PEPS DIVISION Quarterly Update - APRIL 2019 PEPS Mission Goals - - - PowerPoint PPT Presentation

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PEPS DIVISION Quarterly Update - APRIL 2019 PEPS Mission Goals - - - PowerPoint PPT Presentation

Jul 14, 2023 220 likes •448 views

PEPS DIVISION Quarterly Update - APRIL 2019 PEPS Mission Goals - Values Mission sion Work with our TxDOT customers and external partners to procure the most qualified consultants to deliver effective solutions for Texas Goals Deliver

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PEPS DIVISION

Quarterly Update - APRIL 2019

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SLIDE 2

CONFIDENTIAL DRAFT

Profess ssion ional al Engine neering ering Procuremen ement t Services ces represents the consolidated procurement

  • rganization supporting engineering, architectural

and surveying contracts Mission sion

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

Goals

Deliver the right projects Focus on the Customer Foster Stewardship Optimize System Performance Preserve our Assets Promote Safety Value our Employees

Values es

People, Accountability, Trust, Honesty

2

PEPS Mission – Goals - Values

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SLIDE 3

PEPS - Then and Now

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The primary reason PEPS was created was to provide…

CUS USTOMER OMER SER ERVICE VICE

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SLIDE 4

PEPS Organization

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Austin SCM Charles Davidson, PE 512-832-7315 San Antonio SCM Larry Wenger, PE 210-615-5971 Houston SCM Gail Morea, PE 713-802-5795 PEPS Divis vision ion Direct ector

  • r

Martin in Rodin, n, PE PE 512-416-2038 Business Operations Roy Gonzales 512-416-2034 Urban District SCM Jaime Vela, PE 512-416-2007 Dallas SCM Joe Jancuska, PE 214-320-6187

  • Ft. Worth SCM

Norma Glasscock, PE 817-370-3675 Center of Excellence Dan Neal, PE 512-416-2667 Deputy Director Lucio Vasquez, PE 512-416-2039 El Paso SCM Jaime Perales, PE 915-790-4313

FTE Allocation: 122

Executive Assistant Kristina Kottke 512-416-2037 SCM for Divisions Kori Rodriguez, PE 512-416-2268 Invoice Center Tira Dobrozensky 512-317-8511 Rural District SCM Lynn Daniel 940-937-7281 Controls Center Dione Albert 512-416-2003

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SLIDE 5

PEPS Service Centers

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Austin SC – Charles Davidson Dallas SC – Joe Jancuska El Paso SC – Jaime Perales Fort Worth SC – Norma Glasscock Houston SC – Gail Morea San Antonio SC – Larry Wenger SC for Divisions – Kori Rodriguez Rural Districts SC – Lynn Daniel Urban Districts SC – Jaime Vela

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SLIDE 6

PEPS - Then and Now

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THEN – 2015

  • No. of PEPS Employees

69 FTE TxDOT Annual Letting $3-$4 Billion Procurement Amount $795 M

  • No. of Contracts

200 EA

  • No. of Work Authorizations

700 EA

  • No. of Late WA

139 EA

  • No. of Invoices

4,000 EA % of Invoices Paid On Time 86%

NOW – 2019

  • No. of PEPS Employees

122 FTE TxDOT Annual Letting $8-$10 Billion Procurement Amount $1.6 Billion

  • No. of Contracts

350 EA

  • No. of Work Authorizations

1,700 EA Number of Late WA 63 EA

  • No. of Invoices

13,000 EA % of Invoices Paid On Time 94%

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SLIDE 7

TxDOT Annual Letting

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  • 1

2 3 4 5 6 7 8 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Billion ions

Baseline Additional MAP-21 Proposition 7

Prop 7 significantly increases TxDOT Letting Volume

$4.3 .3 Billion lion Aver verage age Letti ting ng (FY 2012 – 2016) $6.5 .5 Billion lion Aver verage age Letting ting (FY 2017 7 – 202 025)

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SLIDE 8

PEPS Annual Procurement

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$200,000,000 $400,000,000 $600,000,000 $800,000,000 $1,000,000,000 $1,200,000,000 $1,400,000,000 $1,600,000,000 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

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SLIDE 9

FY2019 Procurement Year

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How do I get started?  Be regist istered ered as a business iness with h the Stat ate e of Texas xas

http://comptroller.texas.gov

 Be regist istered ered as enginee ineering ring firm m with th the Texas xas PE E Board

http://engineers.texas.gov

 Obtain ain precer erti tific icat ation n with h TxDO DOT T

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

 Become

  • me adminis

inistr trat ativ ively ely qualif ified ied with h TxDOT T

http://www.txdot.gov/business/consultants/architectural-engineering-surveying/getting- started/administrative-qualification.html

 Check k the TxDO DOT T webpage ge for listing sting of proje ject cted d cont ntra racts cts and nd pre-RF RFQ Q meetings tings

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

 Submi mit t your qualif lific ication ations s

Get etti ting ng Started ed

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Procurement Tips

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Don’t Get Disqualif ualifie ied d

Submit on time Check your forms and QA/QC your work Keep alert to amendments Use your best examples Ask questions Showcase your PM and TL Focus on challenges and solutions Be clear, concise, and technical Don’t use the space for marketing Ask for a debrief

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SLIDE 12

Negotiations

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  • Consultants fill out

initial rate card

  • Indicate if similar

rates negotiated

  • Expanded range of

the Rate Tool

  • Proceeding to live

after two rounds

  • No more 24-hour

gauntlets

  • Added an appeal

procedure

  • Service Center

manager review and approval

  • Salary Survey data

being collected

  • Discussing annual

rate negotiations

  • Providing more DBE

and HUB

  • pportunities
  • Procuring more

Federal contracts

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SLIDE 13

PEPS Division – Four Proposed Rule Changes

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TAC 9.34 - Propose sed d Revisions sions

  • 90

90 Day Extensio sion n of Administ ministrat rativ ive Qu Qualif ificatio ications ns (AQ) Q) Rate

  • Negoti
  • tiatio

ation n of Annual ual Labor Rates

  • Approved

d Ov Overh rhead ad Rate Implement emented d at Time of Negoti

  • tiatio

ations ns

  • Bonus

us Policy Requir irements ments

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What:

  • 90 day extension of Administrative Qualifications (firm overhead) rate

Why:

  • PEPS Division audits over 300 firm overhead rates annually
  • Over 200 reports come in for review on or around June 30th annually
  • Firms are disqualified if their overhead rate is not audited and renewed
  • Provides streamlining and more flexibility in executing contracts during the

annual renewal period

  • Promotes increased consistency and efficiency in PEPS operations
  • Improves competition by not disqualifying firms during the next wave

How:

  • Allow an extension of overhead rate up to 90 days with PEPS approval
  • Must have a approved overhead rate currently in place
  • Must have an overhead audit renewal report already submitted for review

PEPS Division – Four Proposed Rule Changes

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What:

  • Approved overhead rate implemented at time of negotiations

Why:

  • Confusion exists currently on which overhead rate is used during labor rate

negotiations

  • Federal rules require using approved overhead rate in place at start of

negotiations

  • Provides clarity to PEPS policy

How:

  • Issuance of the pre-negotiations report by PEPS is the trigger for the firm
  • verhead rate to be used
  • That overhead rate will then apply and be used throughout all contract

negotiations

PEPS Division – Four Proposed Rule Changes

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What:

  • Negotiation of Annual Labor Rates

Why:

  • In FY18, PEPS executed 304 contracts but negotiated 2,006 times
  • Negotiations may take up to 110 hours per contract (14 days)
  • Annual negotiations could be done in 24 to 40 hours (3 to 5 days)
  • Annual negotiations could provide a time savings of 50% or more
  • Annual negotiations could provide cost savings of $1.36 million yearly
  • Provides streamlining, increased consistency and efficiency in operations

How:

  • Ask firms to submit rates annually to establish the industry norms
  • Protect the confidentiality of the annual employee rate information
  • Establish a single Negotiations group within PEPS for consistency
  • Work with industry to define processes for rollout in FY2020
  • Allow for rate negotiations on case by case basis during implementation

PEPS Division – Four Proposed Rule Changes

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What:

  • Defining bonus policy requirements

Why:

  • Bonus compensation is an allowable cost to be used in the annual overhead

audit allowed by Federal Acquisition Regulations (FAR)

  • Considerations for allowing bonuses are also contained in the AASHTO Audit

Guide

  • Current TxDOT policy is not clear concerning bonus conformance
  • Provides clarity to PEPS policy

How:

  • Require that written bonus plan be in place and follow AASHTO Audit Guide
  • Clarify that bonuses are allowable, provided a written bonus plan or

documented performance review is followed

PEPS Division – Four Proposed Rule Changes

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Proposed Specific Discipline Engineering Contracts

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PEPS Division will procure seven ID contract disciplines that have traditionally been procured as elements in PS&E contracts. This provides: (1) flexibility to Districts needing discrete elements of work to be outsourced on an in- house designed project (2) more discipline specific procurement opportunities PEPS Division will procure the following ID discipline specific contracts starting in FY 2019 Waves 2, 3 and 4:

  • Bridge Design
  • Roadway Design
  • Complex Geotechnical
  • Pavement Design
  • Complex Traffic Control
  • Drainage
  • Signing, Pavement Markings and Signalization
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SLIDE 19

More Federal Contracts

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  • Starti

ting ng with h FY 2019 9 Wave e 2, PEP EPS Division ion will enco coura urage ge Distri rict ct and d Divisi sion

  • n cus

ustom

  • mers

s to us use Fede ederal al Procure ureme ment nt Process cess for all SCH/ENV /ENV, , PS&E E and CEI EI going ng forward. d.

  • New Federal Process requires consultant proposal for review rather than

statement of qualifications

  • New Federal Process has with interview and without interview options
  • Even though we procure using Federal Process, this does not mean that all

contracts will have Federal funds associated with them

  • Routine procurements for contracts such as Survey, SUE, Geotechnical and

Materials Testing can still be State Procurement Process

  • District or Division customers can always request exception to Federal

Process procurement for individual contracts

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CONFIDENTIAL DRAFT

Work Authorizations and Expenditures

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  • Be enablers

s of DE/DD in executi ting ng project ct portf tfolios

  • s
  • New WA m

met etri ric c of 50 days tot

  • tal – 13

13th

th Month!

h!

  • Weekly

y staff f meet etings ngs

  • Monthl

thly y work rk autho horiz rizati tion n report t

  • Share

red d review/ch w/checkl cklist t with th CSD

  • Reduce

ced d holdout

  • ut for conti

tingenci ngencies es

  • Shari

ring ng contra tracts cts across ss boundari daries es

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And Now for the Third Time Ever!

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Third Annual PEPS Conference November 20th and 21st Embassy Suites Conference Center San Marcos, Texas

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