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Guide for Pavement-Type Selection (2011) / Chapter Skim
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Appendix B - Example of Pavement-Type Selection in Alternate Bidding
Pages 51-56

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From page 51...
... The agency has identified three noneconomic factors necessary for evaluation in the selection process: • Material recycling. • Stimulation of competition.
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From page 52...
... The summary of the LCCA is presented in Table B5. Step 5: Evaluation Using Economic Factors Upon computing the life-cycle costs, the agency conducts an economic evaluation of alternatives to assess their cost feasibility at the project level as well as the agency level.
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From page 53...
... 53 Figure B1. Salvage value calculation for Alternative 3.
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From page 54...
... Evaluation of alternatives using noneconomic factors. Cost Factor Alternative 1 Alternative 2 Alternative 3 Initial costs $2,650,000 $3,100,000 $2,910,000 Present value of future rehabilitation costs $338,232 $90,029 $548,336 Present value of future maintenance costs $49,650 $47,836 $55,167 Present value of total costs $3,037,882 $3,237,865 $3,513,503 Noneconomic Factors Alternative 1 Alternative 2 Alternative 3 Material recycling More recycling possibilities Some recycling possibilities More recycling possibilities Stimulation of competition Encourages competition Encourages competition Encourages competition Maintenance capability Common experience Common experience Common experience
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From page 55...
... Economic Factors Difference in Cost Estimate (%) Alternative 1 Alternative 2 Alternative 3 Initial costs 0 17 10 Present value of future rehabilitation costs 276 0 509 Present value of future maintenance costs 4 0 15 Net present value of life- cycle costs 0 7 16 Note: "0" indicates the alternative having the lowest cost estimate for the specific economic factor.
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From page 56...
... Group Factor Alternative 1 Alternative 2 Alternative 3 Economic factors Initial costs High Low Medium Rehabilitation costs Low High Low Maintenance costs High High Low Life cycle costs High Medium-high Low Noneconomic factors Material recycling Medium-high Medium Medium-high Stimulation of competition High High High Maintenance capability No difference No difference No difference Table B11. Summary of the alternative-preference screening matrix scores.
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Key Terms

  • initial costs
  • rehabilitation costs
  • maintenance costs
  • pavement types
  • agency considers

  • costs cost
  • cycle costs
  • future costs
  • bid adjustment
  • adjustment factor

  • agency costs
  • direct agency
  • weighted total
  • cost estimates
  • rating weighted

  • service life
  • cost estimate
  • weighted score
  • common experience
  • alternate bidding

  • future rehabilitation
  • agency develops
  • lowest initial
  • agency level
  • initial cost

  • ical scores
  • nate bidding
  • score rating
  • major rehabilitation
  • project level


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