FasTracks Transit Program Oversight using Systems Engineering Principles

TimothyStokes DelcanCorp. SeniorProjectManager 26WestDryCreekCircle,Suite616 Littleton,Colorado,USA,80120 t.stokes@delcan.com

Copyright2012byTimothyStokes.PublishedandusedbyINCOSEwithpermission.

Abstract. The Regional Transportation District (RTD) FasTracks Program is a multi-billion dollar transit expansion plan to build 122 miles of new commuter rail and Light Rail Transit (LRT) lines, and 18 miles of Bus Rapid Transit (BRT) in the Denver region. RTD recognized that programmatic risk, inherent in the cost, schedule, and quality aspects of such a complex program, needed to be mitigated through a comprehensive Oversight Program. A systematic requirements based oversight approach was developed based on the principles of Systems Engineering to manage complexity. This Oversight Program is modeled on a Systems Engineering V-framework. Utilizing risk management to focus oversight efforts, requirements are verified by RTDs oversight staff throughout a projects life cycle. A web-enabled database application is utilized to collect oversight data, which helps to ensure that requirements are verified at the system, subsystem, and component levels of the work breakdown structure. Useful information derived from the Oversight Program is fed-back to program participants to enable continuous improvement of the programs management systems, thus reducing programmatic risk. This paper discusses the application of RTDs tools and techniques used to oversee the FasTracks program and how Systems Engineering principles can be used to reduce programmatic risk for large transit programs.

Introduction
The purpose of this paper is to discuss a structured requirements based oversight approach that is based on the principles of systems engineering and to discuss its application on the Denver FasTracks transit program. The International Council on Systems Engineering (INCOSE) defines Systems engineering as an interdisciplinary approach and means to enable the realization of successful

systems. System engineering focuses on defining customer needs and required functionality early in the development cycle, documenting requirements, then proceeding with design synthesis and systems validation while considering the complete problem. (Haskins 2010) According to NASA, "Systems engineering is a robust approach to the design, creation, and operation of systems. In simple terms, the approach consists of identification and quantification of system goals, creation of alternative system design concepts, performance of design trades, selection and implementation of the best design, verification that the design is properly built and integrated, and post-implementation assessment of how well the system meets (or met) the goals." (NASA 2007) Systems engineering involves the use of methods, tools, technologies, and processes organized as phased activities to support the design, development, production and operation of a physical technical system. It is a holistic, systematic management approach that is primarily focused on scope and technical risk management which is aimed at satisfying and fulfilling customer needs. The field evolved from the need to develop approaches to better manage increasingly complex technical systems. (Haskins 2007) In todays modern world, the concepts of systems engineering are increasingly being used to deliver, operate and maintain public transit infrastructure, including buses, trolleybuses, trams, rapid transit (metros, subways, etc.), commuter rail, intercity rail, high-speed rail, and other forms of public transportation. Systems engineering techniques help organizations manage inherent complexity, especially in the delivery of large transit projects. Agencies responsible for operating transit systems and project managers developing new systems or upgrades to existing systems need to consider factors such as system safety, reliability, maintainability, availability, and quality in planning, design and construction of a project. Agencies that sponsor new and upgrades to transit systems define performance, functional and technical requirements for the project(s) resulting in a safe, operable and reliable system. A systems engineering approach helps an agency work through a process where, at each step in development and delivery, the system is verified and validated to ensure that the solutions implemented meet these requirements.

FasTracks Program
Initiated in 2005 after a successful public vote and in response to increasing road and highway congestion, the Regional Transportation District (RTD) FasTracks Program is a multi-billion dollar transit expansion plan to build 122 miles of new commuter rail and Light Rail Transit lines, and 18 miles of Bus Rapid Transit in the Denver region of Colorado. The FasTracks program consists of the following six new rapid transit corridors and three existing corridor extensions (see Figure 1 below): Central Corridor Extension, East Corridor, Gold Line, I-225 Corridor, North Metro Corridor, Northwest Rail Corridor, Southeast Corridor Extension, Southwest Corridor Extension, US 36 BRT Corridor, West Corridor, and Denver Union Station.

Figure 1: RTD FasTracks Rail Transit System Map

RTDs most advanced FasTracks construction project is the West Corridor at approximately 75% complete as of October 2011. Construction of the Denver Union Station is also progressing. The Eagle project is commencing design. This project is being delivered using a Public-Private-Partnership contractor called Denver Transit Partners. They are responsible for construction rail line to the Denver International Airport from downtown Denver, and the Gold Line which will be a light rail transit line west of downtown Denver. Denver Transit Partners are also going to construct a portion of the Northwest Rail Corridor that is shared with the Gold Line, and a Commuter Rail Maintenance Facility. The bulk of the design and construction work for FasTracks is being delivered by consultants and contractors using multiple delivery methods: Design-Bid-Build, Design-Build, Construction Management at Risk, and Design-Build-Operate-Maintain (DBOM), a Public-Private-Partnership. Early on in program development, RTD recognized that programmatic risk, inherent in the cost, schedule, and quality aspects of the program, needed to be mitigated through a comprehensive Oversight Program. RTD, with the assistance of their consultant Delcan Corporation, developed an Oversight Program. The Oversight Program is based on systems engineering principles, with a focus on

developing measurable requirements and verifying their achievement throughout the key phases on the project/program. This enables project dashboards to be generated that not only document schedule and cost, but also tracking how the requirements are being fulfilled during design, construction and test. This Oversight Program is based on the systems engineering V Model, which is explained in more detail below.

Transit Infrastructure Delivery

Owners of transit infrastructure have traditionally delivered projects using a design-bid-build delivery method where the owner retains the engineer, and the design is completed before the contractor is selected, typically as the lowest bidder, to construct the facility. For these traditional projects, the owner typically inspects the work of the contractor on an ongoing basis and much of the managing responsibilities are borne by the owner. The agency typically maintains a large staff of inspectors, surveyors, and supervisors ensuring that the contractor builds the facility to meet the drawings and specifications. Many transit agencies today are looking for new ways to be efficient and have started to allocate many traditional owner responsibilities to the contractor using delivery methods such as construction management at risk, and design-build. (Beard 2001) Owners have even shifted risk to contractors in a traditional design-bid-build delivery method, as well, in order to transfer risk to the parties best able to manage it. In a design-build contracting environment, a design-builder proposes to deliver a scope of work to a schedule and cost, based on the requirements that have been communicated in a set of contract documents. As a result, the owners role has shifted to defining and communicating the project to a contractor through project requirements during the planning phase and verifying that those requirements have been achieved during the project implementation phase. The owner of public infrastructure or the government responsible provide infrastructure has a responsibility to safeguard public safety and serviceability and cannot dispense this responsibility. Hence, the need for an Oversight Program. The benefit of verifying that requirements have been fulfilled is that it allows the owner to obtain information on an ongoing basis as to whether the design-builder is meeting the requirements of the contract. The design-builder is responsible for managing the project and for meeting the overall objectives of the project. Verifying requirements is an unobtrusive way for the owner to gain confidence that the work is meeting the contractual obligations.

Oversight Program Systems Engineering Principles

The following are examples of the main components of the RTD FasTracks Oversight Program which are based on the systems engineering principles, which are discussed in detail below: (INCOSE 2012) Measureable Objectives Requirements Focus Process Focus Feedback Mechanism

Risk Management

Measurable Objectives For the FasTracks Oversight Program, objectives have been established to communicate what the Oversight Program aims to accomplish. The following are the current objectives of the FasTracks Oversight Program: Objective A: Accurately Assess Performance Assess contractor performance in a balanced, accurate, fair, and objective manner, highlighting areas of good performance as well as areas needing improvement. Objective B: Plan & Prioritize Sample the contractors activities based on the actual or perceived risks associated with the contractors abilities to meet contractual requirements. Objective C: Improve Team Member Skills Improve oversight team skills through training and experience. Oversight participants shall follow the oversight procedures and understand their roles and responsibilities as defined within the Oversight Program. Objective D: Improve Processes Improve the ability of the Oversight Program to add value to the overall FasTracks Program through internal audits, surveys, and periodic management reviews. Objective E: Facilitate Acceptance Enable project manager confidence in the work through ongoing assessment and reporting throughout the project. Requirements Focus The Oversight Program methodology is based on a requirements-based approach to monitor the work of contractors. (Hooks and Farry 2001) The benefit of verifying that requirements have been fulfilled verbatim is that it allows the owner to obtain information on an ongoing basis as to whether the contractor is meeting the requirements of the Contract. The contractor is responsible for managing the project and for meeting the overall scope of the project. Verifying requirements is an unobtrusive way for the RTD to gain confidence that the contractor is meeting its contractual obligations. Process Focus The Oversight Program meets the requirements of the international standard ISO 9001:2008, Quality Management Systems Requirements and is registered to the standard as of May 2011. (ISO 2008) It comprises an approach based upon the systematic Plan-Do-Check-Act (PDCA) approach to continuous improvement. The processes are documented in an Oversight Manual and are revised as improvements to the Oversight Program are recognized. Therefore, the Oversight Program is highly focused on continuous

improvement providing greater value to the RTD, contractors and stakeholders that benefit from the feedback the Oversight Program provides. Feedback Mechanism For management systems to operate effectively, it is necessary to receive feedback. Understanding how complex feedback processes behave within organizations is important for making management systems improvement. One of the main aims of the Oversight Program is to provide useful feedback to the FasTracks program participants. This is accomplished by ensuring that information collected is analyzed in some way to convert the information to useful knowledge that can be acted upon. The Oversight Program maintains processes such as auditing, improvement actions, trend analyses and reporting, and lessons learned to collect data, analyze it, and convert it to useful feedback. Database applications are developed specifically for the Oversight Program that helps to automate these processes and collect the data in a consistent, efficient manner. Risk Management Risk management techniques are used to perform priority planning, which is a framework developed specifically to support the Oversight Program. It establishes the level of assessments to be performed by the oversight team in order to provide adequate confidence that the work meets the requirements prior to contractual acceptance. Priority planning takes into consideration the expected level of work to be performed as well as the risks associated with specific components of the work. Assessments are prioritized based on the risks and past performance that may be inherent in the contractors work. Utilizing systems engineering risk management techniques allows the oversight team to focus on areas needing focus, and resources can be utilized more efficiently.

V Model Applied to Oversight

Projects are constrained by cost, time, and scope, the so-called triple constraint for project management. (PMI 2008) It is important to realize that constructing a quality, operable transit project is first determined by developing good, verifiable requirements. (Hooks and Farry 2001) Hence oversight processes begin with ensuring that the requirements, the baseline for quality, are properly developed during the project definition or planning phase of a project. (Robertson 2006) After requirements are developed and incorporated into a Contract, oversight techniques are utilized to determine whether they are being fulfilled during design, construction, and systems integration phases of a project.

As the RTD is responsible for developing the requirements for a project and taking ownership for the deliverables, it is useful to visualize the role of oversight using the V Model (figure 2). As a project evolves from the project definition to project acceptance, the requirements are the measurement basis that the contractor is delivering what they are

Figure 2: V Model for RTD Oversight Program

contracted to deliver. For the FasTracks Oversight Program, requirements are verified at every level of the V, providing continuous information on whether requirements are being achieved. Conformance to requirements is the metric of quality that indicate to RTD that they are getting what they want and for which they are paying for. This information on the status of requirements is also used as a basis to accept the products at the completion of the project.

Oversight Program Tools & Techniques

The FasTracks Oversight Program consists of tools and techniques to monitor and report upon the contractors product, process, and management activities to verify, on a sampling basis, the implementation of the governing contractual requirements for FasTracks projects. The FasTracks Oversight Program is comprised of process areas and organized into four stages. The four stages are Priority Planning; Assessments; Acceptance Management; and Improvement. These stages are further discussed below. Priority Planning Priority planning is a framework that establishes the amount of assessments to be performed by the oversight team, to provide adequate confidence that the work meets the requirements prior to contractual acceptance. It uses the principles of risk management to Feedback and

prioritize oversight activity. (Sage and Rouse 1999) Priority planning takes into consideration the expected level of work to be performed as well as the risks associated with specific components of the work. Priority planning assists in allocating assessment resources to areas of highest risk. These areas include portions of the work that are more likely to be in non-conformance with the requirements (based on the assessors experience on previous projects or with the contractor), and areas where any non-conformance is likely to result in a greater consequence to schedule, cost, safety, security and/or quality. The Priority Plan is updated on a regular basis if changes in the risk profile have been identified. The aims of the priority planning process are to: Maintain and implement a systematic approach to prioritize assessment efforts based on risk and past performance; Utilize oversight staff resources in the most efficient manner based on priority decisions; Provide feedback to the oversight team on the performance of the contractor in areas of assessment indicating areas well done and areas needing improvement; Focus future efforts (both contractor and assessors) on areas needing improvement; and Provide adequate confidence to the RTD that acceptable products will be delivered.

One method that is used to assist in priority planning is to assign a priority number (Risk Priority Number (RPN)) to each scheduled contractor activity for planning purposes. This RPN assignment helps the oversight team to determine based on a risk analysis, where to focus its oversight resources. It involves assigning a score to each contractor activity from 1 to 10 with 1 having the lowest impact: Severity (S) - how bad are the consequences if the requirements are not met for the activity? Probability (P) - how likely is it that the contractor will not meet the requirements? Detectability (D) - how likely is it that the contractor (using their own methods) will not detect a failure?

The RPN = S x P x D which results in a number varying from as great as one thousand (1000) to as small as one (1). The high risk contractor activities would receive greater oversight attention. If the contractor improves its ability to manage and detect potential problems for an activity, the Priority Plan may be adjusted to account for the contractors improvement in this area. Assessments RTD, the agency delivering FasTracks, is responsible for safeguarding public safety and, among other things, ensuring that monies are spent appropriately. The FasTracks Oversight Program was developed to ensure that it had sufficient breadth and depth to provide confidence that, at the very least, the critical Contract requirements of the project are being met.

Assessments are performed by qualified professionals with appropriate experience to verify that the work conforms to Contract requirements. It is systematically conducted in accordance with a Priority Plan using requirements checklists and investigation techniques. The assessors, who are primarily agency staff, monitor the contractors activities during the execution of the Contract, observe the work, and examine the records that result from the implementation of the contactors management plans and procedures. For example, records that provide evidence of execution of a particular contractor activity such as an inspection or test must be available for review by the assessors. The benefit is that it allows the RTD to obtain information on an ongoing basis confirming that the contactor is meeting the requirements of the Contract. The contractor is responsible for managing the project and for meeting the overall scope of the project. An assessment is an unobtrusive way for the RTD to gain confidence that the work is meeting the contractual requirements. Project participants with a stake in the project's success must have access to full, accurate project data and information in order to make responsible decisions. This is especially true for governments and agencies that need to demonstrate they are operating in the public interest. The outcome of the Oversight Program is a series of feedback reports identifying areas of conformance and nonconformance, which are used to assess the overall performance of the contractor in delivering the Contract to the specified requirements. With a carefully prepared Contract that specifies the requirements to be achieved, this important tool can be very effective in providing information to the RTD in a manner that facilitates decisions regarding the performance of the contractor. The FasTracks Oversight Program involves two distinct assessment areas of focus to investigate and monitor the work of projects comprising FasTracks: Determining the degree of implementation of the contractors project management plans and procedures (the focus is on the management and procedural requirements of the work). Determining whether the work is being executed in accordance with the contractual technical requirements (the focus is on the defined technical aspects of the work).

The FasTracks Oversight Program is comprised of three major assessment techniques that focus on different aspects of the project. ConstructionAssessments A documented and systemic assessment of the contractors products of construction to determine conformance with Contract drawings and specifications DesignAssessments A documented and systematic review of the design documents to determine whether it meets the governing functional contractual requirements. Process/ManagementAssessments A documented and systematic review of the contractors contractually specified management plans and processes (procedures), including specific requirements for quality,

safety, environment, public information, and other nonfunctional areas of the Contract, to determine whether they are being effectively implemented. All assessments are aimed at verifying contact requirements explicitly. Figure 2 summarizes the flow of assessment of requirements. First, the contractual requirements that govern the work are identified. Second, a Priority Plan is developed. Requirements are then organized by the project Work Breakdown Structure creating requirement lists. As discussed above, the Priority Plan allows for a risk based approach to focusing limited oversight resources on areas that may pose a risk to a project. Third, assessors perform Design, Construction and Process Assessments, as discussed above. This involves the collection of objective evidence to support the determination of conformance or non-conformance for each requirement being sampled. Non-conformance is communicated to the contractor, allowing the contractor to make the necessary corrections. Finally, formal feedback reports are issued to the contractor. Summary reports that depict contractor performance, current status and trends are also issued to major stakeholders. When poor systemic trends are detected, the contractor is requested to take formal, documented corrective action.

Figure V3: Model Schematic forRTD Flow Oversight Chartfor Program Assessments 1

Feedback and Improvement The success of the Oversight Program is dependent on how effectively and accurately the status of performance is communicated to the contractor, depicting the true status of areas of concern and areas performing well, and the importance of those results to the project. An example would be reporting Contract nonconformances to the contractor, using a priority rating from 1 (signifying a serious nonconformance), to 3 (signifying a minor nonconformance). Another example is the use of a Corrective Action Request, which is used to describe significant or systemic management problems that the contractor should investigate and effectively resolve. The Corrective Action Request commands the attention of the contractors upper management, where adequate resources can be allocated to solve the problem. The greatest opportunity for realization of improvements in the delivery of the project lies with the way the contractor has planned and implemented their management processes for performing the work. By providing information to the contractor on the effectiveness of their plans and processes, there is a greater likelihood that problems can be prevented. Performance data and information which is collected during the project is analyzed and categorized in the following four areas, and depicted on a four-quadrant color coded matrix: Activities and work components where performance is steady and satisfactorily meets requirements (green); Activities and components where remedial actions have resulted in the activity approaching steady performance (improvement) (blue); Current areas of concern that need immediate attention (yellow); and Longer-term issues of concern where remedial or corrective actions need further efforts (red).

This performance information therefore represents an important addition to the more traditional reporting of the scope, schedule and cost controls necessary to deliver the infrastructure projects. By presenting information in a suitable graph or chart, an analysis is made regarding performance of the various participants over an individual project and from project to project. For instance, determination of conformance with project controls, design and construction quality control, and construction administration procedures is undertaken on a quarterly basis. Investigation of design conformance is undertaken for each design presented at the 90 percent design stage and investigation of construction product and field project management procedures is undertaken on a continuous targeted basis, consistent with construction schedule and progress. As well, analysis of a contractors technical performance trends offers a good estimation of how effectively the contractors management system is being implemented.

Acceptance Management
On FasTracks, especially with the concession type and design-build contracts, the contractor is responsible for managing the design, construction (and operations) phases of the work and for providing assurance that the work meets its requirements. Although the

contractor is required to submit documents and records for review as well as make work available for oversight assessments performed by the oversight team, the Contract also specifies the quality management standard, ISO 9001. (ISO 2008) This standard requires that the contractor describe and deploy a methodology to prove that each stage of the work meets requirements Figure 2: Example Acceptance Dashboard before the work progresses to the next stage. Therefore, the contractor must establish a management system that clearly demonstrates that each level of work meets its requirements in order to provide a level of confidence to the FasTracks oversight staff throughout the progression of the project from detailed design to project completion. For each FasTracks project, the Contract defines how the contractor is to formally present completed work for final acceptance, the procedures that must be followed, and the rights and responsibilities of both parties. Generally, the Contract specifies the work be presented to the RTD for final acceptance by geographical area or segment. The Work Breakdown Structure (WBS) identifies the major deliverables of each Project including the sub-deliverables that are to be designed, constructed, and completed as a package of work. Assessments are performed on activities that are linked or categorized by WBS. From the perspective of the Oversight Program, there is a need to ensure that assessments support the decision to accept the work. This may include verifying that enough assessments have been performed on the work to have adequate confidence that the contractor has fulfilled all of the product, process, and management requirements of the project as it has progressed through all the Phases. Depending on the method of project delivery and the master schedule which establishes project milestones, substantial completion dates, and final acceptance dates for each corridor, the acceptance process is defined for each project. When a work element is presented by the contractor to RTD for final acceptance, asserting that the work or portion of work is substantially complete as defined by the Contract, a final oversight assessment is performed to verify there is enough information to support a recommendation to accept the work. This may include an audit of the contractors quality records. The recommendation for acceptance will occur by updating the status of the project on a project-wide electronic Acceptance Dashboard (see figure 4 above).

The Acceptance Dashboard allows RTD to continuously know the status of completion and acceptance for all projects comprising FasTracks. See figure 3 is a screen shot of this application.

Oversight Tool Database Application

In order to support the FasTracks Oversight Program, software was developed that utilizes a database in order to handle Contract requirements similar to inventory control. There a number of database application modules to support the current needs of FasTracks including design, construction and process assessment, submittal tracking/review, RFI, audit, materials testing, acceptance management and other supporting modules. These software tools are developed for project managers and engineers to assist them in managing project conditions and status at the program, project, contract, and site levels. The aim is to maintain a visible, consistent approach to management to help improve the delivery of projects. The database collects the results of oversight activities and the software allows for the data to be organized into reports that are customized to each project and project management participant and delivered to a consistent frequency. In addition, the software facilitates organization of the results in order to provide information about trends, which can are depicted in graphs and charts. The Oversight Program is designed to ensure that all oversight data and information such as the status of design verification and validation, non-conformances, integration testing, punchlist items, and other oversight related items are known prior to acceptance. An electronic Acceptance Dashboard database module allows project management to quickly ascertain the status of this information in real time. All oversight related support documentation is stored within the system for ease of access and archiving. Hence the power of a database makes it possible to aggregate and present up-to-date information in the manner that will enable the project team to track the status of requirements in terms of verification status.

Conclusion
The systems engineering body of knowledge is evolving and is rapidly being adopted by many organizations that want to improve their ability to manage technical risk and complexity. In order to enhance the effectiveness of an owner Oversight Program, especially for transit projects that are being delivered using design-build or public private partnership delivery methods, the main area that can be improved upon for future projects is the development and management of requirements. The backbone of systems engineering is the requirements. Requirements are expressions of perceived needs that are desired to be accomplished or realized. Requirements are statements that identify the essential needs of a project in order for it to have value and utility. (Gabb Requirements should ideally state what the contractor is to do, not how they are to do it. This is an area where utilizing systems engineering techniques to develop and manage requirements can make significant improvements to the way transit projects are managed and delivered. Improving upon requirements development and management program wide, can

also assist the owner to develop and implement an improved Oversight Program since requirements would be easier to verify and validate. Oversight of large complex transit infrastructure projects is necessary, even if most of the responsibility and risk has been transferred to the contractor. The owner of public infrastructure or the government responsible for providing the infrastructure have a responsibility to safeguard public safety and serviceability and cannot dispense this responsibility. A systematic Oversight Program based on the principles of systems engineering can add value to the project and help the success of the project because it focuses on improved outcomes. It also provided a holistic view of the project rather than traditional approaches which tend to focus on compliance outcomes of the work products which may have limited value since the feedback is often not well disseminated, restricting it to the work group or person thought to have made the violation. The author believes that if systems engineering principles are widely adopted for new transit projects as a whole, and an Oversight Program is implemented based on systems engineering principles, project outcomes will improve. Project success is in delivering a result that does what it is supposed to do; when it is supposed to; for the predicted operating life, maintenance cost, and with the reliability and quality expected. The requirements are the backbone of any project since they do most of the work in communicating what the owner and stakeholders want. A good Oversight Program focused on requirements can help to ensure that what was specified is being achieved. A common framework and consistency of approach can result in greater efficiency and may even reduce the overall costs of delivering transit projects in the future.

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Sage,P.S.,Rouse,B.R.,Eds.,1999,HandbookofSystemsEngineeringandManagement,JohnWiley &Sons,NewYork,NY Gabb.A.(Editor).2001.RequirementsCategorization,RequirementsWorkingGroup,INCOSE.

Biography
Timothy Stokes is a Senior Principal and Senior Project Manager with Delcan Corporation located in Denver, CO. He holds a civil engineering degree from the University of British Columbia and a MBA from Simon Fraser University, universities located in Vancouver, Canada. He is also a Certified Project Management Professional (PMP). Mr. Stokes is a professional engineer (PE) with experience in structural engineering, construction management, ISO management systems, auditing and requirements management. Mr. Stokes has specialized expertise in the development, maintenance and implementation of management systems, especially for companies seeking ISO management system registration. His current interests include applying systems engineering principles to the management and implementation of large infrastructure construction projects, particularly focused on design-build and public-private partnership project delivery systems. He is currently providing consulting services to the RTD on the FasTracks program.