Kiewit’s Winning Francis Scott Key Bridge Contract Signals a Win for Progressive Design-Build Project Structure

The PDB Plan Netted the Nebraska-Based Construction Firm a $73-Million Contract & Exclusive Negotiations for Phase II

Kiewit’s Winning Francis Scott Key Bridge Contract Signals a Win for Progressive Design-Build Project Structure

The PDB Plan Netted the Nebraska-Based Construction Firm a $73-Million Contract & Exclusive Negotiations for Phase II

$1.7 Billion. That’s how much the Maryland Transportation Authority (MDTA) estimates the complete replacement of the I-695 Francis Scott Key Bridge will cost.

Long before its expected 2028 completion, however, the bridge that will ultimately replace the structure that took I-695 across the Patapsco River and collapsed in a collision accident in March of 2024, must be planned, designed, and engineered. That is why Kiewit Infrastructure Company, “one of North America’s largest and most respected engineering and construction organizations” was ready to step up.

The Francis Scott Key Bridge, which collapsed in March of 2024, spanned 1.6 miles and carried 31,000 travelers daily. Kiewit has won the Phase 1 bid to design and build its replacement.

Kiewit was not the only firm who tossed their hat in the ring, and according to reporting from Engineering-News Record (ENR), their proposal blew past the other two major competitors for the job by tens of millions of dollars. Kiewit’s total project bid came in at $1.2 billion – $20 million more than Flatiron Halmar Dragados JV’s bid, and $41 million more than Lane Construction/Webuild’s.

In some ways, it seems that MDTA is embracing a bigger is better approach. “This really represents such an order of magnitude bigger than all our previous milestones,” executive director of MDTA, Bruce Gartner shared in a recent interview.

When you’re going big, however, it means that you multiply the chances for miscommunications and mistakes, which can lead to costly accidents. That’s why MDTA elected to use a Progressive Design-Build (PDB) process model for the project.

“The two-phase Progressive Design-Build process emphasizes collaboration and flexibility to adapt to merging needs and changes. The process involves a single contract that unites MDTA with the selected PDB team, which includes contractor and designer roles.” MDTA said in their May 2024 call for proposals for the bridge rebuild. And the Transportation Authority’s press release on August 29, 2024 explained that “Kiewit was procured as a qualified team for initial services to develop the project scope and requirements in collaboration with MDTA and project stakeholders. Upon successful completion of Phase 1, Kiewit will have exclusive negotiating rights for Phase 2, which includes project final design engineering and construction.”

What is Progressive Design-Build?

The American Institute of Architects (of which GPRS company, Existing Conditions, is a member), defines Progressive-Design Build as a paradigm-shifting process that “represents a departure from traditional construction methods, offering a dynamic and collaborative framework that promotes innovation and flexibility throughout the project lifecycle.”

The aim of PDB is to combine elements from design-build and design-bid-build methods to produce a new, less complicated and more accountable process for general contractors. How does PDB promote accountability? By requiring the stakeholder contract with a single entity for both the design and construction project phases.

Several other components factor into the decision for any stakeholder to choose PBD for their large projects. Below is a quick, but hardly exhaustive list:

Early Collaboration: PDB involves the owner, design team, and builder from the start. This early involvement allows all parties to collectively set project goals, anticipate challenges, and brainstorm innovative solutions from day one.

Flexibility and Iterative Design: Instead of locking in all design elements at the beginning, a PDB project evolves, allowing for ongoing adjustments and refinements even within a phase. Feedback, emerging needs, and shifting priorities all play a role in tailoring the final design so it is well-tailored to meet project's requirements.

Transparent Communication: Clear and open communication is crucial in PDB projects. It builds trust, ensures transparency, and aids in making informed decisions throughout the project's duration. Making sure communications remain open can require regular meetings, workshops, and collaborative tools to keep everyone on the same page and reduce misunderstandings.

Risk Allocation and Management: PDB promotes a collaborative approach to risk allocation and management. The owner, design team, and builder share both risks and rewards, creating a unified drive toward common project goals. This encourages innovation, proactive solutions, and optimizes value because it requires all parties to work together to manage potential challenges.

Performance-Based Selection: Qualifications, experience, and performance get more weight than what GC was the lowest bidder. So, instead of only looking at the projected bottom line, stakeholders have flexibility to choose teams based on their expertise, track record, and alignment with the project’s goals. By focusing on capabilities, PDB fosters long-term partnerships and sets the stage for successful project outcomes.

Continuous Improvement: PDB focuses on continuous improvement and learning, both of which are vital to a project’s success. Insights and lessons from previous projects inform future proposals, promoting innovation, efficiency, and excellence in every project phase.

Kiewit Corporation is based in Omaha, Nebraska and will be the GC on the MDTA Francis Scott Key Bridge project. Its transportation division is known as Kiewit Infrastructure Company.

DBE – The Other Key Factor in Kiewit’s Winning Bid?

Another line item in MDTA’s approval process was the importance of DBE (Disadvantaged Business Enterprise) participation in the project. In fact, one bidder (Archer Western/Traylor Bros. Joint Venture) was disqualified from the process after MDTA said their DBE submission “did not comply with contractual requirements.”

The DBE participation requirements for the contract were set by MDTA at 31.5%, which means that at least 31.5% of the contractors/subcontractors hired for the project must be small business owners where socially and economically disadvantaged people make up at least a 51% ownership stake and control daily business operations and management.

Individual states certify their small businesses as DBE through the Unified Certification Program (UCP). Aside from the socioeconomic requirements, to be considered an economically disadvantaged small business owner, the individual’s net worth may not exceed $1.32 million, their business must meet SBA (Small Business Administration) size criteria, and meet DBA size limitations for their last three years of gross receipts.

There is no question that the landscape for infrastructure construction is changing, and the Francis Scott Key Bridge project is the latest example that proves the need for GCs to embrace new methodologies and tools.

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Frequently Asked Questions

What is the difference between Progressive Design-Build, Design-Build, and Design-Bid-Build?

Progressive Design-Build (PDB) involves early collaboration, with the owner, design team, and builder working together from the project's outset, allowing for iterative design and shared risk management. Design-Build (DB) combines design and construction under a single contract, but the design is typically more developed before contractor involvement, offering streamlined communication but less flexibility. Design-Bid-Build (DBB) is the traditional method where design and construction are separate contracts; the design is fully completed before bidding, often leading to longer timelines and less collaboration. PDB offers more flexibility and early collaboration than DB, while DBB provides the most separation between design and construction phases.