RD401 - Annual Report on Initiatives on Outsourcing, Privatization, and Downsizing within the Department of Transportation - FY2009


Executive Summary:
The Virginia Department of Transportation’s (VDOT or The Department) FY2009 expenditures totaled $3.32 billion. The Department spent $2.46 billion, or 74% of those expenditures externally: $2.01 billion with private sector vendors (61%), and another $0.45 billion in transfer payments (14%). When debt obligations are included, VDOT’s total external expenditures in FY2009 comprised 83%, or $2.74 billion of the $3.32 billion.

Figure A: Breakdown of FY2009 VDOT Expenditures by Department of Accounts Category

FY2008 VDOT Expenditures (in millions):

Private Sector Vendors: $2,010.9/61%
Transfer Payments: $450.5/14%
Debt Obligations: $277.5/8%
Personal Services: $580.9/17%

The Department continues to expand outsourcing, privatizing, or downsizing where supported by good business practices. Highlights of activities in these areas include:

Table 1.0: Highlights of FY2009 and FY2010 Outsourcing, Privatization and Downsizing Activity

FY2009:

Outsourcing: 100% of Interstate Maintenance outsourced by April 200, ahead of July 2009 schedule.
Privatizing: Advertised Solicitation for Proposal on Downtown/Midtown/Martin Luther King PPTA project.
Initiated construction of Airport Connector Road on Route 895 PPTA project.
Downsizing: Reduced VDOT positions to 8,167 from 8,472 full time employees.

FY2010:

Outsourcing: Plans for outsourcing management, maintenance, inspections and operations of the Woodrow Wilson Bridge (WWB) have begun through a request for proposal (RFP). The RFP covers a portion of I-495 (4 miles in VA currently under contract) and the WWB under joint agreement with Maryland. The expected award date is late 2010 and will be managed by VDOT.
Privatizing: Negotiating Interim Agreement with Elizabeth River Crossings, Inc. for Downtown/Midtown/Martin Luther King PPTA project.
Downsizing: Reduce VDOT positions to 7,500 from 8,167 full time employees by July 2010.
Completed transfer of Dulles Toll Road to Metropolitan Washington Airports Authority on October 1, 2009. This affected the transfer of 43 full time employees.

The cost to complete this study was $8,867.