FTA Oversight Procedures - Federal Transit Administration - U.S. ...

It is important to select a project delivery method that can best satisfy the goals of the Grantee. Those
goals could include rapid construction, lowest constructed cost or a unique innovative design, among
other things. It is also important to consider the technical capacity and capability of the grantee.
Different staffing levels and skill sets are required to successfully manage a design-bid-build approach
versus a design-build approach. An agency embarking on its first rail project will face many decisions
that will require careful consideration. A traditional design-bid-build approach can provide more
opportunities and time to consider those decisions without necessarily impacting the project schedule.
Using a design-build approach, however, will require the grantee to make decisions at the outset as part
of the preparation of the performance specifications. A delay in making those decisions may negate
the perceived schedule advantage offered by the design-build approach.
The overall strategy for delivering the completed project should be developed early in the Preliminary
Engineering phase. These decisions should start with the identification of the key objectives of the
grantee. There may actually be multiple objectives that apply to either the overall project or some
selected elements. Knowing these objectives is vital to the selection of the proper project delivery
method. Once the objectives are known, they can be matched against the various delivery methods to
determine which method or methods best accomplish the stated objectives. This comparison should
also take into account the physical characteristics of the project, including the amount of right-of-way
to be acquired and the number of individual parcels affected, whether development involves
negotiation of rights with a freight railroad, the number of political jurisdictions involved, the need for
a tunnel or significant aerial structures, etc. All of these factors play into the ultimate selection of the
project delivery strategy and methods. Once these decisions have been made, it is vital that the grantee
tailor the contract documents and procurement process to match the selected delivery method(s). The
use of the incorrect form of contract for a specified delivery method or failure to consider the time
necessary for a negotiated procurement will have serious negative consequences for the grantee.
The development of the project delivery strategy during the PE phase is important because the final
design phase of the project is directly linked to the strategy. The design consultant must know at the
proposal stage whether he is going to completely design the facilities for use in a competitive bid
situation or if he is going to produce one or more performance specifications for design-build
packages. Further, if competitive bidding is the selected approach, it will be important to identify how
many construction contract packages are expected to be produced. The project development strategy is
also directly linked to the grantee’s project management approach and staffing decisions.
3.0 OBJECTIVES
The objective of this review is to verify that the grantee has developed a rational plan for project
delivery; that the plan is based on satisfying the grantee’s objectives for the project or its individual
parts; that the plan is based on the unique characteristics of the project; that the plan was developed
with consideration of the current and expected conditions of the local and national construction market
place; that the project delivery method(s) chosen are appropriate for the associated project element;
and that the plan takes into account the grantee’s technical capacity and capability.
OP 32E Project Delivery Method Review
Revision 0, June 2008
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