Project Management

1999/00 Performance Report

CAPITAL SUPPORT PERFORMANCE MEASURES

I. PROGRAM PERFORMANCE MEASURES FOR CAPITAL SUPPORT

A. Background

In December 1995, the Department submitted its REPORT TO THE LEGISLATURE ON CAPITAL SUPPORT PERFORMANCE MEASURES in response to supplemental report language in the 1995 Budget Act. That report proposed twelve measures for evaluating all major capital outlay support functions. The budget language stated that the proposed measures must provide an accurate measure of annual efficiency, provide a consistent basis for year-to-year comparison, evaluate the Department’s cost and timeliness in completing work, and measure the quality of completed projects.

In the Department’s three-tiered scheme of measures, these twelve capital support performance measures are program measures for the statewide Capital Outlay Support (COS) Program. Their relationship to corporate measures will be described later in this report.

The purpose of this report is to summarize, at the Program level, the status of the capital outlay support performance measures, report data for these measures for the past few years, where available, and recommend targets, where possible.

B. Context of Capital Support in the Department

Performance Measure #1 of the Report to the Legislature proposed "pie" charts showing PY and dollar expenditures for the Department’s programs, the elements of the Highways program, and the parts of capital support. This is not a performance measure as such, but rather it sets the context for the other measures. For the purpose of this summary report, a few of these charts are shown to set the context.

In FY 1999/00, total Caltrans expenditures were $5.35 billion of which $4.65 billion or 87% were Highways Program expenditures. The dominance of the Highways Program is shown in the following chart:

Caltrans Project Management from 1999 to 2000 by Activity and Percent Expenditure
Activity Category	FY 1996/97 Dollars	FY 1996/97 Percent
Aeronautics	$13	0.2%
Highways	$4,654	87.0%
Mass Transportation	$319	6.0%
Transportation Planning	$112	2.1%
Administration	$253	4.7%
TOTAL	$5,352	100%

Of the $4.65 billion in Highways Program expenditures, capital support represents $900 million and capital outlay $2.02 billion. The remaining $1.73 billion were for the other six Highways Program elements included in the chart below.

pie chart of Caltrans Project Management from 1999 to 2000 by program element and percent expenditure

1999/00 Expenditures by Activity Category and Percent Expenditure
Activity Category	Percent Expenditure
Maintenance	16%
Operations	3%
Legal Services	1%
Planning & Research	1%
Local Assistance	14%
State/Local Partnership	2%
Capital Support	19%
Capital Outlay	44%

The percentage breakdown of the $900 million of capital support is shown below:

pie chart of Caltrans Project Management from 1999 to 2000 by activity and percent expenditure

1999/00 Capital Support Expenditures by Activity Category and Percent Expenditure
Activity Category	Percent Expenditure
Locally Funded Projects	4%
Overhead	14%
Owner Operator	3%
State Program Projects	79%

C. Relationship of Capital Support to Capital Outlay

Perhaps the most important and sensitive of all the capital support measures is the ratio of capital support to capital outlay. This is Performance Measure #2 in the Report to the Legislature. This relationship for each year from FY 1988/89 to 1997/98 is shown below. This shows a three-way breakdown of capital support and overall relationship to capital outlay dollars. The data for both capital support and capital outlay exclude expenditures on locally funded projects. Capital support also excludes owner-operator services.

Target: Based on recent trends and Project Management Improvement efforts, the Project Management Program is recommending a goal of 33%.

It is important to note that the capital support and capital outlay expenditures represent different sets of projects at different times. Most capital support effort is expended on projects to be awarded in the future. Similarly, capital outlay is expended for projects developed in the past. Over time, however, the trend can be analyzed to provide valuable management information. The chart on the next page depicts this trend.

Area chart of Caltrans Project Management from 1988 to 2000 by activity and percent expenditure

1988/89 through 1999/00 Capital Support Expenditures as a Percentage of Capital Expenditures
Capital Support Category	FY 88/89	FY 89/90	FY 90/91	FY 91/92	FY 92/93	FY 93/94	FY 94/95	FY 95/96	FY 96/97	FY 97/98	FY 98/99	FY 99/00
Construction	14%	12%	12%	14%	15%	15%	15%	12%	12%	16%	15%	15%
Design & Right of Way	20%	20%	19%	21%	24%	17%	19%	19%	16%	17%	20%	22%
Preliminary / Environmental	12%	10%	11%	9%	8%	4%	4%	3%	2%	4%	8%	7%
TOTAL	46%	42%	42%	43%	46%	36%	38%	34%	30%	37%	43%	44%