Deltek Pulse: Transportation and Public Utilities Quarter in Review, Q2 2024

In the second quarter of 2024, the Transportation and Public Utilities verticals experienced a decline in bid volume compared to Q1. The total number of bids decreased to 47,678 from 50,151 in the previous quarter. This decline is in line with the usual trend of decreasing bid volumes in TPU verticals throughout the year. Despite the decrease, the bid volume in Q2 remained consistent with previous years.

The Transportation and Public Utilities market typically represents 30% to 35% of the total SLED market on a quarterly basis. In Q2, these verticals accounted for 35% of all SLED bids, maintaining a similar proportion to previous quarters. While the total SLED bids were slightly lower than usual in Q2, the TPU sector remained stable and contributed a slightly larger percentage to the total bids.

Furthermore, familiar patterns persisted in the TPU market during Q2. Special Districts and Cities continued to be the primary sources of bidding activity in these verticals, comprising over 62% of all SLED bids. Pennsylvania led in the number of TPU bids released, followed by Texas and California, which together represented around 32% of the total bids.

The majority of bidding requirements in Q2 were related to Architecture, Engineering, and Construction (AEC) projects and services, constituting over 57% of all bids. Other significant segments included Professional Services (8%), Machinery and Mechanical Equipment (7%), and Operations and Maintenance (6%). Information Technology products and services accounted for approximately 3% of the bids.

In specific solicitations, the Illinois State Toll Highway Authority (THA) issued an RFP for a Tolling Back Office System in May 2024. The system aims to enhance toll payment collection and traffic monitoring through lane transaction data. Vendor proposals are due by September 3, 2024, with the contract award expected by December.

Similarly, the Oklahoma Department of Transportation (ODOT) released an RFP in April for a Long-Range Transportation Plan spanning 2025-2050. This plan will be performance-based and guide ODOT's future decisions. Proposal evaluations are currently underway.