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49 Private-sector partnerships for effective field procedures. while pursuing their own objectives. In the public sector, this Private-sector outsourcing has been increasing in the larger goes beyond cooperation to partners' willingness to adjust states as an important means of delivering several of the key the manner in which their objectives are met to achieve the operations services in the field, including TMC operations, objective of minimizing delay. In the private-sector contrac- safety service patrols, towing, routine maintenance response, tor environment, it places emphasis on carefully structured work zone traffic control, supply of traveler information, and performance-based contractual conditions. routine ITS and traffic control asset maintenance. Experience to date has raised concerns relating to the clarity and standard- Summary Conclusions ization of scopes and relationships and the performance man- Regarding Key Institutional agement of contractors. In addition, substantial outsourcing Characteristics Supporting raises the question of the transportation agency's ability to Effective Business Processes retain its core capabilities. The scale of these activities suggests the importance of a comprehensive and consistent statewide The combination of the survey and interview findings, previ- approach to determine the appropriate type and level of staff ous state DOT-oriented research, and the identified character- core capacity, and to develop procurement and contract man- istics of different types of private-sector entities converged to agement procedures that insure maximum effectiveness. reveal four characteristic traits associated with the differences between the more product-oriented entities (transitioning transportation agencies with a modest SO&M focus) and Relationship to Program and those that appeared to have a stronger operations orientation Business Process Capabilities (as represented by the more mature state DOTs). Table 6.2 Many of the factors underlying the ability to develop effective summarizes the key findings in the mature versus transition- working partnerships supporting NRC strategy applications ing state DOTs in the four key institutional categories. are outside the transportation agency's span of control. Func- Moving in the directions exhibited by the more mature tions key to the effectiveness of these applications can be pro- entities involves coping with four principal challenges: cul- vided by partners, both public and private. A basic business ture, organizational structure, resource allocation process, process involves joint planning with local governments and and partnerships. MPOs and execution of strategy applications in the field. The culture has a strong civil engineering orientation, includ- Strategy application effectiveness is directly proportional to the ing legal authority and leadership and program structure sub- partners' ability to share the transportation agency's interests-- stantially focused on construction and maintenance programs. especially those related to reduced delay and disruption-- This legacy orientation includes unrealistic assumptions about Table 6.2. Comparison of Institutional Characteristics: Mature versus Transitioning Process Agencies Institutional Element Features Associated with Transitioning Process Agencies Institutional Element Features Associated with Mature Institutional Element Called "Ad Hoc" Process Agencies Called "Rationalized" Culture/Leadership Construction project development legacy SO&M understood and supported by top management dominant SO&M has core program status Lack of visible policy or leadership for SO&M Clear legal authority for operations roles in field SO&M not a formal program Customer level of service acknowledged as key mission Fuzzy legislative authority regarding roles in field Organization/Staffing Subordinate role and divided portfolios of Top level SO&M management positions established in central SO&M managers office and districts Shortfall/turnover in qualified staff Professionalization and certification of operations core capacity Components of SO&M in fragmented units positions Resource Allocation No dedicated program budget Operations is formal, visible sustainable budget line item Lack of standardization/documentation Trade-offs between operations and capital expenditure No performance outcome measures considered Partnerships Differing partner priorities unresolved High level of operations coordination among key players in Fuzzy role of private sector service delivery Outsourcing performance managed while maintaining agency's core capacities