A research project was conducted by Clemson University for the South Carolina Department of Transportation (SCDOT) to examine the relative merits of outsourcing highway maintenance activities as opposed to performing those activities with in-house forces. The research project examined the costs associated with maintenance work performed within the state for 20 maintenance-related activities in FY 2003-2004 The unit costs for activities including drain pipe installation, mowing, sign installation, and full-depth patching were found to be about the same. Some activities—drainage structure replacement, guardrail installation, and raised pavement marker installation—were difficult to compare because projects of major magnitude were let to contract whereas smaller magnitude projects were performed in-house. Then too, some activities were performed exclusively either by contract or in-house in FY 2003-2004. The research methodology also included workshops conducted in all seven SCDOT district offices to examine subjective field perspective factors that impact local decisions as to whether or not it is appropriate to outsource various maintenance activities. District personnel cited equipment availability, local contractor expertise, SCDOT inspection and contract administration capabilities, seasonal work fluctuations, and the need for immediate SCDOT response to specified problems among their decision factors. Workshop participants also suggested that improvements be made to the outsourcing contracts to give them more leverage with respect to specification conformance. Because other state transportation agencies may encounter similar difficulties in fully executing cost comparisons, it is suggested that outsourcing policy decisions be based upon a through examination of the equally important subjective field perspectives discussed in this paper.
展开▼
