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TRANSPORTAT ION RESEARCH BOARD WASHINGTON, D.C. 2009 www.TRB.org T R A N S I T C O O P E R A T I V E R E S E A R C H P R O G R A M TCRP REPORT 131 Research sponsored by the Federal Transit Administration in cooperation with the Transit Development Corporation Subject Areas Public Transit A Guidebook for the Evaluation of Project Delivery Methods Ali Touran NORTHEASTERN UNIVERSITY Boston, MA Douglas D. Gransberg UNIVERSITY OF OKLAHOMA Norman, OK Keith R. Molenaar University of Colorado Boulder, CO Kamran Ghavamifar NORTHEASTERN UNIVERSITY Boston, MA D. J. Mason KEVILLE ENTERPRISES Marshfield, MA Lee A. Fithian FITHIAN ARCHITECTS Norman, OK
TCRP REPORT 131 Project G-8 ISSN 1073-4872 ISBN: 978-0-309-11779-1 Library of Congress Control Number 2009903118 Â© 2009 Transportation Research Board COPYRIGHT PERMISSION Authors herein are responsible for the authenticity of their materials and for obtaining written permissions from publishers or persons who own the copyright to any previously published or copyrighted material used herein. Cooperative Research Programs (CRP) grants permission to reproduce material in this publication for classroom and not-for-profit purposes. Permission is given with the understanding that none of the material will be used to imply TRB, AASHTO, FAA, FHWA, FMCSA, FTA, or Transit Development Corporation endorsement of a particular product, method, or practice. It is expected that those reproducing the material in this document for educational and not-for-profit uses will give appropriate acknowledgment of the source of any reprinted or reproduced material. For other uses of the material, request permission from CRP. NOTICE The project that is the subject of this report was a part of the Transit Cooperative Research Program conducted by the Transportation Research Board with the approval of the Governing Board of the National Research Council. Such approval reflects the Governing Boardâs judgment that the project concerned is appropriate with respect to both the purposes and resources of the National Research Council. The members of the technical advisory panel selected to monitor this project and to review this report were chosen for recognized scholarly competence and with due consideration for the balance of disciplines appropriate to the project. The opinions and conclusions expressed or implied are those of the research agency that performed the research, and while they have been accepted as appropriate by the technical panel, they are not necessarily those of the Transportation Research Board, the National Research Council, the Transit Development Corporation, or the Federal Transit Administration of the U.S. Department of Transportation. Each report is reviewed and accepted for publication by the technical panel according to procedures established and monitored by the Transportation Research Board Executive Committee and the Governing Board of the National Research Council. The Transportation Research Board of the National Academies, the National Research Council, the Transit Development Corporation, and the Federal Transit Administration (sponsor of the Transit Cooperative Research Program) do not endorse products or manufacturers. Trade or manufacturersâ names appear herein solely because they are considered essential to the clarity and completeness of the project reporting. TRANSIT COOPERATIVE RESEARCH PROGRAM The nationâs growth and the need to meet mobility, environmental, and energy objectives place demands on public transit systems. Current systems, some of which are old and in need of upgrading, must expand service area, increase service frequency, and improve efficiency to serve these demands. Research is necessary to solve operating problems, to adapt appropriate new technologies from other industries, and to intro- duce innovations into the transit industry. The Transit Cooperative Research Program (TCRP) serves as one of the principal means by which the transit industry can develop innovative near-term solutions to meet demands placed on it. The need for TCRP was originally identified in TRB Special Report 213âResearch for Public Transit: New Directions, published in 1987 and based on a study sponsored by the Urban Mass Transportation Administrationânow the Federal Transit Administration (FTA). A report by the American Public Transportation Association (APTA), Transportation 2000, also recognized the need for local, problem- solving research. TCRP, modeled after the longstanding and success- ful National Cooperative Highway Research Program, undertakes research and other technical activities in response to the needs of tran- sit service providers. The scope of TCRP includes a variety of transit research fields including planning, service configuration, equipment, facilities, operations, human resources, maintenance, policy, and administrative practices. TCRP was established under FTA sponsorship in July 1992. Pro- posed by the U.S. Department of Transportation, TCRP was autho- rized as part of the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA). On May 13, 1992, a memorandum agreement out- lining TCRP operating procedures was executed by the three cooper- ating organizations: FTA, the National Academies, acting through the Transportation Research Board (TRB); and the Transit Development Corporation, Inc. (TDC), a nonprofit educational and research orga- nization established by APTA. TDC is responsible for forming the independent governing board, designated as the TCRP Oversight and Project Selection (TOPS) Committee. Research problem statements for TCRP are solicited periodically but may be submitted to TRB by anyone at any time. It is the responsibility of the TOPS Committee to formulate the research program by identi- fying the highest priority projects. As part of the evaluation, the TOPS Committee defines funding levels and expected products. Once selected, each project is assigned to an expert panel, appointed by the Transportation Research Board. The panels prepare project state- ments (requests for proposals), select contractors, and provide techni- cal guidance and counsel throughout the life of the project. The process for developing research problem statements and selecting research agencies has been used by TRB in managing cooperative research pro- grams since 1962. As in other TRB activities, TCRP project panels serve voluntarily without compensation. Because research cannot have the desired impact if products fail to reach the intended audience, special emphasis is placed on dissemi- nating TCRP results to the intended end users of the research: tran- sit agencies, service providers, and suppliers. TRB provides a series of research reports, syntheses of transit practice, and other support- ing material developed by TCRP research. APTA will arrange for workshops, training aids, field visits, and other activities to ensure that results are implemented by urban and rural transit industry practitioners. The TCRP provides a forum where transit agencies can cooperatively address common operational problems. The TCRP results support and complement other ongoing transit research and training programs. Published reports of the TRANSIT COOPERATIVE RESEARCH PROGRAM are available from: Transportation Research Board Business Office 500 Fifth Street, NW Washington, DC 20001 and can be ordered through the Internet at http://www.national-academies.org/trb/bookstore Printed in the United States of America
CRP STAFF FOR TCRP REPORT 131 Christopher W. Jenks, Director, Cooperative Research Programs Crawford F. Jencks, Deputy Director, Cooperative Research Programs Gwen Chisholm Smith, Senior Program Officer Eileen P. Delaney, Director of Publications Ellen M. Chafee, Editor TCRP PROJECT G-8 PANEL Field of Administration Robert I. Brownstein, AECOM Consult, Inc., New York, NY (Chair) Joan Berry, EJM Engineering, Inc., Chicago, IL Peter A. Cannito, Armonk, NY Lee L. Davis, Lee L. Davis & Associates, Oakland, CA Sergio Gonzalez, University of Puerto RicoâMayaguez, San Juan, PR Rick Smith, Washington State DOT, Seattle, WA Robin C. Stevens, Robin Stevens Consulting, Ltd., New York, NY Mukhtar Thakur, Minnesota DOT, St. Paul, MN John Walewski, Texas A&M University, College Station, TX Joel R. Washington, Washington Metropolitan Area Transit Authority, Washington, DC Susan Herre, FTA Liaison Venkat Pindiprolu, FTA Liaison James P. LaRusch, Other Liaison Frederick Hejl, TRB Liaison AUTHOR ACKNOWLEDGMENTS The research herein was performed under TCRP Project G-8 by a team consisting of Northeastern Uni- versity, the University of Oklahoma, and the University of Colorado. Northeastern University was the contractor for this study. Dr. Ali Touran, Associate Professor of Civil and Environmental Engineering at Northeastern University, was the Project Director and the Principal Investigator. Dr. Douglas D. Grans- berg, Professor in the Construction Science Division, University of Oklahoma, and Dr. Keith R. Molenaar, Associate Professor of Civil Engineering, University of Colorado at Boulder, were co-Principal Investiga- tors. D. J. Mason of Keville Enterprises and Lee A. Fithian of Fithian Architects were consultants. Kamran Ghavamifar of Northeastern University was a Research Assistant. C O O P E R A T I V E R E S E A R C H P R O G R A M S
TCRP Report 131: A Guidebook for the Evaluation of Project Delivery Methods describes various project delivery methods for major transit capital projects. This guidebook also includes an evaluation of the impacts, advantages, and disadvantages of including opera- tions and maintenance as a component of a contract for a project delivery method. The proj- ect delivery methods discussed are design-bid-build (DBB), construction manager at risk (CMR), design-build (DB), and design-build-operate-maintain (DBOM). The guidebook offers a three-tiered project delivery selection framework that may be used by owners of transit projects to evaluate the pros and cons of each delivery method and select the most appropriate method for their project. Tier 1 is a qualitative approach that allows the user to document the advantages and disadvantages of each competing delivery method. The user can then review the results of this analysis and select the best delivery method. If, at the con- clusion of this analysis, a clear option does not emerge, the user then moves on to Tier 2. Tier 2 is a weighted-matrix approach that allows the user to quantify the effectiveness of competing delivery methods and select the approach that receives the highest score. The third tier uses principles of risk analysis to evaluate delivery methods. The selection frame- work may also be useful as a means to document the decision in the form of a Project Deliv- ery Decision Report. The guidebook will be helpful to transit general managers, policy- makers, procurement officers, planners, and consultants in evaluating and selecting the appropriate project delivery method for major transit capital projects. Developers of major public and private projects in the United States and elsewhere are using a variety of project delivery methods to complete those projects. In the United States, transit projects have been traditionally carried out through a design-bid-build process. There is considerable interest on the part of transportation agencies in alternative forms of project delivery and their potential benefits. However, a comprehensive discussion of the advantages and disadvantages of these methods in the context of the U. S. transit environ- ment has been lacking. The objective of TCRP Project G-08 was to develop a guidebook to help transit agencies evaluate and select the most appropriate project delivery method for major capital projects and evaluate the advantages and disadvantages of including operations and maintenance as a component of a contract for the project delivery system. To accomplish the project objec- tive, Northeastern University, in association with the University of Oklahoma, the Univer- sity of Colorado, Keville Enterprises, and Fithian Architects, described and critiqued perti- nent issues related to each project delivery method in terms of its application to transit in the United States. The research team also identified agencies, suppliers, and individuals with experience in using the various project delivery and contracting methods and conducted in- F O R E W O R D By Gwen Chisholm Smith Staff Officer Transportation Research Board
depth interviews with those entities to gather lessons learned. In addition, the research team described and critiqued pertinent issues related to contracting out operations and mainte- nance with new construction projects. The research team included a discussion of the impacts, advantages, and disadvantages of including operations and maintenance in the project delivery contract in the guidebook. Finally, the researchers developed a decision matrix to guide decision makers in selecting the most appropriate project delivery and con- tracting method(s) in various transit environments. A companion publication to this report, TCRP Web Document 41: Evaluation of Project Delivery Methods, reviews pertinent literature and research findings related to various project delivery methods for transit projects. It contains definitions of project delivery methods and discusses the existing selection approaches commonly used by transit agencies. TCRP Web Document 41 may found on the TRB website at http://trb.org/news/blurb_detail.asp?id=9886.
1 Summary 4 Chapter 1 Overview 4 Introduction and Purpose 4 Selection System Framework 6 Organization of the Guidebook 8 Chapter 2 Background and Definitions 8 Distinguishing Characteristics of Transit Projects 9 Evolution of Current Alternative Delivery Methods in Transit Projects 10 Definitions of the Delivery Methods 15 Statutory Authorization of Delivery Methods in Various States 16 Existing Selection Approaches for Project Delivery Methods 18 Timing of Project Delivery Method Selection 19 Chapter 3 Advantages/Disadvantages of Each Project Delivery Method 19 Introduction 19 Project-Level Issues 25 Agency-Level Issues 31 Public Policy/Regulatory Issues 35 Lifecycle Issues 38 Other Issues 40 Conclusion 41 Chapter 4 Tier 1âAnalytical Delivery Decision Approach 41 Introduction 43 Step 1. Create Project Description 45 Step 2. Define Project Goals 46 Step 3. Review Go/No-Go Decision Points 50 Step 4. Review Project Delivery Method Advantages and Disadvantages 75 Step 5. Choose the Most Appropriate Project Delivery Method 75 Step 6. Document Results 77 Conclusion 78 Chapter 5 Tier 2âWeighted-Matrix Delivery Decision Approach 78 Introduction 80 Step 1. Define Selection Factors 81 Step 2. Weight Selection Factors 82 Step 3. Score Project Delivery Methods C O N T E N T S
85 Step 4. Choose the Most Appropriate Project Delivery Method 85 Step 5. Document Results 86 Conclusion 87 Chapter 6 Tier 3âOptimal Risk-Based Approach 87 Introduction 88 Qualitative Analysis 90 Quantitative Analysis 92 Conclusion 93 Chapter 7 Summary 95 Appendix A References 99 Appendix B Definitions 101 Appendices C through H