The EFT Expressway: Fast-Tracking UDOT OCIP Payments

Item #: 20260026

CONTACTS

Implementing Organization: Risk Management
Implementation Lead: Zack Harris
Development Team:
- Risk Management
  - Zack Harris
  - Rod McDaniels
  - Heidi Thomas
  - Brandi Trujillo
  - Keith Bladen
  - Mandy Archuleta
  - Nick Peterson
- Finance/Comptroller
  - Melina Huntsman
  - Delayne Hansen
  - Lynette Barker

Article Written By: Zack Harris
Innovation Team Coordinator: Quinten Klingonsmith

STATUS

Implementation Date: February 10, 2026
Adoption Status: Fully Implemented
Adoptability Note: Does your unit handle vendor payments through manual disbursement processes? If so, contact the UDOT Comptroller and Procurement teams to discuss options.

APPLIES TO

Topic: Paperless & Digital Workflow
Organization(s): Central Admin / Senior Leaders, Central Construction, Central Maintenance / Facilities Management, Data Technology & Analytics, Equipment Operations, Finance / Comptroller, Motor Carrier Division, Program Financing, Region 1, Region 2, Region 3, Region 4, Right of Way, Risk Management
Job Role(s): Business Analyst, Finance / Accounting, Program Director, Program Manager, Program Specialist
Tags: fees, labor costs, labor productivity, job satisfaction, economic benefits, automation, ( process improvement ), redesign, accounting > billing, budgeting, payment, ( comptroller ), contract administration > bids, contracting, solicitations, contracts, ( RFP, FRQ ), finance > appraisals, investments, asset management, cost recovery, cost sharing, fees, loans, revenues, sales, taxes, usage charges, risk management, insurance, program management, EFT, electronic funds transfer, paperless, digital workflow, quality of life

PROBLEM

The UDOT’s Owner Controlled Insurance Program (OCIP) is a sophisticated operation managing the insurance needs of Utah’s most complex infrastructure projects. In the last calendar year alone, the program managed over 100 high-value invoices for premiums, claims activity, and administrative fees.

Despite the modern scale of these projects, the payment infrastructure was tethered to a manual, paper-check system. This created several critical pain points:

Logistical Delays: Relying on physical mail consumed up to 25% of the mandatory 30-day payment window.
Compliance Risks: The "snail mail" lag resulted in occasional breaches of contractual payment terms.
Lack of Transparency: Once a check was mailed, there was no reliable method for tracking its progress, leading to wasted time spent following up on missing funds.

CHANGE

The Risk Management team collaborated with the Comptroller’s Office, Purchasing Team, and their insurance broker's financial department to implement a fully electronic EFT (Electronic Funds Transfer) system for OCIP payments.

While EFT might seem commonplace, setting it up proved to be complex, requiring over six months of significant back-and-forth between the vendor and finance team to correctly submit necessary documentation.

RESULT

The transition from manual disbursements to a streamlined digital payment and tracking process was not merely about "going paperless"; it was a strategic move to synchronize high-speed infrastructure development with high-speed financial processing.

The most direct result of this change was the immediate elimination of the "mail gap." Payments that previously spent 5 to 7 days in transit are now settled almost instantaneously.

This shift ensured 100% compliance with our 30-day payment mandate, effectively removing the risk of late fees or service interruptions.

UDOT Comptroller & Finance eliminated the administrative overhead of physical check printing, signing, and mailing. It also simplified the bank reconciliation through digital audit trails.

The insurance brokers gained immediate access to capital and real-time payment notifications, allowing their finance team to move from “tracking” to “processing”.

UDOT Risk Management gained peace of mind knowing that insurance coverage for Utah’s massive infrastructure projects is never at risk due to logistical “snail mail” delays.

Beyond the numbers, the change strengthened the professional partnership between UDOT and their brokers. By removing the friction of manual follow-ups and "lost in the mail" inquiries, both teams are now able to focus on high-level program management rather than administrative troubleshooting.

IMPACT

BETTER MOBILITY

GOOD HEALTH

CONNECTED COMMUNITIES

STRONG ECONOMY

Received funds faster and with full transparency, eliminating the need for manual payment tracking and follow-up
Reduced the administrative burden of cutting physical checks and managing lost-mail inquiries
Ensured that the insurance backbone of Utah’s major projects remained compliant and solvent without the risk of coverage interruptions due to late payments

EFFICIENCIES

Estimated Cost Savings in the First Year (FY 2026): $767
Cost Avoidance: $33,772 over 20 years (Feb 10, 2026 - Feb 10, 2046)*
Labor Avoidance: 9 hours annually*
Benefit/Cost Ratio: 20:1

*Cost and labor avoidance are the average benefits, net of initial and ongoing expenses, projected over the expected life of the innovation. See details.

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