Dragados USA in joint venture with its US subsidiary Schiavone Construction Company LLC is awarded a contract to construct the new parallel tunnel under the Thimble Shoal Channel of the Chesapeake Bay bridge and tunnel crossing after submitting the lowest of three bids at $755,987,318.
Award of the contract comes three months after project owner Chesapeake Bay Bridge and Tunnel Commission (CBBTC) called for revised technical proposals to reduce three original bids that came in at more than $1 billion and nearly $300 million more than the Engineer’s Estimate.
Re-scoping of the project focused on reducing costs by reducing or eliminating non-critical elements without compromising technical safety and maintenance life cycle priorities. Nearly $260 million is saved from the lowest price received during the first phase of the design-build proposal prices by reducing or eliminating original proposals for substantial expansion of the portal islands either side of the channel to provide physical space for either an immersed tunnel or bored tunnel to transition to the existing trestle alignment of the CBBT. “When bidders focused on reducing cost, it became apparent that island expansion could be reduced or eliminated and this has provided the cost saving while still meeting the objective of providing a safe and cost effective crossing of Chesapeake Bay,” said Jeff Holland, Executive Director of the CBBT.
Award of the contract agreed at the CCBTC Board meeting on 27 July 2016 marks the end of a 3.5-year project development and procurement process. According to Commission Chairman Frederick Stant, “This has been a well-managed project with a thoroughly competitive procurement. We look forward to working with the Dragados Team for the successful construction of this critical infrastructure.”
Higher-priced design-build proposals were submitted by the Buoygues/Traylor/Manson JV with a revised bid of $848,452,987, and the Archer Western-Vinci JV with a revised bid of $785,883,000. With its revised bid of $755,987,318, the Dragados Team became the lowest bidder after submitting the highest bid in the first round of proposals of $1.092 billion.
Construction of the 5,710ft (1,740m) long TBM bored parallel tunnel project by the Dragados Team is scheduled to start in the fall of 2017 and to take about five years to complete.
Dragados USA, Inc. is a wholly-owned subsidiary of Dragados of Spain which is one of the construction arms of the Spanish ACS Group. The Dragados portfolio includes more than 900 miles of tunnels; 5,300 miles of highways; and 1,500 bridges. Major tunnel projects by Dragados USA include the East Side Access Caverns and Tunnels in New York City and the SR99 Bored Tunnel Project in Seattle.
Schiavone Construction was procured by Dragados in December 2007 and has experience of major tunnel contracts including the East Side Access, Second Avenue Subway, and No.7 Subway Extension projects in New York.
Revised technical proposals are in for the Parallel Thimble Shoals Tunnel in Virginia, USA, after those that were originally submitted by the three joint venture teams came in approximately US$290 million more than the Engineer’s Estimate.
|Table 1. Initial and revised de-scoped bids|
|Bidder||JV Partners||May bid||Revised bid|
|BTM JV||Buoygues TP
|Dragados Team||Dragados USA
After receiving the original bids in May, all of which came at US$1 billion plus, the owner, Chesapeake Bay Bridge District (CBBD) “re-scoped” the project. In a statement released earlier this week CBBT said: “The District determined that the best interests of the Project would be served by re-engaging with all of these shortlisted teams to re-scope the Project after all of the original price proposals exceeded the cost estimate.”
The statement goes on: “The re-scoping of the Project was focused solely on the reduction of costs by reducing or eliminating unnecessary elements of the Project without compromising the quality or performance specified in the Technical Requirements of the RFP documents. Specifically, (1) scope changes that would increase the long-term cost of operating and maintaining the tunnel were not considered; (2) re-allocation of construction risks between the CBBT and the Design-Build Teams were not considered; and (3) changes to the Comprehensive Agreement, or contract, were not considered.”
CBBT will not at this stage identify exactly how the project has been scaled back, pending a special board meeting on July 27. This meeting is expected to evaluate the proposals and select one of the JV teams.
The re-scoped bids have turned the bidding table upside down – from being the highest bidder the Dragados Team is now the lowest bidder (having reduced its price by US$346 million), and from being the lowest bidder the BTM JV comprising Archer Western and Vinci is now the highest bidder (having reduced its price by approximately US$168 million).
All three bidders have proposed a bored tunnel solution, although the owner had indicated that an immersed tube solution would be considered.
Award of the design-build contract to construct the US$850 million Parallel Thimble Shoals Tunnel in Virginia, USA, is expected next month (May) following submission by the four shortlisted joint venture contractors of their final technical and price proposals.
The project involves construction by a choice of either immersed tube tunnel (ITT) or TBM of a 1,760m parallel two-lane traffic tube to increase capacity at one of the two tunnelled sections along the iconic 38km Chesapeake Bay Bridge Tunnel connection between Virginia’s eastern shore and the Norfolk and South Hampton Roads region.
The four prequalified consortia bidding for the job – which were shortlisted from an original list that also included the Salini-Impregilo/Healy/GLF JV, are:
The project is being financed 34% through bonds raised by the private owner – the Chesapeake Bay Bridge and Tunnel District (CBBTD) – against future toll income; plus additional TIFIA loans (33%), a US$50 million loan from the Virginia Transportation Infrastructure Bank (5%), and existing CBBTD capital receipts. Owner design is by Jacobs, Cowi and HNTB. Conceptual design of the TBM alternative specifies a machine of 13.9m diameter and a concrete segmental lining of 450mm thickness.
All the shortlisted companies have substantial experience of constructing similar infrastructure, with the SKW Tunnel Builders team (Skanska/Kiewit/Weeks Marine) currently nearing completion of the immersed tube Midtown Tunnel crossing of the Elizabeth River between Norfolk and Portsmouth, also in Virginia.
Once the winning bidder is selected a period of design-build final design will be entered into, with Notice to Proceed expected to be granted in July (2016). The project already has the necessary regulatory approvals, having been issued in July 2015 with a Finding of No Significant Impact (FONSI) by the Federal Highways Administration.
RFQs will be issued in less than two weeks time for construction of the USA’s latest mega-project – the mile-long billion-dollar Parallel Thimble Shoal Tunnel in Chesapeake Bay, Virginia.
The new 5,710ft (1,740m) tunnel, which is already on a list of 45 major transportation projects that can expect to receive at least partial Federal funding, will double capacity at one of two tunnel choke points along the 37km-long Chesapeake Bay Bridge Tunnel connecting Virginia’s eastern shore and the Norfolk and South Hampton Roads region.
Additional funding is to come from the issuing of corporate bonds by the owner, Chesapeake Bay Bridge and Tunnel District (CBBT), which will be levied against future toll income. Currently 10,000 vehicles a day pay approximately $15 a time to use the crossing, a usage level that is expected to increase significantly in the coming years.
Procurement by CBBT for construction of the design-build project will allow successfully prequalified contractors/joint ventures to present either bored or immersed tunnel solutions. CBBT has already issued a Notice of Intent to Issue a Request for Qualifiers on 12 May. The deadline for submissions is 6 July. Up to four contractors or joint venture contractors will be shortlisted on 11 August 2015 to present full proposals and move to the final bidding stage. Contract award is expected in mid-2016.
Project scope will include:
Jacobs Engineering is appointed in a lead role as the owner’s Design Manager, with preliminary tunnel design being undertaken as part of the same contract by COWI and HNTB. Since these companies are all contracted to the owner team, they will not be allowed to play a part in any of the construction bids.
The Chesapeake Bay Bridge Tunnel was originally built between 1960-64 as a two-lane highway, mostly on raised trellises in the shallower stretches of the Bay, but featuring four bridges and a pair of mile-long immersed tube tunnels anchored between four man-made islands at the Bay’s two deep channel locations – to facilitate the passage of heavy shipping.
The trellis sections of the structure were dualled at a cost of $200 million between 1995-99, enabling repairs to the original road deck and the ability to divert traffic to the other deck in the event of accidents. However, the 51-year-old tunnels continue to act as a choke point where traffic must move from two lanes in each direction down to just a single lane, in bidirectional flow, a situation that has prompted CBBT to fast-track the installation of a parallel tunnel under the (southern) Thimble Shoal channel.
In addition, regular maintenance work results in 1,400 hours of tunnel lane closures every year, and no alternative route exists in the event of an accident inside the tunnel.
One of the likely bidders is the Parallel Crossing Consortium (PCC) of Skanska USA/Kiewit/Weeks Marine/Parsons Brinckerhoff, which last year (2014) submitted an unsolicited proposal to CBBT, valued at $800 million, for an immersed tube solution.
The same consortium is currently midway through construction of the nearby Midtown immersed tunnel linking Portsmouth and Norfolk under the Elizabeth River. In its proposal PCC stated: “No other team of companies and individuals can match PC2’s recent and proven experience in designing and constructing immersed tunnels, and can be prepared to immediately begin production of tunnel segments in 2016.” The 11 tunnel segments for the Elizabeth River Crossing project were manufactured in dry dock in Baltimore, from where they were barged to the jobsite along a route that passed over the Thimble Shoal tunnel.
CBBT examined the proposal, and opened a 90-day window for other joint ventures to submit rival bids, but after none were forthcoming a resolution was passed in April 2014 by the Board to terminate further consideration of PCC’s proposal.
The resolution was taken after both the CBBT’s financial adviser and its strategic adviser (infrastructure and engineering firm Moffat and Nichol) identified the project as “an ideal candidate for a design-build project delivery method,” rather than the equity financing arrangement as offered by PCC. CBBT was also concerned that the financial proposal as offered would have meant passing responsibility for maintenance for the new tunnel to the joint venture, rather than keeping the whole of the Bay Bridge Tunnel as a single entity. It was also felt that a competitive design-build procurement would ensure financial competition and the potential for finding extra value through innovative solutions.
The slightly shorter Chesapeake Channel Tunnel, to the north of Thimble Shoal, is considered to be of lesser priority because the shipping lane above it is not as frequently used and therefore it is less at risk of being damaged. In the medium term, however, there are plans to build a parallel tunnel at this location also.