910.5 ITS Improvements Procurement

From Engineering Policy Guide
Jump to: navigation, search

910.5.1 ITS Procurement Overview

ITS improvements may be part of a traditional construction contract, or the improvements may be procured with individual contracts.

When procured as part of a traditional construction contract, MoDOT’s Bidding and Contract Services section in the Design Division administers the contracts through competitive bidding with award to the lowest, responsive, and responsible bidder following 23 CFR 635. ITS projects utilizing federal funding are also subject to the project implementation requirements of 23 CFR 940.11 and are covered in EPG 910.5.1.1 Systems Engineering Analysis.

When procuring ITS improvements with individual contracts, MoDOT’s General Services Division administers those contracts through MoDOT’s procurement process. These individual contracts for ITS improvements can be for construction (not tied to a MoDOT construction contract), non-construction/non-IT contracts, services, or IT purchases.

910.5.1.1 Systems Engineering Analysis

According to 23 CFR 940.11, “All ITS projects funded with highway trust funds shall be based on a systems engineering analysis (SEA).” However, not all projects that are related to ITS are considered ITS projects. If the end result of a project is a paper or study, it is not considered an ITS project. The following types of projects are not considered ITS projects and thus do not require a SEA:

  • Upgrades to an existing traffic signal
  • Installing a traffic signal without connection to a network
  • Traffic signal timing and coordination projects
  • Traffic/ITS studies or plans
  • Routine operations and maintenance of ITS elements or systems.

EPG 910.4.1.2 provides a standard SEA form and covers how to complete the form.

910.5.2 ITS Procurement Process

Fig. 910.5.2

910.5.2.1 Federal Eligibility of ITS Procurement

When procuring/purchasing goods pertaining to ITS improvements, the first step is to determine if the type of work is eligible for federal aid reimbursement. The federal aid program under the FAST Act continues eligibility of operating costs for traffic monitoring, management and control. Items that would be considered operating costs include labor costs, administrative costs, cost of utilities and rent and other costs associated with the continuous management and operation of traffic systems, such as integrated traffic control systems, incident management programs, and transportation management centers. Items that would not be considered eligible as an operating cost are routine maintenance items that are not critical to the successful operation of the system, such as the painting of traffic signal controller cabinets or the maintenance of the transportation management center buildings. If the type of work is not eligible for federal funding, the equipment and/or service should be procured using state funds.

Funding Obligation

If the ITS improvement has been determined as federally eligible, the contract administrator/project manager (CA/PM) must get the obligation of federal funds before procuring the ITS improvement contract. To achieve this obligation, the CA/PM must send the estimated cost to the email group “Obligate” and request the funding obligation. The procurement cannot proceed until this obligation has taken place. Please note that if the procurement is tied to a construction project AND is procured through MoDOT’s Bidding and Contracts Services section, the funding obligation will take place automatically and an email to “obligate” would not be necessary.

910.5.2.2 Construction ITS Improvement vs. Non-Construction ITS Improvement

The second step in the procurement of ITS improvements is to determine if the improvement meets FHWA’s definition of construction. If the ITS improvement meets the definition of construction, the improvement must be procured following 23 CFR 635 in order to use federal funds. The procurement should be administered by MoDOT’s Bidding and Contract Services section if the improvement is part of a MoDOT construction project, or MoDOT’s General Services Division for individual purchases. If the ITS improvement does not meet the definition of construction i.e. Non-Construction ITS improvement, the improvement should be purchased through MoDOT’s General Services Division following 2 CFR 200.317 or 23 CFR 172 depending on the type of purchase. See EPG 910.5.2.3 for further details.

The definition of construction, per 23 USC 101: "The term construction means the supervising, inspecting, actual building, and all expenses incidental to the construction or reconstruction of a highway, including bond costs and other costs relating to the issuance in accordance with section 122 of bonds or other debt financing instruments, locating, surveying, and mapping (including the establishment of temporary and permanent geodetic markers in accordance with specifications of the National Oceanic and Atmospheric Administration in the Department of Commerce) resurfacing, restoration, and rehabilitation, acquisition of rights-of-way, relocation assistance, elimination of hazards of railway grade crossings, elimination of roadside obstacles, acquisition of replacement housing sites, acquisition and rehabilitation, relocation, and construction of replacement housing, and improvements which directly facilitate and control traffic flow, such as grade separation of intersections, widening of lanes, channelization of traffic, traffic control systems, and passenger loading and unloading areas. The term also includes capital improvements which directly facilitate an effective vehicle weight enforcement program, such as scales (fixed and portable), scale pits, scale installation, and scale houses and also includes costs incurred by the State in performing Federal-aid project related audits which directly benefit the Federal-aid highway program."

To simplify and list some common examples of ITS improvements which are considered construction and non-construction, see the table below.

Classification Component
Construction
(Follow 23 CFR 635)
Physical installation of field hardware and devices for freeway management and traffic signal systems including dynamic message signs, CCTV cameras, ramp meters, new traffic signals, new controller cabinets, lane use control signs and vehicle detectors.
Installation of towers to support wireless communication, direct-bury conduit and hardwire interconnect between signals and field devices or systems.
Installation of field hardware and devices to provide detection and verification capabilities.
Non-construction
(Follow 2 CFR 200.317)
Procurement of portable message signs, field device and communication system interfaces, operating system software development, and computer hardware.
Communication devices which are wireless or require only limited installation in concept.
Coordination and pre-planned incident management activities such as service patrol, route diversion, *911 systems, computer aided dispatch systems, radio systems and special events coordination.
Weather and traveler information systems
Source: FHWA Memorandum – Procurement Information for ITS Projects, May 1997

910.5.2.3 Determine Purchase Type

The next step in the ITS improvement procurement process is to determine if the purchase will be a Type Ia, Ib, II or III.

Type Ia is the purchase of ITS improvements typically listed as construction in Fig. 910.5.2 and would include such items as dynamic message signs (DMS), CCTV cameras, ramp meters, detectors, traffic signals, controller cabinets and lane use control signs and loops. This type of purchase can be procured through MoDOT’s Bidding and Contract Services section following 23 CFR 635 if it is tied to a MoDOT construction project or for individual purchases they can be procured through MoDOT’s General Services Division following 23 CFR 635. Regardless of the purchase method, in order to use federal funds, 23 CFR 635 must be followed awarding the contract to the lowest, responsive, responsible bidder and all the necessary federal language must be in the solicitation and resulting contract agreement. If purchasing through General Services, the CA/PM must let the procurement agent know if federal funds are being used so that all necessary federal language can be included in the solicitation document. The federal language template for ITS Construction Purchases must be used in the contract.

Type Ib is the purchase of ITS improvements typically listed as Non-construction in the chart above and would include such items as: portable message signs, field device and communication system interfaces, operating system software development. This type of purchase must be procured through MoDOT’s General Services Division following 2 CFR 200.317. If federal funds are used, the CA/PM must notify General Services so all necessary federal language is included in the solicitation and resulting contract. The federal language template for ITS NON-Construction purchases must be used in the contract.

Type II is the purchase of services. The services can either be professional services (engineering, architecture, surveying etc.), IT or Non-IT/Non-Engineering.

Type II – Professional Services (engineering, architecture, surveying) – This type of professional service must follow 23 CFR 172 and must be procured and administered through MoDOT’s Design Division.
Type II – IT Services – This type of service is broken down further into 2 categories based on anticipated contract cost.
Type II IT Services <$75,000 – This type of service is a contract that is anticipated to cost less than $75,000 and can be procured through MoDOT’s General Services Division following 2 CFR 200.317. If this type of contract is procured using federal funds, all the necessary federal language must be in the solicitation and the resulting contract. The federal language template for ITS NON-Construction purchases must be used in the contract.
Type II IT Services >$75,000 – This type of service is a contract that is anticipated to cost more than $75,000 and must be procured through Missouri Office of Administration (OA) Department of Materials Management. Central Office Information Systems or Procurement can facilitate the purchase.
Type II – Non-IT/Non-Engineering – This type of professional service is a contract that is neither IT nor Engineering. An example of this type of contract would be an ITS CCTV video distribution service that is procured with an RFP. This type of purchase must be procured through MoDOT’s General Services Division following 2 CFR 200.317. If this type of contract is procured using federal funds, all the necessary federal language must be in the solicitation and the resulting contract. The federal language template for ITS NON-Construction purchases must be used in the contract.

Type III is the purchase of IT components such as: Computers, Phones, or Communications Equipment and computer hardware. This type of purchase must be procured through Missouri Office of Administration (OA) Department of Materials Management. Central Office Information Systems or Procurement can facilitate the purchase. Type III purchases are only eligible for federal funding if used to maintain and operate ITS infrastructure.

910.5.2.4 Proprietary Items and Public Interest Findings

According to 23 CFR 635.411, proprietary items are generally not approved to use federal funding. A proprietary item is considered any patented material, specification, or process that can only be obtained from one manufacturer. These items are generally identified by the use of a trade name. EPG 131.2 Proprietary Items and Public Interest Findings should be reviewed before considering the use of proprietary items on ITS improvement projects. If it is determined that a proprietary item is required, a Proprietary Item Certification (PIC), a Public Interest Finding (PIF) or an Experimental Product Work Plan (EPWP) must be completed.

A PIC is used if an item is essential for synchronization or if the contracting agency specifies a unique item for which no equally suitable alternative exists.

A PIF is used if a contracting agency elects to require a specific item when other acceptable items are available or in instances where the item is to be used for research or for special construction.

An EPWP request is used for a proprietary item for research purposes or on relatively short section for experimental purposes. Approval of the work plan should occur prior to submittal of the project PS&E. A copy of the approved work plan should accompany the PS&E submittal. For required elements of an EPWP, refer to EPG 131.2 Proprietary Items and Public Interest Findings.

In order to demonstrate to FHWA and Central Office Design that the utilization of a proprietary item is in the public interest or that an EPWP or PIC is appropriate, the district must submit a letter of request for use of a proprietary item to Central Office Design for their consideration. A signed .pdf copy of the request letter should be submitted to the Proprietary Item Approval Library. When submitting, the appropriate data associated with the request should be entered into the PIC/PIF submittal form. A PIC or PIF must be completed and approved for all projects in which a patented or proprietary item will be used. An approved PIC or PIF for an item on a prior project does not allow for installation of the same item on future projects. However, one PIC or PIF request may be submitted for multiple projects.

Of particular note, to facilitate ITS device communications and for synchronization with existing equipment, MoDOT must use proprietary Cisco equipment for ITS infrastructure projects. The purchase of all MoDOT networking products is governed by a statewide contract between the Missouri Office of Administration and World Wide Technology (WWT), Inc. According to section 1.4 of the agreement, “Cisco has been established as the statewide standard manufacturer for networking products by the State of Missouri. Expansion of all existing networks shall utilize Cisco products. State agencies utilizing other manufacturer’s products may be maintained or replaced. However, expansion of such networks shall utilize Cisco products.” Because the Cisco networking gear is required for synchronization with existing equipment, a PIC shall be submitted for each project in which federal reimbursement is requested.

910.5.2.5 MoDOT General Services Procurement

If the type of contract has been determined to follow MoDOT’s General Services Division procurement processes, contact your district General Services Division to complete the procurement process. If federal funds are being used, make sure the funds are obligated by emailing the "Obligate" group first, and also make sure to notify your General Services contact so they can include the appropriate solicitation language. Any conflicting terms and conditions must be removed from the solicitation document.