910.5 ITS Improvements Procurement
- 1 910.5.1 ITS Procurement Overview
- 2 910.5.2 ITS Procurement Process
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.
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.
910.5.2 ITS Procurement Process
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 MAP-21 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.
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.
(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.|
(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 MoDOT General Services Procurement
If your 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 you have the funds obligated by emailing the “Obligate” group first, and also make sure you let your General Services contact know so they can include the appropriate solicitation language. Any conflicting terms and conditions must be removed from the solicitation document.