Date of Award

Fall 2017

Degree Type

Non-Thesis Project

Degree Name

Master of Science (MS)

Department

General Engineering

Committee Chair

Kishor Shrestha

First Advisor

Bruce Madigan

Second Advisor

Glenn Shaw

Third Advisor

Liping Jiang

Abstract

To maintain rest area stops in the United States, three methods are used. They are the In-House method, Method-Based Contracting (MBC), and Performance-Based Contracting (PBC). In recent years, the PBC method has become increasingly popular because this method reduces the strain of managing In-House employees or MBC contracts, generates more business in the public sector, can increase the level of service (LOS), and generally reduces the costs of maintaining rest area stops up to 5%. In the United States, no less than 15 states use the PBC method to maintain their rest area stops, and the results from switching to this method of contracting has been beneficial. However, the Montana Department of Transportation (MDT) uses a combination of the In-House, MBC, and PBC methods to maintain rest area stops. The PBC method is only used at a small number of sites around the state. This research suggests that PBC would work well for maintaining all of Montana’s rest area stops. Unlike the In-House method and MBC, PBC is an output based method and uses Performance-Based Specification, which focuses on the output of the work performed (Stankevich et al., 2009). With this method, a contractor is selected using the ‘Best Value’ or ‘Qualification-Based’ methods. The PBC method also offers incentives and disincentives to the contractor that are tied with the work output (Popescu, and Monismith, 2006, and Schexnayder and Ohrn, 1997).

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