Competition and Cost Savings
for Nevada's Roads and Highways.
Senate Transportation Committee
February 21, 2017
EXHIBIT F
Senate Committee on Transportation
Date: 2-21-2017
Total pages: 18
Exhibit begins with: F1
thru F18
F2
CNCement.org
F3
CNCement.org
Cement or Concrete?
Concrete is basically a mixture of aggregates and paste.
The aggregates are sand and gravel or crushed stone;
the paste is water and cement. Portland cement is not a
brand name, but the generic term for the type of cement
used in virtually all concrete, just as stainless is a type
of steel and sterling a type of silver.
Cement is manufactured by heating lime, silica, alumina,
iron, and other materials at high temperature. The
resulting substance is a marble-like ball called clinker
that is ground, mixed with limestone and gypsum, and
used to create concrete.
F4
CNCement.org
Economic Footprint.
Cement consumption: 1.2 million metric tons
Cement & concreterelated contribution
Cement contribution
to state revenue:
to state revenue:
$1.6 million
$433.9 million
Nevada's cement & concrete-related employees:
5,707 with a payroll of $242 million
Cement manufacturers & concrete industries
employ over 535,000 workers in the U.S. with
an annual payroll of approximately $25 billion.
F5
CNCement.org
Building the
Foundation of
Nevada’s Economy
Nevada Cement
(Eagle)
NV Cement Consumption
Thousands of Metric Tons
3,000
2,500
2,000
Source: PCA
1,500
1,000
500
0
’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15
Unlike oil, cement production comes
from Nevada and neighboring states.
F6
Offices - 2
Plants - 1
Terminals - 4
CNCement.org
By the Numbers:
Why sustainable, long life cycle
roads matter to Nevadans
5,300
$285,000,000
Approximate amount needed
by the state annually for the
next decade to catch up
on the current backlog of
highway maintenance.
Number of miles of state highways
The Nevada Department of
Transportation maintains, including
many rural roadways.
48
Finding sustainable,
long term solutions that
significantly reduce the
need for maintenance.
Percent of increase of
vehicle miles traveled
in Nevada between
2000 and 2015, the
largest increase in
the nation. (TRIP Report 2016)
F7
CNCement.org
Concrete:
Competition & Cost Savings
for Nevada
Many transportation agencies are investigating
economic tools that will help them choose the
most cost-effective highway project alternatives:
F8
CNCement.org
Concrete:
Competition & Cost Savings
for Nevada
Many transportation agencies are investigating
economic tools that will help them choose the
most cost-effective highway project alternatives:
Life Cycle Cost Analysis.
When awarding highway construction
bids consider a 35-year plus lifespan when
NDOT builds project bids. Nevada does
not currently build this into project RFPs.
F9
CNCement.org
Concrete:
Competition & Cost Savings
for Nevada
Many transportation agencies are investigating
economic tools that will help them choose the
most cost-effective highway project alternatives:
A highway design process that will bring
more accurate estimates of current & future costs.
Consider a wider range of options for placements, like
roller compacted concrete & overlays, and choosing
the most sustainable, long-term pavement alternative.
F10
CNCement.org
Concrete:
Competition & Cost Savings
for Nevada
Many transportation agencies are investigating
economic tools that will help them choose the
most cost-effective highway project alternatives:
Alternative bid polices, (USED ON THE BOULDER CITY BYPASS)
compare roadway pavements side by side, true dollar to true
dollar, over a 35-year plus lifespan. Increasing competition
in the market place can lower initial costs. Longer term
thinking can avoid future transportation budget burdens.
F11
CNCement.org
Concrete:
Competition & Cost Savings
for Nevada
On the Boulder City Bypass
We opted to use concrete pavement due to its
longevity, which federally funded studies show
costs 13% to 28% less in the long run than
asphalt. It also reduces rutting and potholes...
cutting maintenance expenses by up to 75%.
Mary Martini
NDOT District 1 Engineer
On the Boulder City Bypass
Source: Engineering News-Record 2-23-15
F12
CNCement.org
AD/AB is becoming a common practice –
a survey indicates that roughly two out of
every three states utilize some form of AD/AB.
The West Virginia
Department of
Transportation
implemented
ADAB procedures
in 2008. In the first
four years they saved
nearly $20 million.
Missouri DOT has let over
200 projects using AD/AB
and realized a decrease of
approximately 10% in unit
bid prices for both concrete
and asphalt.
Between 2001
and 2009, Louisiana
DOT saved $120 M by
using ADAB on 47 projects.
F13
CNCement.org
A Level Playing Field?
All pavements are not
treated equally in Nevada
NDOT policy includes asphalt cost escalator clauses
that allow for asphalt paving contractors to raise
their construction price based on a fluctuation in
liquid asphalt cost. Concrete cost escalation has
been essentially flat over the last three years.
Asphalt cost escalators, a taxpayer subsidy, are no
longer a prudent policy. The economics surrounding
paving cost dynamics have changed radically during
the past ten years. DOTs now enjoy the advantage of
another cost competitive paving alternative – concrete
roads, and therefore are no longer bound to be the
risk insurer for asphalt paving contractors.
F14
CNCement.org
More reasons to consider
concrete pavement:
A locally produced product.
The perception that it is too costly or takes too
long to build is not always true. Explore options.
Concrete’s long term performance brings solid
return on investment and helps the state use money
for more improvements instead of maintenance.
Concrete pavement isn’t only for urban freeways
and interstates. Effective solution for RTC's, cities
and rural state routes that serve the mining industry.
F15
CNCement.org
More reasons to consider
concrete pavement:
Take advantage of inherent characteristics:
lighter colors keeps surfaces and cities cooler.
Brighter surfaces and reflective light:
Element of pedestrian safety at intersections.
MIT research shows that pavements with greater
stiffness produce a better vehicle fuel economy.
Other pavements need to be 60 percent thicker
to match concrete’s MPG.
F16
CNCement.org
We hope you can share our goals to
ensure that strategies like Life Cycle
Cost Analysis and Alternate Bid are
being used to provide long-term value
for projects at the state level. We also
encourage you to inquire whether or
not these strategies are being used
within your district.
F17
CNCement.org
Thank you.
F18
CNCement.org