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1WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
Financial Model InputsFinancial Model Inputs(I(I--405 Express Toll Lanes)405 Express Toll Lanes)
2WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
FY 2015 FY 2020 FY 2025 FY 2030 FY 2035 FY 2040 FY 2045 FY 2050 FY 2055 FY 2060 FY 2065 FY 2070
Revenue AssumptionsU
S$ M
illio
ns (N
omin
al)
P3 Constructionscenario allowsearly opening andcommencementof tolling in FY2020.
PSC Construction scenario allowscommencement of tolling in FY 2022
For the 405 the same “Base” caserevenue profile has been used forboth the P3 and PSC Models.
PSC Revenue Assumptions P3 Revenue Assumptions
Base Case Base Case
High Case
Low Case
3WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
0
50
100
150
200
250
300
350
400
450
500
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2011
US$
Mill
ions
Year
Initial Construction Costs Comparison
Total Traditional Delivery Initial Construction Costs Total P3 Delivery Initial Construction Costs
Traditional Delivery Total Initial Construction - $1,317MP3 Delivery Total Initial Construction - $1,116M
Identical Pre-construction costs forPreliminary Engineering (15% design)and Right of Way acquisition
Constructioncommences
Construction Costs
P3 Case assumes accelerated construction schedule
4WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
Construction Costs
$22 M $43 M $40 M$22 M $2 M $124 M
$432 M $432 M
-
50
100
150
200
250
300
350
400
450
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2011
US$
Mill
ions
P3 Delivery Initial Construction Costs
$22 M $43 M $40 M$22 M $2 M $54 M
$387 M $387 M
$265 M
$95 M
0
50
100
150
200
250
300
350
400
45020
13
2014
2015
2016
2017
2018
2019
2020
2021
2022
2011
US$
Mill
ions
Traditional Delivery Initial Construction Costs
Initial Construction Costs Savings for the P3Delivery method are based on the ability ofthe private sector to complete constructionwithin 2.5 years instead of 5, reducing all timedependant costs such as Mobilization &Preparation and Traffic Control, and to alesser extent other costs such as Design
The private sector would have the ability tobulk purchase materials such as steel whichcould potentially provide significant savings .However, this has not been assumed for thisproject.
Right of Way and Tolling & ITScosts are assumed the same forboth forms of delivery
Total Initial Construction - $1,317M
Total Initial Construction - $1,116M
5WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
RIGHT of WAYGRADING, DRAINAGE AND STOCKPILINGSTRUCTURESCEMENT CONCRETE PAVEMENTOTHER ITEMSTOLLING & ITS
DESIGNMOBILIZATION AND PREPARATIONWATERLINES, STORM AND SANITARY SEWERSASPHALT AND SURFACINGTRAFFIC CONTROLNON - BID COSTS 700 Level Items
0
50
100
150
200
250
300
350
400
450
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2011
US$
Mill
ions
Year
I-405/SR 167 Express Toll LanesTraditional Delivery Initial Construction Costs
-
50
100
150
200
250
300
350
400
450
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2011
US$
Mill
ions
Year
I-405/SR 167 Express Toll LanesP3 Delivery Initial Construction Costs
I-405/SR 167 Express Toll Lanes InitialConstruction Costs (Millions)
TraditionalDelivery
P3Delivery
DESIGN $57 $57RIGHT of WAY $72 $72MOBILIZATION AND PREPARATION $54 $27GRADING, DRAINAGE AND STOCKPILING $112 $108WATERLINES, STORM AND SANITARY SEWERS $14 $13STRUCTURES $239 $234ASPHALT AND SURFACING $74 $73CEMENT CONCRETE PAVEMENT $50 $49TRAFFIC CONTROL $51 $26OTHER ITEMS* $340 $257NON - BID COSTS 700 Level Items** $220 $166TOLLING & ITS $35 $35
Total Construction Cost $1,317 $1,116* Other Items include Design, QAQC (15%), Guardrail , Signage otherminor i tems, Environmental mitigation like recon of wetlands, streamrestoration etc, differing site conditions
** Non Bid Costs include sales tax, construction engineering (WSDOTsown and sub costs to inspect during construction) contingency,stipend for fai led bidders
Construction Costs
6WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
Lifecycle Costs
220M in savings under P3 delivery Primarily due to x, y, z
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$20020
15
2017
2019
2021
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
2043
2045
2047
2049
2051
2053
2055
2057
2059
2061
2063
2065
2067
2069
2011
USD
in M
illio
ns
Lifecycle Cost Comparison
Full DepthReconstruction of
PavementPavement
Resurfacingon a life cycle
of 10 years
Pavement Resurfacing &Tolling Equipment
Replacement to meetHandback Requirements
Tolling EquipmentReplacement on alifecycle of 8 years
Costs include Design, Resurfacing,Traffic Control and considerable
Tolling & ITS work
Traditional Delivery: Total Lifecycle Costs - $739MP3 Delivery: Total Lifecycle Costs - $517M
7WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
Lifecycle Costs
I-405/SR 167 Express Toll Lanes Lifecycle Costs (Millions) TraditionalDelivery P3 Delivery
Roadway Maintenance $67.43 $4.93Pavement Maintenance $85.22 $232.10Structures $0.00 $0.83Other Misc. Items $153.83 $0.00Tolling & ITS Maintenance $336.22 $265.49Design $54.79 $25.17Mobilization and Preparation $42.14 $30.20Engineering, Construction Mgmt. and Testing Fees $0.00 $39.21General Contingencies $0.00 $55.37
Total Over Concession $739.63 $664.43
$152.65 $237.03
• Overall, P3 costs are 10% lower in nominal (2011) dollars
• P3 case actually spends significantly more on pavement repairs
• Majority of savings are on Tolling and ITS ($71M or 10% of the total savings)
8WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
Traditional Delivery O&MCost
P3 Delivery O&M Costs
US$
Mill
ions
Operation & Maintenance Forecast Comparison
O&M Costs
Total Potential Savingthrough P3 Delivery (34%)
Traditional Delivery: Total O&M Costs - $5,178MP3 Delivery: O&M - $3,409M
Structures
Tolling & ITS
Enforcement
Roadway General Maintenance
Personnel
Pavement
Tolling Uncollectables
Facility Maintenance
G&A
Uncollectible tolls and enforcement aretypically overseen by Government, butpass-through of associated costs to theConcessionaire is common
Personnel costs are not captured undera single entry for the Traditional Deliveryapproach, but incorporated in each line
Greatest savings result fromTolling and ITS approach
9WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
O&M Costs
Personnel
Structures
Pavement
Tolling & ITS
Tolling Uncollectables
Enforcement
Facility Maintenance
Roadway General Maintenance
G&A
I-405/SR 167 Express Toll Lanes O&M Costs(Millions)
TraditionalDelivery
P3 Delivery Comment
Personnel $0.00 $270.72WashDot personnel costs are incorporated within eachof the line items such as structures, pavements etc.
Structures $4.41 $45.82 Includes bridges, safety barriers and retaining wallsPavement $28.53 $20.95 Includes asphalt & concrete pavement
Tolling & ITS $2,897.57 $865.86 Includes annual maintenance, fixed back office costs,transaction based cost & credit card fees
Tolling Uncollectables $1,490.64 $1,489.52 For both delivery methods assumed 4.5% of RevenueEnforcement $574.68 $604.65 Assumed the same for both delivery methodsFacility Maintenance $0.00 $1.29Roadway General Maintenance $108.22 $29.46 Includes drainage, landscaping etc.G&A $83.12 $80.25 General & Administrative costs
Total Over 55 Years $5,187 $3,409
8%
1%
1%
25%
44%
18%
1%2%1%
56%29%
11%
0% 2%2%
10WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
Tolling & ITS Costs
* Tolling & ITS – Transaction based costsincorporate equipment maintenance,customer service center (CSC) and FixedBack Office Costs.
Equipment O&M
WSP Enforcement
Transaction Based CSC Costs
Fixed Back Office Costs
Credit Card Fees
Uncollectible Accounts
Tolling & ITS - Transaction based costs*
$474
$575
$605
$968
$599
$858
$662
$1,491
$1,490
$204
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
Traditional Delivery Cost P3 Delivery Costs
US$
Mill
ions
I-405Tolling & ITS Comparison
Traditional Delivery: Total O&M Costs - $4,963MP3 Delivery: O&M - $2,960M
Total Potential Savingthrough P3 Delivery (40%)
11WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
Financial Model InputsFinancial Model Inputs(SR 509 Toll Lanes)(SR 509 Toll Lanes)
12WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
$50
$100
$150
$200
$250
$300
$350
FY 2012 FY 2017 FY 2022 FY 2027 FY 2032 FY 2037 FY 2042 FY 2047 FY 2052 FY 2057 FY 2062 FY 2067
Revenue AssumptionsU
S$ M
illio
ns (N
omin
al)
P3 Constructionscenario allowsearly opening andcommencementof tolling in FY2018.
PSC Construction scenario allowscommencement of tolling in FY 2020
PSC Revenue Assumptions P3 Revenue Assumptions
Base Case Base Case
High Case
Low Case
13WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
$0
$50
$100
$150
$200
$250
$30020
15
2016
2017
2018
2019
2020
2011
US$
Mill
ions
Year
Initial Construction Costs Comparison
Total Traditional Delivery Initial Construction Costs Total P3 Delivery Initial Construction Costs
Traditional Delivery Total Initial Construction - $743MP3 Delivery Total Initial Construction - $716M
Identical Pre-construction costs forPreliminary Engineering (15% design)and Right of Way acquisition
Constructioncommences
Construction Costs
P3 Case assumes accelerated construction schedule
14WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
$66 M $108 M
$193 M $210 M
$166 M
0
50
100
150
200
250
30020
15
2016
2017
2018
2019
2020
2011
US$
Milli
ons
Traditional Delivery Initial Construction Costs
Construction Costs
Initial Construction Costs Savings for the P3Delivery method are based on the ability ofthe private sector to complete constructionwithin 2.5 years instead of 3, reducing all timedependant costs such as Mobilization &Preparation and Traffic Control, and to alesser extent other costs such as Design
The private sector would have the ability tobulk purchase materials such as steel whichcould potentially provide significant savings .This has been assumed for this project.
Right of Way and Design costsare assumed the same for bothforms of delivery
Total Initial Construction - $743M
$66 M $108 M
$281 M
$181 M
$0
$50
$100
$150
$200
$250
$300
2015
2016
2017
2018
2019
2020
2011
US$
Milli
ons
P3 Delivery Initial Construction Costs
Total Initial Construction - $716M
15WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
RIGHT of WAYGRADING, DRAINAGE AND STOCKPILINGSTRUCTURESCEMENT CONCRETE PAVEMENTOTHER ITEMSTOLLING & ITS
DESIGNMOBILIZATION AND PREPARATIONWATERLINES, STORM AND SANITARY SEWERSASPHALT AND SURFACINGTRAFFIC CONTROLNON - BID COSTS 700 Level Items
Construction Costs
0
50
100
150
200
250
300
2015
2016
2017
2018
2019
2020
2011
US$
Mill
ions
Year
SR 509 Express Toll LanesTraditional Delivery Initial Construction Costs
-
50
100
150
200
250
300
2015
2016
2017
2018
2019
2020
2011
US$
Mill
ions
Year
SR 509 Express Toll LanesP3 Delivery Initial Construction Costs
SR 509 Express Toll Lanes Initial ConstructionCosts (Millions)
TraditionalDelivery
P3 Delivery
DESIGN $68 $68RIGHT of WAY $105 $105MOBILIZATION AND PREPARATION $60 $50GRADING, DRAINAGE AND STOCKPILING $108 $107WATERLINES, STORM AND SANITARY SEWERS $0 $0STRUCTURES $221 $219ASPHALT AND SURFACING $13 $13CEMENT CONCRETE PAVEMENT $21 $21TRAFFIC CONTROL $37 $31OTHER ITEMS $2 $2NON - BID COSTS 700 Level Items $93 $85TOLLING & ITS $14 $14
Total Construction Cost $743 $716* Other Items include Design, QAQC (15%), Guardrail, Signage other minor items,Environmental mitigation like recon of wetlands, stream restoration etc,differing site conditions
** Non Bid Costs include sales tax, construction engineering (WSDOTs own andsub costs to inspect during construction) contingency, stipend for failed bidders
16WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$5020
13
2015
2017
2019
2021
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
2043
2045
2047
2049
2051
2053
2055
2057
2059
2061
2063
2065
2067
2069
2011
USD
in M
illion
s
Lifecycle Cost Comparison
Overall Lifecycle Costs for Traditional Delivery Overall Lifecycle Costs for P3 Delivery
Lifecycle Costs
Full DepthReconstruction of
Pavement
PavementResurfacing
on a life cycleof 12 years
Pavement Resurfacing &Tolling Equipment
Replacement to meetHandback Requirements
Tolling EquipmentReplacement on a
lifecycle of 10 years
Costs include Design, Resurfacing,Traffic Control and considerable
Tolling & ITS work
Traditional Delivery: Total Lifecycle Costs - $216MP3 Delivery: Total Lifecycle Costs - $163M
17WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
SR 509 Express Toll Lanes LifecycleCosts (Millions)
TraditionalDelivery P3 Delivery
Roadway Maintenance $23.53 $1.90Pavement Maintenance $51.72 $80.94Structures $0.00 $1.11Tolling & ITS Maintenance $87.46 $43.91Other Misc. Items $27.03 $0.00Engineering, Construction Mgmt. and Testing Fees$14.96 $0.00Design $0.00 $0.00Mobilization and Preparation $11.50 $0.00General Contingencies $0.00 $35.34Total Over Concession $216.21 $163.19
Lifecycle Costs
• Overall, P3 costs are 25% lower in nominal (2011) dollars
• P3 case actually spends significantly more on pavement repairs
• Majority of savings are on Tolling and ITS ($43.5M or 50% of the total savings)
18WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
$0
$500
$1,000
$1,500
$2,000
$2,500
Traditional DeliveryO&M Cost
P3 Delivery O&M Costs
US$
Mill
ions
Operation & Maintenance Forecast Comparison
O&M Costs
Total Potential Savingthrough P3 Delivery (45%)
Traditional Delivery: Total O&M Costs - $1,927MP3 Delivery: O&M - $1,091M
Structures
Tolling & ITS
Enforcement
Roadway General Maintenance
Personnel
Pavement
Tolling Uncollectables
Facility Maintenance
G&A
Uncollectible tolls and enforcement aretypically overseen by Government, butpass-through of associated costs to theConcessionaire is common
Personnel costs are not captured undera single entry for the Traditional Deliveryapproach, but incorporated in each line
Greatest savings result fromTolling and ITS approach
19WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
O&M Costs
Personnel
Structures
Pavement
Tolling & ITS
Tolling Uncollectables
Enforcement
Facility Maintenance
Roadway General Maintenance
G&A
80%
19%
1%
SR 509 Express Toll Lanes O&M Costs(Millions)
TraditionalDelivery
P3 Delivery Comment
Personnel $0.00 $173.62WashDot personnel costs are incorporated within eachof the l ine items such as structures, pavements etc.
Structures $0.21 $29.39 Includes bridges, safety barriers and retaining wallsPavement $6.25 $13.43 Includes asphalt & concrete pavement
Tolling & ITS $1,584.54 $384.89 Includes annual maintenance, fixed back office costs,transaction based cost & credit card fees
Toll ing Uncollectables $359.97 $412.88 For both delivery methods assumed 4.5% of RevenueEnforcement $5.84 $5.81 Assumed the same for both delivery methodsFacil ity Maintenance $0.00 $0.83Roadway General Maintenance $20.05 $18.89 Includes drainage, landscaping etc.G&A $4.74 $51.46 General & Administrative costs
Total Over Concession Years $1,982 $1,091
16%
3%1%
35%
38%
2%5%
20WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
$144$6
$904
$320
$217
$229
$360
$413
$156
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
Traditional DeliveryO&M Cost
P3 Delivery O&M Costs
US$
Mill
ions
SR 509 Tolling & ITS Comparison
Tolling & ITS Costs
* Tolling & ITS – Transaction based costsincorporate equipment maintenance,customer service center (CSC) and FixedBack Office Costs.
Traditional Delivery: Total O&M Costs - $1,950MP3 Delivery: O&M - $803M
Total Potential Savingthrough P3 Delivery (59%)
Equipment O&M
WSP Enforcement
Transaction Based CSC Costs
Fixed Back Office Costs
Credit Card Fees
Uncollectible Accounts
Tolling & ITS - Transaction based costs*
21WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
Financial Model InputsFinancial Model Inputs(SR 167 Toll Lanes)(SR 167 Toll Lanes)
22WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
$0
$50
$100
$150
$200
$250
FY 2017 FY 2022 FY 2027 FY 2032 FY 2037 FY 2042 FY 2047 FY 2052 FY 2057 FY 2062 FY 2067
Revenue AssumptionsU
S$ M
illio
ns (N
omin
al)
P3 Constructionscenario allowsearly opening andcommencementof tolling in FY2019.
PSC Construction scenario allowscommencement of tolling in FY 2020
PSC Revenue Assumptions P3 Revenue Assumptions
Base Case Base Case
High Case
Low Case
23WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
0
50
100
150
200
250
300
350
2013
2014
2015
2016
2017
2018
2019
2020
2021
2011
US$
Milli
ons
Year
Initial Construction Costs Comparison
Total Traditional Delivery Initial Construction Costs Total P3 Delivery Initial Construction Costs
Traditional Delivery Total Initial Construction - $1,180MP3 Delivery Total Initial Construction - $965M
Identical Pre-construction costs forPreliminary Engineering (15% design)and Right of Way acquisition
Constructioncommences
Construction Costs
P3 Case assumes accelerated construction schedule
Initial Construction Costs Comparison
24WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
$80 M$100 M $95 M
$270 M
$327 M
$84 M
-
50
100
150
200
250
300
350
400
2013
2014
2015
2016
2017
2018
2019
2020
2021
2011
US$ M
illion
s
P3 Delivery Initial Construction Costs
$80 M
$110 M $110 M$101 M
$253 M $255 M
$165 M$106 M
0
50
100
150
200
250
300
350
400
2013
2014
2015
2016
2017
2018
2019
2020
2021
2011
US$ M
illion
s
Traditional Delivery Initial Construction Costs
Construction Costs
Initial Construction Costs Savings for the P3Delivery method are based on the ability ofthe private sector to complete constructionwithin 2.5 years instead of 5, reducing all timedependant costs such as Mobilization &Preparation and Traffic Control, and to alesser extent other costs such as Design
The private sector would have the ability tobulk purchase materials such as steel whichcould potentially provide significant savings .However, this has not been assumed for thisproject.
Right of Way and Design costsare assumed the same for bothforms of delivery
Total Initial Construction - $1,180M
Total Initial Construction - $965M
25WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
0
50
100
150
200
250
300
350
400
2013
2014
2015
2016
2017
2018
2019
2020
2011
US$
Mill
ions
Year
SR 167 Express Toll LanesTraditional Delivery Initial Construction Costs
RIGHT of WAYGRADING, DRAINAGE AND STOCKPILINGSTRUCTURESCEMENT CONCRETE PAVEMENTOTHER ITEMSTOLLING & ITS
DESIGNMOBILIZATION AND PREPARATIONWATERLINES, STORM AND SANITARY SEWERSASPHALT AND SURFACINGTRAFFIC CONTROLNON - BID COSTS 700 Level Items
Construction Costs
SR 167 Express Toll Lanes Initial ConstructionCosts (Millions)
TraditionalDelivery
P3 Delivery
DESIGN $100 $100RIGHT of WAY $175 $175MOBILIZATION AND PREPARATION $52 $26GRADING, DRAINAGE AND STOCKPILING $138 $113WATERLINES, STORM AND SANITARY SEWERS $5 $4STRUCTURES $303 $226ASPHALT AND SURFACING $31 $23CEMENT CONCRETE PAVEMENT $0 $0TRAFFIC CONTROL $9 $5OTHER ITEMS* $102 $77NON - BID COSTS 700 Level Items** $232 $181TOLLING & ITS $34 $27
Total Construction Cost $1,180 $956* Other Items include Design, QAQC (15%), Guardrail , Signage other minor items,Environmental mitigation like recon of wetlands, stream restoration etc,differing site conditions
** Non Bid Costs include sales tax, construction engineering (WSDOTs own andsub costs to inspect during construction) contingency, stipend for fai led bidders
-
50
100
150
200
250
300
350
400
2013
2014
2015
2016
2017
2018
2019
2020
2011
US$
Mill
ions
Year
SR 167 Express Toll LanesP3 Delivery Initial Construction Costs
26WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
$0
$5
$10
$15
$20
$25
$3020
13
2015
2017
2019
2021
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
2043
2045
2047
2049
2051
2053
2055
2057
2059
2061
2063
2065
2067
2069
2011
USD
in M
illion
s
Year
Lifecycle Cost Comparison
Overall Lifecycle Costs for Traditional Delivery Overall Lifecycle Costs for P3 Delivery
Lifecycle Costs
PavementResurfacing
on a life cycleof 12 years
Pavement Resurfacing,Bridge Structure Repair &
Tolling EquipmentReplacement to meet
Handback Requirements
Tolling EquipmentReplacement on a
lifecycle of 12 years
Costs include Design, Resurfacing,Traffic Control and considerable
Tolling & ITS workTraditional Delivery: Total Lifecycle Costs - $123MP3 Delivery: Total Lifecycle Costs - $96M
27WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
SR 167 Express Toll Lanes Lifecycle Costs(Millions)
TraditionalDelivery
P3 Delivery
Roadway Maintenance $0.28Structures $35.45Pavement Maintenance $28.34 $16.10Tolling & ITS Maintenance $47.14 $23.47Other Misc. Items $17.74 $0.00Engineering, Construction Mgmt. andTesting Fees
$9.81 $6.02
Design $0.00* $3.77Mobilization and Preparation $7.55 $4.52General Contingencies $0.00* $6.51
Total Over Concession $123.51 $96.12
$12.93
* Cost is included within Engineering, Construction Mgmt. and Testing Fees
Lifecycle Costs
$51.83 $41.28
• Overall, P3 costs are 22% lower in nominal (2011) dollars
• P3 case actually spends significantly more on pavement and structure repairs
• Majority of savings are on Tolling and ITS ($24M or 50% of the total savings)
28WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
Traditional Delivery O&MCost
P3 Delivery O&M Costs
US$
Mill
ions
Operation & Maintenance Forecast ComparisonO&M Costs
Total Potential Savingthrough P3 Delivery (61%)
PSC Total O&M Costs - $1,659MP3 Total O&M - $646M
Structures
Tolling & ITS
Enforcement
Roadway General Maintenance
Personnel
Pavement
Tolling Uncollectables
Facility Maintenance
G&A
Uncollectible tolls and enforcement aretypically overseen by Government, butpass-through of associated costs to theConcessionaire is common
Personnel costs are not captured undera single entry for the Traditional Deliveryapproach, but incorporated in each line
Greatest savings result fromTolling and ITS approach
29WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
1%
80%
18%
1%
5%
1%
47%
45%
1%1%
O&M Costs
Personnel
Structures
Pavement
Tolling & ITS
Tolling Uncollectables
Enforcement
Facility Maintenance
Roadway General Maintenance
G&A
SR 167 Express Toll Lanes O&MCosts (Millions)
TraditionalDelivery
P3 Delivery Comment
Personnel $0.00 $29.10WashDot personnel costs are incorporatedwithin each of the line items such asstructures, pavements etc.
Structures $0.00 $4.93 Includes bridges, safety barriers and retainingwalls
Pavement $6.46 $2.25 Includes asphalt & concrete pavement
Tolling & ITS $1,367.15 $301.09Includes annual maintenance, fixed back officecosts, transaction based cost & credit cardfees
Tolling Uncollectables $304.35 $290.36 For both delivery methods assumed 4.5% ofRevenue
Enforcement $5.84 $5.89 Assumed the same for both delivery methodsFacility Maintenance $0.00 $0.14Roadway General Maintenance $12.88 $3.17 Includes drainage, landscaping etc.G&A $2.18 $8.63 General & Administrative costs
Total Over Concession $1,699 $646
30WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
$78$6
$695
$410
$184
$161
$304
$290
$140
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
Traditional Delivery Cost P3 Delivery Costs
US$
Mill
ions
SR 167 Tolling & ITS Comparison
Tolling & ITS Costs
* Tolling & ITS – Transaction based costsincorporate equipment maintenance,customer service center (CSC) and FixedBack Office Costs.
Traditional Delivery: Total O&M Costs - $1,677MP3 Delivery: O&M - $597M
Total Potential Savingthrough P3 Delivery (64%)
Equipment O&M
WSP Enforcement
Transaction Based CSC Costs
Fixed Back Office Costs
Credit Card Fees
Uncollectible Accounts
Tolling & ITS - Transaction based costs*
31WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
Financial Model InputsFinancial Model Inputs(Columbia River Crossing)(Columbia River Crossing)
32WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
0
100
200
300
400
500
600
700
800
US$ M
illion
s (No
mina
l)Revenue Assumptions
P3 Constructionscenario allowsearly opening andcommencementof tolling in FY2017.
PSC Construction scenario allowscommencement of tolling in FY 2019
PSC Revenue Assumptions P3 Revenue Assumptions
Base Case Base Case
High Case
Low Case
33WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
-
200
400
600
800
1,000
1,200
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2011
US$ M
illion
s
Year
Initial Construction Comparison
Total Traditional Delivery Initial Construction Costs Total P3 Delivery Initial Construction Costs
Traditional Delivery Total Initial Construction - $3,029MP3 Delivery Total Initial Construction - $2,720M
Identical Pre-construction costs forPreliminary Engineering (15% design)and Right of Way acquisition
Construction Costs
P3 Case assumes accelerated construction schedule
34WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
-
100
200
300
400
500
600
70020
12
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2011
US$
Mill
ions
Year
CRC P3 Delivery Initial Construction Costs
$105
$375
$1,016
$735
$490
-
200
400
600
800
1,000
1,200
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2011
US$
Mill
ions
Year
CRC P3 Delivery Initial Construction Costs
Construction Costs
Initial Construction Costs Savings for the P3Delivery method are based on the ability ofthe private sector to complete constructionwithin 5 years instead of 9, reducing all timedependant costs such as Mobilization &Preparation and Traffic Control, and to alesser extent other costs such as Design
The private sector would have the ability tobulk purchase materials such as steel whichcould potentially provide significant savings .However, this has not been assumed for thisproject.
Right of Way and Design costsare assumed the same for bothforms of delivery
Total Initial Construction - $3,029M
Total Initial Construction - $2,720M
35WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
-
200
400
600
800
1,000
1,200
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
US$ M
illion
s
Year
CRC P3 Delivery Initial Construction Costs
RIGHT of WAYGRADING, DRAINAGE AND STOCKPILINGSTRUCTURESCEMENT CONCRETE PAVEMENTOTHER ITEMSTOLLING & ITS
DESIGNMOBILIZATION AND PREPARATIONWATERLINES, STORM AND SANITARY SEWERSASPHALT AND SURFACINGTRAFFIC CONTROLNON - BID COSTS 700 Level Items
Construction Costs
-
100
200
300
400
500
600
700
80020
12
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
US$
Mill
ions
Year
CRC Traditional Delivery Initial Construction Costs
36WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
Initial Construction Costs
• Overall, P3 costs are10% lower in nominal(2011) dollars
• Design & Right of Waycosts are the same forboth forms of delivery
• Majority of savings areon Mobilization andPreparation
CRC Toll Lanes Initial Construction Costs(Millions)
TraditionalDelivery
P3 Delivery
DESIGN $157 $157RIGHT of WAY $220 $220MOBILIZATION AND PREPARATION $293 $162GRADING, DRAINAGE AND STOCKPILING $120 $116WATERLINES, STORM AND SANITARY SEWERS $68 $66STRUCTURES $1,553 $1,519ASPHALT AND SURFACING $101 $99CEMENT CONCRETE PAVEMENT $0 $0TRAFFIC CONTROL $122 $68OTHER ITEMS* $368 $287NON - BID COSTS 700 Level Items** $0 $0TOLLING & ITS $27 $27
Total Construction Cost $3,029 $2,720* Other Items include Design, QAQC (15%), Guardrail , Signage other minoritems, Environmental mitigation l ike recon of wetlands, stream restoration etc,differing site conditions
** Non Bid Costs include sales tax, construction engineering (WSDOTs ownand sub costs to inspect during construction) contingency, stipend for failedbidders
37WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
$0
$20
$40
$60
$80
$100
$120
$14020
15
2017
2019
2021
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
2043
2045
2047
2049
2051
2053
2055
2057
2059
2061
2063
2065
2067
2069
2011
USD
in M
illion
s
Year
Lifecycle Cost Comparison
Overall Lifecycle Costs for Traditional Delivery Overall Lifecycle Costs for P3 Delivery
Lifecycle CostsMajor Rehabilitationon Bridge Structure
PavementResurfacing
on a life cycleof 10 years
Pavement Resurfacing &Tolling Equipment
Replacement to meetHandback Requirements
Tolling EquipmentReplacement on alifecycle of 8 years
Costs include Design, Resurfacing,Traffic Control and considerable
Tolling & ITS work
Traditional Delivery: Total Lifecycle Costs - $356MP3 Delivery: Total Lifecycle Costs - $305M
38WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
Lifecycle Costs
• Overall, P3 costs are 15% lower in nominal (2011) dollars
• P3 case actually spends significantly more on Structure repairs
CRC Toll Lanes Lifecycle Costs (Millions) TraditionalDelivery
P3 Delivery
Roadway Maintenance $42.41 $1.62Pavement Maintenance $105.33 $21.87Structures $0.00 $150.39Tolling & ITS Maintenance $109.91 $57.20Other Misc. Items $50.58 $0.00Engineering, Construction Mgmt. andTesting Fees
$27.98 $23.11
Design $0.00 $11.55Mobilization and Preparation $21.52 $13.86General Contingencies $0.00 $25.42
Total Over Concession $357.73 $305.03
39WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
Traditional DeliveryO&M Cost
P3 Delivery O&MCosts
US$ M
illio
nsOperation & Maintenance Forecast Comparison
O&M Costs
Total Potential Savingthrough P3 Delivery (57%)
Traditional Delivery: Total O&M Costs - $3,935MP3 Delivery: O&M - $1,672M
Structures
Tolling & ITS
Enforcement
Roadway General Maintenance
Personnel
Pavement
Tolling Uncollectables
Facility Maintenance
G&A
Uncollectible tolls and enforcement aretypically overseen by Government, butpass-through of associated costs to theConcessionaire is common
Personnel costs are not captured undera single entry for the Traditional Deliveryapproach, but incorporated in each line
Greatest savings result fromTolling and ITS approach
40WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
72%
20%
3%
1% 1%
O&M Costs
Personnel
Structures
Pavement
Tolling & ITS
Tolling Uncollectables
Enforcement
Facility Maintenance
Roadway General Maintenance
G&A
CRC Toll Lanes O&M Costs (Millions) * TraditionalDelivery P3 Delivery Comment
Personnel $0.00 $106.32WashDot personnel costs are incorporated withineach of the line items such as structures,pavements etc.
Structures $9.46 $15.00 Includes bridges, safety barriers and retaining wallsPavement $0.00 $6.86 Includes asphalt & concrete pavement
Tolling & ITS $2,891.04 $685.95 Includes annual maintenance, fixed back officecosts, transaction based cost & credit card fees
Tolling Uncollectables $796.24 $771.58 For both delivery methods assumed 4.5% ofRevenue
Enforcement $130.48 $41.92 Assumed the same for both delivery methodsFacility Maintenance $8.76 $34.63 Assumed the same for both delivery methodsRoadway General Maintenance $36.22 $0.42G&A $62.88 $9.64
Total Over Concession $3,935 $1,672*Costs associated with Insurance Preimums not included within this analyses.
6%1% 0%
40%45%
2% 1%
1% 0%
2%
41WA JTC Policy Working Group Meeting AECOM : KPMG : Nossaman
$351
$42
$1,285
$695
$560
$429
$796
$772
$257
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
Traditional DeliveryCost
P3 Delivery Costs
US$
Mill
ions
Tolling & ITS Comparison
Tolling & ITS Costs
* Tolling & ITS – Transaction based costsincorporate equipment maintenance,customer service center (CSC) and FixedBack Office Costs.
Traditional Delivery: Total O&M Costs - $3,729MP3 Delivery: O&M - $1,499M
Total Potential Savingthrough P3 Delivery (59%) Equipment O&M
WSP Enforcement
Transaction Based CSC Costs
Fixed Back Office Costs
Credit Card Fees
Uncollectible Accounts
Tolling & ITS - Transaction based costs*
