ARRA Design-Build in Minnesota Jay Hietpas - Mn/DOT

Signed by President Obama on Feb 17, 2009 Goals  Create new jobs and save existing ones  Spur economic activity and invest in long-term growth  Foster unprecedented levels of accountability and transparency in government spending American Recovery and Reinvestment Act (ARRA)

$288 Billion in tax cuts and benefits for working families and businesses $224 Billion for education, health care and entitlement programs (e.g. unemployment) $275 Billion in federal contracts, loans and grants American Recovery and Reinvestment Act (ARRA)

$48.1 Billion for Highways includes: – $27.5 for Highways ($26.6 Apportioned) – $8.4 Transit – $8.0 High Speed Rail – $1.3 Amtrack – $1.5 Discretionary (TIGER) – $1.4 Other ARRA Transportation $

Legislation Requirements  50% of funds needed to be authorized within 120 days of enactment  Authorization for traditional projects: 100% Plan Sets  Authorization for Design-Build projects: Issue Request for Proposals – 30% Plan Set American Recovery and Reinvestment Act (ARRA)

Minnesota ARRA Funds – $92 Million – Transit – $23.2 Million – Aviation – $502 Million – Highway and Bridge $150 Million for Local Projects Metro District 50% Out-State Districts 50%

ARRA – $502 Million for Transportation – 93 Design-Bid-Build (MnDOT) – 5 Design-Build Projects – 19% of Total ARRA Funds – 5% of Projects Overall Mn/DOT Program  1% of projects let  10 % of program value

Mn/DOT ARRA Goals – Delivery Projects Quickly – Advance Un-Funded Projects – Project Diversity Grading, Bridges, Signing, Paving – Regional Diversity Spread work to contractors available throughout state

Mn/DOT ARRA Goals (continued) – Consultants Integral part of industry – Disadvantage Business (DBE) Increase participation – Minimize Cost Overruns Mn/DOT at Risk for Overruns

Challenges – Grading/Bridge Projects Minimal Design Completed (almost 30%) Environmental Documents “almost complete” No permits obtained Small window for funding – National - Use it or lose it – Mn/DOT – first come-first serve

Challenges (continued) – Major increase to normal program – Short Construction Window April through early November – Panic!!!! How are we going to deliver all of these projects? I don’t want to lose my funding!!

Solution: – If we can let the 35W bridge in 2 months: Let’s Use Design-Build!

Hold-on: – Design-Build is politically sensitive First procurement since 35W – Districts have limited staff with DB experience – Limitations on the industry Companies with no DB experience need training Companies with DB experience have limited staff

Delivery Challenges  Current staff structure  4 RFPs in 3 months  Available experienced staff  FHWA Authorization Amber Blanchard DB Program Mgr

District Responsibilities – Define Project Scope – Obtain Permits / Env Approvals – Obtain Municipal Consent – Write Book 2 of the RFP – Manage contractor interaction during procurement – Participate in Short-Listing and Technical Scoring – Administer Contract

Central Office Responsibilities – Manage Procurement Write RFQ Oversee Short-Listing Process Develop Scoring Criteria Oversee Technical Proposal Process Oversee ATC Process Approve RFP’s and Addendums

– ROC 52 (Rochester) $232 M – Interstate 494 (West Metro) $135 M – TH 212 (Southwest Metro) $238 M – TH 10/32 Interchange (Hawley) $ 9M – Oronoco 52 (Oronoco) $ 37M – D4 Signs $ 1 M – I-35W Bridge $234 M – TOTAL $886 Million Design-Build (2001 to 2009)

Five Projects  TH 2 Box Culvert $ 2.2M  Bridges of Mower County $12.8 M  TH 169 Saint Peter $16.5M  TH 610 $47.8M  TH 13/101 (Savage) ~$15M (Letting in 2010)  TOTAL $94.3 M ARRA Projects

TH 2  Replace bridges with a box culvert  Issue RFP – May 7  Letting – June 19  Open to Traffic – Sept 30  Cost Growth = < 1%  Two-bids (Low-Bid, no short-list)

TH 2 Delivery  RFP Preparation  Proposal Evaluation  Design Oversight  Construction Oversight

Bridges of Mower County  Replace 4 bridges on I-90 near Austin  Three Bidders – Best-Value  Issue RFP – May 8  Letting – June 17  Completion – Sep 1, 2010  Cost Growth = < 1%  Three Bids – Best-Value

Bridges of Mower County  RFP Preparation  Proposal Evaluation  Design Oversight  Construction Oversight

Saint Peter  Reconstruction of TH 169 through Historic Saint Peter  Business Impacts  Issue RFP – April 8  Letting – May 11  Open to Traffic – Nov 16  Five Bids (Best-Value)

Saint Peter  RFP Preparation  Proposal Evaluation  Design Oversight  Construction Oversight

TH 610  Un-funded Project with regional significance  New Construction from TH 169 to CSAH 81  Six New Bridges  Issue RFP – May 15  Letting – August 14  Open to Traffic – July 2011  Bid was 35% below Mn/DOT Estimate  Three Bids – Best Value

TH 610 Contractor Innovations  Profile Adjustments  Reduced Bridge Widths  Roundabouts  Eliminated Retaining Walls  Reduced storm sewers  Innovative Staging

TH 610  RFP Preparation  Proposal Evaluation  Design Oversight  Construction Oversight

TH 13/101  Accelerated due to low bid on TH 610  Intersection Reconstruction  Estimate - $15 to $20 M  Issue RFP – Summer, 2010  Letting – Fall, 2010  Open to Traffic – 2011

Procurement Cost Results ProjectMn/DOT EstimateAwarded Contract $ Saint Peter$15,500,000$16,535,000 Bridges of Mower County $12,660,000$12,824,526 TH 2$2,535,050$2,233,460 TH 610$73,300,000$47, All Projects anticipated to have less than 1% cost growth

Upcoming Design-Build Projects in Minnesota

Hastings Bridge Project Risk Management – PAE process Letting June 4, 2010 Open to traffic no later than October 1, 2013 Increase capacity, replace aging structure $220 M Arch or cable stay RFP Issued January 13, 2010

New interchange; developer access $35 - $40 M RFP issue – April 29, 2010 Letting July 30, 2010 Open to traffic – Fall 2012 Elk Run Interchange

Convert signalized highway to freeway Long time DB project $120 - $160 M RFP issue – June/July 2010 Letting – Fall 2010 Open to traffic – Fall /494 Interchange

Potential Projects I-90 Dresbach Bridge (2011 or 2012) TH 36 St. Croix River Crossing (2013) TH 72 Baudette Bridge (2018)

Thank You