Florida Department of Transportation
Monthly Performance Review Meeting
March 15, 2012
1. Acknowledgement of Visitors: The following Professional Engineer Trainees attended
this meeting: Dino Jameson (Materials), Christian Rojas (D4), Tara Jafarmadar (D4), Joseph
Donegan (D4), Jay Williams (D5), Julian McKinley (D5), Doug Schumann (D6), John M. Garzia
(D6), Jonathan Fundora (D6), Raymond Valido (D6).
Also introduced were Howard Greenfield, Investigation Manager in the Office of Inspector
General and Charlotte Lambers, Central Office Training and Development Manager in the
Performance Management Office.
2. Review of Minutes: The February minutes were reviewed. No changes were made.
3. Monthly Reports:
A. Performance Report
Freddie Simmons presented the Performance Report covering performance activities through
February 2012. The presentation format is a narrative summary of all programs in a short, yet
comprehensive review. At the end of the presentation is a link to all data represented. District
staff is available for questions. A final copy of the Report will be posted on line after the meeting.
CONSULTANT ACQUISITIONS (Target 95% and 105% of Adopted)
THE NUMBERS: (Target between 95%-105% of Adopted)
YTD Plan 701
YTD Performance 798 (97 ahead of plan)
YTD of Adopted 114%
YTD Production 857 (156 total ahead of plan)
All Districts are within or ahead of target in number except D7 @ 92%.
THE $ AMOUNT: (Target between 95%-105% of Adopted)
Adopted $762 M
YTD Plan $467 M
YTD Performance $473 M ($6M ahead of plan)
YTD of Adopted 101%
YTD Production $511 M ($44M total ahead of plan)
Districts are ahead of Target except D5 @ 78% and D7 @ 78%.
RIGHT-OF-WAY (Targets Vary)
CERTIFICATIONS: (TARGET 90% - 110% OF ADOPTED)
YTD Plan 25
YTD Performance 29 (YTD at 116%, 4 ahead of plan)
YTD Production 37 (12 ahead of plan)
All districts have met or exceeded their Target.
ACQUISITIONS:(TARGET > 98% OF ADOPTED) (TARGET 80% - 120% OF ADOPTED)
YTD NUMBERS: YTD $ COMMITTED:
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Adopted 1042 $309 M
YTD Plan 539 $172 M
YTD Actual 705 (YTD at 131%) $130 M (YTD at 56%)
(166 ahead of plan) ($42 M behind plan)
Number: All districts are ahead of Target in number of parcels except D5 at 90%
Dollar: 4 districts are behind the Target, D1 @55%, D5 @ 65%, and D6 @ 72%
and D7 @ 79%.
PARCEL INVENTORY: (TARGET < 40% OF PARCELS ON INVENTORY > 24
0-12 Months 139
12-24 Months 55
> 24 Months 60 (YTD at 24%)
D6 (67%) and D7 (42%) exceed the 40% Target.
OTHER PARCEL ACQUISITION MEASURES:
Negotiation rate for Acquired Parcels (Target > 70%)
YTD at 77% D5 at 61% did not meet the > 70% Target.
Order of Taking rate for Acquired Parcels (Target < 30%)
YTD at 23% D5 at 39% did not meet the < 30% Target.
Parcels negotiated within 20% of initial offer (Target > 50%)
YTD at 75% All districts exceeded the target.
Parcels acquired with final judgment amounts < 50% of the range of
contention (Target > 50%)
YTD at 79% D1 at 0% (0 of 1) did not meet the > 50%
Excess parcels 928
Available for sale 246
Available for lease 93
Parcels sold this FY 22 for $1.4M
Revenue leases this FY 243 for $5.2M
ADVANCED PRODUCTION (APP): (As of March 7, 2012)
Annual Target $717 M….50% of the average annual lettings from the first 3 years of the
Adopted work program
For 2012-2017 we show the following total for Advanced Production:
By Phase: By Fiscal Year:
Consultant $111M 2012 $268M
ROW $888M 2013 $1,073M
Construction $4,378M 2014 $824M
CEI $485M 2015 $748M
Miscellaneous $56M 2016 $1,932M
Total $5,919M 2017 $1,073M
AMENDMENTS: (As of February 29, 2012)
These are amendments processed through the Central Office and sent to the Governor’s
Office for approval.
July 1, 2011 through February 29, 2012, we have processed 280 amendments to EOG
The amendments were: Add $319.9M
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D1-39 @ $127.4M D2-31 @ $50.1M D3-24 @ $72.7M D4-47 @ $62.8M
D5-61 @ $45.2M D6-26 @ $100.0M D7-42 @ $133.4M TE-4 @ $9.0M
C0/MISC-6 @ $11.4M
ADDENDA/REVISIONS: JULY 2011 THROUGH FEBRUARY 2012 CC1 LETTINGS
These are plan or plan package changes made to contracts being processed for letting
through the Central Office.
Through February 2012, we have let 112 contracts in Central Office.
These have resulted in: 110 Addenda
60 Addenda < 15 days
CONTRACT LETTINGS (Target 95% and 105% of Adopted)
THE NUMBERS: (Target 95% -105% of Adopted)
YTD Plan 262
YTD Performance 263
YTD of Adopted 100%
YTD Production 282 (20 ahead of plan-added or advanced)
THE $ AMOUNT: (Target 95% -105% of Adopted)
Adopted $2,115 M
YTD Plan $1,126 M
YTD Performance $896 M
YTD of Adopted 80%
YTD Production $941M
REMAINING PRODUCTION DISCUSSION:
There are currently 213 projects @ $1,063M scheduled to be let from March through
June. Assuming similar bid savings, this would result in actual bids of $859M for an
additional savings of $204M for a total estimated bid savings of $427M. This would also
bring our letting total for the year estimated to $1,800M out of a planned $2,115M.
However, we also have the V21C projects that will add another $650 (assuming similar
low bid savings and excluding the DBF projects). So we could end the year in the range
of $2.4-2.5B in total lettings.
BID ANALYSIS YTD TO DATE:
• We have received bids on 282 projects for $941.4M.
• The adopted/advanced/added value of these is $1,164.7M.
• That leaves $223.3M in low bids averaging 19.2% Statewide.
District: % Low Bid $ Amount %Last Month
D1 -13.0% -$12.0M -2.6%
D2 -28.9% -$36.6M -27.8%
D3 -17.6% -$25.4M -16.8%
D4 0.0% $0M 0.0%
D5 -17.6% $56.8M -19.0%
D6 -12.3% -$12.7M -14.3%
D7 -30.1% -$77.8M -36.3%
TE -2.4% -$2.0M -2.4%
SW -19.2% -$223.3M -20.2%
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Program: % Low Bid $ Amount %Last Month
Roadway -15% -$83.3M -15%
Bridge -26% -$37.3M -23%
Resurfacing -25% -$91.8M -27%
Safety -11% -$5.1M -14%
Traffic -10% -$5.8M +8%
Statewide -19% -$223.3M -20%
Cost: YTD at 3.4% increase cost (Target is < 10%)
Time: YTD at 8.7% increase in time (Target is < 20%)
All districts met the Targets for both cost and time.
TIME AND COST INCREASE:
Cost: YTD at 90.6% projects with < 110% cost increase (Target is > 90%)
Time: YTD at 86.0% projects with < 120% time increase (Target is > 80%)
D1 @ 86.2%, D2 @ 76.5%, D6 @ 85.7% and D7 @ 83.3% did not meet target
for cost increases.
D1 @ 72.4% and D2 @ 76.5% did not meet target for time increases.
Number of VE Studies 15
Cost Avoidance/Savings Adopted Recs CSI Acted Upon
$M Recommended $72.1M #Acted Upon 11
$M Approved $32.0M #Approved 10
Value Added Adopted Recs CSI Approved Savings
$M Recommended $15.2M $M Acted Upon $1.5M
$M Approved $7.0M $M Approved $1.5M
Annual Adoption Rate CSI Percent Project Saved
# Recommended 79 % Projects Saved 1.79%
# Approved 49 % Program Saved 0.12%
% Approved (Target 40% to 60%) 62%
Percent Project Saved
% Projects Saved 1.00%
% Program Saved 2.43%
Value Engineering/Cost Savings Initiative Programs
Since the last report in February 2012, there were 7 Value Engineering recommendations totaling
$6.18 million dollars and 3 Cost Savings Initiative proposals totaling $510,000 approved
Through February 2012, there have been 15 Value Engineering Studies conducted statewide.
The Department has approved 49 of 79 (62%) Value Engineering recommendations worth $32.0
million in project cost avoidance and $7.0 million in value added. This resulted in a 1.00% project
savings and a 2.43% program savings. During this same period, ten Cost Savings Initiatives
were approved worth $1.5 million in project savings. This resulted in a 1.79% project savings and
a 0.12% program savings.
MAINTENANCE (Target 90% to 110% )
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YTD CONTRACT DOLLARS: (TARGET 90%-110% OF ADOPTED)
Adopted $385 M
YTD Plan $297 M
YTD Actual $323 M
YTD at 109% of Adopted
YTD CONTRACT NUMBERS: (TARGET 90%-110% OF ADOPTED)
YTD Plan 973
YTD Actual 1,136
YTD at 117% of Adopted
All Districts meet or exceed their Targets in Dollars and Contract Numbers.
PUBLIC TRANSPORTATION (Target 90% to 110%)
PTO: (TARGET 90%-110% OF ADOPTED)
STATEWIDE CONTRACT DOLLARS:
YTD Plan $442M
YTD Actual $797M
YTD at 180% of Adopted
All districts meet or exceed their plan.
PROGRAMS: YTD COMPLETE
Total YTD 180%
All program areas exceed their plan.
FRE: (TARGET 90%-110% OF ADOPTED)
YTD Plan $273M
YTD Actual $242M
YTD at 89% of Adopted
D4 is at 112% of their plan; D5 is at 85% of their plan.
LAP PROGRAM (Target 95% and 105% of Adopted)
CONSULTANT ACQUISITION: (TARGET 95%-105% OF ADOPTED)
THE NUMBERS: THE $ AMOUNT:
Adopted 85 Adopted $35 M
YTD Plan 53 YTD Plan $13 M
YTD Performance 67 YTD Performance $19 M
YTD of Adopted 126% YTD of Adopted 142%
YTD Production 80 YTD Production $25 M
All districts are at or ahead of Target in Numbers and Dollars.
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CONTRACT LETTINGS: (TARGET 95%-105% OF ADOPTED)
THE NUMBERS: THE $ AMOUNT:
Adopted 97 Adopted $105 M
YTD Plan 48 YTD Plan $29 M
YTD Performance 58 YTD Performance $57 M
YTD of Adopted 121% YTD of Adopted 198%
YTD Production 69 YTD Production $73 M
All districts are at or ahead of Target in Numbers and Dollars
FEDERAL AID REPORT
Total Obligation Authority available this year = $1,721,226,000
Obligation to date = $322,162,000
% Obligation to date = 13.9%
Unexpended balance as % of Annual apportionments
for past 24 months with Benchmark <4% = 0.72%
We’ve finally seen some serious movement from Congress regarding the passage of a new
Yesterday afternoon, the Senate passed SB 1813 by a vote of 74 to 22. This bill covers the
remainder of the current federal fiscal year and the FFY2013 at funding levels slightly higher than
what are currently established in the current extension, which runs through the end of this month.
Since the Constitution prohibits the Senate from raising or extending taxes (which this bill does),
the Senate will have to wait until the House sends them a companion bill, which the Senate will
amend in its entirety and substitute SB 1813 in its place. Then both bodies can appoint
conferees to produce a final bill to send to the President for his signature. At least this is what the
experts think is most likely to happen at this point in the process.
With the limited time left for the House to act and a conference committee to finish their work, it’s
almost 100% certain that another short term extension of the current extension will be needed for
at least a few more weeks.
Obligation Authority Plan:
For the first five months of this federal fiscal year, we deobligated $155.3 million of funds and
obligation authority resulting from low bids and closing projects out under budget. This brings the
total OA needing to be obligated this year to $1.72 billion.
So far this year, we have obligated $322.2 million, which represents almost 19% of the total
available so far this year.
Financially Inactive Federal Aid Projects:
The chart is the statewide summary of our financially inactive federal aid projects. It shows the
current status of these obligated, but unexpended, balances as of February 29, and also shows a
trend line of the percentage obligated, but still unexpended at the end of each of the last 24
These unexpended balances are expressed as a percentage of our annual federal
apportionments and are stratified into 4 levels of projects, as defined on the bottom part of this
Also noted on the chart is the national benchmark used by FHWA, which is a maximum of 4% of
each state’s annual federal apportionments.
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At the end of last month we were at .72%, based on our annualized current year apportionment
levels. This marks the 14 month in a row where we have been under the 4% benchmark level,
and for the last nine months we have been at less than 2%.
All commons measures exceeded to date.
B. Construction Cost Indicators
Greg Davis reported on the current construction cost indicators.
There are no significant changes to the indicators this month. The indicators are fluctuating up
and down, but there are no significant trends in either direction except for oil prices which are
trending upward. As a result, there are no significant changes to construction cost trends. This
trend is expected until residential and commercial construction fully recovers.
PPI for non-residential construction was up slightly after several months of a downward trend
indicating no significant price pressures on materials. Diesel prices continued on a downward
trend for the second consecutive month. However, future prices are expected to rise based on
current cost trends for fuel. The Purchasing Managers Index (PMI) dropped to 52.4%, but
remains in the expansion state for the 31 consecutive month. The dropp was due to the
manufacturers being cautious with new orders and production. The national construction
unemployment rate decreased to 17.1%. This decrease is mainly due to the start-up of the
construction season in the northern states. There were some job losses in heavy civil
construction this past month. The number of permits and values were up, but home and condo
sales were down resulting in mixed signals. This means that the housing market is still
recovering. Significant cost increases are not expected until the housing market recovers.
Crude oil prices are up from the previous month and are beginning to fluctuate in the $100 dollar
range. Current issues impacting crude oil prices are tensions in the Middle East (risk of military
conflict), US and Europe oil demand and the European debt crisis resolution. Oil prices have
impacted bituminous asphalt prices. The standard bituminous asphalt cost has risen 13.4% since
November 2011. In August 2008, standard bituminous was just under $750/ton resulting in an
asphalt pavement bid price around $108/ton. Similar for the higher grade polymer bituminous
asphalt, cost has risen almost 10% since November of 2011. In August 2008, polymer
bituminous was just under $900/ton with a corresponding asphalt pavement bid price around
Currently, asphalt pavement bid prices are $101/ton. Asphalt pavement bid prices are expected
to rise as bituminous asphalt continues to rise. Bituminous asphalt prices of $800/ton or
$1,000/ton would have minor impact to capacity type projects (less than 2%). However,
resurfacing projects will increase around 10% if bituminous asphalt is $800/ton and around 20% if
bituminous asphalt is $1,000/ton. Structural steel bid prices have been stable in the past few
quarters except for one outlier (small quantity project). Reinforcing steel prices are also stable
with one outlier in December 2011 (approach slab replacement project). Similarly, structural
concrete prices are stable with the same project outlier as reinforcing steel in December 2011.
There are no significant changes in the thermoplastic pavement marking prices and a 6-10%
increase in paint pavement markings. There are some reports that titanium dioxide material
prices are going up which will have an impact on pavement marking prices. We will continue to
monitor pavement marking prices for this impact.
The 6-month average number of bidders per contract is 5.0. The number of bidders per contract
dropped to 4.6 in February 2012. This may indicate that some contractors are leaving the
construction industry due a continual aggressive bidding environment. Low bids for design-bid-
build contracts are averaging about 5% below the Department’s official estimates and about 7%
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below the Department’s official estimates when including design-build contracts. Graphs of the
low bid vs. official estimate for Fiscal Year 2012, February 2012 and Fiscal Year 2011 vs. 2012
show that bids are getting closer to the official estimate. The quarterly price trends report show
that bids are up slightly so far in the first quarter of 2012 (around 5%). Construction costs are not
expected to show significant increases until residential and commercial construction markets
C. Salary Projections and Operating Budget
We are currently 67% through the fiscal year and are in good shape. The projected salary and
benefits surplus is 27 million currently. The Expenses appropriation category which we have
been concerned about is looking better. New commitments in this category decreased from 3
million a month down to 1.6 million in February. At the current commitment rate we should not
have any difficulty staying within our current appropriation. We have committed 1.7 million of our
2.1 million appropriation for 2011/12 fixed capital outlay.
A General Appropriations Act for 2012/2013 has passed the House and Senate. The bill has not
been presented to the Governor yet. The Governor will have 15 days to sign or veto after it is
presented to him. The Budget Coordinators have the detailed spreadsheet if you have questions
on any specific item or budget issue.
The Proviso Report went out on Monday. Please be sure that you provide any information
regarding the proviso and back of the bill language by the end of the day today. We will compile
this information for use in responding to inquires from the Governor’s Office.
D. Personnel Reports
In the next week or so, we will be discussing how vacancies will be managed since there are no
cuts made to our positions for FY 12-13. Ms. Cabral reminded all managers that the Employee
Performance Evaluation End of Cycle is coming up on March 31, 2012.
There were a few bills that passed this legislative session that will impact personnel processes
and procedures: HB 1261 relating to State employment, removes the cohort language for pay
additives and other items; HB 5005 Relating to Retirement, a glitch bill to correct retirement
legislation that passed last year; HB 709 Relating to State Retirement, reduces the state’s
contribution on the investment plan; HB 1205 relating to drug-free workplaces, requires random
drug testing of all state workers. The budget bill does not include any bonus language, but does
authorize the department to continue providing pay increases to our PE and ROW trainees;
allows for merit increases; maintains health benefits at the same current rate; does not reduce the
department’s current position count.
E. Economic Parity
In the February Economic Parity Report for Females, the Department has a need for 29 in the
Service/Maintenance category. During February, the Department did not have any opportunities
to hire a female in this category.
For minorities, the Department has a need of 52 in the Skilled Craft category. The Department
had 4 opportunities in this category and was able to hire 1 minority in District 7. In the
Service/Maintenance category where we have a need of 20, the Department did not have any
opportunities in this category to hire a minority
F. Disadvantaged Business Enterprise (DBE) Report
The DBE Report for five months into the Federal Fiscal Year continues to show very strong DBE
participation. The DBE goal for our federally funded contracts is 8.60% and the reported DBE
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participation is 12.20%. The reports show the district breakdown on federally funded contracts,
our state funded contracts where we have 10.71% DBE participation, and the federal and state
funds combined shows 11.68% DBE participation.
Some professional services contracts that made a difference during February include a $6.3
million contract in District 5 with Parsons Brinckerhoff who reported 28% DBE participation. In
District 4, A & P Consulting Transportation reported 28% DBE participation on a $1.4 million
contract. Also, in District 7, Kimley-Horn reported 28% DBE participation on a $1.9 million
G. Minority Business Enterprise (MBE) Report
In the Minority Business Enterprise Report for 8 months, or 66.7%, through the state fiscal year,
the Department is at 65.6% of the dollars spent last year. The Department continues to move at
a good steady pace, but is slightly below our spending compared to last year for certified MBEs.
Our certified and non-certified MBE spending level is at a good 70.2% of last year. We are in the
process of running some reports to identify the larger state funded contracts to ensure that their
MBE payments are being entered into our tracking system. I am hopeful that this effort will
identify some payments that we may not have captured.
H. Cash Forecast Performance Report
The STTF actual February 2012 ending cash balance was $344 million, as compared to the
projected ending cash balance for the February 2012 Forecast of $315 million, resulting in a
variance of $29 million.
Similar to last month, the variance within the Receipts area was due to the timing difference of the
receipt of the final February 2012 Federal Highway Administration (FHWA) Billing for $77 million.
The reimbursement projected to be received in February 2012 was actually received during the
first week of March 2012. For the Specialized Cash Flows, we experienced some typical monthly
timing differences with the I595 payout occurring one month earlier than anticipated and the
US19 payment projected for February 2012 being paid in March 2012. The assumption for
Palmetto Section 5 is being modified this month and there are no changes identified for the Sun
Rail and National Highway Traffic Safety Grants assumptions. The CSX assumption, along with
existing PTO encumbrances, will be reviewed with that office this month in an attempt to isolate
more exact cash flow characteristics. Of the $60 million variance for the Remaining
Commitments, approximately $48 million is from the various areas within PTO. Based on the
results of this review, the assumptions will be modified as needed. In addition, the Right of Way
Office is reviewing their payment projections, focusing on litigation projections.
We have also included a listing of the Projected Payouts for the remainder of Fiscal Year 2011-
2012. With a total of approximately $1.9 billion in projected payouts, any timing changes will
have the potential to cause some wide fluctuations in the monthly ending cash balances.
The last chart shows the percentage of direct payroll charges by District and Functional Area for
all pay periods within the month of February 2012. As a reminder, the direct percentage target
remains 80%. During February 2012, there were no significant changes for the areas falling
below the target. As a result, we will be reviewing individual timesheet charges and validating
that appropriate projects are being used.
4. Survey Results Summary – Larry Ferguson presented the results of the 2012 Employee
Survey. This year’s theme: “Candor and Bridging the Gap”.
The Executive Summary and the full Briefing Book with data, analysis and conclusions are on the
Survey SharePoint site and linked to the minutes of this meeting. Highlights are extracted below.
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Participation for 2012 was 67% (4,198). This is the lowest participation in the survey to date.
The participation is still high enough to provide a confidence level of 95% with a confidence value
of plus or minus 2%.
Overall score this year was 161.15. This is a statistically significant 2.21 decline in overall
average score from last year’s 163.36 and 2.24 decline from the 163.39 score in our baseline
year of 2010. For perspective of this total score, a “perfect score,” that is if every respondent
strongly agreed with every survey item, the overall score would be 213. The 161.15 average
score thus represents a 75.6% rating (161.15/213) compared to 76.7% for 2011.
Turnpike (163.89), Central Office (167.33), District 6 (167.34) and District 4 (169.99) all scored
above the statewide average by a statistically significant amount. District 4 was the highest
scoring district. Both Districts 4 and 6 had all 71 items show as strengths (2.00 or higher) in their
District 7 (152.72), District 5 (155.08), District 3 (156.32), District 2 (156.51) and District 1
(158.66) all scored below the statewide average by a statistically significant amount.
There is a widely perceived Leadership Credibility gap particularly for the Executive Team and
also for District Management teams in many locations. Key issues are perceived lack of timely,
open, honest communication, and lack of trust of management.
There is a widespread sense of low morale among employees. Drivers include lack of pay
increases, lack of timely communication, lack of meaningful/honest/open communication, fear of
downsizing/outsourcing/layoffs/reorganization, and lack of management “standing up” for
High Quartile (HiQ) cost centers are significantly more inclined to report higher scores for
Leadership/Management Credibility at all levels (supervisor to Executive Team), better and more
timely communication from and with all levels (including not fearing retaliation), supervisors and
managers being more open to new and innovative ideas, and greater satisfaction with training for
current job and for future advancement.
Training for Advancement continues as a statewide concern for the fourth survey year. This was
a recommended action issue last year and the scores and comments from several districts
indicate respondents saw improvement. Overall scores and comments indicate they are also
seeking more such opportunities.
Effectiveness of District Awards Program is a statewide area of concern for the fourth year in a
row. Respondent scores continue to show this as a major source of dissatisfaction. Comments
continue to question the commitment of management to the awards program citing, in particular,
lack of nominations. This year, comments indicated this item is related to the morale issue. Also,
the absence of cash/gift card awards or other “meaningful” awards is a factor in respondent
Links: PowerPoint Briefing Book
1. The Executive Team should determine a plan to restore and enhance the morale of the
organization. Particular attention to clear, consistent, timely and meaningful
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communication and a sense of leadership/management standing up for and with the
employees of the Department must be key elements of the plan.
2. The Executive Team should consider studying and leveraging the best practices of High
Quartile cost centers and those districts where scores and comments indicate successful
practices related to communication, training for advancement and awards/recognition.
3. The Executive Team should clearly link any actions they take at the statewide, district
and unit level to the results of the survey as a means of letting employees know their
voices are listened to and appreciated.
The Executive Team should revisit the recommendation to change the Employee Survey to every
other year. Last year, the team decided to delay the decision until after the 2012 survey. They
wanted to use the 2012 survey to establish a “baseline” survey year for Secretary Prasad as it
was his first survey after taking office.
5. Additional Comments – Brian Blanchard advised speaking bullets on our legislative
issues were emailed out to District Secretaries for their use.
The meeting adjourned at 10:25 a.m.
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