KHIT 130, Design-Build Project Assistance

The Kentucky Transportation Cabinet (KYTC) uses two project delivery methods: design-bid-build and design-build. Under the design-bid-build model the Cabinet establishes separate contracts for design and construction services, selecting the lowest bid(s) from a slate of prequalified applicants. Conversely, with design-build a single entity designs and constructs the project. Pursuant to KRS 176.431, KYTC can authorize several design-build projects each year. It specifies that the Cabinet may use design-build procurement for up to: 1) five (5) major demonstration road and bridge related projects, with a total cost of each project not to exceed three hundred million dollars ($300,000,000); and 2) ten (10) demonstration road and bridge related projects, with a total cost of each project not to exceed seventy-five million dollars ($75,000,000). Although design-build project delivery offers a number of advantages, one area in which it suffers compared to the traditional design-bid-build model is in contract awards. The process of identifying the best qualified proposers is a time-consuming endeavor which can delay the award of contracts — and project delivery. To determine if there are innovative methods for delivery of design-bid projects that would expedite procurement, KYTC has requested assistance form KTC researchers. KTC will explore design-build procurement methods adopted by other state transportation agencies and the methods these organizations use to award contracts. Researchers will inventory best practices with an eye toward identifying selection processes that accelerate procurement while ensuring final projects remain of the highest quality. While KTC anticipates focusing its review on published guidance, policies, and manuals, in some cases it may be necessary to contact individual agencies for one-on-one interviews with staff responsible for design-build procurement. All interviews will be done in a semi-structured format to elicit needed information. Based on their review of agency practices, researchers will assemble a document which summarizes best practices for proposal selection as well as suggestions for modifying KYTC’s selection process. Researchers will also assist the Cabinet in developing and implementing new or revised scoring criteria. Once a revised qualifications-based selection process has been established, the Center’s researchers will analyze its performance by measuring whether it consistently shortens design-build procurement timelines.