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50 consultants for other agencies, for the purpose of expedit- struction of this iconic highway that will provide the neces- ing the review and approval process for its projects. sary connections that were envisioned 50 years ago. Banking stormwater. Building surplus stormwater recharge into larger projects offsite to avoid the need for site-specific Conclusion replacement or mitigation on small projects. Gaining programmatic approvals. Certain actions can be MDOT uses its performance measures for budgeting and approved programmatically rather than on a case-by-case programming, program management and project delivery, basis. Depending on their scope, some entire programs can operations, and monitoring results. The increased pressure be delivered faster through this means. of having to maintain infrastructure at an acceptable level, greater public accountability, and transparency has challenged DesignBuild Contractor Selection Based on Competi- MDOT to track its system and continue to improve system tive Sealed Proposal and Best Value. The designbuild performance. With a deliberate effort on environmental stew- delivery system has proven successful in reducing the deliv- ardship and context-sensitive design, MDOT continues to ery schedule of a project through overlapping of the design and deliver and attain its transportation goals. construction phases, without reducing the time required to complete the individual tasks. It traditionally reduces the proj- ect risk for the owner, placing a greater amount of accounta- Missouri bility for delays and losses on the designbuild contractor. (55) A Practical Program of Setting and Meeting SHA has had a designbuild program for unique and trial High-Performance Expectations transportation programs for the past 10 years. Its designbuild program only accounts for about 10 to 15 percent of the over- The Missouri Department of Transportation's (MoDOT's) all construction program and has been deemed successful accomplishments in the last decade are prominent. Missouri so far. SHA normally undertakes two to four designbuild has gone from ranking the nation's third worst in pavement projects per year, ranging from large construction projects to condition on major roads to the ninth best. Seventy-eight guardrail replacement. percent of the same roads are in good condition. The Show SHA began requesting proposals for designbuild highway Me State ranks 17th in overall performance when compared projects in 1998. As of October 2009, 32 highway designbuild to other state highway systems, and customer satisfaction contracts had been issued, ranging in size from $800,000 to with MoDOT is 78 percent. (58) While most states have seen $36 million. This is a 50 percent increase from 2005. None of a decline in the condition of their infrastructure over the last these projects exceeded the $50 million FHWA threshold set few years, Missouri is one of the few that has managed to for designbuild highway projects. (56) Between FY 2000 and improve its transportation system. Despite all this, MoDOT 2004, 5.6 percent of SHA's construction dollars went to design Director Pete Rahn comments that it is not enough. "Great build projects; that number was projected to increase to 17 per- nations build and invest for succeeding generations--like our cent between FY 2005 and 2007. (57) parents and grandparents did. We have not." (59) In mid-2004, SHA began a competitive sealed proposal Missouri is a large state (17th largest in the nation by popu- (CSP) pilot program to carry out "best value" selection. Best lation, 21st largest by area), with a population of just under six value is defined by the DesignBuild Institute of America as million. (37) About 70 percent of the population lives in urban a selection process in which proposals contain both price and areas, with most urban dwellers living in either the St. Louis qualitative components, and award is based upon a combina- or Kansas City Urbanized Areas. While the state's population tion of price and qualitative considerations. (57) is heavily urbanized, urban areas themselves occupy less than The interviewed SHA officials have found two challenges four percent of its land area. (60) in using designbuild. The first is securing enough funding to Missouri has the seventh largest highway system in the be able to expand the use of designbuild. The second is the country. (58) There are over 123,000 miles of public roads in inherent difficulty in dealing with utility relocation--a facet of the state. Of that, MoDOT operates and maintains 32,800 miles construction that requires coordination with and cooperation of state highway. Additionally, Missouri has 10,276 bridges of independent utility companies and is ideally completed located throughout the state. (58) Most public roads are in before roadway construction begins. rural areas--only about 13 percent of statewide roads are The ICC is being constructed using designbuild contract- located in urban areas. Interstates and principal arterials ing methods along with intense interagency collaboration make up less than five percent of Missouri's road miles, while facilitated through leadership in the Secretary's office that nearly 80 percent are part of various local road systems. (61) ultimately make big exceptional projects like the ICC happen. Highway vehicles in Missouri travel around 67 billion miles SHA has experienced much success as evidenced by the con- per year--about the same as in New Jersey (but still the 16th

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51 highest among all states). On a per-capita basis, however, ment, and multimodal operations. For the purposes of this Missourians have the eighth highest VMT in the nation-- study, program delivery is of most interest, because highway with each person traveling just under 12,000 miles per year on and bridge projects are conceived, analyzed, designed, and average. About 60 percent of annual VMT occurs in urban- built from this area. The director of program delivery over- ized areas, with nearly all of that (90 percent) occurring in sees these functions, units, and personnel, reporting directly the St. Louis and Kansas City Urbanized Areas. (62) For this to the chief engineer. reason, metropolitan mobility and congestion are of great MoDOT has one of the most innovative organizational concerns to MoDOT. structures among the states studied. Its organizational chart MoDOT owns and maintains just over 25 percent of has three separate wheels for system delivery, organizational statewide public roads. The majority of public roads are support, and system facilitation. Figure 11 illustrates the func- county owned, while the rest are nearly all owned by local tions within each wheel. municipalities. MoDOT has evolved from its creation in At the core of each wheel is the outcome that MoDOT's 1921 (when the Highway Commission was first created and customers expect--tangible results. These are the consequences the agency was led by the chief engineer) to a multimodal of a performance measurement system that turns plans into agency with over 6,000 employees, governed by an expanded actions and ideas into best practices. The system delivery Transportation Commission and led by the director of team focuses on functions related to "Retail MoDOT." This transportation. The position of director is a relatively new team has direct public contact, supports customer service one, having been created in 1999. Also in that year, MoDOT efforts, and is responsible for the 10 districts of MoDOT. The changed its capital funding plan from a 15-year plan to a 5-year role of the system facilitation team is to assist the system deliv- plan. Its most recent funding plan (the 20102014 State Trans- ery team to achieve MoDOT's tangible results, supporting portation Improvement Plan) represents a reduction in over- functions necessary to maintain operations. The organiza- all capital funding, with the annual outlay decreasing from tional support team provides services to both system delivery $1.3 billion in 2010 to $421 million in 2014. (63) and system facilitation teams. (64) MoDOT's introspective approach to moving forward relies The director of MoDOT is appointed by the governor on its ability to focus on organizational results and communi- and confirmed by the state senate. The director does not report cating them internally and externally. to the governor, however, but rather to the Transportation Commission. The commission is independent, has its own set of bylaws, and consists of three democrats and three Organizational Structure republicans. This equal number provides a bipartisan bal- MoDOT has as its mission to provide a world-class trans- ance on all transportation issues, and a sounding board on portation experience that delights its customers and promotes all capital planning and maintenance projects. a prosperous Missouri. Toward that end, MoDOT has taken upon itself to consider as "Job #1" the ability to relate to and Transformation through Leadership understand the needs of the public, as well as to build trust, visibility, and credibility for the agency's actions. However, The success of an agency in overcoming challenges and fis- MoDOT did not always have these goals. cal constraints is a true reflection of leaders that guide, take In the 1990s, MoDOT was an underperforming agency that risks, and continue to look for innovation in everyday prac- was overcommitted, underfunded, and just emerging from a tices. The current MoDOT director encourages risk and the poorly delivered 15-year capital program. The agency was not acceptance of failure, but insists that staff complete projects respected by state residents, elected officials, or a wide range at a fast pace using the right tools. of partnering agencies. Two changes over the past 10 years Over the last five years, a major set of changes have occurred have helped turn MoDOT around into a results-oriented within MoDOT. The Director's mandate that the agency entity: (a) In 1999, the position of director of transportation perform at a very high standard set the stage for operational, was created and a performance measurement system was ini- strategic, and cultural transformations to occur within the tiated. (b) The second change--a major "sea change" accord- department. Under the kind of leadership that has empow- ing to many MoDOT employees--began when Director Pete ered the department, the concept of speedy project delivery has Rahn took over in 2004. been positively reinforced. As a result, expectations within the With the introduction of the director's position in 1999 MoDOT have been ratcheted up, schedules are being accel- came other organizational changes. Most critical among these erated from the projects' very inception, and, most notably, was the reorganization of front-line units into a complete MoDOT has succeeded in winning back the public's trust. (65) "system delivery team." The chief engineer oversees this Director Rahn is reported to have helped transform MoDOT team, which incorporates program delivery, system manage- into a performance-based agency. New processes have been

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52 System Delivery Team Organizational Support Team System Facilitation Team Source: Missouri Department of Transportation Figure 11. Partial MoDOT organizational chart. proven successful and are predicted to last well beyond his term The Tracker holds MoDOT staff accountable and is "com- as Director. In addition, the performance measurement sys- mitted to being open and transparent. We want you to know tem that was conceived in 1999 has evolved into the Tracker, what we do well, what we don't do so well and what we are MoDOT's quarterly report on measures of departmental per- doing to get better." (66) formance. As the January 2009 report states: "This document is your window into MoDOT--warts and all. It Accelerating Project Delivery invites you to hold us accountable for exceeding your expecta- A number of specific actions have been implemented tions. . . . These results guide us every day as we go about the busi- ness of delighting our customers. In the Tracker, you will see that to help MoDOT better accelerate delivery of projects over we have established measures to gauge our progress and we are the past decade. Five of them are discussed in the following comparing ourselves to the best organizations in the country." (66) sections.

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53 Strategic "Advance" important processes and reviews. Some of the critical relation- ships that have been fostered include the following: Every year, a meeting is held among departmental managers to discuss priorities and develop strategies for the upcoming Federal Highway Administration: Many in the agency year. An important aspect of this "advance" is to assure that point to the close working relationship they have with the the activities of managers are in line with MoDOT's mission FHWA as critical to expediting their work. MoDOT is statement and overall policies. This proactive approach con- currently working with the FHWA on the "Better Roads, trasts directly with the more commonly used "retreat" termi- Brighter Future" program. Their involvement has been very nology, where management looks back at past performance helpful. Together, MoDOT and the FHWA have streamlined and reacts--often too late--to problems and issues that have resurfacing, restoring, and rehabilitation of non-freeway gone unaddressed and affected the public's perception of roadways and environmental processes and have reached the department. This advance approach seeks to implement agreements on design treatments, guardrails, etc. As a result, actions rather than discuss plans. The Strategic Advance is projects go out to bid faster, are completed under budget, only the first step to setting and communicating the over- and are saving more lives by being completed sooner. arching organizational direction. Figure 12 shows the other MoDOT's environmental division has enhanced its work- steps involved in MoDOT's strategic planning approach that ing relationships with state and federal regulatory agencies, integrates top-down and bottom-up methodologies. including the FHWA. The FHWA has expressed approval of MoDOT's "planning framework" process, and the two agencies have maintained a close relationship. Building and Maintaining Strong Relationships Missouri Department of Natural Resources: MoDOT with Other Agencies administrators have praised the department's environmen- Throughout MoDOT, a major emphasis has been placed on tal division for developing a variety of staff experts who developing strong working relationships with agencies at all have established great working relationships with state agen- levels of government in order to better coordinate and expedite cies such as the Department of Natural Resources (DNR). After reviewing state and federal mandates/requirements that Tracker measures, and input from regional planning partners, employees, statewide surveys and other customer input, leadership conducts an analysis of its strengths, weaknesses, opportunities and threats (SWOT) to determine its strategic challenges, advantages, and potential blind spots. Strategic Advance Senior management team lists the "WOW" accomplishments and identfies potential new WOWs. The senior management team-assigned leader sponsors a cross-functional team of employees, and partners as needed, to investigate, research, and recommend innovative solutions to address the issue, achieve the Tangible Results and produce Teams and Action another WOW for MoDOT's customers. Plan Teams present their findings and recommendations complete with costs, implementation plan, timeline, action plan, anticipated outcomes, impact to the Tangible Results, and performance indicators. Approval and Implementation Results are made available in the Tracker, senior management team meets quarterly to discuss all Tracker measures. Strategies are listed in the Improvement Status section of each Tracker measure. Monitoring Results Source: Missouri Department of Transportation, 2007 Application for the Missouri Quality Award (64 ) Figure 12. Steps involved in MoDOT's strategic planning approach.

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54 It is fortuitous that MoDOT shares office space with DNR; tions, and improve coordination. (67) Such alliances have this co-location has facilitated communication and proven accelerated project delivery, which ultimately benefits crucial in fostering a strong working relationship with the the citizens. Building with shared purposes--and shared agency. MoDOT tracks environmental responsibility and resources--helps offset the cost of building the projects sep- takes it very seriously. arately, inflation costs stemming from delays, and other Metropolitan Planning Organizations and Regional Plan- financing costs. ning Commissions: MoDOT districts are customer focused and have strong relationships with Missouri's seven MPOs Maintaining Core Competencies and Experience and nineteen regional planning commissions (RPCs). The department has worked to maintain a professional work- In an era of state fiscal crises nationwide, MoDOT has ing relationship with these quasi-governmental agencies. maintained relatively stable staffing levels over the past MoDOT has changed its project prioritization process over decade. In 2008, MoDOT continued to retain a large staff the past five years. It used to identify needs and projects in of over 6,300 employees, which has translated into MoDOT's its central office, a practice that frequently raised concerns preserving core competencies, even through periods of low at the local and regional level. MoDOT now has a "planning funding and workload. It has also enabled individual project framework" in place, where each MoDOT district works managers to maintain responsibility over a project from incep- with its respective MPOs and RPCs to identify needs and tion through construction. MoDOT program delivery has build support for projects at a more grassroots level. been successful because of strong leadership, competent per- Contractors: MoDOT holds quarterly meetings with rep- sonnel (i.e., the right people in the right jobs), the Trans- resentatives of the general contracting industry, as well as portation Commission's recognition of the staff's hard work, with specialized contractors who work exclusively in con- and the system's flexibility. crete, asphalt, and bridge work. As a result, the industry MoDOT has held its employees accountable to the depart- has been influential in many of the changes that MoDOT ment's motto: "Working together to achieve the right results." has implemented. Their inclusion in the process has built Staff members have reported that personnel are implored to mutual respect, while preserving the owner/contractor perform. MoDOT leadership prepares managers through relationship. By establishing a dialogue with contractors on the Management Development Institute, which is designed a regular basis, MoDOT has learned about making specifi- to improve a person's ability to manage people, processes, cation changes that are important to the industry but of no and results. This ultimately allows managers to take on more consequence to the department. By making these changes, responsibility and challenges. MoDOT has won an ally in the construction industry and Staff responsibilities and internal cross-training have in- made it easier for contractor and owner alike to expedite creased as well. Resident engineers are now required to be projects and reduce costs. familiar with the responsibilities of the construction and An additional benefit of involving general contractors materials engineers. One recent example of such cross-training in quarterly meetings is that they begin to understand that has been demonstrated by sending personnel from through- the projects listed in the State Transportation Improvement out MoDOT to see first-hand, the lessons learned from the Plan are real, with three-month locked-in schedules for major I-64 reconstruction project in St. Louis. The knowledge letting. This knowledge encourages them to gear up for a gained has helped employees in the design and construction job and hit the ground running when the project is released functions work better together. for bid. Expectations and accountability have not only increased U.S. Army Corps of Engineers: MoDOT has fostered good internally; professional consultants are expected to get the relationships with the Army Corps, especially in conjunc- job done, and MoDOT terminates those who do not succeed. tion with the "Safe and Sound Bridge" program geared According to one manager, beginning in 2008, MoDOT has toward improving bridge safety. successfully reduced its share of outside consultant procure- Partnering for Innovative Efficiencies: MoDOT recognizes ment from about 35 percent to 5 percent. that transportation demands are increasing while state rev- enues are not adequate for construction. A system called A Focus on Purpose and Need the Partnership Development Process has been created to allow other agencies to partner with MoDOT so that inno- Purpose and need is considered to be a fundamental com- vative financing methods can be developed for transporta- ponent of a project during the scoping process. Department tion projects that serve a public purpose. Partnerships help management has encouraged DOT staff to be passionate MoDOT to jointly solve problems, build and strengthen about developing the right scope and budget for projects, relationships, increase efficiency, develop innovative solu- with the aim of delivering projects in a timely fashion and

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55 within budget. A poorly defined scope that is broader than planning staff is located in each district, although most are the purpose and need will result in higher project costs and located in the Jefferson City central office. Planning staff in lengthy schedules, while a scope that falls short of it will result the central office deal with many project delivery issues, long- in a project that does not meet the objective. The complete range planning, MPO and RPC oversight, and various depart- project scope involves determining the root causes of the need, mental management systems. This central group also provides developing a range of alternatives, and choosing the best solu- assistance to district planners on policy issues. Community tion that considers the cost and delivery time frames. The pur- relations staff is located primarily in the districts, supported by pose and need is revisited often and items that do not support some central office functions that provide resources as needed, it are redesigned, re-evaluated, or eliminated completely. (68) such as video and photography services. The centrally located bridge division is in charge of all MoDOT river crossings and viaducts. The environmental division is also located centrally, Decentralization and Centralization benefiting from its co-location with DNR staff. Some construc- Reorganization within MoDOT has involved the judicious tion and materials personnel/facilities are centrally located as use of both decentralized and centralized management-- well, including geotechnical experts, laboratories, and some utilizing the benefits of each according to the application and construction and materials engineering staff. However, most what best fits the organization's mission and goals: (such as inspectors) are located within each district. Decentralization: MoDOT divides the state into 10 dis- tricts: Northwest, North Central, Northeast, Kansas City Process Management-- Area, Central, St. Louis Area, Southwest, Springfield Area, Integrating Core Competencies South Central, and Southeast. These districts are more cus- MoDOT's core competency is to develop and maintain the tomer focused and are able to maintain stronger relation- state's transportation system. MoDOT strives to provide the ships with local and regional governments than a single public with a safe, efficient transportation system that delights central office can. This arrangement respects the unique- its customers and promotes a prosperous Missouri. MoDOT ness of each district, its geography, its social culture, and its delivers this promise through core competencies such as political climate. The decentralized aspects of the organi- plan, design, build, and maintain (See Figure 13). At the root zation afford district personnel a measure of autonomy. of these competencies is MoDOT's mission to achieve its MoDOT staff is held accountable statewide, however, via tangible results as reported in the Tracker. (64) the Tracker system. Expanding outward from this core is a myriad of processes Centralization: The creation of a central system delivery that are not only tied directly to the mission, values, and tan- team is widely acknowledged as being critical to the suc- gible results, but also prescribe the work systems of planning, cessful acceleration and delivery of projects at MoDOT. designing, building, and maintaining. "New technology, Furthermore, creating the position of director of program organizational knowledge, and agility are built into the pro- delivery in the central office has been especially important, cesses by setting the focus and allowing empowered employees making that individual responsible for directing the trans- to manage performance with an eye on measurement indi- portation planning, design, right-of-way, construction and cators." (64) Each process has to achieve MoDOT's tangible materials, and bridge groups. results. Each process should be timely, efficient, and effective without compromising safety. The processes work together, Further within the program delivery function, there is a mix holistically, to ensure that the state's programs and services of centralized and decentralized units. For instance, design, for all modes of travel are delivered. And all work processes right-of-way, and construction and materials are decentral- must be better, faster, and cheaper. ized among the 10 districts. Again, when decentralization gets programs and projects delivered faster, MoDOT empowers the district offices to make decisions that move projects for- Best Practices for Missouri ward. MoDOT is prudent with its use of eminent domain, pre- Tracker--Measures of Departmental Performance ferring to do mediation over outright taking. Property issues often get resolved at the eleventh hour, which, although frus- Organizational effectiveness begins with a total understand- trating to the affected district, is typically appreciated by the ing of the mission and values and a commitment to delivering public. This kind of activity is much better administered at the tangible results. The Tracker was developed to assess how district level rather than from a central office many miles away. MoDOT "is measuring up" both internally and externally. Other functions at MoDOT are predominantly either cen- For a program that is only four years old, the Tracker already tralized or decentralized. For instance, a small transportation has had much success in the results it provides. It has become

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56 Designing Processes Planning Processes Scoping process Long-range planning process Cost-estimating process Planning framework analysis Location process System analysis process Right-of-way process Pavement type selection process Work zone process Maintaining Processes Bidding and letting Pavement maintenance process process Bridge maintenance process Roadside management process Incident management Support Processes process Budget process Communication process Building Processes Procurement process Contract administration Staffing process process Material inspection process Construction inspection process Source: Missouri Department of Transportation, 2007 Application for the Missouri Quality Award (68) Figure 13. Work system design and key processes. the focal point of how MoDOT delivers its programs and The tangible results measures within the Tracker are key projects. The Tracker is a system that continuously measures indicators that measure MoDOT's organizational effectiveness. and monitors the tangible results. For each of these tangible results, there are two to sixteen The expectations of the public are translated into 18 tangi- measures used to evaluate MoDOT's success in attaining those ble results: results, as shown in Figure 14. For instance, for the tangible result environmental responsibility, seven measures are mon- Uninterrupted traffic flow itored: (a) percentage of projects completed without environ- Smooth and unrestricted roads and bridges mental violation, (b) number of projects where MoDOT pro- Safe transportation system tects sensitive species or restores habitat, (c) ratio of acres of Roadway visibility wetlands created to the number of acres of wetlands impacted, Personal, fast, courteous, and understandable response to (d) percentage of Missouri's clean air days, (e) number of customer requests gallons of fuel consumed, (f) number of historic resources Partnership with others to deliver transportation services avoided or protected as compared to those mitigated, and Transportation leveraged to advance economic development Innovative transportation solutions (g) number of tons of recycled/waste materials used in con- Fast projects that are of great value struction projects. Similarly, the remaining 17 tangible results Environmental responsibility also have detailed measures that are tracked and reported. The Efficient movement of goods January 2009 Tracker lists 112 total measures spread among Easily accessible modal choices the 18 tangible results. (69) Clearly there is a great emphasis Customer involvement in transportation decision making on getting the best value for every dollar invested in the trans- Convenient, clean, and safe roadside accommodations portation system. Best value of every dollar spent Attractive roadsides Drivers and Benchmarks Advocacy for transportation issues Accurate, timely, understandable, and proactive transporta- Individual MoDOT personnel are assigned responsibil- tion information ity as "drivers" for the overall tangible result as well as for

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57 16 16 14 12 Number of Measures 10 10 10 9 8 8 7 7 6 6 5 5 5 4 4 4 4 4 3 3 2 2 0 Tangible Results Figure 14. Chart indicating the number of measures used for each tangible result. each measure. For example, the director of program delivery Four of the eighteen tangible results have a direct bearing on is assigned responsibility as the driver for the tangible result expediting projects and programs through MoDOT: smooth fast projects that are of great value, while the responsibility for and unrestricted roads and bridges, transportation leveraged to "driving" the nine measures of this result is split among five advance economic development, innovative transportation solu- other individuals. What is quite apparent in the MoDOT cul- tions, and fast projects that are of great value. The Tracker reports ture is that they attempt to benchmark every measure in the on the status of each of the measures for each tangible result. Tracker against the best in class. For environmental respon- Using fast projects that are of great value as an example, Table 5 sibility, Missouri measures itself against Dallas, Texas; for best shows the level of detail that is measured and monitored on a value of every dollar spent, MoDOT compares itself against quarterly basis for each of its nine measures. Maryland and New Mexico DOTs and the private construc- Establishing baselines, setting benchmarks, tracking pro- tion industry; for fast projects that are of great value, MoDOT gress, and making adjustments to one's system and processes compares itself to Georgia and Michigan; and for innovative are challenging tasks. While a number of states track con- transportation solutions, MoDOT measures itself against the struction costs, few have information on total project costs. New York State DOT as the benchmarking organization. (64) Even fewer are able to compare programmed total project This practice sets the stage for continuously improving and cost to final total project cost. While many states can provide striving to provide "a world-class transportation experience." qualitative information on how they are perceived by the

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58 Table 5. Measures that track fast projects that are of great value. Measure Purpose of Measure Results Percentage of programmed This measure determines how close As of June 30, 2009, for Fiscal Year 2009, project cost as compared to MoDOT's total project completion costs a total of 411 projects were completed at a final project cost are to the programmed costs. The cost of $1.593 billion. This represents a programmed cost is considered the deviation of 0.31 percent or $5 million project budget. more than the programmed cost of $1.588 billion. Average number of years for This measure monitors how quickly Design time for resurfacing projects: down a project to go from the projects go from the programmed to 0.7 yr. programmed commitment in commitment to fiscal closure of a Design time for safety projects: up to the Statewide Transportation construction project. 1.3 yrs. Improvement Program to Design time for major bridges: down to construction completion 1.5 yrs (from 4.3 yrs) (from 2006 to 2007) Design time for new or expanded highways: up to 3.9 yrs Percentage of projects The measure tracks the percentage of In Fiscal Year 2009, 60 percent of projects completed within projects completed within the programmed over $1 million were programmed amount programmed amount. It includes completed within the budgeted amount, separate categories for projects over while 54 percent of projects under $1 and under $1 million. million came in at or below budget. Percentage of projects This measure tracks the percentage of 93 percent of projects completed in fiscal completed on time projects completed by the commitment year 2009 have been on time. date established in the contract. Percentage of change for The measure tracks the percentage MoDOT's performance of 1.1 percent in finalized contracts difference of total construction payouts fiscal year 2009 is below the target of 2 to the original contract award amounts. percent. Average construction cost This measure tracks the cost per day for The greater use of A+B and calendar-day per day by contract type project completion to determine the contracts resulted in a larger amount paid impact to the traveling public, enabling per calendar day in the first three quarters MoDOT to better manage project of Fiscal Year 2009. completion needs. Unit cost of construction This measure tracks how MoDOT Excellent competition in the past year has expenditures projects provide great value by enabled MoDOT to realize almost a 7 comparing the cost of major items of percent reduction in unit prices for bridge work for MoDOT projects to other state construction--the second largest DOTs. percentage decrease in this area among Missouri's surrounding states. Annual dollar amount saved This measure tracks the amount of In 2008, MoDOT design savings from VE by implementing value money MoDOT saves by implementing studies were $96.1 million, a 94 percent engineering (VE) value engineering proposals. increase from 2007. So far, for 2009, design savings are $23.5 million. Percentage of customers This measure provides information The majority of respondents thought that who feel completed projects regarding the public's perception of the project made the roadway safer are the right transportation MoDOT's performance in providing the (95.4 percent), more convenient (91.2 solutions right transportation solutions. percent), less congested (82.7 percent), easier to drive (94.2 percent), and better marked (92.3 percent) and was the right transportation solution (94.7 percent). Source: Missouri Department of Transportation, Tracker. Measure of Departmental Performance, July 2009

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59 public, MoDOT provides a percentage of overall customer Practical Design effort accomplishes that goal by building satisfaction, or the percentage of customers surveyed that feel `good' projects everywhere instead of `perfect' projects some- that MoDOT takes into consideration customers' needs and where." (19) In a similar vein, MoDOT Director Rahn stated views in transportation decision making. In effect, each tan- that Missouri engineers design highways aiming "not to build gible result is backed by a baseline of where it was and a perfect projects, but to build good projects that give you a benchmark of where it is currently. Very few states have good system." (71) gone to such lengths to gauge themselves and then inculcate The concept of Practical Design involves looking at proj- expectancies to raise the bar. ects on a case-by-case basis, rather than following the strict Whether the trend is toward a positive improvement or a guidelines and parameters of a project. In other words, a road negative result, each tangible result driver has the responsi- might be built to a lower standard than would be the case if bility--and the challenge--to meet the baselines previously funds were unlimited, but still meet the purpose and need set and/or exceed the established benchmarks. The Tracker is and basic requirements. Safety, however, is never compro- an excellent tool for short-term action planning. Based on mised in this equation. the data collected for each measure every quarter, managers Critical aspects of Practical Design as practiced by MoDOT have the ability to change or modify their strategy if the trend include properly defining the scope by focusing on meeting for the tangible result is not headed in the desired direction. the purpose and need, while considering the surroundings As such, constant improvement, continuous monitoring, of each project (adequately meet purpose and need without and balancing of priorities occur so that the results expected unnecessarily going beyond), getting the best value for the by the customers/public are delivered--almost in real time. least cost, never compromising safety, and collaborating on the solution. (68) An example of a Practical Design solution was to use an 8- or 10-inch pavement thickness instead of Practical Design 12 or 14 inches of concrete as was done in the past. By using Nearly everyone interviewed at MoDOT talked about the non-traditional design methods or newer construction prod- move toward "Practical Design" solutions as an important, ucts and materials, and different techniques, MoDOT trans- positive step in the project and program delivery process. portation officials have been able to deliver system-wide The concept was introduced at MoDOT in 2005 and was improvements while saving funds that were being wasted in documented later that year in a Practical Design Implemen- over-designed items. Figure 15 shows the dollar savings from tation Manual. In the first two years, Practical Design saved Fiscal Year 2002 to 2006 though MoDOT's implementation Missouri taxpayers $400 million. (70) As both MoDOT and of Practical Design. the American Council of Engineering Companies of Missouri MoDOT encourages innovation and creativity among its have stated, "State DOTs must deliver the transportation sys- staff to accomplish the goal of implementing Practical Design. tem better, faster, and cheaper than ever before. MoDOT's There is also a powerful incentive to institute Practical Design Source: Missouri Department of Transportation, MoDOT's Approach to Program Management (68) Figure 15. Dollar amount saved by implementing Practical Design.