The Effect of Federal Davis-Bacon and Disadvantaged Business Enterprise Regulations on Highway Maintenance Costs

ILR Review ◽  
2014 ◽  
Vol 68 (1) ◽  
pp. 212-237 ◽  
Author(s):  
Kevin C. Duncan
Author(s):  
Kunqi Zhang ◽  
Qingbin Cui

Pushback for public–private partnerships (P3s) comes in part from their purported favoritism toward large firms. However, no study has empirically verified this claim. This paper examined the Disadvantaged Business Enterprise (DBE) program to assess whether delivery methods play a role in the participation of minority- and women-owned firms in federally assisted transportation contracts. A sample of 134 contracts from the US Major Transportation Project Database served as the dataset to run linear regressions. Results revealed that P3 associates with higher DBE goals than design–bid–build (DBB). Plausible explanations include P3 being associated with a larger contract size, more public attention, more potential subcontracting opportunities with design included in the package, and intensified agency desire for greater diversity in DBE subcontracts. Moreover, the delivery method has an insignificant effect on DBE attainment. This paper also introduces the DBE envelope, a radar plot capable of graphically assessing DBE program implementation.


2015 ◽  
Vol 15 (3) ◽  
pp. 291-316 ◽  
Author(s):  
Kevin C. Duncan

Previous empirical studies examine the effect of asymmetries across bidders on auction outcomes. This paper tests for asymmetries in behavior when bidders are confronted with different regulatory environments. Data from federal and state highway resurfacing projects in Colorado are used to determine if bids are more aggressive when contractors switch from federal projects, with Davis-Bacon prevailing wage and Disadvantaged Business Enterprise regulations, to less-regulated state projects. Results from fixed effects estimates of winning bids indicate that the level of aggressive bidding is not altered with a change in regulations, at least not with respect to the policies and types of projects examined here.


2021 ◽  
pp. 1087724X2110472
Author(s):  
Jiseul Kim

Routine maintenance spending for public infrastructure is critical for reducing life-cycle costs, and improving asset preservation and quality. Yet, states focus more on building new roads and expansion than maintaining existing assets’ conditions. Deferred maintenance costs are transferred to the future taxpayers, and they will eventually pay the expensive price. So far, there is little academic endeavor to examine the determinants of state and local routine maintenance spending. This study uses a panel data analysis covering 47 states from 1995 to 2009 to examine the effects of politics on state highway routine maintenance spending. The study finds that political incentive and conflict are key factors delaying state highway routine maintenance spending. The re-election-minded governors and legislatures tend to allocate less funding to maintenance to satisfy the current taxpayers. The study further finds that politically-divided states spend less on highway maintenance due to higher transaction costs in the policy-making process.


2019 ◽  
Author(s):  
David Keen Annette Humm Keen Janine Kyritsis and Blanca Monter ◽  
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1998 ◽  
Vol 2 (4) ◽  
pp. 340-349 ◽  
Author(s):  
Chien-Hung Wei ◽  
Paul M. Schonfeld

In recent years, various highway agencies and researchers have worked to develop efficient methods for maintenance planning, without much success. A major reason is that they usually neglect user inconvenience and delay costs, which alone can greatly exceed the maintenance costs. It is known that different maintenance plans have very different effects on users and on highway performance. These interactions have not been intensively explored, and the existing analysis methods are not quite satisfactory. To remedy the existing deficiencies, the development of a realistic and efficient maintenance planning methodology is proposed. Specifically, the proposed approach incorporates several components already developed for selecting and scheduling interdependent projects in transportation networks; however, it organizes them in a more efficient way. The proposed maintenance planning methodology can overcome the main weaknesses of prevailing methods and help decision makers to greatly reduce user costs and improve the efficiency of highway maintenance operations.


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