Question

The Oregon Department of Transportation (ODOT) released a request for proposals to widening/expanding a certain segment of I-5 between Portland and Salem. The construction work will substantially impact traffic throughout the duration of the project. To minimize the impact of construction on the public, ODOT decided to make a certain arrangement to smooth traffic flow during the construction period of the project. This arrangement will cost ODOT approximately $15,000 per day. Because time is of the essence in this case, ODOT decided to utilize A+B contracts for this project. Three local contractors showed interest in the project and submitted proposals. The table below shows the bid amount and number of proposed days to finish the project. What contractor should ODOT select to be awarded the project? Please show work

Contractor	Bid Amount	# of Days
A	$4,150,000	130
B	$4,400,000	110
C	$4,250,000	115

Answer 1

In A+B type contracts,

the total bid = A + (B x road user cost per day)

where A = Bid amount and B = 15000 dollars, so calculate the value of total bid for all three contractors as follows

so A values for the contractor A, B and C are 4150000, 4400000 and 4250000 respectively.

So clearly the totalbid for Contractor C is lowest.

So ODOT should choose Contractor C