Government Agencies

With increasing pressure to do more with less, state Departments of Transportation are increasingly turning to performance-based maintenance contracting to help curb costs – and risk – without sacrificing quality or safety. If you’re considering asset maintenance management, consider this:

Enabling Legislation

In July 2000, following action by the Florida Legislature, the Florida Department of Transportation awarded its first roadway asset maintenance contract for 253 miles of Interstate 75 (I-75) between Miami and Ocala. By April 2007, the state had 27 asset maintenance management contracts totaling $760 million. Estimated savings: $105 million. How did they do it? Read the overview or take a detailed look at their process.

Key Success Elements

  • Start with a pilot program and learn what works for your state or municipality
  • Value risk management as much as cost saving
  • Ensure solid executive support and direction
  • Use the contracting process as a tool to achieve greater transparency with the public

Key Contract Elements

  • Performance based with performance measures and assurances
  • Long-term (5-10 years)
  • Fixed, lump-sum monthly payments
  • Dynamic incorporation of pertinent policies and procedures as updated throughout the contract duration