Working with private partners

Funding for a transportation system has been a dilemma for most states. On the one hand, construction and maintenance of infrastructure is increasingly expensive; on the other, citizens are concerned about the taxes already levied. Virginia’s business environment presents a scenario of flat revenues and uncertain federal funding levels.

As part of the solution, VDOT began focusing on public-private arrangements for building and maintaining the transportation system. The objective was to outsource traditional maintenance and operational tasks and partner with private firms in financing and constructing new transportation facilities. In that effort VDOT has established itself as a national leader in public-private partnerships and has aggressively pursued them.

Outsourcing is a continuing trend

Outsourcing has been used in various activities in recent years. For example, VDOT contracts with professional property management firms to care for all of the safety rest areas. Interstate maintenance is another example. In mid-February, VDOT continued its interstate outsourcing efforts by entering into new contracts to outsource 562 miles of interstate and primary road maintenance. Currently, 58 percent of VDOT’s interstate maintenance is outsourced. By 2009, all interstates in Virginia will be maintained by private firms.

Other outsourced areas include bridge draw-span operations, warehouse services for parts and expendable items, toll collections on the Coleman Bridge, mowing operations, construction project design services and pool vehicle administration.

“The majority of our construction and interstate maintenance work is now outsourced to private-sector partners,” notes Commissioner Ekern. “We manage their work, but they complete the day-to-day operations.”

Q. After working in the public and private sectors, what have you learned that makes you a better manager of contracts?

A. “First, you have to go beyond the contract specifications when dealing with a contractor and develop trust on both sides. Think of both the agency and the contractor working toward a common goal of providing a high level of service to the traveling public.”

Q. Which skills would you list as very important for a contract manager?

A. “If you are technically qualified and understand the contract, then next I would say communication skills are critical. Try to listen first and gather facts in your communications with the contractor. Also, you need to be fairly well organized: Have a method for keeping track of details and staying on top of things. Negotiation and dispute resolution skills are also important.”

- James Bryant, Ph.D., P.E., the Performance Improvement Program manager in the Asset Management Division, soon will leave VDOT for a position with the Transportation Research Board in the Strategic Highway Research Program 2. He has worked in contract management in both the public and private sectors—with VDOT and with contractors in Virginia, Oklahoma and the District of Columbia.

Innovative approaches through PPTA projects

The Public-Private Transportation Act (PPTA) of 1995 enables VDOT and other state agencies to authorize private entities to develop transportation facilities and sometimes to operate them as well. The PPTA is not for all projects – only for ones that provide an innovative method of construction or financing that can deliver a project to the public in a faster or less costly manner, or both.

Since the PPTA’s inception, VDOT and the Virginia Department of Rail and Public Transportation have entered into 11 PPTA agreements; five of the projects are complete. Potential PPTA projects include improving Interstate 81, building a new Route 460 east of Petersburg, improving the Midtown Tunnel between Norfolk and Portsmouth, and building Southeastern Parkway and Greenbelt in the Hampton Roads District.

Q. From an engineering standpoint, how does the management of a PPTA project differ from other projects?

A. “We are looking at it more from an end standpoint: At the end of the day, did the design-builder deliver the project they contracted for? So we’re not out there counting the tons of asphalt they deliver. We have no plan quantities to monitor. The contractor bears the primary responsibility for quality control. That doesn’t mean we don’t have any responsibility or oversight. We do follow-up and side-by-side testing, but with less frequency compared to a traditional project.”

“One advantage to this type of project is that design, right of way, utility relocations and construction can all be considered together, with the contractor at the table to help make decisions. This can often result in a more efficient and cost-effective project. Managing a project like this helps you to gain a broader understanding of the entire process. In the past, if you were working in one area, say construction, you might not ever deal directly with a right of way agent. Now you will.”

- Susan Shaw, P.E., has been project manager on Route 28 since the contract was signed in 2002. Before that she managed the Location and Design Section in Northern Virginia. Earlier, she was a consulting engineer in Northern Virginia on a variety of projects. She also was a Peace Corps volunteer in Thailand as a water resource engineer.

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Page last modified: Feb. 23, 2007