyofSciences,2101ConstitutionAvenue,_N.W._,Washington,D.C.20418. $ P` XX  4  ڀ  _ContactDepartmentManagerProcurement,BARTat(510)4646380.64Hyperlink     $ P` XX  5  ڀ  _Seenote1._Hlt40086878  $ P` XX  6  ڀ  _MetropolitanAtlantaRapidTransitAuthority(MARTA),GeneralConditions1988,Clause49Value  EngineeringProposals.TodiscussMARTA'sapproach,contactMr._Wayner_ԀCrowder,DirectorofContractsand t Procurement,at(404)8485587.  $ P` XX  7  ڀ  _SanFranciscoBayAreaRapidTransitDistrict(BART),GeneralConditionsforConstructionContracts,February  1,1998,ClauseGC4.8.1Applicationof_VECP_.TodiscussBARTsapproach,contactDepartmentManager t Procurement,at(510)4646380.(b$0  0` (#(#2#   .3  0 ` (#` (# R $ P` XX  9  ڀ  _NewYorkCityTransit.ContactMs._Judi_ԀGibson,AssistantChiefProcurementOfficerEngineering,  Construction&CapitalDivisionofMaterielat(718)6944113. $ P` XX  10  ڀ  _Seenote11. $ P` XX  11  ڀ  _Forinformation,contactthePurchasingSectionManager,at(847)2283573. $ P` XX  12  ڀ  _ForinformationaboutNewYorkCitysleasingofcraneswithoperators,contactStanGrillat(718)6944350. $ P` XX  13  ڀ  _MTA,Houston,TX.ContactDonMurphyat(713)7394843orPaulComoat(713)7394803.  $ P` XX  14  ڀ  _AmericanPublicTransitAssociation,1201NewYorkAvenue,_N.W._,Suite400,Washington,D.C.  200056141.Copiesmaybeorderedbyphoneat(202)8984089.Technicalquestionsmaybeansweredat t (202)8984087.  $ P` XX  15  ڀ  _MARTARailCarprocurement,contactMr.RobertJune,ActingDirectorofSystemsEngineering,at  (404)8703203.  $ P` XX  17  ڀ  _Sub-paragraph(2)reflectsFTA'sbeliefthatgranteesshouldconsidercombiningeffortsintheirprocurementsto  obtainbetterpricingthroughlargerpurchases.Jointprocurementsoffertheadditionaladvantageofbeingableto t obtaingoodsandservicesthatexactlymatcheachcooperatinggrantee'srequirements.Jointprocurementsare 8 consideredsuperiortothepracticeof"piggybacking"since"piggybacking"doesnotcombinebuyingpoweratthe L pricingstageandmaylimitagrantee'schoicestothoseproductsexcesstoanothergrantee'sneeds.  $ P` XX  18  ڀ  _Sub-paragraph(3)reflectsgrantees'continuingabilitytoassigncontractualrightstoothers-"piggybacking."  FTAbelievesitisextremelyimportantthatgranteesensuretheycontractonlyfortheirreasonablyanticipatedneeds t anddonotaddquantitiesoroptionstocontractssolelytoallowthemtoassignthesequantitiesoroptionsatalater 8 date. $ P` XX  19  ڀ  _NYStateDOT(518)4578343.  $ P` XX  20  ڀ  _FTAhasintroducedalimiteddefinitionof"piggybacking"and,todifferentiatevastlydifferentpolicies,has  separatedthispracticeofassigningcontractualrightsamonggranteesfromjointprocurementsorother t intergovernmentalagreements.SeeCircular,paragraph7.e. & $ P` XX  21  ڀ  _FTAhassimilarlyattemptedtolimitthedefinitionof"tag-on"andalignitwiththeconceptofa"cardinal  change"or"out-of-scopechange."FTAbelievesthatearlierattemptstocategorizevirtuallyanychangeinquantity, t forexample,asaforbidden"tag-on,"failedtoaccountfortherealitiesofthemarketplaceandunnecessarilylimited 8 granteesfromexercisingreasonablefreedomtomakethoseminoradjustments"fairlyandreasonablywithinthe L contemplationofthepartieswhenthecontractwasenteredinto."_Freund_Ԁv.UnitedStates,260U.S.60(1922).  Inapplyingtheconceptof"cardinalchange"tothirdpartycontracts,FTArecognizesthatthisisadifficultconcept, H  noteasilyreducedtoapercentage,dollarvalue,numberofchanges,orotherobjectivemeasurethatwouldapplyto  \ allcases.FTAalsorecognizesthatthevariousBoardsofContractAppeals,Federalcourts,andComptrollerGeneral   havewrestledwiththeseissuesovermanyyearsandbuiltanextensivearrayofcaselawdifferentiatingin-scope    fromout-of-scopeorcardinalchanges.FTAdoesnotimplythattheBoardofContractAppealscasesare X   controlling,onlythattheywilllooktotheircollectivewisdominjudgingwherechangesingranteecontractsfall  l  alongthebroadspectrumbetweenclearlyin-scopeandclearlyout-of-scopechanges.ItisFTA'sintenttomonitorits  0  granteesandoversightcontractorstoensurethisconceptiswellunderstoodanduniformlyapplied,andtoissue   additionalguidanceasnecessarytoassistgranteesinexercisingthisauthority. h  Beforeattemptinganychangeinquantityormajoritems(e.g.,buses,railcars),granteesshouldreviewtheircontract @  clausestoensuretheyallowforsuchchanges.Forinstance,inFederalpractice,the"changes"clausefromthe   FederalacquisitionRegulationhasbeeninterpretednottoallowchangesinquantityofmajoritems.Federal x  contractingofficersuseadditionalclausesspecifictothisdesiredflexibilitywhentheyanticipatethattheremaybea < needtoaddquantitiesofthesemajoritems. 8 $ P` XX  22  ڀ  _ConductingPreAwardandPostDeliveryReviewsforBusProcurements.DocumentNo:FTADC90771393  1,Rev.B,datedMay1,1995.ConductingPreAwardandPostDeliveryReviewsforRailVehicleProcurements. t DocumentNo.:FTADC907713941,Rev.B,datedMay1,1995.ThesedocumentsmaybeobtainedfromFTA, 8 OfficeofProgramManagement,2023664020orbyemailat @  @  @ fm4h O  5  "  buyamerica% & @%&fta.dot.gov"  6u  7 .#fmS#ԀTheFTAwebsite L addressforBuyAmericamattersis:,4i .O  5  http://www.fta.dot.gov/legal/buy_america/14328_ENG_HTML.htm6HO\  7 \  `&Times New Romanmailto:buyamerica@fta.dot.govhttp://www.fta.dot.gov/legal/buy_america/14328_ENG_HTML.htm $ P` XX  26  ڀ  _SeegenerallyFederalAcquisitionregulationsat48_CFR_ԀSubpart46.7Warranties. $ P` XX  27  ڀ  _48_CFR_ԀSubpart46.7Warranties.  $ P` XX  28  ڀ  _Maybeaccessedat:4v  O  5  6O  7  Ԁ_www.fta.dot.gov_/legal/guidance/circulars/9000/433_1152_ENG_HTML.htmhttp://www.fta.dot.gov  $ P` XX  29  ڀ  _Toorderthisbookcall_APTA_Ԁat(202)4964800.DocumentisalsoavailableviaInternetat:  4y O  5  http://www.apta.com/research/info/online/6O#  7 Qhttp://www.apta.com/research/info/online/ $ P` XX  30  ڀ  _ԀTexasGovernmentCode,Section2254.002. - $ P` XX  31  ڀ  _~mTexasGovernmentCode,Section2254.003(a)#~m~#.##x9 Z&Times New Roman),h  Z (CG Times Regular $ P` XX  32  ڀ  _mTexasGovernmentCode,Section2254.004.#m~#x9 Z&Times New Roman $ P` XX  33  ڀ  _mTexasGovernmentCode,Section2254.005.#m~#x9 Z&Times New Roman ` $ P` XX  34  ڀ  _FTAhasexpandedthissectiontobetterexplainthebreadthofthisstatutorilyprescribedprocurementmethod.  FTArecognizesthatmostoftheserviceslisted(e.g.,surveying)arenotperformedbyarchitecturalorengineering t servicescompanies.Qualificationsbasedcompetitiveproposals(i.e.,BrooksActprocedures)stillmustbeapplied 8 totheseprocurementsbecauseofthestatutorydirectivein49U.S.C.5325(d).  $ P` XX  16  ڀ  _Sub-paragraph(1)looksprimarilytoStategovernmentcontractsthatallowsubordinategovernmentagenciesto  buyfromestablishedschedulesakintotheGSASchedulesinFederalpractice.FTAbelievesgranteesmaybuy t throughthesecontractsprovidedallpartiesagreetoappendtherequiredFederalclausesinthepurchaseorderor 8 otherdocumentthateffectsthegrantee'sprocurement.Whenbuyingfromtheseschedulecontracts,granteesshould L obtainBuyAmericacertificationbeforeenteringintothepurchaseorder.WheretheproducttobepurchasedisBuy  Americacompliant,thereisnoproblem.WheretheproductisnotBuyAmericacompliant,thegranteewillstill  havetoobtainawaiverfromFTAbeforeproceeding.TABLE KTABLE A !  _    ` Chapter6 3 96ProcurementObjectTypes:SpecialConsiderations    0  6.1Construction(10/98) (#(#   0 ` 6.1.1TheTraditionalConstructionProcessDesign/Bid/Build(10/98) ` (#` (#   0 ` 6.1.2ConstructionManagement("CM")(10/98) t` (#` (#   0 ` 6.1.3"FastTracking"PhasedDesign,AwardandConstruction(10/98)`` (#` (#   0 ` 6.1.4"Turnkey"Design/BuildContracting(10/98)L ` (#` (#   0 ` 6.1.5ValueEngineering(6/03)k8 ` (#` (#   0 ` 6.1.6FacilitiesMaintenanceJobOrderContracts(10/98)W$ ` (#` (#   0 ` 6.1.7Partnering(4/05)C ` (#` (#   0 ` 6.18CompetitiveProposalsvs.SealedBids(10/98)/ ` (#` (#   0 ` 6.1.9IncentivestoReduceProjectCompletionTime(10/98) ` (#` (#    ` 6.1.10SpecialContractProvisions(10/98)      `  0  6.2EquipmentandSupplies(2/00)(#(#   0 ` 6.2.1Lease/Maintain(2/00)` (#` (# 0   ` 0 (#(#6.2.1.1LeaseandMaintenanceofVehicles(2/00)\ (# (# 0   ` 0 (#(#6.2.1.2LeaseofHeavyEquipmentwithOperators(2/00){H (# (# 0  6.3RollingStock(10/98)S (#(#   0 ` 6.3.1Buses(10/98)+` (#` (#    ` 0 6.3.1.1CompetitiveProposalsvs.SealedBids(10/98)! (# (#    ` 0 6.3.1.2_APTA_ԀStandardBusProcurementGuidelines(10/98)! (# (#   0 ` 6.3.2RailCars(10/98)#` (#` (#    ` 6.3.3JointProcurementsofRollingStockand Piggybacking(6/03) $  0  0` (#(#6.3.4PreAwardandPostDeliveryReviewsforBuyAmericaAct%l!` (#` (# 0  0` (#(#󀀀Compliance(10/00)&X"` (#` (#    ` 6.3.5Warranties(6/03) w'D # 0  6.4ProfessionalServices(5/96)O)"%(#(# 0  6.5ArchitectEngineeringServices(3/04);*#&(#(# 0  6.6Insurance(11/03)'+#'(#(# 0  6.7Artwork(6/03),$((#(#   -&* _6.1CONSTRUCTION  3 Constructioncontractingpresentsauniquesetofproblemsfortheprocurementspecialist,and   thissectionoftheBPPMwillattempttoidentifysomeoftheseissues.Anumberoffactorstend   tomakeconstructioncontractinganareawhereproblemsabound.Thefirstistheuniquenessof   theprojectsthemselves;i.e.,theyareusuallyperformedwithdrawingsandspecificationswhich   aredevelopedforthefirst,andonlytime,forthatproject.Becausethedocumentsareoneofa   kind,therehasbeennopriorexperiencewhichwouldhaveidentifiederrorsandclarified  t ambiguities.Anotherfactoristhehighlycompetitivenatureofthebiddingprocess,producing ` priceswhichhavenoleewayforsolvingdesignproblemswhichariseduringperformanceofthe L  contractorforaccommodatingchanges.Addtothesefactorsthelegalcomplexitiesarisingfrom k8  Federal,Stateandlocalstatutes,regulationsandcodes,andtheprocessbecomesoneunlikeany W$  otherintheprocurementfield. C  Thereisahighdegreeofspecializationintheconstructionindustryamongfirms.Themajor   areasbeingexcavationandfoundations,masonry,steelwork,roofing,plumbing,electrical,and   heatingandairconditioning.Giventhisdegreeofspecialization,theroleofthegeneral  contractoristomanageotherspecialtycontractors,schedulingandcoordinatingtheirwork.In  thisrolegeneralcontractorsassumeahighdegreeofriskwhentheybidfirmfixedprices,thus  guaranteeingperformanceforthebidprice.ItshouldalsobenotedthatanumberofStates  requirethatthevarioustradesbebidasseparateprimes,whichaddstothecomplexityofproject p managementandcontracting;e.g.,whocontrolsthevariouscontractors?Ifthegeneraltrades \ contractorisgiventhisresponsibility,howwillitbecompensatedandwhatenforcement {H authoritydoesithaveagainsttheotherprimes? g4 Anotherpartyinthisprocessisthesurety,whoissuesabondassuringperformanceofthe ?  contract,includingthepaymentofsuppliersandmechanicsinaccordancewiththetermsoftheir + contractswiththeconstructioncontractor.   Anumberofdifferentconstructioncontractingstrategiesarediscussedbelow.Someofthe ! materialpresentedhasbeenexcerptedfromtheAmericanBarAssociation(ABA)Model " ProcurementCode,Chapter5,whichgranteesareencouragedtoread.Granteesarealso # encouragedtoobtaintheFTAconstructionmanagementmanualentitledProjectand $  ConstructionManagementGuidelines1996Update.    1      TheseGuidelinesweredevelopedbyFTA %l! "toassistlocalTransitagenciesindevelopingmanagementstructuresandworkprogramsto &X" effectivelyplanandimplementthevariousphasesofFTAfundedtransitcapitalimprovement w'D # projects."TheGuidelinescontainusefulprocurementinformationandguidancerelatedto c(0!$ constructionprojects. O)"%   ,$( 6.1.1TheTraditionalConstructionProcessDesign/Bid/Build 3  Ithasbeentraditionalintheconstructionindustrytoemployanarchitect/engineer(A/E)to   completeadetaileddesignoftheentireprojectbeforesolicitingbidsfromconstruction   contractors.Thistraditionalapproachisknownassequentialdesignandconstruction.This   sequentialdesign/constructionapproachrequiresthatadetaileddesignpackageoftheentire   projectbecompletebeforebidsaresolicitedfromconstructioncontractors.Followingawardof   theconstructioncontract,theA/Eisoftenretainedbytheownerfortheconstructionphase,and  t actsastheowner'sagent,toinspecttheconstructionworktoensurethatthestructuresarebuilt ` accordingtothedesignsandspecifications. L  Advantages󀄀Amajoradvantageofthesequentialdesignandconstructionapproachisthat W$  complexoroneofakindprojectscanbethoroughlyplannedandthoughtthroughbefore C  constructionbegins.Thetraditionalapproachthusproduces,inthedesignphaseoftheproject, /  themostaccurateestimateoffinalprojectcosts,andthisisanadvantageofthetraditional   technique.Ifproblemsareencounteredwithdesignaspectsforthelatterstagesoftheproject,the   earlierdesignfeaturesorphasescanbemodifiedbeforeanyconstructionworkhasbeendone,  thusavoidingconstructioncontractorclaimsanddelays.AnotheradvantageisthattheAgencyis  givenafixedpriceforcompletionoftheentireprojectbeforeconstructionbegins.Theremay  alsobeadvantagesinobtainingthenecessaryfinancingandprojectapprovals.Overall  managementoftheprojectshouldalsobesimplifiedbythisapproach. p DisadvantagesSequentialdesignandconstructionrequiresalongertimetocompletethe {H projectthanphaseddesignandconstruction("fasttracking").Andsincetimepressuresareoften g4 themostintenseissuesconfrontingtheAgency,thesequentialmethodmaynotbefeasible. S  Alternativecontractingapproacheshavearisentoshortentheprojectcompletiontime.These ?  includephaseddesignandconstruction("fasttracking"),whichofteninvolvestheuseofa + constructionmanager,andturnkey(designbuild)contracting.    6.1.2ConstructionManagement !  Inrecentyearsaconstructiontechniqueknownasconstructionmanagementhascomeinto # practice.Inthisschemetheowneremploysaconstructionmanagerwhoactsastheowner's $  agentduringthedesignphaseandasoverseerduringtheconstructionphase.Duringthedesign %l! phasetheconstructionmanagerworkscloselywiththeA/E,monitoringtheA/E'seffortsto &X" ensurethatthedesignwillbewithintheowner'sbudget,willaccomplishtheowner'spurposes, w'D # etc.OneofthecriticaltasksaCMcanperformduringthedesignphaseisaconstructability c(0!$ review,ensuringthatthedesigncanactuallybebuilt.   2      ׀Thespecificroleofconstruction O)"% managersinthisphasewillvarygreatlyfromprojecttoproject.Theirdutiesmayincludecost  ;*#& estimating,costevaluating,projectscheduling,revieworpreparationofcontractdocuments, 3 receivingbids,andadvisingtheownerofbidderqualificationsandtheacceptabilityofbids.  Multipleprimecontractors󀄀Duringtheconstructionphase,theconstructionmanagementrole   canalsotakeavarietyofforms.Underoneschemetheconstructionmanagerwillcoordinatethe   workofthevariousspecialtycontractors,whocontractdirectlywiththeownerasmultipleprime   contractors.Thespecialtycontractors,whowouldnormallyhavebeensubcontractorstoa   generalcontractorinthetraditionalconstructionarrangement,nowcontractdirectlywiththe  t owner,andthecoordinationnormallydonebythegeneralcontractorisperformedbythe ` constructionmanager. TheconstructionmanagermayalsoassisttheA/Ewithinspectionsof L  thework.Inthisschemetheconstructionmanagerhasnofinancialliabilityforsuccessful o<  completionoftheworkthereisnocontractwiththeownertocompletetheprojectforacontract [(  price. G   Advantages󀄀Theconstructionmanagerwillbringconstructionexpertisetotheprojectteamat   anearlydesignstageoftheproject,enablingdesigndecisionstobemadewithanappreciationof    theirimpactonconstruction.AconstructionmanagermaybeindispensableiftheAgencylacks  thepersonnelresourcestoadequatelyandaggressivelymanagetheproject.Phaseddesignand  constructionmaybeusedmuchmoreeasilybecausetheconstructionmanagercanperformthe  vitalfunctionsofcoordinatingtheworkoftheA/Econtractorandthespecialtyconstruction  contractors. t Disadvantages󀄀Theconstructionmanager'sfeewilladdtotheoverallcostoftheproject,andthe L costofemployinganindependentconstructionmanagermaynotbefeasibleonsmaller k8 constructionprojects. W$ Contractprovisions󀄀Itiscriticalthattheconstructionmanager'scontractclearlydefinethe / authorityandthedutiesoftheconstructionmanagerwithrespecttotheothercontractorsonthe   project;e.g.,howmuchauthoritydoestheconstructionmanagerhaveovertheworkoftheA/E ! andthespecialtyconstructioncontractors?Iftheconstructionmanagerfailstoproperly ! coordinatetheworkofthespecialtyconstructioncontractors,willtheconstructioncontractoror " theAgencybeliable?ItwillalsobenecessarytodefinetheCM'sauthorityinthedesignand # constructioncontracts,sothatthesecontractorswillknowthedegreetowhichtheyaretoaccept $  directionfromtheCM.  %p! 6.1.3"FastTracking"Phaseddesign,awardandconstruction {'H #  Fasttrackingisaproceduredesignedtoshortentheoveralltimeforprojectcompletionby S) "% phasingthedesignandconstructionactivitiessothattheycanbeperformedtogether.Inthis ?* #& schemeeachphaseoftheprojectisplacedundercontractoncethedesignforthatphaseis ++#' completed.Unlikethetraditionalapproach,wheretheentireprojectisfirstdesignedandthen ,$( contractedforwithoneconstructioncontract,thefasttrackschemewillcompletethedesign -%) workinphases,andthenawardconstructioncontractsforthevarioussubsystemsorphasesonce -&* thedesignforthatphaseisfinished.Thustherewillbeanumberofspecialtyconstruction_  .'+ contractsawardedbytheowner,andaconstructionmanagerwillnormally,thoughnot 3 necessarily,beretainedtoassistinpackagingthevariousspecialtycontractsandtomanagethe  workofthesespecialtycontractors.Thisworkofdefiningandmanagingthespecialtycontracts   canalsobedonebyinhouseprojectmanagementorbytheA/E.   Advantages󀄀Phaseddesignandconstructioncanreducetheoverallcompletiontimeofthe   project.ItcanalsoallowtheAgencytoreducethescopeofthelaterphasesifthecostofthe   earlierphasesexceedthebudget.ItalsoallowstheAgencygreaterflexibilityinthetimingofthe  t constructioncontractawards,thustakingadvantageofmarketconditions,ormanagingthe ` availablefunding. L  Disadvantages󀄀Thereisariskinherentinphaseddesignandconstructionbecauseportionsof W$  theprojectarebegunbeforethelaterportionsaredesigned.Ifmajorchangesoccurinthelater C  phases,theymaycausecostlychangesintheearlierworkanddelaystothespecialtycontractors. /  TheseareriskswhichwillbebornebytheAgency.    6.1.4TurnkeyorDesign/BuildContracting   Thiscontractingtechniquehasseenincreasinguseinrecentyears.Between1987and1992there  wasa300percentincreaseindesignbuildprojects,whichindicatesagrowingimportanceof  turnkeyprojectsintheconstructionindustry.Accordingtostatisticsprovidedbythe p EngineeringNewsRecord,by1995,30percentofallnonresidentialconstructionwasusingthe \ turnkeymethod.Thegrowingimportanceofturnkeymethodswasattributedtoitsbenefitsin {H savingtimeandcostswithnoreductionofqualityrelativetoconventionalprojectapproaches.It g4 mustbenoted,however,thatnotallStatespermitdesignbuildcontractingbyStateagencies. S  Inthisscheme,atransitagencycontractswithasingleprivateentity,theturnkeycontractor,for + thedesign,constructionanddeliveryofacompleteandoperationalproject.Insomeinstances,   thecontractorisrequiredtooperateandmaintainthesystemforadefinedperiodoftime.The ! privatecontractoristypicallyaconsortiumofprivatecompaniesofferingengineeringanddesign, ! construction,manufactureofvehicles,financeandrelatedsupportservices.Thedeveloper " contractorwillbeselectedcompetitivelybasedon"performancetype"(nondetailed) # specificationswhichdescribetheowner'sobjectivesandrequirements.Developerswillsubmit $  proposeddesignswiththeircompetitiveproposals,andownersmustselectbetweencompeting %l! designapproachesandprices. &X" Itshouldbenotedthatoneofthedrawbacksofdesignbuildisthattheownerdoesnothavean c(0!$ independentsource(theA/Eintraditionalconstruction)overseeingdesignimplementationand O)"% verifyingconformancewiththedrawingsandspecifications. ;*#&  WorkshoponInternationalTransitTurnkeyandJointDevelopment 󀄀TheTransportation ,$(  ResearchBoardhaspublishedaveryinformativeResearchCircularentitledProceedingsofthe -%) WorkshoponInternationalTransitTurnkeyandJointDevelopment._   3      _ԀThisWorkshopwasheld 3  onOctober1519,1996,anditspurposewas"toexplorecurrentinternationalexperienceinthe  developmentofturnkeytransitprojects,todiscusseffectiveturnkeypractices,andtoidentify   thoseaspectsthatwarrantfurtherconsideration."TheResearchCircularsummarizeseachofthe   presentationsmadeattheworkshop,andpresentsthe"lessonslearned"bythoseorganizations   usingvariousturnkeyapproaches.Thenamesofthepresentersandtheirorganizationsarealso   given,whichprovidesareferencetoolforcontactingotherswhoareinvolvedwithturnkey   projects.GranteesareencouragedtoobtainthisTransportationResearchCircularitisa  t valuablesourceofinformation.SomeofthemoreimportantobservationsmadeattheWorkshop ` includethefollowing: L  '  'N0  "0` (#(#  TheFederalgovernmentandmostStates,butnotall,allowturnkeyforsome W$  agenciesand/orprojects.Infact,therecentlyenactedFederalstatute C  TransportationEquityActForThe21stCentury(TEA21)permitsgranteesto'NN݌/ ` (#` (# Ќ   1-(),-./(#p30  0` (#(#useturnkeycontractingtodesignandbuildamasstransportationsystemoran   operablesegmentofamasstransportationsystem.SomeStateshaverecently   expandedtheirregulationstopermitdesignbuildcontracts,andthistrendislikely  tocontinue.Manyofthecurrenttransitturnkeyprojectshadtoenactlegislation` (#` (#    ` orreceivewaiverstopermittheturnkeyprocess.  "3"    3R2#3  0 `   Anegotiatedprocurementprocessisstronglyrecommendedforselectionofa p turnkeycontractor.Discussionsbetweentheownerand_offerors_Ԁfacilitatesatrue \ "meetingoftheminds";allowscraftingoftailoredsolutionsforcontractor {H concerns;andachievestheoptimumbalanceofriskandprice.Negotiationscan g4 leadtooptimumdecisions.Ifanegotiatedprocurementcannotbedone,thena S  twostepbiddingprocessisrecommendedasthenextbestapproach.SomeStates ?  whichallowdesignbuildcontractingrequireabidprocessratherthana3R S݌+` (#` (# Ќ     ` negotiatedprocurement.   '  'V0  "0` (#(#  Industryinputondocumentsshouldbesoughtpriortosolicitation.'VV݌!` (#` (# Ќ  '  'W0  "0` (#(#  Agenciesshoulddevelopandfollowadetailedselectionprocedurethatincludesa # multidisciplinedandknowledgeableevaluationcommittee.0 ` (#` (#'WW݌$  (# (# Ќ  '  'X0  "0` (#(#  Designbuildrequiresanewgenerationofcontractdocumentsthatincorporatethe &X" needsofthreedistinctelements:design,constructionandoperation.Meldingthe'XX݌w'D #` (#` (# Ќ  0  0` (#(#requiredpricingandproceduresintoonecontractisacomplexendeavor.c(0!$` (#` (#   O)"% _'  'Z0  "0` (#(#  Typicalpostawardconcernswithdesignbuildcontractsincludetheinterpretation 3 ofcommercialtermsandthepricingofchanges(includingtheobtainingof  adequatecostdatatosupportchangeorders).Specificrecommendationsinclude:   requirementsforcontractorjobcostsystems;pricingchangeordersbasedonthe   jobcostsystem;anddetailedauditprovisions.'ZZ݌ ` (#` (# Ќ  '  '@]0  "0` (#(#  Theturnkeyapproachmayresultinlowercapitalcostsandfewerchangeorders'@][]݌ ` (#` (# Ќ     ` andcontractdifficulties.  t 0   (#(# '  '^0  "0` (#(#  Theturnkeyapproachmayhaveanadverseimpactonsmallandmediumsized L  firms,includingDBEfirms.Agenciesmaywanttoconsiderusingincentive'^^݌k8 ` (#` (# Ќ  0  0` (#(#clausesintheirsolicitationstoencourageDBEparticipation,aswellasrequiring W$  offerorstoidentifysmallandminorityownedbusinessesintheirproposalsduring C  theprequalification/RFPstagesoftheprocurement.ItwasreportedthatBART /  hadbeenverysuccessfulwiththisprequalificationrequirementintheSan   FranciscoAirportExtensionturnkeydemonstrationproject.   4       ` (#` (# '  'Ib0  "0` (#(#  Environmentalapprovals,intergovernmentalcoordination,andfinanceshouldbe  inplacepriortotheturnkeyprocurement.Itiscriticallyimportantthatproject  participantsdevelopateamingperspective.Aformalpartneringagreementwith  thecontractorteamandtangentialagencieshasbeenusedwithsuccess.See p Section6.1.7Partnering.'Ibdb݌\` (#` (# Ќ    6.1.5ValueEngineering g4 *  ddd Xdd Xdd X(#(#,dd +  ? ?  REQUIREMENT  p H FTACircular4220.1E,Section7(g)encouragestheuseofvalueengineeringclausesin #  constructioncontracts:  !  0 l g.UseofValueEngineeringinConstructionContracts.Granteesareencouragedtouse " valueengineeringclausesincontractsforconstructionprojects.FTAcannotapprovea # NewStartsgrantapplicationforfinaldesignfundingorafullfundinggrantagreement $  untilvalueengineeringiscomplete(seeCircular5010).)%x!l#l# dH  ) DISCUSSION ' " FTACircular4220.1Edoesnotrequirevalueengineeringclausesbutitdoesencourage )p"$ theminconstructioncontracts.Valueengineeringisaproceduredesignedtoincentivize *\#% contractorstosubmitchangeproposalswhichreducethecostofcontractperformanceby  {+H$& promisingthecontractorashareofthesavings.Contractorscanoftenfindlessexpensive 3 waystoperformtheircontractsthanthemethodsprescribedintheircontract  specifications.Theywillbereluctant,however,toproposechangeswhichwillreducetheir   contractpriceandhavetheeffectofreducingtheirprofitonthecontract.Value   engineeringisatechniquedesignedtoovercomethisdisincentivebyofferingthemashare   ofthesavingsresultingfromtheirchangeproposals.   Itisimportanttonotethatsomecontractualarrangements(e.g.,designbuildcontracts)  t mayinherentlyincludevalueengineeringconceptsandprinciples.Wherethisisthecase, ` FTAdoesnotrequireseparatevalueengineeringproposals,changeorders,orother L  processes.Fromaprocurementview,theconceptofvalueengineeringismoreimportant k8  thantheformittakes. W$  TheFederalGovernmentusesvalueengineeringclausesincontractsforsupplies,services, /  constructionandarchitect/engineerservices.Part48oftheFARisdedicatedtothesubject   ofvalueengineering.TheprescribedclauseforFederalconstructioncontractsmaybe   foundatFAR52.2483ValueEngineeringConstruction.Whilethisclauseisnotrequired  forgranteethirdpartycontracts,itmayproveusefulasaguideastohowtostructurea  valueengineeringclause.  FTAsProjectandConstructionManagementGuidelines1996Update,Section4.2.3Value p EngineeringandPeerReview,presentsadiscussionofthevalueengineeringprocessduring \ thedesignphaseoftheproject.#   5       {H BestPractices S   ValueengineeringclausesinusebyTransitAgenciestendtolimitthetypeofsavingswhichthe + AgencywillsharewiththeContractortothoseexpectedonthecontractbeingperformed.These   arecommonlyknownas"instantsavings."TheContractorwouldnotsharein"collateral ! savings"or"futuresavings"resultingfromhischangeproposal."Collateralsavings"arethose ! savingsanticipatedbytheAgencyoutsidethecontract,suchasoperations,maintenance, " logisticalsupport,etc."Futuresavings"wouldbethoseresultingfromtheContractor'svalue # engineeringproposalsonfuturecontractsforthesamedeliverableitems.Thetypicalshareratio $  is50percentfortheAgencyand50percentfortheContractorofany"netsavings"resultingfrom %l! theContractor'schangeproposal."Netsavings"aredefinedas"grosssavings"lessthe &X" Contractor'scostsfordevelopingandimplementingtheproposalaswellasanyAgencycosts w'D # resultingfromthechange,suchasreview,implementation,inspection,etc.Estimated"gross c(0!$ savings"wouldincludetheContractor'slabor,material,equipment,overhead,profitandbond. O)"% Attheconclusionofnegotiationsforthechangeproposal,acontractmodificationisissued ;*#& reducingthecontractpricebytheAgency'sshare. '+#'   ,%) AnimportantfeatureofallvalueengineeringclausesisthattheAgency'sdecisiontoacceptor 3 rejectthecontractor'sproposalisfinalandconclusive,andnotsubjecttoappeal.  AnotherimportantfeatureoftheusualAgencyclausesisthattheContractor'svalueengineering   changeproposal(VECP)mustnot"impairanyessentialfunctionorcharacteristicoftheWork,   suchassafety,servicelife,reliability,economyofoperation,easeofmaintenance,andnecessary   standardizationoffeatures."(   6      ׀AnotherAgency'sclausereadsthattheContractor'sVECP"shall   notalteranyitem'scharacteristicssuchasfunctionality,servicelife,reliability,economyof  t operation,easeofmaintenance,andnecessarystandardizedfeaturesandappearance."+   7       `  6.1.6FacilitiesMaintenanceJobOrderContracts k8   TheMetropolitanAtlantaRapidTransitAuthority(MARTA)hasmadeuseofaverycost C  effectiveprocurementapproachknownasJobOrderContracting(JOC)foritsfacilities /  maintenancerequirements.Theserequirementswouldincludetherepair,alteration,   modernization,maintenanceandrehabilitationofbuildings,structures,orotherrealproperty.   TheJOCisacompetitivelybid,firmfixedpriceindefinitequantitycontract,againstwhich  MARTAissuesWorkOrdersasspecificneedsarise.  TheunusualfeatureoftheJOCisthattheInvitationForBid(IFB)includesalloftheconceivable  lineitemsofwork,withspecifications/definitionsforeachlineitem,andunitpricesforeach p item.ThesespecificationsandlineitempricesweredevelopedbyMARTAwiththeassistance \ ofaconsultingengineeringfirm.Thelineitemunitpriceswerefurnishedtoprospectivebidders {H ina"UnitPriceBook,"whichwasdevelopedbytheconsultant.TheUnitPriceBookhasover g4 90,000itemswhichdetailspecificrepairandconstructiontasksandspecifications.TheBook S  coversawiderangeofareassuchasconcrete,airdistribution,plumbing,electrical,and ?  hazardousandtoxicwaste.TheUnitPriceBookisworksegmentbased.Eachjobisdetailed + andbrokendownbytask.Thepricesarebasedontheuseofexperiencedlaborandhighquality   materials.TheBookalsoincorporatesprevailingmarketareacostdataandwages. ! Whenbidsaresolicited,theobjectiveistoobtainbidson"adjustmentfactors."Nospecific " projectsarebid.Awardisbasedonthelowestproposedadjustmentfactor.Thetwoprice # adjustmentfactorsarefornormalandovertimework.Thesetwoadjustmentfactorsareapplied $  toallitemsintheUnitPriceBook.Adjustmentfactorsarerequiredtobebidtofourdecimal %l! places.Thebestwayforabiddertodevelopitsadjustmentfactoristopriceoutseveraltypesof  &X" projectsandtakeanaverage.Forexample,ifthepricebookstatesthatthecosttoreplacea 3 windowis$100,andaprospectivebidderdevelopsanestimateof$75,thenthebidder's  adjustmentfactoris.7500.Likewise,ifthebidderestimatesapriceof$110toreplacethe   window,thenthebidder'sadjustmentfactorwouldbe1.1000.Onthemostrecentaward,the   winninglowbidofferedan"adjustmentfactor"of0.7700.   FollowingawardoftheJOC,theprocessforissuingWorkOrderswouldbeasfollows:   '  *,XX XX*'C0  "0` (#(#  Ameetingisheldwiththecontractortodiscussthescopeoftheworktobedone.'C݌`` (#` (# Ќ  '  '0  "0` (#(#  AWorkOrderProposalisthenrequestedfromtheContractor.TheContractor's   priceiscomputedby:'݌ ` (#` (# Ќ    c  >0  0` (#(#  c-0 ` (#` (#  SelectingvariousprepricedconstructiontasksfromtheUnitPriceBook.  c݌  (# (# Ќ    c  0  0` (#(#  cɋ-0 ` (#` (#  MultiplyingthepreestablishedpricesfromtheUnitPriceBookbyquantities   andthenbytheContractor'sadjustmentfactor.  cɋ݌  (# (# Ќ  '  '0  "0` (#(#  TheContractor'sproposaliscomparedtoanindependentAuthorityestimate.'@݌` (#` (# Ќ  '  '0  "0` (#(#  Ifthepriceisreasonable,aWorkOrderisissued.'+݌A` (#` (# Ќ  *'  '0  "0` (#(#  Ifthepriceisnotreasonable,thejobissolicitedundernormalprocurement p procedures.'݌\` (#` (# Ќ  . X,XX X^.TheJOCprocessofferstheopportunitytosavesignificanttimeandadministrativeeffortbecause g4 thereisonlyonecompetitivebidprocess,andthatiswhentheadjustmentfactorsaresolicited. S  Thereafter,individualjobsdonothavetobecompeted,sothereisnolengthyadvertisingor ?  solicitationtime,orcomplexsolicitationdocumentstoprepare,approveandissue.TheJOCcan + beamultiyearcontract,therebyreducingthenumberoftimestheprogrammustbecompeted.   MARTA'scontractisforonebaseyearplustwooneyearoptions,anditsvalueisapproximately ! $9million. ! 0   (#(#  6.1.7Partnering #!  Partneringisaconcept/techniquedesignedtofosterateambuilding,or"partnering"frameof %l# mindtowardtheaccomplishmentoftheconstructionproject.Partneringwasoriginally &X$ developedbytheArmyCorpofEngineersforuseonmajorconstructionprojectswithlarge w'D % projectstaffsontheworksiteandwhereeffectivecommunicationsareessential.Theparties c(0!& involvedintheperformanceoftheproject,includingtheAgency,theAEfirm,theprime O)"' Contractor,andallsubcontractorswouldmeettogetheronaregularbasis(atleastmonthly)to ;*#( establishandmaintainopenlinesofcommunication,withthegoalofensuringrelationshipsof '+#) trustandcooperation. ,$* ThepartneringprocessusuallyemploysaprofessionalFacilitatorwhoconductsthesessionsso -&, astopromotetrustandreachmutualagreementsonhowtheprojectistoproceed.The  .'- FacilitatorsfeeandassociatedcostsarepaidforbytheContractorwhoisinturnreimbursedby 3 theowner(50%)fromalineiteminthecontractPriceSchedule.Thepartneringprocessdoes  notchangeoralterthecontractagreement.Itisnotjustaonetimemeetingatthestartofthe   project,butisanongoingprocess.Itisusuallyaccomplishedinfivedistinctphases:   "3"  *,X,` XX*  3\2#3  0    PhaseIisajointsessionoftopexecutivesdesignedtoarriveataclearagreementonthe   projectsbusinessgoalsandestablishaclearissueresolutionprocess.Issuesgenerally   focusonsafety,budget,communications,quality,schedule,teamwork,impactonthe  t communityandacommitmenttoworktogetherforasuccessfulproject.MARTA ` developedaPartneringCharterforitsNorthSpringsStationProject,signedbyallthe L  teammembers,whichreadsasfollows:3\݌k8 (#(# Ќ  K+4 44 <DL!,X,` XK0  We,theteammembersoftheNorthSpringsStation(CF520)ProjectTeam,are C  committedtocontinuingthetraditionofeffectivepartneringamongourorganizations /  andtodeliveringafacilityinwhichallteammemberstakepride. (#(#   Wewillmeasureourcollectivesuccessthroughthefollowingprojectobjectives:  "3"  B(` ` <DL!444X!B X32#3  0 4   Completetheprojectonscheduleandmeetallmilestones3݌4(#4(# Ќ  "3"  B(` ` <DL!` ` X!B3Ɵ2#3  0 4   Provideasafeworksitetominimizelosttimeaccidents3Ɵ5݌4(#4(# Ќ  "3"  B(` ` <DL!` ` X!B32#3  0 4   Completetheprojectwithinbudget3f݌p4(#4(# Ќ  "3"  B(` ` <DL!` ` X!B32#3  0 4   Fairprofitearnedbycontractor3݌\4(#4(# Ќ  "3"  B(` ` <DL!` ` X!B3-2#3  0 4   Quicklyresolveclaimswithoutlitigation3-݌{H4(#4(# Ќ  "3"  B(` ` <DL!` ` X!B3P2#3  0 4   Deliveraqualityproductwithinspecifiedstandards3P݌g44(#4(# Ќ  "3"  B(` ` <DL!` ` X!B3~2#3  0 4   Serveasresponsibleneighborsandprovideapositiveimpacttothesurrounding S  community3~݌? 4(#4(# Ќ  E+4 44 <DL!` ` X!EWewillpromoteteamworkbasedonthefollowingprinciplesandattitudes:   / /"3"  B(` ` <DL!444X!B32#3  0 4   Timelyinputs,responsesanddecisions3'݌!4(#4(# Ќ  "3"  B(` ` <DL!` ` X!B3ب2#3  0 4   Open,effectivecommunications3بG݌"4(#4(# Ќ  "3"  B(` ` <DL!` ` X!B32#3  0 4   Honestyandtrust3_݌#4(#4(# Ќ  "3"  B(` ` <DL!` ` X!B32#3  0 4   Solvingproblemsatthelowestpossiblelevel3j݌$ 4(#4(# Ќ  "3"  B(` ` <DL!` ` X!B3"2#3  0 4   Workingtogetheragainstthejobnoteachother3"݌%l!4(#4(# Ќ  "3"  B(` ` <DL!` ` X!B3M2#3  0 4   Fullteamcommitmentandparticipationinpartnering3M݌&X"4(#4(# Ќ  E+ 4 <DL!` ` X!E XNotethatthePartneringCharteridentifiesitsgoalsasthebestinterestsofalltheparties.These c(0!$ interestsincludetheearningofafairprofitbytheContractor.ItiscriticalfortheAgency's O)"% personneltoseetheContractorasateammemberwhoseinterestinearningafairprofitis ;*#& equallyimportanttotheinterestsoftheAgency. '+#' "3"  *,` XxX!*  32#3  0    PhaseIIconsistsofaworkshopwhereallstakeholdersparticipateindevelopingaproject ,%) charterdefiningteamgoals,conductandrisks.WashingtonMetropolitanAreaTransit3݌ -&*(#(# Ќ  0  0(#(#Authority(WMATA)projectmembersdevelopedthefollowingProjectCharterforthe 3 MetroGeorgiaAvenuePetworthStation:(#(#  ,H+4 44 <DL!,` XxH   -4` Xx444X!- 4 ProjectPriorities:       v<=>@BEGH(0p1-(),-.// /"<" , XH+4 44 <DL!4` XxH  X?% <DL!444X!?<2o3   `   SuccessfulPartnering<z݌   Ќ *4` Xx  X!* ,  "<" , XH+4 44 <DL!4` XxH  X?% <DL!444X!?<R2o3   `   Earlyidentificationandresolutionofproblems<R0݌   Ќ *4` Xx  X!* ,  "<" , XH+4 44 <DL!4` XxH  X?% <DL!444X!?<"2o3   `   Realizingonesownresponsibilitiesandobligations<"݌  t Ќ *4` Xx  X!* ,  "<" , XH+4 44 <DL!4` XxH  X?% <DL!444X!?<2o3   `   Communityrelations<غ݌ ` Ќ *4` Xx  X!* ,  "<" , XH+4 44 <DL!4` XxH  X?% <DL!444X!?<2o3   `   Openness<݌ L  Ќ *4` Xx  X!* ,  "<" , XH+4 44 <DL!4` XxH  X?% <DL!444X!?<W2o3   `   Timeliness(especiallyearlysubmittals,earlypermits)<W5݌ k8  Ќ *4` Xx  X!* ,  "<" , XH+4 44 <DL!4` XxH  X?% <DL!444X!?</2o3   `   Beingabletolivewithchanges</ ݌ W$  Ќ *4` Xx  X!* ,  "<" , XH+4 44 <DL!4` XxH  X?% <DL!444X!?<2o3   `   Safety<݌ C  Ќ *4` Xx  X!* ,  "<" , XH+4 44 <DL!4` XxH  X?% <DL!444X!?<2o3   `   Quality<t݌ /  Ќ *4` Xx  X!* ,  "< " , XH+4 44 <DL!4` XxH  X?% <DL!444X!?<>2o3   `   Makingaprofit<>݌   Ќ *4` Xx  X!* ,  "< " , XH+4 44 <DL!4` XxH  X?% <DL!444X!?<2o3   `   EEO,disadvantagedbusinessprogram,employeesalaries<݌   Ќ *4` Xx  X!* ,  "< " , XH+4 44 <DL!4` XxH  X?% <DL!444X!?<2o3   `   Maintainingprofessionalism<݌  Ќ *4` Xx  X!* ,  H+4 44 <DL!4` XxH  04 Xx444X!0   4 ChallengesWeFace:     w<=>@BEGH(00 v<=>@BEGH"" , ,N.4 <DL!4 XxN  ,B% <DL!4X!B2o3   `   Gettingapprovalsquickly݌ p Ќ -4 Xx  X!- ,  "" , ,N.4 <DL!4 XxN  ,B% <DL!4X!B2o3   `   Resolvingissuesbygiveandtake݌ \ Ќ -4 Xx  X!- ,  "" , ,N.4 <DL!4 XxN  ,B% <DL!4X!Bx2o3   `   Minimizingchangesx_݌ {H Ќ -4 Xx  X!- ,  "" , ,N.4 <DL!4 XxN  ,B% <DL!4X!B72o3   `   Designingthroughchanges7݌ g4 Ќ -4 Xx  X!- ,  "" , ,N.4 <DL!4 XxN  ,B% <DL!4X!B2o3   `   Slurrywall݌ S  Ќ -4 Xx  X!- ,  "" , ,N.4 <DL!4 XxN  ,B% <DL!4X!B2o3   `   Architecturaldome݌ ?  Ќ -4 Xx  X!- ,  "" , ,N.4 <DL!4 XxN  ,B% <DL!4X!B|2o3   `   Beingpaidontime|c݌ + Ќ -4 Xx  X!- ,  "" , ,N.4 <DL!4 XxN  ,B% <DL!4X!B;2o3   `   Closeoutwithin60days;"݌   Ќ -4 Xx  X!- ,  "" , ,N.4 <DL!4 XxN  ,B% <DL!4X!B2o3   `   Noclaims8ifunavoidable,finalizepromptly݌ ! Ќ -4 Xx  X!- ,  " " , ,N.4 <DL!4 XxN  ,B% <DL!4X!B2o3   `   Cityconstruction݌ ! Ќ -4 Xx  X!- ,  " " , ,N.4 <DL!4 XxN  ,B% <DL!4X!B2o3   `   Publicsafety݌ " Ќ -4 Xx  X!- ,  " " , ,N.4 <DL!4 XxN  ,B% <DL!4X!BR2o3   `   HazardousmaterialR9݌ # Ќ -4 Xx  X!- ,  " " , ,N.4 <DL!4 XxN  ,B% <DL!4X!B2o3   `   Avoidinginterferencewithothercontractors݌ $  Ќ -4 Xx  X!- ,  " " , ,N.4 <DL!4 XxN  ,B% <DL!4X!B2o3   `   Stayinginharmony݌ %l! Ќ -4 Xx  X!- ,  ,K+ 4 <DL!4 XxKWMATAhasusedPartneringinitsmajorconstructioncontractsforovertenyearsandinitslast w'D # twoRailcarcontracts.WMAT