Cover Image

Not for Sale

View/Hide Left Panel
Click for next page ( 31

The National Academies | 500 Fifth St. N.W. | Washington, D.C. 20001
Copyright © National Academy of Sciences. All rights reserved.
Terms of Use and Privacy Statement

Below are the first 10 and last 10 pages of uncorrected machine-read text (when available) of this chapter, followed by the top 30 algorithmically extracted key phrases from the chapter as a whole.
Intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text on the opening pages of each chapter. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

Do not use for reproduction, copying, pasting, or reading; exclusively for search engines.

OCR for page 30
20 Table 6 tions, and then enter into negotiations with that party until REPRESENTATIVE WEIGHTS USED IN DIFFERENT they agree on a price (A Guide for Methods and Procedures COUNTRIES in Contract Maintenance 2002) Country Weights for Selection Criteria INTERNAL AGENCY SUPPORT AND UNIONS Australia (Sydney, WA, 50% price; 50% other, varies with Tasmania) territory Alberta, Canada 78% price, 22% other Although PBMC is being adopted by increasing numbers of transportation agencies throughout the United States and British Columbia, Canada 40% price; 60% other other countries, the willingness of agency staff to embrace it Ontario, Canada 90% price; 10% other is essential to implementation. Many agencies are skeptical that contractors can satisfy critical needs such as snow and England 30%40% price; 60%70% other ice control, incident management, and emergency response Finland 75% price; 25% other (Ribreau 2004). New Zealand 50% price; 50% technical criteria Virginia Department of Transportation's (VDOT's) expe- Sweden 90% price; 10% other rience is just the opposite, however. The legislature man- Source: Pakkala (2002) cited in Stankevich (2005). dated that all interstate maintenance work in Virginia be WA = Western Australia. performed under contract. Based on prior interstate mainte- nance experience, VDOT became comfortable with the con- tractor's ability to address snow and ice control, incidents, Understanding of project and PBMC approach and emergencies. However, VDOT is less optimistic about Relevant management and technical experience the ability of PBMC to address long-term pavement and Staff qualifications bridge needs, whose design lives could easily range from Capacity to perform the work 25 to 75 years, respectively, well in excess of the maximum Proposed work plan term of a performance-based maintenance contract (Robert Past performance on similar work and record of com- Prezioso, personal communication, Mar. 2007). pletion of past projects Quality plan Resistance to PBMC can arise because of the long history Customer and community involvement of agency staff providing maintenance services; many main- Ability to handle risks including incidents, severe weather, tenance managers cannot envision another way. Another fac- and emergencies (Pakkala 2002; Stankevich et al. 2005). tor is the posture of unions. Many unions across the country may see performance-based contracting as a threat to their Specific contracts may include or omit various criteria. jobs, wages, and benefits. Other unions acknowledge that For example, the selection criteria for the evaluation of bids the continued pressure by politicians to downsize agencies to maintain the 75-mile NHS in the District of Columbia in leaves those unions little choice but to go along with PBMC the United States included technical and cost considerations. and work with both transportation departments and contrac- Noncost factors included technical, staffing, QC/quality tors in a constructive manner. assurance (QA), management, and past performance. These factors accounted for 50% of the total score; cost was 50% Regardless of which direction a union turns, the union (Stankevich et al. 2005). is likely to initially challenge or criticize the decision to contract out work. Unions may desire to include contrac- If design is part of the project, as in a DBOM project, tual provisions that pertain to granting employees advanced state law frequently requires a QBS process. QBS involves notice, bidding procedures for public employees, minimum issuing an announcement for needed services, identifying a cost savings to be achieved, and the rights of displaced short list of qualified respondents, entering into discussions employees. with each firm, ranking the firms based on their qualifica- tions, negotiating with the highest ranked firm, entering into Because contracting can be undertaken for a variety of a contract if the negotiations are successful, turning to the reasons--such as to reduce costs, improve the quality of bidder with the next highest ranking if the negotiations are maintenance services and assets, and address legislated unsuccessful, conducting negotiations, and so on (Michigan mandates or arbitrary caps on public employment levels-- QBS Coalition n.d.) unions do not always see PBMC and other types of contract- ing as directly related to quality or efficiency. If the procurement process simply involves a technical submittal followed by negotiations, the contracting agency Unions often question why the private sector is credited will determine the bidder with the best technical qualifica- with being able to achieve cost savings when public employ-