What is Asset Management?
How is a total asset management contract different from other types of maintenance contracts?
What activities does ICA perform?
How can ICA maintain highways for less money than a public agency?
How is ICA's performance measured?
Does ICA perform all highway activities itself, or do you subcontract?
What are some of the reasons an agency would outsource their asset management operations?
What is Asset Management?
Asset management is a systematic and cost-effective process of maintaining, upgrading, and operating physical assets such as roadways and bridges. The principles of engineering, business management, economics and computer technology are utilized in this process. This process aids asset owners in decision-making and both short-term and long-term planning.
How is a total asset management contract different from other types of maintenance contracts?
In an effort to maintain an efficient and cost effective maintenance contracts program, Departments of Transportation have adopted different contracting methodologies to meet increasing demands. Many maintenance contracts are advertised and let for single activities. Maintenance composite contracts have combined activities that are related and performed by the same contractor and give the Department the ability to contract out many activities at a time.
Asset management offers the option of contracting based on performance specifications rather than methodology specifications. Contracts let using methodology specifications require the Department to perform extensive contract administration in the form of work identification, work assignments, inspection and documentation. A performance-based contract moves these day-to-day administrative tasks to ICA. The Department then only measures ICA's accomplishment against established performance criteria in the contract.
This asset management contract combines the concept of a large composite contract with performance specifications, and transfers (100%) responsibility and most importantly 100% of the risk for maintenance of the assets for those segments of highway under one lump sum amount.
What activities does ICA perform?
ICA performs “fence-to-fence” maintenance that includes; Pavements, Drainage, Roadside, Vegetation, Traffic Services, Bridges, Rest Area Facilities, Toll Plazas and Facilities, and Snow / Ice removal.
How can ICA maintain highways for less money than a public agency?
A combination of reasons allows the asset management approach to deliver considerable savings.
By reducing labor costs
ICA can better utilize flexible staffing and a temporary workforce to meet peak demand needs while minimizing ongoing labor costs. Government often has less flexibility in workforce management when compared to the private sector. ICA can move quickly to address labor issues.
By utilizing efficient procurement processes
A public agency's procedures for buying and paying for goods and services may be constrained by numerous regulations that do not apply to ICA. Subcontractors who do not perform take too much time and effort for governments to replace. ICA can respond immediately to resolve issues with its subcontractors.
By effective utilization of resources
ICA engages resources - labor, equipment and materials to implement its services on an as needed basis only. This approach lowers the total cost by avoiding the underutilization of resources. This approach brings down overall costs by reducing underutilization, which drives overhead cost up.
How is ICA's performance measured?
Performance is measured through a "level of service rating program". On a quarterly basis, an independent team will conduct a Maintenance Rating survey review to measure contract performance conformity. Randomly selected sites are chosen and measured against an agreed upon performance standard. The performance standards are "end result" oriented that measure asset conditions as opposed to method of repair. An example of this would be "grass shall not be in excess of 12" in height". The results provide an overall average of the operating level of the system.
Does ICA perform all highway activities itself, or do you subcontract?
The ICA Maintenance Management Program is based upon assigning selected components of work to outside contractors. By engaging in subcontractor resources to implement services on an as needed basis, ICA lowers the total cost by avoiding the underutilization of resources. By contracting with multiple contractors and duplicating resources at each activity, ICA insures contractor reliability and availability. Development of a strong base of subcontractors, especially small or disadvantaged companies, will allow ICA to perform the work cost effectively while contributing to the local economy. Contracts are designed for efficiency with cost targets as the focus.
In addition, ICA programs multi-purpose In House Field Crews to carry out assigned work activities not favorable to subcontracting. Crews will carry out such task as debris removal, litter control, small sign repair and cleaning, drainage maintenance, emergency response and other routine activities. Crew Technicians will receive specific training relating to activities they will perform in the Productivity Work Program. Crews perform activities that are time sensitive in nature such as debris removal and emergency pavement repairs.
What are some of the reasons an agency would outsource their asset management operations?
Guaranteed Costs Savings
Transportation departments can achieve 10 to 20 percent savings on current budgeted costs. In addition, capital outlay cost for new equipment can also be significantly reduced.
Sharing of Risk
ICA offers governmental agencies additional protection in today’s litigious environment by providing certain indemnifications related to our services. For example, as part of our contracts we agree to indemnify and hold harmless our customers for issues that might arise as a result of accidents.
Reduced Capital Cost Outlays
ICA employs a proactive maintenance approach designed to maximize the life of the asset and minimize future capital costs associated with refurbishing the roadway.
Flatten-out Peak Workloads
ICA puts resources in place to respond to emergencies and other incidents on the roadway, relieving the Department of the need to staff for peak workloads. ICA also utilizes a network of contractor relationships to ensure that there is an immediate, effective response to every incident.
Obtain Specialized Skills and Equipment
ICA is continuously evaluating new technologies to improve roadway maintenance. Departments of Transportation that utilizes ICA's asset management services will have access to the latest in technology and innovation.
Reduce Administration Requirements
Because ICA takes responsibility for managing all aspects of the roadway, Departments of Transportation are relieved of the complex administration and headaches of dealing with numerous contractors for a particular stretch of road.
