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Innovation in the Transportation Marketplace
Through Effective Procurement:
Findings from an Experts' Workshop

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6. The Goal: New Model(s) for Procurement

Based on this input and the discussions at the workshop, new procurement systems will have the following characteristics. They will:

  • Allow infrastructure owners to take factors other than lowest initial cost into account when evaluating project bids. Other factors used to evaluate bids, as well as contractor performance once the project is underway, could include life-cycle project costs (as a substitute for first cost), time to completion, use of innovative and sustainable products and practices, project quality, safety record maintained during construction, maintainability of the final product, environmental impact, and community acceptance.

  • Provide performance incentives to contractors to use methods, materials, and technologies that are innovative - i.e., better, faster, and/or cheaper than their traditional counterparts-during completion of the project.

  • Provide a system to permit pre-bid approval of proprietary materials or construction methods.

  • Allocate legal and financial risks fairly to all parties involved.

  • Are able to use alternative legal strategies for solving disputes in lieu of traditional litigation.

  • Are less administratively burdensome.

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