Cooperatives and Contracting in Agriculture: The Case of West Liberty Foods, October 2005

The West Liberty Foods turkey cooperative was formed in 1996 to purchase the assets and assume operations of Louis Rich Foods (an investor-owned processing rm), which, at the time, announced the imminent shutdown of its West Liberty, Iowa, processing facility. We study the creation and performance of this �new generation� cooperative using eld interviews with grower members and company management. We describe changes, before and after the buyout, in the contractual apparatus used for procuring live turkeys, and in the communication requirements, work expectations, and nancial positions of growers. During the private ownership period, most of the inputs (except labor and facilities) were provided by the rm; there was substantial supervision of the growers' actions; growers faced little price and production risk; and growers' equity was due largely to ownership of land and other farm assets. Our interviews reveal that, after cooperative formation, growers were exposed to considerable additional risk; monitoring of growers by the rm was less intensive; grower time and effort commitments to turkey production increased substantially; and a signicant fraction of rm (cooperative) equity came from growers' willingness to leverage their farm and personal assets (and hence indirectly their existing relationships with local lenders). We argue that some of these changes are consistent with a nancial contract where asset pledging and its corollary risk generate higher work effort by growers and a reduction in agency rents. These economies likely compensate for an organizational deadweight loss traditionally associated with cooperative governance.

Use of Incentive/Disincentive Contracting to Mitigate Work Zone Traffic Impacts, 2012

Incentive/disincentive clauses (I/D) are designed to award payments to contractors if they complete work ahead of schedule and to deduct payments if they exceed the completion time. A previously unanswered question is, “Did the costs of the actual work zone impacts that were avoided justify the incentives paid?” This report answers that question affirmatively based on an evaluation of 20 I/D projects in Missouri from 2008 to 2011. Road user costs (RUC) were used to quantify work zone impacts and included travel delays, vehicle operating costs, and crash costs. These were computed using work zone traffic conditions for partial-closure projects and detour volumes and routes for full-closure projects. Conditions during construction were compared to after construction. Crash costs were computed using Highway Safety Manual methodology. Safety Performance Functions produced annual crash frequencies that were translated into crash cost savings. In considering an average project, the percentage of RUC savings was around 13% of the total contract amount, or $444,389 of $3,464,620. The net RUC savings produced was around $7.2 million after subtracting the approximately $1.7 million paid in incentives. In other words, for every dollar paid in incentives, approximately 5.3 dollars of RUC savings resulted. I/D provisions were very successful in saving RUC for projects with full-closure, projects in urban areas, and emergency projects. Rural, non-emergency projects successfully saved RUC but not at the same level as other projects. The I/D contracts were also compared to all Missouri Department of Transportation contracts for the same time period. The results show that I/D projects had a higher on-time completion percentage and a higher number of bids per call than average projects. But I/D projects resulted in 4.52% higher deviation from programmed costs and possibly more changes made after the award. A survey of state transportation departments and contractors showed that both agreed to the same issues that affect the success of I/D contracts. Legal analysis suggests that liquidated damages is preferred to disincentives, since enforceability of disincentives may be an issue. Overall, in terms of work zone impact mitigation, I/D contracts are very effective at a relatively low cost.

Executive Order Number Sixty, May 19, 1997

Delegates responibility to state agencies for making training available to employees who are responsible for services contracting. Rescind Exectuive Order #50, May 2, 1997. Rescinded Executive Order #25, Vilsack, June 4, 2002.

Iowa Rail Route Alternatives Analysis, June 1998

The development of new rail systems in the first part of the 21st century is the result of a wide range of trends that are making it increasingly difficult to maintain regional mobility using the two dominant intercity travel modes, auto and air. These trends include the changing character of the economic structure of industry. The character of the North American industrial structure is moving rapidly from a manufacturing base to a service based economy. This is increasing the need for business travel while the increase in disposable income due to higher salaries has promoted increased social and tourist travel. Another trend is the change in the regulatory environment. The trend towards deregulation has dramatically reduced the willingness of the airlines to operate from smaller airports and the level of service has fallen due to the creation of hub and spoke systems. While new air technology such as regional jets may mitigate this trend to some degree in medium-size airports, smaller airports will continue to lose out. Finally, increasing environmental concerns have reduced the ability of the automobile to meet intercity travel needs because of increased suburban congestion and limited highway capacity in big cities. Against this background the rail mode offers new options due to first, the existing rail rights-of-way offering direct access into major cities that, in most cases, have significant capacity available and, second, a revolution in vehicle technology that makes new rail rolling stock faster and less expensive to purchase and operate. This study is designed to evaluate the potential for rail service making an important contribution to maintaining regional mobility over the next 30 to 50 years in Iowa. The study evaluates the potential for rail service on three key routes across Iowa and assesses the impact of new train technology in reducing costs and improving rail service. The study also considers the potential for developing the system on an incremental basis. The service analysis and recommendations do not involve current Amtrak intercity service. That service is presumed to continue on its current route and schedule. The study builds from data and analyses that have been generated for the Midwest Rail Initiative (MWRI) Study. For example, the zone system and operating and capital unit cost assumptions are derived from the MWRI study. The MWRI represents a cooperative effort between nine Midwest states, Amtrak and the Federal Railroad Administration (FRA) contracting with Transportation Economics & Management Systems, Inc. to evaluate the potential for a regional rail system. The 1 The map represents the system including the decision on the Iowa route derived from the current study. Iowa Rail Route Alternatives Analysis TEMS 1-2 system is to offer modern, frequent, higher speed train service to the region, with Chicago as the connecting hub. Exhibit 1-1 illustrates the size of the system, and how the Iowa route fits in to the whole.

A Comparison of Mobile Scanning to a Total Station Survey at the I-35 and IA 92 Interchange in Warren County, Iowa, August 15, 2012

The purpose of this project was to investigate the potential for collecting and using data from mobile terrestrial laser scanning (MTLS) technology that would reduce the need for traditional survey methods for the development of highway improvement projects at the Iowa Department of Transportation (Iowa DOT). The primary interest in investigating mobile scanning technology is to minimize the exposure of field surveyors to dangerous high volume traffic situations. Issues investigated were cost, timeframe, accuracy, contracting specifications, data capture extents, data extraction capabilities and data storage issues associated with mobile scanning. The project area selected for evaluation was the I-35/IA 92 interchange in Warren County, Iowa. This project covers approximately one mile of I-35, one mile of IA 92, 4 interchange ramps, and bridges within these limits. Delivered LAS and image files for this project totaled almost 31GB. There is nearly a 6-fold increase in the size of the scan data after post-processing. Camera data, when enabled, produced approximately 900MB of imagery data per mile using a 2- camera, 5 megapixel system. A comparison was done between 1823 points on the pavement that were surveyed by Iowa DOT staff using a total station and the same points generated through the MTLS process. The data acquired through the MTLS and data processing met the Iowa DOT specifications for engineering survey. A list of benefits and challenges is included in the detailed report. With the success of this project, it is anticipate[d] that additional projects will be scanned for the Iowa DOT for use in the development of highway improvement projects.

Review of Cold In-Place Recycled Asphalt Concrete Projects, HR-392, 1998

Highway Research Project HR-392 was undertaken to evaluate cold in-place asphalt recycled (CIR) projects in the State of Iowa. The research involved assessment of performance levels, investigation of factors that most influence pavement performance and economy, and development of guidelines for CIR project selection. The performance was evaluated in two ways: Pavement Condition Indices (PCI, U.S. Corps of Engineers) were calculated and overall ratings were given on ride and appearance. A regression analysis was extrapolated to predict the future service life of CIR roads. The results were that CIR roads within the State of Iowa, with less than 2000 annual average daily traffic (AADT), have an average predicted service life of fifteen to twenty-six years. Subgrade stability problems can prevent a CIR project from being successfully constructed. A series of Dynamic Cone Penetrometer (DCP) tests were conducted on a CIR project that experienced varying levels of subgrade failure during construction. Based on this case study, and supporting data, it was determined that the DCP test can be used to evaluate subgrades that have insufficient stability for recycling. Overall, CIR roads in Iowa are performing well. It appears that the development of transverse cracking has been retarded and little rutting has occurred. Contracting agencies must pay special attention to the subgrade conditions during project selection. Because of its performance, CIR is a recommended method to be considered for rehabilitating aged low volume (<2000 AADT) asphalt concrete roads in Iowa.

Evaluation of Paver Vibrator Frequency Monitoring and Concrete Consolidation, HR-1068, 1999

Identification of ways to enhance consistency and proper entrained air content in hardened concrete pavement has long been a goal of state highway agencies and the Federal Highway Administration. The work performed in this study was done under FHWA Work Order No: DTFH71-97-PTP-IA-47 and referred to as Project HR-1068 by the Iowa DOT. The results of this study indicate that the monitoring devices do provide both the contractor and contracting authority and are a good way of controlling the consistent rate of vibration to achieve a quality concrete pavement product. The devices allow the contractor to monitor vibrator operation effectively and consistently. The equipment proved to be reliable under all weather and paver operating conditions. This type of equipment adds one more way of improving the consistency and quality of the concrete pavement.

Standard Specifications for Highway and Bridge Construction, 2012

When referenced, the 2012 edition of the Iowa Department of Transportation’s (Iowa DOT) Standard Specifications for Highway and Bridge Construction shall be used for contract work awarded by the Iowa DOT. They may also be incorporated by reference in other contract work on secondary, urban, local systems, or other contract work in which the Iowa DOT has an interest. As modified by the General Supplemental Specifications, these Standard Specifications represent the minimum requirements and may be modified by Supplemental Specifications, Developmental Specifications, and Special Provisions on specific contracts. These Standard Specifications have been written so the Contractor’s responsibilities are indicated by plain language using the Imperative Mood and Active Voice form. Sentences are of the form: Construct isolation joints at all points where driveways meet other walks, curbs, or fixtures in the surface. Ensure finished members are true to detailed dimensions and free from twists, bends, open joints, or other defects resulting from faulty fabrication or defective work. Personnel preparing the JMF shall be Iowa DOT certified in bituminous mix design. The Contracting Authority’s responsibilities are (with some exceptions) indicated by the use of the modal verb “will”. Sentences are of the form: The Engineer will obtain and test density samples for each lot according to Materials I.M. 204. Payment will be the contract unit price for Fabric Reinforcement per square yard (square meter). These standard specifications contain dual units of measure: the United States Standard measure (English units) and the International System of Units (SI or “metric” units). The English units are expressed first then followed by the metric units in parentheses. The measurements expressed in the two systems are not necessarily equal. In some cases the measurements in metric units is a “hard” conversion of the English measurement; i.e. the metric unit has been approximated with a rounded, rationalized metric measurement that is easy to work with and remember. The proposal form will identify whether the work was designed and shall be constructed in English or metric units.

Evaluation of Lightweight Profilers for Construction Smoothness Evaluation, MLR-02-02, 2004

High-speed non-contact laser profilers have become the standard testing equipment for pavement management ride quality testing. The same technology used in the high-speed profilers is now being used in lightweight profilers for construction smoothness testing. The lightweight profilers have many advantages over the California 25-ft profilograph. Despite the many advantages of the lightweight profilers, there is resistance from the contracting industry toward eliminating the 25-ft profilograph for construction ride testing. One way to reduce or overcome the resistance is to evaluate and demonstrate the advantages/disadvantages of the lightweight profiler in actual field use in Iowa. The objective of the study was to purchase a lightweight profiler and to evaluate its suitability for construction smoothness quality verification and quality acceptance on Iowa projects. A lightweight profiler, an Ames Engineering, Inc. LISA single laser unit, was received in February 2003 for the study. Based on the work done during the 2003 construction season, the following conclusions can be made: (1) For hot mix asphalt surfaces, the LISA correlated well with the contractors' profilographs; (2) LISA results are significantly affected by longitudinal tining on portland cement concrete pavements, requiring a laser system upgrade to give accurate results; (3) A significant timesaving was realized by using the LISA; (4) Increasing visibility and reducing time in the construction zone improved safety; (5) One person with limited lifting capabilities could set up and operate the LISA; and (6) With the current Iowa Department of Transportation specification, the LISA cannot totally replace the profilograph, since bridges and short segments with no adjoining pavement would still require a profilograph.

Local Agency Pavement Marking Plan, TR-551, 2010

The proposed Federal Highway Administration (FHWA) amendments to the Manual of Uniform Traffic Control Devices (MUTCD) will change the way local agencies manage their pavement markings and places a focus on pavement marking quality and management methods. This research effort demonstrates how a pavement marking maintenance method could be developed and used at the local agency level. The report addresses the common problems faced by agencies in achieving good pavement marking quality and provides recommendations specific towards these problems in terms of assessing pavement marking needs, selecting pavement marking materials, contracting out pavement marking services, measuring and monitoring performance, and in developing management tools to visualize pavement marking needs in a GIS format. The research includes five case studies, three counties and two cities, where retroreflectivity was measured over a spring and fall season and then mapped to evaluate pavement marking performance and needs. The research also includes over 35 field demonstrations (installation and monitoring) of both longitudinal and transverse durable markings in a variety of local agency settings all within an intense snow plow state.