Response: See the value in MDOT's partnerships with engineering firms
... A similar study by the New York University Tandon School of Engineering, prepared for American Council of Engineering Companies in 2016, used a comparable model to Zullo’s study but considered these variables across 28 states. It found that overhead costs averaged 40% of direct wages, not 10% as assumed in Zullo’s study. Factoring in these and other costs, NYU reached the opposite conclusion and estimated the total annual average cost for a DOT engineer was $272,684 versus $217,020 for private sector firms. ... As stated in the NYU study, the real value in using the private sector in partnership with public agencies is in what the numbers cannot tell you. It’s in innovation, efficiency, timely project delivery, sustainability, and project success (including costs).
