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Draft Report

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

Traditionally, highway agencies have used contracting practices that specify exactly what is to be built and how it is to be built and maintained.  These methods may minimize contractor risk in knowing exactly what the desired end result may be, but they do require great administrative involvement by the agency.  Moreover, they do not translate well to operations-type projects that require provision of staff to serve as an extension of the agency in highly specialized services.  Contracts that allow consideration of best value through some combined weighting of services and price have become viable options for contracting TMC services.

The 2001 report, “Guidelines for Warranty, Multi-Parameter, and Best Value Contracting,” (National Cooperative Highway Research Program Synthesis 451) (x), identifies general implementation issues when applying new contracting methods, as shown in Table 4.  These issues must be resolved before new contracting methods are considered since there may be impacts on both the agency and the contracting community.

Table 4 General Implementation Issues for Applying New Contracting Methods

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