American Recovery and Reinvestment Act (ARRA)

1. American Recovery and Reinvestment Act (ARRA) Rose Phetteplace Wisconsin Department of Transportation

2. Overview • Summary of ARRA Program • New WisDOT Procedures for ARRA • New Contractor Procedures for ARRA • ARRA Accomplishments • Best Practices/Lessons Learned From ARRA

3. Legislative Passage of ARRA • Jan. 26, 2009; Governor Jim Doyle issues Executive Order #274 and creates the WI Office of Recovery and Reinvestment • Feb. 13, 2009, ARRA is passed by Congress • Feb. 17, 2009, President Obama signs ARRA into law • Federal DOT receives $40,789,595,036* • FHWA receives $26,856,499,056 of the amount received by the DOT* *Source: www.recovery.gov

4. ARRA Program Totals • WisDOT received $529.1 million for use on State and Local highway and bridge projects* • WisDOT has let 330 projects for $497 million to date • 2009 (133 projects for $320 million) • Local = 75 projects for $65.9 million • State = 58 projects for $254.2 million • 2010 (197 projects for $177 million) • Local = 178 projects for $135.7 million • State = 19 projects for $41.6 million • *Source: www.dot.wisconsin.gov/projects/recovery

5. New Procedures for ARRA • Oversight/Change Management Structure • Detailed Reporting of Projects • Reporting to FHWA and DOT • WisDOT Secretary Report • Internal Departmental Reports • Reports published on WisDOT’s website • Change Management • Accelerated Project Starts (Notice To Proceed) • Detailed Tracking of Projects • PS&E status tracking • NTP tracking • Construction Finals tracking • Consultant contract closeout tracking

6. WisDOT ARRA Oversight & Change Management Structure Placeholder

7. Detailed Project Reporting • Monthly Collection of Data • Collect employment data from Civil Rights Compliance System (CRCS) • Collect project payment and contract status data from WisDOT databases • Collect detailed data about current and projected issues and costs using the data collection form • Reporting of Data • Submit data to Recovery Act Data System (RADS) which is used to report to congress on spending of ARRA funds • Create monthly report to the Wisconsin Secretary of Transportation • Monthly report posted on WisDOT website:http://www.dot.wisconsin.gov/projects/recovery/index.htm

8. Program Reporting Requirements Types of Data Report Names Types of Data Report Names

9. Change Management • Change Management is the monitoring and managing of project issues or risks that have the possibility of affecting scope, safety, budget, and schedule. • Change Management is currently used on all ARRA projects, on both the State and Local levels. • The process of Change Management is used on many levels within WisDOT, from the Project Leaders in the field to the Director and Secretary’s Office level. Exec. Level Project Region Division Lesser amount of $50,000 or 50% of reserve. Lesser amount of $500,000 or 100% of reserve. Any cumulative increase over 100% reserve up to $1,000,000 Any cumulative increase over $1,000,000

10. Change Management (Cont.) • Each ARRA project was allowed a construction reserve of roughly 8% of award amount based on project type. • Project budget is managed to the award amount and reserve is used as a budget to pay for any approved quantity overruns and contract modifications. • Thresholds created for higher level approval of contract modifications as the reserve is used up. • Region and Division level change management teams created to review change management requests on projects that use reserve budget.

11. Detailed Project Tracking • PS&E Tracking • Set milestones for key submittals and enforced them • Helped WisDOT accelerate certain approval processes • Assisted with having proposed ARRA projects ready to be let for 2009 and 2010 • Accelerated Project Starts (NTP’s) • Notice to Proceed Dates tracked so to be issued as soon as possible to when the contract allows construction to start • Expedited starts designed to create a demand for construction jobs to fulfill the main goal of the Recovery Act

12. Detailed Project Tracking • Construction Project Status • Project progress and contract status • Status and usage of DBE companies • Current and projected financial data to track ARRA funds spent • Helped identify project risks that could affect contract cost, time, or impact to the public

13. Detailed Project Tracking • Finals Closeout Tracking • Internal WisDOT goals for finals process • Project leader submits project records to project manager 3 months after Contract Work Complete date • Semi-Final (Tentative) sent to contractor 4 months after Contract Work Complete date • Contractor has 30 days to respond to Semi-Final. • Final Estimate Paid 6 months after Contract Work Complete date • Consultant Contract Closeout Tracking • Internal WisDOT goals for Consultant closeout • Consultant final invoice approved and evaluation on file 6 weeks after Contractor Final Estimate Paid

14. Detailed Project Tracking Example of Finals Tracking Chart Used Internally By WisDOT

15. ARRA Accomplishments • Construction Budget Management • Construction contractor costs are projected to finish at 0.6% over the award amount • Delivery costs are projected to finish 20.9% under the budgeted amount • Combined, the ARRA Program is projected to finish at 97.8% of the construction and delivery budget at award • Non-ARRA projects historically finish on average 108%-110% of the construction and delivery budget at award • Transparency and Improved Communications • Reporting increased visibility of dollars spent • Change Management procedures minimized interruptions of work in the field

16. ARRA Accomplishments (Cont.) • C. Project Closeout • Status of 2009 ARRA lets (133 let projects) • 88 projects had work complete in 2009 • 40 projects were carried over and completed in 2010 • 5 projects were carried over and will complete in 2011 • 100 projects had a final estimate paid as of Jan 2011 • 41 Projects were within 6 months(41% of 100) • 98 Projects were within 12months(98% of 100) • Status of 2010 ARRA lets (197 let projects) • 135 projects had work complete in 2010 • 62 projectswere carried over and will complete in 2011 • 47 projects had a final estimate paid as of Jan 2011 • 37 Projects were within 6 months(79% of 47) • 47 Projects were within 12 months(100% of 47)

17. Lessons Learned - ARRA • Resourcing and Program Reporting • Detailed Project Tracking • Change Management • Finals Closeout

18. Resourcing and Program Reporting • Additional DOT resourcing up front yields payoffs in the end • Current Monthly reports are being used to varying degrees by each region to analyze the ARRA program as it is ongoing (Currently evaluating for future use) • This proactive monitoring of the ARRA program has yielded significant results such as being only 0.6% over budget at 85% expended.

19. Detailed Project Tracking • Possible to track Design, Pre-PS&E, Construction, and Finals • ARRA tracking procedures allow a quicker analysis and recovery of projects with issues that need to be addressed by higher management levels within WisDOT or by realigning Department resources

20. Change Management • Can assist WisDOT further in it’s oversight role of projects by involving Region and Division level management sooner and more consistently on projects • Can be used in Design and Construction phase to review projects for safety, risk and scope issues • Based on the ARRA procedures, the local program developed a new application process to better define risks, scope, and costs of locally sponsored projects • WisDOT recognizes that change management thresholds need to be adjusted to match the size and complexity of entire programs being monitored

21. Finals Closeout Quicker closeout of projects means quicker final payment to the Contractor Quicker finals closeout starts during construction. The Project Leader and Contractor should communicate issues and discrepancies as the work is on going Quicker closeout of the project financially means encumbered funding can be freed up for future projects Closing the construction contracts quicker allows WisDOT to close the consultant contracts quicker as well.

22. Finals Closeout (cont.)

23. Questions and Comments ??? 2010-2011 ARRA Project Pleasant View Road, Madison, WI