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

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 the right projects Focus on the Customer Foster Stewardship Optimize System Performance Profess ssion ional al Engine neering ering Procuremen ement t Services ces Preserve our Assets represents the consolidated procurement Promote Safety organization supporting engineering, architectural Value our Employees and surveying contracts Values es People, Accountability, Trust, Honesty CONFIDENTIAL DRAFT 2

PEPS - Then and Now The primary reason PEPS was created was to provide… CUS USTOMER OMER SER ERVICE VICE 3

PEPS Organization Deputy Director PEPS Divis vision ion Direct ector or Executive Assistant Lucio Vasquez, PE Martin in Rodin, n, PE PE Kristina Kottke 512-416-2039 512-416-2038 512-416-2037 Center of Excellence Austin SCM Dallas SCM Urban District SCM Dan Neal, PE Charles Davidson, PE Joe Jancuska, PE Jaime Vela, PE 512-416-2667 512-832-7315 214-320-6187 512-416-2007 Business Operations El Paso SCM Ft. Worth SCM SCM for Divisions Roy Gonzales Jaime Perales, PE Norma Glasscock, PE Kori Rodriguez, PE 512-416-2034 915-790-4313 817-370-3675 512-416-2268 Houston SCM San Antonio SCM Invoice Center Rural District SCM Gail Morea, PE Larry Wenger, PE Tira Dobrozensky Lynn Daniel 713-802-5795 210-615-5971 512-317-8511 940-937-7281 Controls Center Dione Albert 512-416-2003 FTE Allocation: 122 4

PEPS Service Centers 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 5

PEPS - Then and Now THEN – 2015 NOW – 2019 No. of PEPS Employees 69 FTE No. of PEPS Employees 122 FTE TxDOT Annual Letting $3-$4 Billion TxDOT Annual Letting $8-$10 Billion Procurement Amount $795 M Procurement Amount $1.6 Billion No. of Contracts 200 EA No. of Contracts 350 EA No. of Work Authorizations 700 EA No. of Work Authorizations 1,700 EA No. of Late WA 139 EA Number of Late WA 63 EA No. of Invoices 4,000 EA No. of Invoices 13,000 EA % of Invoices Paid On Time 86% % of Invoices Paid On Time 94% 6

TxDOT Annual Letting Prop 7 significantly increases TxDOT Letting Volume 8 7 $6.5 .5 Billion lion Aver verage age Letting ting (FY 2017 7 – 202 025) 6 5 $4.3 .3 Billion lion Aver verage age Letti ting ng (FY 2012 – 2016) ions 4 Billion 3 2 1 - 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Baseline Additional MAP-21 Proposition 7 7

PEPS Annual Procurement $1,600,000,000 $1,400,000,000 $1,200,000,000 $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $200,000,000 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 8

FY2019 Procurement Year 9

How do I get started? Get etti ting ng Started ed  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 ome 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 10

Procurement Tips Submit on time Ask for a debrief Showcase your Ask questions PM and TL Check your forms and QA/QC your work Focus on Don’t Get challenges and Disqualif ualifie ied d solutions Keep alert to amendments Be clear, concise, Use your best and technical Don’t use the space examples for marketing 11

Negotiations  Consultants fill out  Service Center initial rate card manager review and approval  Indicate if similar rates negotiated  Salary Survey data being collected  Expanded range of the Rate Tool  Discussing annual rate negotiations  Proceeding to live after two rounds  Providing more DBE and HUB  No more 24-hour opportunities gauntlets  Procuring more  Added an appeal Federal contracts procedure 12

PEPS Division – Four Proposed Rule Changes 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 otiatio ation n of Annual ual Labor Rates  Approved d Ov Overh rhead ad Rate Implement emented d at Time of Negoti otiatio ations ns  Bonus us Policy Requir irements ments 13

PEPS Division – Four Proposed Rule Changes 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 30 th 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 14

PEPS Division – Four Proposed Rule Changes 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 overhead rate to be used  That overhead rate will then apply and be used throughout all contract negotiations 15

PEPS Division – Four Proposed Rule Changes 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 16

PEPS Division – Four Proposed Rule Changes 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 17

Proposed Specific Discipline Engineering Contracts 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 18