# Presentation: 139134

## Innovative Contracting Techniques that Consider Driver Impacts Use of A+B BiddingPresented by: David L. Kent P.E.New York State Department of Transportation

## Slide 2

## Implementation of A + B Bidding in New York

- Initial guidelines / special provisions issued - December 1993.
- FHWA Special Experimental Project 14, Innovative Contracting Practices.
- Based on FHWA sample provisions.
- 150 Contracts awarded 4/94 to 2/03.
- Total contract value $ 3.1 billion.

## What Is A + B Bidding ?

- A method of bidding that includes both cost and time in low bid determination.
- “A” = $ amount of work to be performed.
- “B” = no. of calendar days bid to complete the work X user delay cost.
- Lowest A + B is awarded the contract.

## I/D for “B” Portion Work 

- Incentive / disincentive included.
- Max. days incentive = 10% of Eng. Est.
- Total incentives for each contract limited to 5% of Eng. Est. cost.
- No cap on disincentive.

## When To Use A+B Bidding

- Critical projects or project phases.
- User delay and other documented delay costs > $3,000 per day.

## A+B Project Characteristics

- High traffic volume facilities,
- Complete a gap in a highway system,
- Major projects that will severely disrupt traffic,
- Major bridges out of service,
- Lengthy detours of high volumes of traffic.

## Slide 8

## Benefits of A+B Bidding 

- Encourages contractors to develop detailed well thought out plans in order to bid on the time to complete a project or project phase.
- More efficient contractors can generally bid shorter times.

## Benefits of A+B Bidding

- Encourages contractors to:
- Schedule operations to maximize efficiency of crews and equipment.
- Work OT, double shifts, at night.
- Develop innovative ways to reduce construction duration at the lowest cost during bid preparation and construction**.**

## Applicability of Use in Other Locations 

- A+B Bidding is being used in many areas of the US.
- State Bidding Laws vary and must be reviewed.

## Lessons LearnedDesign Phase

- Project selection
- Avoid projects where unanticipated conditions are likely to be encountered,i.e., utilities, rock, historical artifacts,etc.
- Protect environmentally sensitive areas from high production construction operations.
- Consider “B” portion work for critical phases instead of the whole project.

## A Good Application For A+B

- Bridge replacement project / off-site detour.
- Contractors bid on bridge closure duration.
- Timing of bridge closure coordinated with shop drawing submittals, ordering and delivery of materials, and other preparatory work.

## A Good Application For A+B 

- <date/time>

**A Good Application For A+B**

## Lessons LearnedDesign Phase

- User delay cost calculations
- Description of “B” portion work
- Constructability reviews
- Accuracy of Department estimate of time

## Lessons LearnedConstruction Phase

- Time as a pay item
- Critical path method scheduling
- Time adjustments due to changed conditions
- Added rehab. work, utilities, subsurface conditions, drainage redesign, piles, lane closure delays / revised restrictions
- Overtime pay for inspection, night work, multiple shifts - offset by shorter duration.

## Lessons LearnedConstruction Phase

- Contractors shift experienced staff to A+B projects.
- Contractors propose innovative ways to accelerate.
- Revised M&PT schemes
- Use of precast concrete or modular items
- Use of new technology
- Change proposals that save time may also save money – Value Engineering provisions.

## A+B Bidding Results

- NYSDOT has used A+B bidding on more than 150 contracts.
- Contractors are bidding 31% below Engineers estimated time and completing work ahead of schedule.

## A+B Bidding Results

- 133 projects completed “B” portion work.
- Original contract value = $ 2.2 billion
- 98 contracts awarded to low “A” portion bidder.
- 35 contracts awarded to a bidder with a higher “A” cost and shorter “B” duration.
- Added “A” cost of these 35 contracts is less than 1%.

## Time & User Cost Savings

- 133 projects completed “B” portion work.
- 114 earned incentives, total $ 57.6 million.(2.5% of orig. contract value)
- 10 completed on time, no incentive or disincentive.
- 9 assessed disincentive of $ 625,000.

## Time & User Cost Savings

- 133 projects completed “B” portion work.
- 42 % of B periods required time adjustments.
- $ 305 million estimated user cost savings.
- 23,000 construction days saved.

## Additional Information

- NYSDOT engineering instruction 99-033.
- Guidelines for use of time-related contract provisions.
- _[Http://www.dot.state.ny.us/cmb/consult/eib/files/ei99033.pdf](http://www.dot.state.ny.us/cmb/consult/eib/files/ei99033.pdf)__._