Value of Relationships

Value of RelationshipsFlorida’s Partnerships with

FDOT and FICE

Presentation Overview

• History of FICE• Development of relationships• Committees with FDOT• Operating Margins• Value of FICE & FDOT Relationships• Future impact of these relationships

In the Beginning… History of FICE

Connecting the Partnerships

FICE Transportation Committee• Committee started with concerns

consultant community had with the Operating Margin the FDOT allowing at the time.

• FICE went to the FDOT Secretary with concerns.

• FDOT suggested formation of the FICE/FDOT Liaison Committee.

• Quarterly meetings in each district.• Small group meets with individual

sub-committees, then reports back to larger membership committee.

• Committee meetings are ONLY available to members.

• Provides members with advanced information about projects and issues.

FICE Transportation Committee

Keys to success

• Idea came from FDOT. • Benefits both FDOT and

Consultants. • FICE is a resource to help solve

problems and enhance relationship between FDOT and private sector.

• Bottom line figures and finances are off limits in discussion.

FDOT & Private Consultants Partnerships

Awards and Awards Programs• FICE Ben Watts Partnership Award– Established in 2001.– Honors the individual who made an extraordinary

contribution to the development of the effective partnership between FDOT and the consultant community.

– In alternate years the recipient is selected from the staff of FDOT by consultants and vice versa.

FDOT & Private Consultants Partnerships

Awards and Awards Programs• FICE MBE/DBE Utilization Award– Established in 2004.– Presented annually to a non-DBE/MBE prime consulting

firm that has made the most significant use of DBE/MBE sub-consulting firms.

– Award Criterion• Must be a FICE member firm.• Have at least 3 contract awards during previous year.• Have at least $1 million in prime fees during previous year.• Have a grade ‘B’ or higher the previous year.• Have the highest DBE utilization of firms that meet the above

noted qualifications.

FDOT & Private Consultants Partnerships

Goal of Joint Committees: • Provides consulting engineering industry an opportunity to

review and provide input on department specifications before they are finalized.

• Communications is key. All parties bring forward issues that stand in the way of optimizing the transportation system.

• Problems are identified and work begins on a successful resolution

• Relationship with all the industry groups and independent contractors, as well as FICE, are vital to achieving the Department’s goals.

FDOT & Private Consultants Partnerships

Joint Committees: FTBA/FDOT Specifications Subcommittee

Structures

FTBA/FDOT Specifications Subcommittee LESSFTBA/FDOT Specifications Subcommittee MOTHenry Fuller Task Team (FTBA, FDOT, FICE)Florida Greenbook Committee (FDOT & Local

Government Representatives)FICE/FDOT Transportation Committee

FDOT & Private Consultants Partnerships

FICE/FDOT Transportation Sub- CommitteesProductionRight of WayDBE/MBEProject ManagementAlternative ContractingCEISpecifications Review

FDOT & Private Consultants Partnerships

Other Partnerships with FDOTFTBA – Project Awards (13 Categories)

FTBA MBE/DBE Utilization AwardsACAF Paving Award Program (6 Categories)

FDOT/ FPCA Liaison Committee

Flexible Pavement CommitteeAsphalt Smoothness CommitteeATSSA/FDOT Pavement Marketing Committee

• Negotiated based on: – Complexity of the project– Degree of financial risk assumed by the Consultant– Project schedule – Consultant cost control.

• The table summarizes how these factors should be weighted and considered in developing the cost control portion of the operating margin for each individual contract. For cost control efforts, a formula SHALL NOT be used to calculate the percentage to be applied.

Operating MarginsOverview

Operating MarginsComplexity of Project

Operating MarginsDegree of Risk

Operating MarginsProject Schedule

Operating MarginsCost Control Efforts

Consultant Value

• Provides open communication between consultant community and FDOT.

• Allows member firms to help make changes with FDOT in doing business with the consultants.

• Gives members direct access to FDOT.

FDOT Value• FDOT relies on consultant engineers for

80% of their design and inspection work. • Partnering with FICE can effectively help

FDOT deliver the work program.• With a work program that equals or

exceeds 2.5 billion in lettings each year, regular discussions occur concerning consultant contract procurements, contract negotiations, operating margins, overhead, escalation, longlisting/shortlisting process, etc.

FDOT Value• Frequent discussions on technical matters

related to design, construction inspection, R/W acquisition, planning etc on lessons learned, improvement opportunities, etc.

• At the liaison meetings discussion is held on the upcoming work program, FDOT support needs, alternative contracting types, specifications, DBE program, policy and procedure proposed changes, etc.

• FDOT cannot deliver the work program without FICE.

Future Value.. .

• Provided open communications between FICE and FDOT.

• Support given to FICE programs and FDOT programs.

• FICE has built a reputation with FDOT as a reliable resource for the consulting engineer profession in FL.

Wrap up and Questions

Questions? Comments?

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