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FDOT saves $13 million from private asset maintenance contract 

TALLAHASSEE, FLA. — The Florida Department of Management Services (DMS) announced that the Florida Department of Transportation (FDOT) and Transfield Services Infrastructure, Inc. (TSI) are the recipients of the inaugural “Governor’s Savings Award” for the substantial cost savings realized through the renegotiation of the US-1/State Road A1A Asset Maintenance Contract with TSI. The award honors state government employees and partnering private-sector companies that work together in the interest of identifying cost savings and avoidances while increasing the effectiveness of government operations.

Under this contract, which initially began Nov. 1, 2005, TSI is responsible for asset maintenance along the entire US-1 and State Road A1A corridors in Broward, Palm Beach, Martin and St. Lucie counties, including all the east/west state roads that connect them. This includes responsibility for the maintenance and operations of 37 movable bridges at 28 locations. Throughout multiple performance evaluations over the life of the original contract with FDOT, TSI has demonstrated a track record of success, often exceeding the agency’s expectations.

At the time of the contract renewal, FDOT renegotiated the removal of a 15 percent escalation cost for the seven-year renewal period resulting in a $13,192,500 savings over the life of the contract. The renegotiated contract amount is $87,950,000.

The FDOT employees who were instrumental in the contract renegotiations include: Maria Connolly, Brian O’Donoghue and Kim Gutierrez with the FDOT District Four Maintenance Office, and Tim Lattner and Mike Sprayberry with the FDOT Central Maintenance Office.

“The FDOT has served as a model for other state agencies to emulate and I commend these individuals and TSI for their due diligence,” said Gov. Rick Scott. “As public servants, it is our obligation to routinely review what works — and what doesn’t — to ensure that we are properly leveraging tax dollars for the highest and best use. I look forward to honoring more state employees and private-sector partners for their achievements as we move forward in our efforts to create a more business-minded government.”

"Gov. Scott has challenged all state agencies to be bold and innovative in providing services in a cost-effective manner," said FDOT Secretary Ananth Prasad. "I am proud of FDOT and our staff for stepping up to the challenge by renegotiating this complex contract with a savings of more than $13 million and delivering the same service for a lower cost."

“TSI is pleased to partner with all of the FDOT District and Turnpike Offices for more than 12 years,” said Richard Herlich, TSI Senior Vice President, U.S. Operations. “We constantly search for best practices and strive to be more efficient. The hard work of our local employees helped us to successfully hold down costs for this project.”

As part of several statewide enterprise efficiency initiatives, Gov. Scott has tasked state agencies with seeking out greater productivity and savings through proven business practices. As a result, the governor’s agencies are reviewing existing contracts and vendor management opportunities for savings, streamlining statewide fleet programs and real estate management, and identifying human resource tools to boost employee performance and talent management. This effort will ultimately include the implementation of additional metrics throughout government while concurrently opening lines of coordination among agencies.

Because of its role as a lead agency in fostering cross-cutting strategies for greater efficiencies, DMS will help to identify candidates who meet the award criteria to be submitted to the governor for consideration.

“As the agency that serves those who serve Florida, we commend Secretary Prasad’s team and TSI, and are excited to continue to build out the framework to help replicate this type of success throughout state government, as well as within our own agency,” said DMS Secretary Craig Nichols.


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N.C. DOT to cut 400 positions (Winston-Salem Journal)
Georgia DOT commissioner resigns (Atlanta Journal-Constitution)
Georgia DOT loses another top manager (Atlanta Journal-Constitution)
New Road Signs Will Now Wait (The New York Times)
WYDOT staffer wins national post (Billings Gazette)
Schneider named acting IDOT director (The State Journal-Register)
Selection of MDOT director delayed (Hattiesburg American)

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