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Draft Report

Procuring, Managing, and Evaluating the Performance of Contracted TMC Services

Cost-plus-fixed-fee contract – allowable incurred costs are reimbursed and the negotiated fee (profit) is fixed; this allows the definition of a budgetary ceiling that the contractor may not exceed without the owner’s approval.  These contracts are used when uncertainties in contract performance do not permit costs to be accurately estimated and are common with professional services contracts where there is no fixed deliverable (as is the case when providing staffing rather than a product).

Agreements with other entities/volunteers/students – depending on the circumstances, TMC services may be provided by other agency staff (through some type of inter-agency agreement).  This is common in TMCs that have co-located staff.  Personnel may serve on a voluntary basis, or they may be present as students through a co-op arrangement with a university or other technical learning center.  In any event, duties and commitments must be formalized through legally binding agreements so that all roles and responsibilities are clearly understood, defined, and agreed to.

Sole source contracts – a specific vendor or service provider is desired with a specific unique skill that is not readily available from others.  Contracting agencies need to follow a strict process to keep this type of procurement fair as other contractors may protest.  Sole source contracts are done very carefully and not often; they are usually reserved for specific circumstances such as training.

Performance ratings can also be used to assess contractor performance for various TMC-related services.  For an FDOT TMC Operations contract, for example, the contractor is responsible for maintaining appropriate and verifiable data supporting performance rating criteria such as:

Staff and schedule – adherence to staffing and schedule hours; the performance criterion is the monthly average of all staff positions being filled in accordance with the schedule.

TMC control room operations performance, event management, training, and reporting – TMC operator errors, DMS usage, service patrol dispatching; event confirmation, response plan utilization, notifications, training and certification, and report production; the performance criteria relate to percentage of use, time of event detection/confirmation, timeframes related to defined days/dates.

Contract management services – Review of contractor invoices and performance; the performance criteria relate to timeframes related to defined days/dates.

Information technology services – Defines responsibilities for administration of all ITS systems related to the TMC; the performance criteria relate to uptime requirements and service times related to equipment/system outages.

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