Maintenance Contracting in Ontario, Canada

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Maintenance Contracting in Ontario, Canada

• S. E. Gwartz, P. Eng
• Ministry of Transportation

July, 2003
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Maintenance ContractsTypes

• Contract Type 1
• Managed Out-Sourcing Contracts (MOs)
• All Summer and Winter Services
• Individual Functional Contracts
• Majority are Unit Price Tenders
• Managed by MTO Staff
• MTO does Road Patrolling
• All Other Work by Contractors
• Up to 5 Years
• Penalties for failure to perform
• Covers 40 of the Provincial Highway Network

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Maintenance ContractsTypes

• Contract Type 2
• Area Maintenance Contracts (AMCs)
• All Summer and Winter Services within Area
• Annual Lump Sum (RFP process)
• Managed by Contractor
• Initially 32 Years, Now 7-9 Years
• Performance Specifications
• 600-1800 lane miles/contract
• Risk Sharing (salt)
• Penalties for failure to perform
• Covers 60 of the Provincial Highway Network

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Activities Included in Area Maintenance
Contracts

• Routine Maintenance
• Pothole repair
• Shoulder grading
• Repair guide rail and fences
• Road sweeping
• Debris removal
• Traffic signal and illumination- scheduled
  maintenance and repair
• Bridge cleaning, scheduled maintenance (lift
  bridges) and minor repair
• Sign replacement
• Line Painting
• Grass cutting and weed control

• Winter Maintenance
• Plowing, sanding and salting
• Patrolling
• Visual Inspection
• At Least Daily in Winter
• Emergency
• Response to collisions, spills
• Resources
• Equipment sold to Contractor
• Yards Leased to Contractor

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Maintenance ContractingAMCs

• Initial Concerns
• Highway Safety
• Savings
• Long Term Sustainability
• Competitive Environment
• Access to Work for Industry
• Quality Assurance
• Allocation of Risk
• Consistency of Contract Administration

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Maintenance ContractingAMCs

• Results
• Variety of Industry Participation
• Competition
• Industry Capability Increased
• Considerable Potential for Savings
• Job Opportunities for Staff
• Staged Implementation (4 years) allowed Contract
  updates

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Maintenance ContractingAMCs

• New Roles, New Opportunities
• Contract Management vs. Supervision
• Quality Assurance, Performance Measures
• Documentation by Contractors
• Importance of Good Relationships and
  Communication with Industry
• Shared Role in Research Development
• Retention of Knowledgeable Staff/Knowledge
  Transfer to Industry

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Maintenance ContractingAMCs

• Conclusions
• Our Objectives Have Been Reached
• Savings Quality - Industry Participation
• Potential for Further Efficiencies Through
• Refinements in contracting methods, clauses
• Increases in scope of work (ie Rehabilitation)
• Fostering Technology
• Provincial/Municipal co-operation

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• Thank You