The total annual in-house cost for routine maintenance operations on the 100 roadway miles of IH-45 from Galveston County to Montgomery County was $10.5 million per year, or $52.5 million for five years. This amount included preventative and routine maintenance, incident management, and snow and ice removal.
These in-house costs reflect five different TxDOT offices or shops conducting work along different portions of IH-45.
TxDOT identified a cost savings opportunity by converting the in-house IH-45 work to a performance-based maintenance contract. After a thorough review and targeted reduction of items and estimated quantities, TxDOT negotiated a five-year, $26.9 million contract.
The new maintenance strategy has resulted in $25.6 million in cost savings over the life of the five-year contract. It freed up TxDOT funding and full-time equivalent (FTE) positions for other priority agency tasks.
This performance-based contracting methodology is now being considered for use on similar maintenance operations activities.