Understanding A+B bidding patterns and policy implications for ODOT project lettings

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dc.contributor.sponsorOklahoma Department of Transportation. Materials and Research Division. Office of Research & Implementation
dc.creatorKosmopoulou, Georgia
dc.creatorZhou, Xueqi
dc.date.accessioned2017-12-20T23:13:20Z
dc.date.available2017-12-20T23:13:20Z
dc.date.issued2014-10
dc.description.abstractWe 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.
dc.description.abstractWe 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 andthose that are economically practical to speed up, and help ODOT to improve efficiency in highway construction.
dc.description.abstractWe 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.
dc.description.abstractA 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.
dc.description.peerreviewNo
dc.description.versionFinal report, October 2013-September 2014
dc.format.extent57 pages
dc.format.extent1,302,720 bytes
dc.format.mediumapplication.pdf
dc.identifier.govdocFHWA-OK-14-12
dc.identifier.otherOklahoma Department of Transportation State Planning and Research item number 2257
dc.identifier.urihttps://hdl.handle.net/11244/54280
dc.languageen_US
dc.publisherOklahoma City, OK : Oklahoma Department of Transportation, 2014.
dc.relation.ispartofseriesNo
dc.relation.requiresAdobe Acrobat Reader
dc.relation.urihttp://www.okladot.state.ok.us/Research/FinalRep_2257_FHWA-OK-14-12.pdf
dc.subject.keywordsContracting out -- Oklahoma
dc.subject.lcshLetting of contracts -- Oklahoma
dc.subject.lcshRoad construction contracts -- Oklahoma
dc.subject.lcshOklahoma. Department of Transportation -- Appropriations and expenditures
dc.titleUnderstanding A+B bidding patterns and policy implications for ODOT project lettings
dc.typeTechnical Report
dc.type.materialtext

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