Louisville-Southern Indiana Ohio River Bridges Project

Transcription

1 Louisville-Southern Indiana Ohio River Bridges Project East End Crossing Jim Stark, INDOT Deputy Commissioner, Innovative Project Delivery July 17, 2013

2 INDOT Philosophy INDOT utilizes innovative management and construction methods to achieve its mission to plan, build, maintain and operate a superior transportation system to enhance safety, mobility and economic growth, while completing projects efficiently and cost effectively. INDOT continually reinforces its values of respect, teamwork, accountability and excellence while delivering quality results with its employees, customers and partners.

3 Lessons Learned Cooperation is essential at all levels of both governments, from Governors on down Governors emphasis on schedule is the key driver Small, flexible, and empowered RFP teams Integration of legal, financial, and technical staff Valuable proposer input pre-proposal, industry review and during proposal period One-size doesn t fit all, custom solutions using proven methods Be innovative - don t get bogged down with current processes, create new ones

4 Geography Lesson What s missing?

5 One Project Two Bridges Downtown Crossing (KYTC) East End Crossing (IFA/INDOT)

6 History Lesson Bi-State Partnering 1963 Indiana and Kentucky established a cooperative transportation-planning program 1969 First transportation plan for Louisville Metro Area Identified need for additional bridge capacity Same year man first walked on the moon

7 History Lesson Bi-State Partnering 2003 LSIORBP Record of Decision reached recommending a 2-bridges, 1-project solution 2004 INDOT/KYTC began final design process following a traditional design-bid-build project development approach 2008 FHWA Initial Financial Plan $2.1 B (2003 $) Initial Project Cost Estimate $2.9 B (2007 $) Updated and adjusted for inflation $4.1 B (Year of Expenditure $) with anticipated inflation through 2020

8 History Lesson Bi-State Partnering 2008 FHWA Project Management Plan BSMT General Engineering Consultant Six Section Design Consultants Multiple construction contracts in each of the six project sections 12-year design-bid-build schedule 2010 Horizon 2030 MTP project was only financially feasible with addition of toll revenue for new bridges $1.9 B of funds available from traditional sources $2.2 B shortfall: required alternate sources (tolls)

9 History Lesson Louisville and Southern Indiana Bridges Authority Kentucky House Bill 3 (Summer 2009) Indiana Executive Order (December 2009) Formally organized February 2010; ratified by KY General Assembly March 2010 Fourteen members (7 from each state) and an executive director Primary objective: develop a plan to finance and deliver the project

10 History Lesson Bi-State Partnering-Environmental Fall of 2010 Indiana and Kentucky governors requested value engineering to close the short fall SEIS required to include tolling options & VE changes Started SEIS Feb.16, 2011-Industry Forum 2011 SDEIS Modified Alternative 2-Bridges, 1-Project Alternative Reconstruct Kennedy Interchange in-place downtown Reduce East End from 6 to 4 lanes Remove pedestrian path from Downtown Bridge (Big Four alt.) $1.5 B cost reduction in new Initial Financial Plan (FHWA) ROD June 22, 2012

11 History Lesson Bi-State Partnering-Procurement Nov. 10, 2011 Indiana and Kentucky agree to look at alternative procurement methods which would allow each state to procure a separate portion of the project based on the laws available to each state. Indiana -- P3 Availability Payment Method. Construction funded by developer, milestone payments during construction. Kentucky -- More traditional best value Design-Build Method. Traditional funding and Toll Revenue bonds to fund construction.

12 History Lesson Bi-State Partnering Dec Governors Agree on Dual Procurement Approach Indiana P3 Procurement for East End Crossing, Sections 4, 5 and 6 Kentucky D/B Procurement for Downtown Crossing, Sections 1, 2 and 3 Both procurements were budgeted at approx. $1.3 B each. Indiana/Kentucky to share equally in combined toll revenues Jan IFA/INDOT begin development of P3 procurement thru a DBFOM structure via Availability Payments to Developer

13 History Lesson P3 Procurement???

14 History Lesson P3 Procurement??? Sustainability is the capacity to endure. First goal was to set up the right team. A team that would be there during the procurement and then take the project through construction.

15 Procurement Team Org Chart Communications Shelly Gottschalk, Project Manager, INDOT Will Wingfield, INDOT Project Executive Committee Kendra York, IFA - Co Chair Mike Cline, INDOT - Co Chair Jim Stark, INDOT Tim Wilschetz, KPMG Procurement Project Management Sarah Rubin, IFA - Project Manager Ron Heustis, INDOT - Project Manager Lauren Afflixio, KPMG-Project Manager Steve Nicaise, Parsons -Project Manager Bi-State Advisory Steve Schultz, LASIBA Bob Tally, FHWA Legal Mark Ahearn, INDOT - Co Lead Nossaman Ice Miller Technical Kevin Hetrick, PM, INDOT - Lead Paul Boone, PM, INDOT Mark Holcomb, Parsons Kevin Thibault, Parsons TBD, KYTC Ice Miller Financial Kendra York, IFA Co- Lead Dan Brassard, INDOT -Co-Lead Jim Stark, INDOT Tim Wilschetz, KPMG Ice Miller Commercial Kendra York, IFA - Lead Chris Kiefer, INDOT Jim Stark, INDOT Tim Wilschetz, KPMG Barney Allison, Nossaman Nossaman

16 Construction Team Org Chart Communications Paul Boone, Lead, INDOT Will Wingfield, INDOT Project Executive Committee Kendra York, IFA - Co Chair Mike Cline, INDOT - Co Chair Jim Stark, INDOT Tim Wilschetz, KPMG Delivery Project Management Ron Heustis, INDOT - Project Manager???, IFA-Project Manager Jason Bunselmeier, INDOT - Deputy Project Manager Steve Nicase - Parsons-Project Manager Bi-State Advisory Bi-State Development Agreement FHWA INDOT - Co Lead IFA - Co-Lead Nossaman Ice Miller Legal Technical Kevin Hetrick, PM INDOT Lead Parsons KPMG TBD, KYTC Ice Miller Financial Kendra York, IFA - Lead Dan Brassard, INDOT Jim Stark, INDOT Ian Tester KPMG Ice Miller Commercial-Tolling Kendra York, IFA - Lead Jim Stark, INDOT KPMG Parsons Nossaman KYTC

17 Risk Allocation

18 East End Crossing P3 Primer IFA Indiana Finance Authority (owner) INDOT Owner s funding agent and rep Proposer Bidder Developer Selected Proposer (Contractor) RFQ Request for Qualifications (from IFA to Proposer) SOQ Statement of Qual s (from Proposer to IFA) RFP Request for Proposals (to shortlisted teams) ATC Alternative Tech Concept (pre-bid VE proposal) ITP Instructions to Proposers (Bidding Instructions) PPA Public Private Agreement (Contract, Section 100) Tech Provisions Specifications (Sections )

19 East End Crossing P3 Primer Best Value Selection-Availability Payment Evaluation Technical & Financial Proposal Evaluation Criteria set for each prior to Proposal submittal Proposers know what is evaluated, but not specific criteria or point allocations (assigned and saved prior to submittals) Separate evaluations by Tech and Finance teams; no interaction Final scoring by only a few individuals on Tech and Finance teams Tech and Finance scores added and compared to reach selection of Preferred Proposer

20 East End Procurement Timeline Industry Day 6 Responses Received Draft RFP 1 Industry Review Period Final RFP Q&A ATC s One-on- One s Preferred Proposer Announced Financial Close March 28, 2013 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan/Feb Mar. RFQ Issued 4 Teams Shortlisted Draft RFP 2 4 Proposals Received Commercial Close/NTP1

21 Procurement Timeline 2/16-17/2011 Industry Forum Proponent teams started forming March 9, 2012 RFQ Issued April 23, teams shortlisted May 4, 2013 Draft RFP issued May-July on-1 meetings with Proposers July 31, 2012 Final RFP issued Aug-Oct RFP Amendments: ATC Evaluations Oct 26, 2012 Proposals submitted Oct 27-Nov 15, 2012 Proposal evaluation Nov 16, 2012 Preferred Proposer announced

22 Procurement Timeline Dec 27, 2012 Commercial Close and NTP1 Developer began field surveys & geotech investigation Submittal and review of PMP components Commencement of Design after PMP approval March 28, 2013 Financial Close May 9, 2013 NTP2 May 20, 2013 Commencement of construction Oct 31, 2016 Substantial Completion and Open to Traffic

23 Procurement Results Selected Team WVB East End Partners: Developer: Walsh-VINCI-Bilfinger Berger Design-Build Team: Walsh-VINCI Lead Engineering Firm: Jacobs Operations & Maintenance: Walsh-VINCI Original Construction Estimate = $987 million Winning Bid = $763 million (NPV) <23% MAP (Availability Payment) 2012 dollars $32.9 million Original Open Date: June 30, 2017 Winning Open Date: October 2016 (8 months early)

24 Looking Forward June 2013 Start of construction Aug 2014 Complete main span pier foundations July 2015 Complete tunnel excavation & initial liner Oct 2015 Complete main span towers May 2016 Complete final tunnel liner May 2016 Complete main span superstructure Oct 31, 2016 Substantial Completion and Open to Traffic

25 East End Crossing

26 Lessons Learned Cooperation was essential at all levels of both governments, from Governors on down Governors emphasis on schedule was a key driver. Set deadlines. Achieve them!! Small, flexible, and empowered RFP teams. Easier to manage. Integration of legal, financial, and technical staff. Sponser is the owner, utilize your resources, be decisive. Valuable proposer input pre-proposal, industry review and during proposal period. Listen, re-act, listen re-act. Implement. One-size doesn t fit all, custom solutions using proven methods. State laws regarding broad path P3 procurement options are one key step to the sustainability of funding infrastructure. If innovation is taken out of the process, it will not be sustainable.

27 Questions Thanks for your time and attention