MDOT to Pilot Unique Fixed Price/Variable Scope Method on I-94 Project

The Michigan Department of Transportation (MDOT) intends on piloting a new method of fixed price/variable scope contracting on a capital preventative maintenance project on I-94.  The project is expected to be let in June 2013 with construction beginning after July 4, 2013 and being completed in the 2013 construction season.  The project is on I-94 between M-14 and Carpenter Road near Ann Arbor.

Funding is not available to complete the entire project and MDOT is piloting a method to construct as much of the project this year within the available funding limits.  To accomplish this MDOT is piloting a concept with the following procedures.

The Project Log will include items of work broken into different priorities, and a description of the work in each priority is listed below.  Each priority in the Project Log includes the pay items and estimated quantities for the entire project.  The schedule of items contractors will bid on will be based only on Priority 1.  MDOT’s estimate for Priority 1 work is approximately equal to the amount of funding available.  Contractors will submit a bid for this work as they would on any traditional MDOT project.

Click here for a copy of the draft Notice to Bidder that describes the unique parts of this project.  The unique component related to fixed price/variable scope is that MDOT intends on managing the project during construction so the final construction cost is equal to the available funding.  For example, if MDOT has approximately $4,000,000 and the low bid comes in at $3,900,000, all of the work in Priority 1 will be completed and $100,000 will be added to project after the Award in order to complete a portion of Priority 2.  If the low bid is $4,100,000, portions of the work in Priority 1 will not be constructed so the final construction cost is $4,000,000.  A second unique component is that MDOT is including the ability to add funding to the project to complete additional work if additional funding becomes available during construction.

Description of Work by Priority

Priority 1:

  • Maintaining traffic quantities for all Priorities
  • Mobilization for all Priorities
  • Concrete patches for the entire project limits includes EB and WB I-94 from M-14 to Carpenter (9.1 miles), the I-94/US-23 interchange, and from the 2ft point to 22ft point on all other ramps (Jackson, Ann Arbor-Saline Rd and State St)
  • Construction of two new crash investigation sites (I-94EB just east of Liberty Rd and I-94 WB just west of Ellsworth Rd)
  • Rumble strip removal in residential areas (as directed by the Engineer, approx. 3 miles)
  • Single course mill and resurface, detail 7’s and 8’s along EB and WB I-94 from Scio Church Rd to the Ann Arbor Railroad Bridge (3 miles)
  • Drainage structure cleaning and repairs for the entire project limits (M-14 to Carpenter)

Priority 2:

  • Single course mill and resurface, detail 7’s and 8’s along EB & WB I-94 from the Ann Arbor Railroad Bridge to Carpenter Rd (2.9 miles)
  • Single course mill and resurface, detail 7’s and 8’s at the I-94/US-23 interchange

Priority 3:

  • Single course mill and resurface, detail 7’s and 8’s along EB and WB I-94 from M-14 to Scio Church Rd (3.2 miles). Includes all tapers and merge lanes from the 2’ point to the 22’ point for all ramps at the Jackson Road (I-94 BL) Interchange.

Priority 4:

  • Concrete pavement repairs and single course mill and resurface, detail 7’s and 8’s for the ramps at the I-94/Ann Arbor Saline and I-94/State St interchanges

If you have any questions or comments, contact Glenn Bukoski at glennbukoski@mi-ita.com or Doug Needham at douglasneedham@mi-ita.com or call them at the MITA office at 517-347-8336.