Newark NJ Final Mile Delivery

Lesson 43: DBOM Contract: Proper Delegation of Major Tasks

1. EXECUTIVE SUMMARY
The Hudson-Bergen Light Rail Transit System (HBLRTS) is a 20.3-mile rail facility that links New Jersey’s growing Hudson River waterfront communities.
The HBLRTS is being constructed in three Minimum Operable Segments (MOS) designated as MOS-1, MOS-2, and MOS-3. A major portion of MOS-1 has been in revenue service since April 2000 with full operation scheduled for Fall 2002. MOS-2 is currently in the design/build phase, and the southern extension is scheduled to open in Fall 2003 as well as the single-track operation to the north. The full operation is scheduled for mid-2005. MOS-3 is forecasted to open in 2010.
New Jersey Transit Corporation (NJTC) endorses the Design-Build-Operate-Maintain (DBOM) concept, which includes 15 years of operation and maintenance and the acquisition of Light Rail Vehicles. The project benefited greatly from the DBOM contractor’s design philosophy and construction methodology while optimizing capital expenditures and making design decisions that affected operations.
The approach used by NJTC in the selection of the DBOM contractor for the HBLRTS was similar to the approach used for a conventional design-bid-build project. One important evaluation criterion that was not used in the process was the contractual relationship between the prime contractor and the designer. The HBLRTS project management team suggests that, for future DBOM projects, the engineering design function should either be performed by the prime contractor or by a first tier subconsultant to the prime contractor. This would better facilitate the prime contractor in maintaining full control of the design decisions and responsibilities while eliminating the risk of delays associated with the lower tier subcontractor handling the design.
1.1 BACKGROUND

The HBLRTS is a vital connection that links New Jersey’s growing HudsonRiver waterfront communities. The 20.3-mile corridor extends through some f the nation’s most densely populated municipalities, a region noted for its significant dependence on rail transit.

The HBLRTS is being constructed in three distinct minimum operable segments: The First Minimum Operable Segment (MOS-1) is a 9.3 mile system extending from 34th Street, Bayonne to Hoboken, with a West Side extension in Jersey City; MOS-2 is a 6.1 mile system extending from Hoboken to Tonnelle Avenue Park-and-Ride in North Bergen, and the extension to 21st Street in Bayonne; MOS-3 is a 4.9 mile system extending from Tonnelle Avenue to the New Jersey Turnpike’s Vince Lombardi Park-and-Ride, including both an extension to 5th Street in Bayonne, and an extension to Route 440 in Jersey City.
Conceived as a conventional design-bid-build project, the HBLRTS was converted to a DBOM to advance the completion date and to place more ultimate responsibility for the project with the Contractor. On a lump sum, guaranteed completion basis, the Contractor is to complete the final design and construction, to acquire the light rail vehicles and to perform 15 years of operation and maintenance.
The portion of MOS-1 from 34th Street in Bayonne to Exchange Place in Jersey City and from West Side Avenue to Liberty State Park, both in Jersey City, went into service in April 2000. Service was extended northward to Newport Centre Mall in November 2000.
3.  THE LESSONS
3.1 The DBOM Concept
The approach used by NJTC in the selection of the DBOM contractor was similar to that used for a conventional design-bid-build delivery type contract.

Finally, for the HBLRTS, NJTC decided to assign the acquisition of the Light Rail Transit vehicles to the DBOM Contractor scope. The vehicle interfaces with several components of the system infrastructure, including track, catenaries, traction power and signals. The DBOM Contractor is completely responsible for the design, construction, integration testing, demonstration, significant risk to NJTC.

Credits

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