Strategic resource evaluation study
Client: Florida Department of Transportation
Location: Florida Statewide
The Florida Department of Transportation commissioned The Balmoral Group (TBG) to evaluate the availability of critical highway construction materials in Florida.
Balmoral was retained by the Florida Department of Transportation to evaluate critical highway construction materials, the outlook for timely supply and cost-feasible availability, and the estimated quantity of each material needed to meet the FDOT Work Program. The scope included evaluation of the influence on supply or cost of:
Producer/materials location: existing and future/planned
Transport & Distribution issues affecting supply chain
Land use/ Environmental issues
Foreign materials and markets
Policies, regulations or laws affecting supply or cost
The Balmoral Group obtained historical data from FDOT and other public and private sources to first estimate the total quantity demanded for each material by project type, scale and geographic location. Statistical relationships were used to identify variation by total project cost, length (lane miles), complexity, project type (bridge replacement/resurfacing/new alignment etc.) or other factors, and used to develop coefficients for estimating future materials needs for undersigned projects in the work program. Once quantities estimates were established, Balmoral’s economists built an econometric model of bid prices dating to 1993 while conducting extensive surveys and interviews of producers/suppliers and contractors. Models were established for each material and market/District in Florida, as well as statewide. Key events like Hurricane Katrina, the onset of the Gulf War, and 9/11 were identified to statistically tease out the effects of economic shocks on FDOT’s costs and lead times.