2018 NOCoE Performance-Based Contracting Peer Exchange Michigan - - PowerPoint PPT Presentation

2018 NOCoE

Performance-Based Contracting Peer Exchange

Michigan Department of Transportation ITS Performance Measure Contracts

Presenting

Jason Bodell P.E., PTOE, STOC Operations Engineer, MDOT Sarah Gill, SEMTOC Operations Engineer, MDOT Paul Arends, P.E., Senior ITS / Traffic Engineer, AECOM Mike Lucas, FCP Project Manager, ERR

Agenda

• Current contracts
• DOT view
• Consultant view
• Other performance based contracts
• Future TOC and FCP contracts

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4

Current TOC Contacts

• Statewide TOC

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Current TOC Contacts

• Southeast Michigan TOC

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Comparison of Requirements

• Similarities

– No Contract Prequalification Requirements – On Call Manager or Supervisor – Training Standards and Responsibilities – Defined Quality Control Standards – SOP and Guidance Documents – Minimum Requirements for Staffing Control Room – Minimum Requirements for Position Experience and Responsibilities

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Comparison of Requirements

• Statewide TOC

– ATM / US-23 Flex Route

• Scheduled Peak Hour Timeframes
• Flexible for Special Events / Maintenance

– Communication / Collaboration with WMTOC – Performance Reporting

• Monthly and Annually
• Incident Information Logged to Support TIM Team
• Support / Reporting other MDOT Business Areas

– Support Personnel Utilized Only if Approved by MDOT

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Comparison of Requirements

• Southeast Michigan TOC

– Security Background Checks – Staffing Requirements

• Licensed Engineer as Key Team Member
• Mobility Coordinator
• Transportation Engineer
• Data Analyst

– Sample Media Clips for Quality Insurance – Performance Requirements

• Monthly Reporting

– High Impact Incidents to Correct Signs: 95% – Send Messages for Incidents within 5 min: 90% – Post Incidents to MiDrive: 85% – Errors on DMS & MiDrive: No more than 4 per Month

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FCP

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FCP

• Incentive / Disincentive

– Assists ≥ 2,600 – Tows ≥ 100 – Stops ≥ 900 – Number of complaints ≤ 1 per month on average – Response time < 13 minutes on average – Patrolling route > 15 minutes more than twice in a month

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FCP Current Challenges

• Data
• Demand
• Call in
• Easily tracked

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TOCs Current Challenges

• Data
• Manual
• Audience
• Focus

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FCP

Incentive / Disincentive

– Assists ≥ 2,600 – Tows ≥ 100 – Stops ≥ 900 – Complaints ≤ 1 per month

• n average

– Response time < 13 minutes – Patrolling route > 15 minutes

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FCP

• Vehicle maintenance
• # of assists per driver per shift
• Gas use
• Miles driven

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MDOT TOC Contracts

• Three Statewide

– West Michigan – STOC – SEMTOC / BWB

• Variations

– Coverage area, traffic volumes, device density, staffing levels, etc.

• Similar scopes

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MDOT TOC Contracts

• Similarities

– Focus on communication, coordination – Require experience, training, QA/QC, documentation, minimum staffing levels – Support other MDOT Business Areas – Encourage innovation, advancement – Intent

“To Provide the Highest Quality Integrated Transportation Services for Economic Benefit and Improved Quality of Life”

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MDOT TOC Contracts

• Small Differences @ SEMTOC

– Staffing/positions – Performance requirements

• Seven built into the contract

– with targets

• Focused on speed and accuracy
• No incentive / disincentive
• Monthly audits /reports

– ensure compliance

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MDOT TOC Contracts

• Audits – Pass

– No incentives – Continue delivering quality services – Continue to investigate efficiencies and improvements

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MDOT TOC Contracts

• Audits – Fail

– No disincentives or penalties

• Contract allows for termination

– Report to MDOT – Investigate root cause, together

• System error, operator issue, etc.

– Collaborate on solution – Initiate plan – Continue to mentor/monitor/improve, togther – Intent

“To Provide the Highest Quality Integrated Transportation Services for Economic Benefit and Improved Quality of Life”

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TOC Contract Considerations

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Top 10 Considerations for Performance-based contracts

10) Conduct a partnering session at the beginning of the contract to provide a clear understanding of expectations

• Start off on the right foot
• Avoids adversarial relationships

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Top 10 Considerations for Performance-based contracts

9) Caps should be established on incentives and disincentives to limit risk/reward for both parties

• Excessive I/D could deter focus from the

mission and cripple operations

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Top 10 Considerations for Performance-based contracts

8) Data streams and analysis to support performance measures should be automated to the extent feasible

• Reduces analysis time spent by DOT / Consultant
• Consistent
• Repeatable
• Un-biased

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Top 10 Considerations for Performance-based contracts

7) Ensure that the performance measures are well defined and measurable to avoid ambiguity

• Focus on measures within the TOC’s control

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Top 10 Considerations for Performance-based contracts

6) Avoid unreasonable penalties where high risk contingencies are priced as part of contractors’ bids

• Increases the overall cost of the contract
• Erodes operational intent

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Top 10 Considerations for Performance-based contracts

5) Balance incentives and disincentives to make it a win-win situation for both the client and contractor

• Consider establishing Key Performance Indicators

(KPI’s)

• Not to measure contractor
• Share with stakeholders to confirm roadway

performance and help identify new operational strategies

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Top 10 Considerations for Performance-based contracts

4) Post real-time performance measures on control room video wall

• Visual representation to client and

contractor of current performance status

• Serves as a training and motivation tool

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Top 10 Considerations for Performance-based contracts

3) Contractor to establish a mechanism to share net rewards with operations staff

• Operators invested in outcomes of their

actions

• Improving operations, getting rewarded

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Top 10 Considerations for Performance-based contracts

2) Performance measurement / auditing should not place an undue burden on the client or contractor

• Consider staff time dedicated to audits vs.
• ther operational duties

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Top 10 Considerations for Performance-based contracts

1) Don’t forget the intent!

• We’re all on the same team.
• To provide the highest quality integrated

transportation services for economic benefit and improved quality of life.

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The Future Contracts

• All incidents
• Mobility
• Output vs Outcome
• Data
• Automation

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The Future Contracts

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Q & A

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