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15 No that they outsourced construction management services. The Response goals for construction management contracts were different. 8% Only three states reported using a fixed-percentage goal for construction management contracts when determining con- Yes tract goals for construction management services contracts. No 50% 42% Indefinite Delivery/Indefinite Quantity FIGURE 4 Percentage of STAs experiencing Also known as "on-call contracts" or "retainer contracts," increased contract indefinite delivery/indefinite quantity (ID/IQ) contracts were bundling. also examined in the survey. Generally, DBE goals are not being used on ID contracts. Six STAs responded that they dling occurs when an STA consolidates a group of smaller or used ID/IQ contracting. One respondent further commented potentially smaller contracts into one large contract. Fewer that the use of ID/IQ "improves DBE participation since they contracts require fewer lettings, project managers, consultants (the contracts) are let prior to the need for services," allow- and so forth, which generates some overhead and administra- ing the DBE firm to better allocate resources rather than wait- tive savings for an STA. For example, where the STA could ing for individual contract bids. No changes in the reporting have let three contracts for bituminous resurfacing on several format were noted. roads in a district, it may bundle these together into a single contract for bid. Bundled contracts tend to be larger aggre- DESIGNBUILD CONTRACTS gate dollar volume contracts. Bundling reduces the number of DBEs able to bid as a prime contractor. In some instances, it Goal setting on designbuild drew a wide variety of responses. limits opportunities for prime contractors as well. Bundling For example, not all STAs are authorized by their state reg- often reduces the pool of subcontractors owing to the increased ulations to use designbuild or other innovative delivery size of the subcontracted work items. The prime contractor methods at this time; therefore, they either stated this or pro- can redefine work packages to achieve the required DBE par- vided no response. From the 36 available responses the fol- ticipation where there are contract goals. lowing was reported: The true impact of bundling cannot be determined from Thirteen use the same process for all contracts regard- survey responses. Three of the 36 respondents believed that less of contract type, bundling has had no impact and their STAs benefited by hav- Three use one goal for the master contract in design ing reduced administrative requirements. Ten STAs reported build contracts, that bundling does affect a DBE's ability to bid as prime con- One noted that it was considering separate goals for tractors. Only 5 of the 10 indicated that it was a problem for design and construction portions, subcontracting. The others believed that there was little impact Three are in the process of developing a procedure, on subcontracting opportunities. To reduce the impact of bun- Thirteen did not respond or indicated not applicable, and dling, Illinois has developed a "small contracts listing," Three specifically do not use designbuild. enabling DBEs to identify and bid contracts as prime con- tractors or subcontractors. Pennsylvania reported that they no longer bundle contracts because of the impact it had on The current DBE regulations have addressed designbuild DBEs. An secondary effect noted in the response from Col- construction with the following: orado was that some DBEs were bidding city, county, or pri- vate work because the contracts were smaller. State STAs can establish an overall goal for design build projects. The "master contractor" under the designbuild agree- DISADVANTAGED BUSINESS ENTERPRISE ment is responsible for establishing contract goals, as GOALS FOR OTHER CONTRACTING METHODS appropriate, for the construction subcontracts it lets. State STAs must maintain oversight of the master con- Other types of contracts that are commonly assigned contract tractor's activities. goals are shown in Table 5 and briefly described here. New Mexico is an example of a state using a single goal for Construction Management the master contract. It lets the master contract for a design build contract with a single goal established for the project. A number of states have leveraged their capability to under- The master contractor establishes the individual contract take a larger number of contracts, without increasing their goals as appropriate to the work division they establish. The permanent staff levels, by outsourcing (contracting with out- New Mexico STA maintains an oversight role in the entire side firms) construction management. Fifteen STAs indicated process.