Life-Cycle Cost Award Algorithms for Design/Build Highway Pavement Projects

Abstract

The nation’s existing highway infrastructure was procured on a low-bid basis. The recent trend toward design/build delivery offers an opportunity to compete life-cycle considerations as part of the procurement. Minimizing pavement life-cycle cost will enhance the sustainability of the nation’s highways by delivering pavements that last longer and reduce user impact costs. This study provides best-value award algorithms that can be used to procure pavement on the basis of life-cycle cost rather than low-bid initial costs. The study uses the Federal Highway Administration life-cycle cost analysis (LCCA) design algorithm as a basis of the best-value award. Two detailed case study projects were used to furnish input data and information on which to base the comparison of best-value award algorithms. The analysis proves that many of the best-value award algorithms currently used in design/build projects have a strong bias toward minimizing the capital cost of design and construction. The analysis also shows that the LCCA input can be used but must be heavily weighted to influence the final award decision away from the lowest proposed price.