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MDOT's
Credibility:
On the Line Again
Design-Build Method Has Restrictions that Could
Delay Rebuilding Coast Bridges
By Keith Burton – GCN Filed
12/15/05
Since practically the first day after Hurricane
Katrina destroyed the Highway 90 bridges on either side of Harrison
County, MDOT’s Southern District Commissioner Wayne Brown has been saying
that his agency plans to use the Design-Build method to expedite the
rebuilding of these two critically needed bridges. But it may do the exact
opposite.
State law regarding the Design-Build method may throw
a huge monkey wrench into MDOT’s plans, and create a problem that could
delay construction of at least one of the bridges. If Brown and MDOT
proceed to used the Design-Build method and issue the contracts within the
same year, they will be breaking the law.
The Biloxi-Oceans Springs and the Bay St. Louis
bridges were severely damaged by the hurricane and for over three months,
the wreckage from the bridge's roadway remain where Katrina put them. No
work has been done and despite the fact that the state has millions of
dollars in highway construction money for work in other areas of the
state, it has chosen not to redirect any of that money to rebuild the
Coast's roads.
The design-build method assigns both design
(engineering) and construction responsibilities to one firm, allowing some
construction work to begin before the design is completed. Supporters say
this can reduce MDOT’s administration and inspection costs and all
contractors to move quickly.
But at this point in time, few people have actually
seen any concept drawings or preliminary engineering plans for the
bridges. A point of criticism already for MDOT by Ocean Springs officials
who are opposed to MDOT’s current bridge plan for the Biloxi-Ocean Springs
bridge.
Brown has said that the Biloxi proposal calls for a
six-lane bridge with four breakdown lanes and a pedestrian and
bicycle-friendly pathway. This would be a 128-foot wide structure. Ocean
Springs officials say such a bridge is too large, too expensive and would
hurt its city.
The Bay St. Louis bridge is proposed to still be a
four lane bridge, as the previous version, and built on the existing
right-of-way.
In both cases, the costs for the two projects will
exceed several hundred million dollars, money that Wayne Brown says his
agency doesn’t have at this time. He and many others claim they are
waiting on the U.S. Congress to approve additional Katrina relief funds,
which is expected to include money for highway and bridge repairs.
Brown’s decision to use the Design-Build method on
these bridges is a first for the state. Such a method of construction has
only been recently approved and MDOT has no experience administering
construction under the Design-Build method.
There are reasons for this. While Design-Build is
used in private construction projects, companies are careful to monitor
their expenses, engineering and construction to be sure they are getting
what they are paying for. But for a public agency, that has access to
billions of dollars in tax money, there are opportunities within the
Design-Build method where fraud can occur due to a lack of oversight by an
independent engineer. So when the legislature approved the Design-Build
method for use in 2004, they restricted MDOT’s use of the Design-Build
method to only two projects a year if the projects were not more than
$10-million, and to ONE project if the work exceeds $50-million. In
addition, the law requires any Design-Build project to be monitored by the
state auditor’s office. The Biloxi-Ocean Springs bridge proposed by MDOT
would cost in excess of $200-million.
That is the law. And at this time, no one has said
how MDOT is going to get around this and MDOT officials have not said
anything about the restriction in the law. Both bridges are critically
needed for the Coast to rebuild. And if MDOT is to follow the law
regarding Design-Build, only one will get started. Which one will it be?
Biloxi officials have hitched their credibility to
MDOT's plan for the Biloxi-Ocean Springs bridge. The City Council and
Mayor A.J. Holloway went on record this week endorsing Brown's bridge,
even over appeals from Ocean Springs Mayor Connie Moran. Officials made
their endorsement after being told about the Design-Build restrictions
from Biloxi resident Royce Hignight.
Hignight is a retired FBI agent who has been involved
with road and transportation issues for over ten years. Hignight's career
was spent investigating local Mississippi government corruption.
Hignight's statements were left out of the major media reports on the City
Council's meeting held Tuesday in Biloxi.
GCN has called MDOT for comments on the Design-Build
law. At the time of this report, MDOT has not yet responded. GCN will
update this story as information is received.
Additional Information:
The Design-Build legislation was added in 2004 to
Section 65-1-85, Mississippi Code of 1972, as amended (Method of awarding
contracts). There were some differences in the Senate and House
versions. The legislation was sent to a Senate/House conference committee
consisting of three senators, including: Senator Billy Hewes, R-Harrison
County; Stacey E. Pickering, R-Jones County; and Merle Flowers, R- Desoto
County; Representatives: Hank Zuber, R Jackson County; Greg Ward
D-Benton, Tippa, Union Counties; William Miles D- Itawamba, Monroe
Counties, for reconciliation.
This committee reconciled the Senate and House
Bills. The legislation was sent to the Governor and he signed it on
5/13/04. The Design Build legislation is as follows:
Par (11)(a) of the
legislation states, “As an alternative to the method of awarding contracts
as otherwise provided in this section, the commission may use the
Design-build method of contracting for the following:
(i) Projects
for the Mississippi Development Authority pursuant to agreements between
both governmental entities:
(ii) Any
project with an estimated cost of not more than Ten Million Dollars
($10,000,000.00), not to exceed two (2) projects per fiscal year; and
(iii)Any
project with an estimated cost of more than Fifty Million Dollars
($50,000,000.00), not to exceed one (1) project per fiscal year.
(b) As used in
this subsection, the term “design-build) method of contracting means a
contract that combines the design and construction phases of a project
into a single contract and the contractor is required to satisfactorily
perform, at a minimum, both the design and construction of the project.
(c) The commission
shall establish detailed criteria for the selection of the successful
design-build contractor in each request for design-build proposals. The
evaluation of the selection committee is a public record and shall be
maintained for a minimum of ten (10) years after project completion.
(d) The commission
shall maintain detailed records on projects separate an apart from its
regular record keeping. The commission shall file a report to the
Legislature evaluating the design-build method of contracting by comparing
it to the low-bid method of contracting. At a minimum, the report must
include:
(i) The
management goals and objectives for the design-build system of management;
(ii) A complete
description of the components of the design-build system, including a
description of the system the department put into place on all projects
managed under the system to insure that it has the complete information on
highway segment costs and to insure proper analysis of any proposal the
commission receives from a highway contractor;
(iii) The
accountability systems the Transportation Department established to
monitor any design-build project’s compliance with specific goals and
objectives for the project;
(iv) The
outcome of any project or any interim report on an ongoing project let
under a design-build management system showing compliance with the goals,
objectives, policies and procedures the department set for the project;
and
(v) The method
used by the department to select projects to be let under the design-build
system of management and all other systems, policies and procedures that
the department considered as necessary components to a design-build
management system.
(vi)All contracts let under the
provisions of this subsection shall be subjects to oversight and review by
the State Auditor. The State Auditor shall file a report with the
Legislature on or before January 1 of each year detailing his findings
with regard to any contract let or project performed in violation of the
provisions of this subsection….
MDOT originally hoped to accept bids this week on
projects to rebuild the Biloxi Bay and Bay of St. Louis bridges, but Wayne
Brown claims that the process has been delayed pending the outcome of a
congressional budget stalemate in Washington, which has held up funding.
The design-build teams are to turn in technical proposals on Dec. 30, with
price proposals due Jan. 9 and the contracts being awarded the next day.
However, there are issues that may change those dates. Commissioner Brown
has said that he doesn’t know how long it will take for the bridges to be
open, but he estimates some limited use by late 2007.
MDOT has selected a
short list of builders for the two bridges. The list for the Biloxi-Ocean
Springs bridge are:
1. Brian A. Peterson
AMERICAN
BRIDGE/HILL BROTHERS, AJV
8529 South Park Circle, Suite 250
Orlando, FL 32819
(407) 226-7086 t
(407) 226-7085 f
2. F. Keith Jacobson
Project Sponsor
GC CONSTRUCTORS,
AJV
8901 State Line Road
P. O. Box 8458
Kansas City, MO 64114
(816) 523.1000 t
(816) 333-2109 f
3. Brian C. Kaub
Vice President, Assistant Division Manager
Heavy Construction Division – Granite Construction Company
Lead Partner – Granite Archer Western, AJV
GRANITE ARCHER
WESTERN, AJV
585 West Beach Street
Watsonville, CA 95076
(831) 722.2716 t
(831) 722.4159 f
The
list potential builders selected for the Bay St. Louis bridge are:
1. Alvin S. Flettrich,
Jr., P.E.
Bridge Division Manager
BOH BROS
CONSTRUCTION CO., LLC
11950 Industriplex Boulevard
Baton Rouge, LA 70809
(225) 755-7800 t
(225) 755-7862 f
2. F. Keith Jacobson
Project Sponsor
GC CONSTRUCTORS,
AJV
8901 State Line Road
P. O. Box 8458
Kansas City, MO 64114
(816) 523.1000 t
(816) 333-2109 f
3. Brian C. Kaub
Vice President, Assistant Division Manager
Heavy Construction Division – Granite Construction Company
Lead Partner – Granite Archer Western, AJV
GRANITE ARCHER
WESTERN, AJV
585 West Beach Street
Watsonville, CA 95076
(831) 722.2716 t
(831) 722.4159 f
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