Texas Department of Transportation, Right of Way Division May 2, 2016

PEPS DIVISIONMarch 2018

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PEPS Trivia

???

10 Number of invoices processed annually

$70 Billion Number of WA executed annually

>1,600 Number of contracts executed annually

$7 Billion Number of PEPS Employees

120 UTP Authority

>350 Annual procurement for FY18

$1.4 Billion Annual Letting Authority

>12,000 Texas ranking in the world economy

Professional Engineering Procurement Services represents the consolidated procurement

organization supporting engineering, architectural and surveying contracts

MissionWork with our TxDOT customers and external partners to procure the most qualified consultants to deliver effective solutions for Texas

GoalsDeliver the right projects; Focus on the Customer; Foster Stewardship; Optimize System Performance; Preserve our Assets; Promote Safety, and Value our Employees

ValuesPeople, Accountability, Trust, Honesty

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Mission

PEPS - Functional Organization

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Austin SCMCharles Davidson, PE

512-832-7315

San Antonio SCMLarry Wenger, PE

210-615-5971

Houston SCMGail Morea, PE

713-802-5795

PEPS Division DirectorMartin Rodin, PE

Business Operations

Roy Gonzales512-416-2034

Central SCMJaime Vela, PE

512-416-2007

Dallas SCMJoe Jancuska, PE

214-320-6187

Ft. Worth SCMNorma Glasscock, PE

817-370-3675

Center of Excellence Dan Neal, PE

512-416-2667

Deputy DirectorLucio Vasquez, PE

512-416-2039

El Paso SCMEfrain Esparza, PE

915-790-4313

FTE Allocation: 120

SCM for DivisionsKori Rodriguez, PE

512-416-2268

Executive AssistantKristina Kottke

512-416-2037

512-416-2038

PEPS - Leadership Organization

Division Director – Martin L. Rodin

Deputy Division Director – Lucio Vasquez

Center of Excellence – Dan Neal

Business Operations Center – Roy Gonzales

Fort Worth Service Center – Norma Glasscock

Austin Service Center – Charles Davidson

Dallas Service Center – Joseph Jancuska

Houston Service Center – Gail Morea

San Antonio Service Center – Larry Wenger

El Paso Service Center – Efrain Esparza

Central Service Center – Jaime Vela Jr.

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Service Center for Divisions – Kori Rodriguez

Annual Letting

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Billi

ons

Baseline Additional MAP-21 Proposition 7

Prop 7 significantly increases TxDOT Letting Volume

$4.3 Billion Average Letting (FY 2012 – 2016)

$6.5 Billion Average Letting (FY 2017 – 2025)

Annual Procurement

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NOTE: FY 19 to FY 20 are projections only.

Typical Procurement Year

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Architecture $6,000,000Bridge Inspection $52,000,000Bridge On/Off Replacement $9,000,000

Construction, Engineering, Inspection (CEI) $300,000,000

Critical Path Method Scheduling (CPM) $6,000,000Engineering $1,000,000General Engineering Consultant (GEC) $40,000,000Geotechnical $19,000,000Hydraulic $18,000,000Other (describe in Comments) $16,000,000Planning $17,000,000Plans, Specifications and Estimates (PS&E) $400,000,000Procurement Engineering (PcE) $20,000,000Schematic $25,000,000Schematic / Environmental $200,000,000

Schematic/Environmental/PS&E $45,000,000Survey $60,000,000Traffic Engineering $16,000,000Traffic Signal Timing $5,000,000Utility Engineering $12,000,000Materials Engineering $12,000,000Facilities Engineering $6,500,000Independent Engineer (IE) $20,000,000Traffic & Revenue (T&R) $5,000,000Grand Total $1,310,500,000

Three categories makeup 70% of the annualprocurement.$900 Million annually• CEI• PS&E• Schematic/ENV

Getting Started

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HOW DO I

GET STA

RTED?

How do I get started?

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ü Be registered as a business with the State of Texas http://comptroller.texas.gov

ü Be registered as engineering firm with the Texas PE Boardhttp://engineers.texas.gov

ü Obtain precertification with TxDOT http://www.txdot.gov/business/consultants/architectural-engineering-surveying/getting-started/precertification.html

ü Become administratively qualified with TxDOT http://www.txdot.gov/business/consultants/architectural-engineering-surveying/getting-started/administrative-qualification.html

ü Check the TxDOT webpage for listing of projected contracts and pre-RFQ meetings

http://ftp.dot.state.tx.us/pub/txdot-info/des/cco/professional_services/projected_contracts.pdf

ü Submit your qualifications

Getting Started

Procurement Tips

§ Check that all mandatory forms are in your package

§ Keep alert to amendments

§ Ask questions when you have the opportunity

§ Showcase your Project Manager and task leaders

§ Focus on providing challenges, solutions and lessons learned

§ Present innovative ideas or alternatives

§ Be clear, concise and technical

§ Use space wisely, it is not for marketing

§ QA/QC the Statement of Qualifications

§ Use your best examples

§ Check your Non Listed Category (NLC) experience requirements

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Procurement Process

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§ Automated Admin Qualifications and Precertifications

§ Immediate Disqualification notification

§ Over 50 new precertifications in FY 2018

§ Better mix of Indefinite and Specific Deliverable contracts

§ General Engineering contracts are Specific Deliverable

§ Q&R focus on team experience without TxDOT references

§ Project manager and task leader replacement

§ Electronic Statement of Qualification submittal

§ Removing Statement of Qualifications from Federal

§ Automating NLC experience check

Debrief Process

§ Debriefs happening sooner

§ On ID contracts as soon as selections are announced

§ On SD contracts as soon as short list is announced

§ Group debriefs being offered

§ Individual debriefs still provided

§ Meaningful debriefs of 1 hour or more

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October 11, 2017“Hi Harry,I would like to thank you for a great de-briefing. I have learned a lot of what TxDOT is looking for when soliciting a project specific proposal. While every project will have different criteria in the future, I believe I’ve got some idea on how to improve our submittals.”

August 17, 2017“Chris,I’ve been the PM on Dallas Survey contracts for almost 30 years and today’s debrief was the most comprehensive and informative I have ever received. Thank all of you very much. Well done!”

Negotiation Process

§ Consultants fill out initial rate card

§ Indicate if previous similar rates recently negotiated

§ PEPS has expanded the range of the Negotiations Rate Tool

§ Recommend proceeding to live negotiation after two rounds

§ No more 24 hour gauntlets

§ Added an appeal procedure in the process for TxDOT to be able to walk away from contract negotiation

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Sent: Thursday, January 25, 2018 9:26 AMTo: Shirin HelmiSubject: contract negotiation summary

Shirin,

I wanted to send you an email summarizing my experience on the recent contract negotiations for contract 36-7IDP5075. I thought the overall process was a lot smoother and easier than the previous indefinite deliverable contract I negotiated.

Thank you and I look forward to working together in the future.

Sent: Tuesday, October 17, 2017 9:12 PMTo: Martin RodinSubject: Fwd: Positive PEPS Negotiation Experience.

Martin,

Since we are quick to come to you with complaints, I wanted to pass along positive feedback from our team in a recent contract negotiation involving Phillip Howlett in PEPS.

The team felt that they were treated fairly and with respect while working thru the contract details with Phillip and that the result was achieved with a minimum of extra time and energy.

Thank you for your efforts to improve the effectiveness and efficiency of these discussions.

Work Authorization Execution

§ PEPS to be enablers of DE/DD in executing project portfolios

§ New WA metric of 50 days total

§ Weekly staff meeting in PEPS with all Service Center Managers

§ Monthly work authorization report to Senior Leadership

§ Shared review/checklist with CSD

§ Enforcing HUB and DBE goal at work authorization

§ Reporting on fee as a percent of construction cost

§ Reduced holdout for contingencies

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Invoice Process – Prompt Payment

§ Number of invoices has doubled in last 3 years

§ Payment of invoices is required within 30 days or we must pay interest

§ Payments on time have increased from 88% on time to 99% on time over the last three years

§ Best practices memo from Bill Hale regarding allowable reductions of less than 1% in lieu of invoice rejection

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Evaluation Process – Sunset and PSCAMS Update

§ Percentage of completed evaluations increasing

§ Rolling out new evaluation system in PSCAMS

§ Tracking evaluations per Sunset guidelines

§ Monthly progress report going out to all DE/DD

§ District and Division approval built into new evaluation process

§ Appeal procedure through PEPS Division Director in new evaluation process

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PEPS Precertification – New Categories

Start applying for these in March 2018.New precertifications will start being used in September 2018.

CEI - Preclusion Process

§ Non-design subs are allowed to proceed from PS&E to CEI

§ TTI performed nation-wide study of best CEI practices

§ Preparing an executive report with recommendations

§ Proposed sanctions and required training

§ Needs commission approval

§ Ultimately rely less on preclusion as our mitigating tool

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CEI – Lessons Learned

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• Every CEI contract requires a dedicated TxDOT Project Manager

• District leadership must be involved in effective CEI management

• CEI contracts may be procured for individual district use or regional district use but not for statewide use

• CEI should be negotiated as specified rate and never as lump sum

• Notice To Proceed (NTP) should be based upon contract execution

• CEI requires engineering and can’t be used for stand-alone inspectors

• CEI services can’t be added to a contract after the fact

• Per diem should be negotiated for federal contracts

• Currently all CEI and bridge PS&E solicitations are federal

• Resolution process for construction issues should include the CEI firm

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IS IT WORKING?

• Initial screening is faster• Disqualifications are down• DQ notice is immediate• Debriefs are getting better• Debriefs are starting earlier• Negotiations are improving• WA are monitored weekly• WA are executed sooner• Invoices paid sooner and better• Contracts shared across SCM• Feedback openly requested