Alternate Bid on Pavement Projects Overview

Keith ShannonDirector, Office of Materials and Road ResearchMn/DOT – ACEC Annual Consultant Conference

March 1, 2011

What is Alternate Bid• Develop at least two competitive Typical

Sections. Focus has been on Asphalt vs. Concrete, but other states have various mill, reclaim, stabilize depths/strategies compete.

• Calculate the present value of the future maintenance costs for each alternative = maintenance life cycle factor. Cost of ownership.

• Produce a Plan containing biddable information.

Why Alternate Bid ?

Current Approach to Pavement Selection

Alternate Bid Pavement Selection

• Use Engineer’s Estimate many months to several years prior to letting.

• Use bid prices on day of letting.

Any one seen the price of crude oil today?

Alternate Bid ConsiderationsPROS• Real Prices• Actual Cross Sections• Done at time of Bid• More Bidders• Competition leads to

lower prices

CONS• Comparable Typical

Sections – (enhancements influence outcomes)

• Incentive Specifications• Pay Items (ton vs. sqyd)• Producing Two Plans?• Staging Differences• Must accept outcome

Mn/DOT’s Experience FOCUS HAS BEEN ON FORMAL PAVEMENT SELECTIONS = NEW CONSTRUCTION

• TH212 Design Build – Eden Prairie2005• TH 23 Marshall 2009• TH 53 North of Duluth 2009• TH 2 Crookston 2010• TH 60 south of Worthington 2010• TH 23 southwest of Foley 2011

Lessons Learned• TH 212 – Alt bid is easy within Design Build• TH 23 – Designer created two full sets of plans,

this is not a long term solution. • TH 23 – Statewide workload impacts concrete’s

desire to bid a small remote project• TH 53 – Sand backfilled subcuts create major

advantage for asphalt paving

Lessons Learned• TH 2 – Project was linked to asphalt overlay, would not

have been considered with Tech Memo approach• TH 60 – Each industry may desire more than one

typical• TH 2 & 60 – Simplified section to 26 ft wide by

30 in. deep so items outside mainline pavement were same for both.

• TH 2 & 60 – Lump Sum pavement item caused internal issues with pay items and estimating.

Alternate Bid Future• Continue to use for reconstruction projects• Task Force established to expand use for

pavement rehab projects. Members:– Industry– City/County– Mn/DOT Division Directors– Technical experts as needed

Alternate Bid Task Force Work Groups

• Project Selection Criteria – where is it feasible, where does it make sense

• Alternate Bid Metrics – measure added costs vs. benefits

• Pavement Designs & Specs – defined development of typicals

• Standard Plans – simplify to reduce work

• Maintenance Factors

Any Questions ?