CDOT MAJOR PROJECTS SPOTLIGHT FORUMOctober 22, 2014

MCAmy Ford, Communications Director, CDOT

Today’s Agenda

4:30 P.M. Opening RemarksDon Hunt, Executive Director, CDOT

4:45 P.M. CDOT Vision for I-70 East & C-470Peter Kozinski, Acting Director, CDOT Office of Major Project Development

5:15 P.M. CDOT Vision for Small and Disadvantaged Businesses (DBE) & Workforce Development

Greg Diehl, Manager, CDOT Civil Rights & Business Resource Center

5:30 P.M. Best Practices & Optimizing Local Business Participation Facilitated by Heather Barry, CDOT Transportation Commissioner, Chair of DBE Committee

6:30 P.M. Networking

OPENING REMARKS: Don Hunt, Executive Director, CDOT

VISION FOR I-70 EAST & C-470: Peter Kozinski, CDOT Office of Major Project Development

I-70 East Today

I-70 East Project Area

Current Status

• EIS Development– Preliminarily identified preferred alternative– Released Supplemental Draft EIS– Public hearings held in September– Comment period closes October 31, 2014

• Funding and Procurement– Working to determine project limits for Base Project– Base Project dependant on available funding– Evaluating delivery methods

Proposed Alternative

• Remove viaduct between Brighton and Colorado and put I-70 below ground

Proposed Alternative• Add two tolled express lanes in each

direction from Brighton to Tower• Add capacity from I-25 to Brighton

by restriping• Add 4 acre cover over highway• 46th Avenue next to the highway

• Modify all bridges and interchanges between Brighton and Tower, with the exception of Central Park, I-70 bridge over Sand Creek, and Airport

• Eliminate York Street

Proposed Alternative

Proposed Funding

• Project estimate: $1.8 billion (Ultimate)

• Potential funding sources– Annual Bridge Enterprise Revenues ($850 million)– DRCOG/STP-Metro/CMAQ ($50 million)– SB09-228 Funds ($? million)– Total $1.0 to 1.2 billion (Base Project)

Anticipated Scope

• Base Project– Brighton to I-270 constructed to full width– Striped for one managed lane in each direction– Construct EB I-270 to EB I-70 flyover connection

• Extended Projects1. Minimal widening from I-270 to I-225 to

accommodate/continue one managed lane in each direction2. Add direct managed lane connection from EB I-70 managed

lane to SB I-225

• If scope is achievable as a minimum project, RFP may include a scope ladder of a limited number of Additional Requested Elements (AREs)

Project Schedule

• Comment Period Ends October 31, 2014• RFQ December 2014• Draft RFP Spring 2015• Final EIS Summer 2015• Final RFP Summer 2015• Record of Decision Early 2016• Construction Late 2016

C-470 Today

C-470 Project Area

Current Status

• EA Development– Proposed Action revised from 2006 EA– Preferred alternative identified – Revised EA complete early 2015

• Funding and Procurement– Level III T&R study underway– Base Project dependent on available funding– Evaluating delivery methods

Proposed Alternative

General Purpose Lanes – Continuous lanes that do not require the user to pay a toll, consistent with the two existing lanes on C-470.

Tolled Express Lanes – Continuous lanes that require the user to pay a toll. These lanes are separated from the General Purpose Lanes by a painted buffer.

Auxiliary Lanes – Lanes added to the right of the General Purpose Lanes connecting the on-ramp at one interchange to the off-ramp at the next interchange. Auxiliary lanes will improve safety and traffic performance. Auxiliary lanes will not be tolled.

Proposed Alternative

DRAFT: Ingress/Egress Locations Subject to Further Study

Proposed Alternative

Proposed Funding

• Project estimate: $230 million

• Potential funding sources– Federal & State ($102 million)– Projected via toll revenues ($103 million)– Douglas County ($10 million)– To be Identified ($15 million)

Anticipated Scope• Base Project

– Westbound – two tolled express lanes from I-25 to Colorado; one tolled express lane from Colorado to Wadsworth

– Eastbound – one tolled express lane from west of the Platte River to I-25

– Direct connection ramps from I-25 to the westbound express lanes– Auxiliary lanes where warranted in select locations– Water-quality features and noise barriers– ITS elements and tolling equipment

• Reconstruction of:– Bridges over the South Platte River– Existing pavement, and realignment of substandard curves– C-470 Trail with added grade separations at Quebec and Colorado

• If scope is achievable as a minimum project, RFP may include a scope ladder of a limited number of Additional Requested Elements (AREs)

Project Schedule

• Issue Request for LOIs January 8, 2015• RFQ February 26, 2015• Draft RFP June 2015• Decision Document September 2015• Final RFP September 2015• Design-Build Selection February 2016• Construction Summer 2016

• CDOT working on 4-year Capital Program plan– FY 15 Surface Treatment– FY 16 Surface Treatment– FY 15 and FY 16 Major Structures

• CDOT’s goal is to add 2 more years to these lists by December 31, 2014

• CDOT’s goal is to increase Capital Program to $700m to $900m per year

• www.coloradodot.info/projects/approved-projects-lists

CDOT’s Other Programs

VISION FOR SMALL AND DISADVANTAGED BUSINESSES & WORKFORCE DEVELOPMENT

Greg Diehl, Manager, CDOT CRBRC

OUR COMMITMENT:

Facilitate small and disadvantaged business

opportunities and promote strategic workforce development.

PARTNERSHIP APPROACH

CDOT

PRIMEDBE/ESB

CDOT APPROACH:

CDOT

CDOT Leadership Commitment– Top-down commitment to “meaningful

and robust” programs.

Transportation Commission– Financial support for small business and

workforce development supportive services.

“5+1”CEO Strategic

Focus:1) “Partner with

private sector”2) “Transparency”

Outreach & Collaboration– Create opportunities for small businesses

to network with larger firms.– “Partner” with industry stakeholders to

ensure collaborative and “transparent” decision-making.

CDOT APPROACH:

CDOT

Work Closely With Federal Partners– Ensure Disadvantaged Business Enterprise (DBE)

Program (49 CFR Part 26) is “Narrowly Tailored” to help promote small business opportunities.

Overall & Project DBE Goal Setting– Assessment of subcontracting opportunities and

corresponding DBE availability and capacity.

Best Practices On Major Projects:1) Separate Design & Construction goals2) Goals are baseline requirements3) RFP scoring to incentivize “innovation”

CDOT APPROACH:

CDOT

Basic Project DBE Goal Setting Example*:

* This is only an example of how the process works on a typical project. The actual project goal will vary depending on project type, contract value, contract duration and location, “subcontracting possibilities” (see 49 CFR Part 26.51),

and current DBE availability etc.

CDOT APPROACH:

CDOT

Ensure Follow-Through (Compliance)– Setting goals vs. meeting them (prompt payment etc.).

Emerging Small Business (ESB) Program– CDOT Program targeting smaller (“emerging”) firms.

Connect2DOT Program– Strategic partnership with Colorado SBDC Network.

Past Year Highlights (see connect2dot.org):• At 14 SBDC centers, 225 consultants (18 hwy, 8 CDOT retired)• 184 distinct customers received consulting (64 DBE, 32 ESB, 88 SBE)• 20 jobs created, 35 jobs retained as direct result of consulting• 17 firms DBE Certified, 16 ESB, 13 prequalified as direct result• Average sales increase = 15%• Provided tailored CDOT training & resources (CDOT

Orientations, BIDX, Bid Matching Service etc.)

SMALL BUSINESS APPROACH:

DBE/ESB

Seek & Manage Certification(s)– Swords vs. shields.

Build Relationships– Show up, aggressively pursue

opportunities and seek feedback.– Get to know primes and CDOT

specifications/requirements.

Leverage Technical Assistance

– Connect2DOT, HCC etc.– Realistic plan for growth (Joint Ventures?).

PRIME APPROACH:

PRIME

Thoughtful & Integrated Plan– Meaningful decision-maker involvement.– “Innovation” (mentor-protégé?).– Covers entire course of project.

Build (New) Relationships– Show up, “active and aggressive” pursuit of

small business participation.– DBEs: 337 hwy construction, 344 design.

Provide Assistance– What “barriers” exist? How can you help

flatten them?Leverage Assistance

– Proactive communication of needs and potential issues (CDOT, Connect2DOT).

NEXT STEPS (PRIORITIES):

CDOT

PRIMEDBE/ESB

RFQs– Emphasis on Small Business & Workforce Development.

CDOT Small Business/Workforce Position(s)– Anticipate next 3 months (1 OMP, 1 CRBRC).

Continue Partner Collaboration– Overall/project DBE Goal capacity input.

Industry & Community Oriented Workforce Development

– “Active and aggressive” pursuit ofindustry best practices that helpaddress highest priority needs.

RFPs– Small Business: DBE/ESB Goals.– Workforce: OJT Goals.

INDUSTRY PANEL DISCUSSION:Heather Barry, CDOT Transportation Commissioner,

Chair of DBE Committee

PANEL:

Joe Wingerter, Vice President, Kiewit Development Company

Daniel Filer, Vice President, Ferrovial Agroman, US Corp

Michael Turner, Program Manager, Skanska USA

Jeff Burns, Senior Vice President Global Construction, Willis

LaSheita Sayer, Principal, ZoZo Group, DBE Certified

Judith Carmichael Brown, Director, Triunity Engineering & Management, Inc., DBE Certified

Kiewit Infrastructure Group

CDOT SPOTLIGHT EVENT FOR MAJOR UPCOMING PROJECTS: I-70 EAST & C-470 - DENVER

October 22, 2014

Large Project (DB/P3) Pursuit/Execution

• Limited design information available at bid time– 15-20% design for bidding purposes

• Significant risk transfer– Technical, Financial, O&M, Rehabilitation

• Expensive for prime to bid– $8-10M sunk cost for proposal submission

• Can’t do it without good partners– Strong local resources and expertise needed for

success

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Best Practices – Transparent CommunicationTypical Kiewit Pre-Bid Meeting Agenda

Safety Security and Health • Quality Control/Quality Assurance• Environmental

Business & Labor Compliance

Engineering• Construction

Equipment

Project Controls

Contract Administration

Subcontracting Partnerships Project Sub/supply

percentageApprox. Sub/Supply

$ value

DFW Connector 58.3% ~$500M

Sea to Sky 32.9% ~$200M

A-25 54.3% ~$225M

Goethals Bridge 54.1% ~$500M

Denver Union Station 37.9% ~$150M

T-REX 46.6% ~$600M

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Direct Wages paid >$200 mill.Services and supplies purchased >$300 mill.Subcontractor payments >$550 mill.*

Economic Impact T-REX

* Includes more than $200M in payments to DBE and Small Businesses

Take-Aways• Large projects create

significant subcontracting opportunities

• Not every firm will get contract(s) – but many will

• Don’t put all of your efforts into one project/program

• Look for ways to engage at every opportunity

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Thank You

Questions

Daniel J. Filer, PE

Projects in North America

Toronto, Ontario (CAN): 407 ETRTotal Investment: $3.49B DB Cost: $381M Local Partner: SNC Lavalin

Dallas, TX: IH-635 Managed LanesTotal Inv.: $2.54BDB Cost: $2.08B Local Partner: Webber

Southeast Virginia: US-460DB Cost: $1.393B Local Partner: American Infrastructure

Fort Worth, TX: NTETotal Investment: $2.6B DB Cost: $1.48B Local Partner: Webber

Projects in North America

Toronto, Ontario: 407 East Ext.Total Investment: $911MDB Cost: $754M Local Partner: SNC Lavalin

Fort Worth, TX: NTE 3ATotal Investment: $1.8B DB Cost: $985M Local Partner: Webber

Austin, TX: SH-130 Seg. 5 & 6Total Investment: $1.40B DB Cost: $939M Local Partner: Zachry

Gary, IN: Indiana Toll RoadTotal Investment: $4.0B DB Cost: $262M Local Partner: Reith Riley

Charlotte, NC: I-77Total Investment: $655MDB Cost: $448M Local Partner: English Construction

North Tarrant Express – Fort Worth, TX (USA) Total investment of $2.6B with a

design-build cost of $1.48B 52 year concession 13.1 miles of total reconstruction

in the Fort Worth Metropolitan area.

Construction between 2010 and 2015

North Tarrant Express Statistics and Success– Number of subcontractors: 278

– Number of construction subcontractors: 170

– Number of direct jobs created: 2,825

– Number of DBE contracts awarded: 200

– Project DBE Goal: $127,482,879

– DBE participation achievement to date: over $200 million (exceeding the DBE project goal by 60%)

– 9 months ahead of schedule, Opened -October 4, 2014

$127

$76

$-

$50

$100

$150

$200

$250

DBE Participation

Goal

Exceeded by 60%

Local Impact: Dallas – Fort Worth RegionPROJECTS: LBJ, NTE & NTE I-35W Extension

– $4.4 billion total investment

– 4,000+ locally employed

– 123,000 direct and indirect jobs (FHWA: 28k/$1B)

– 400 Texas based firms contracted

– 370 DBE contracts awarded to approximately 200 DBE firms

– NTE received the 2014 GLOBE Award from the American Road and Transportation Builders Association (ARTBA) & the 2014 PRIDE Award for excellence in community relations

– Awarded the TxDOT Office of Civil Rights’ 2013 Small Business Advocacy Award for outstanding DBE service and 2014 Contractor of the Year from the Regional Hispanic Contractors Association

4-”C’s” Initiative• Comprehensive Communications: We understand that timely

and effective communications is necessary to the DBE business community.

• Community Connections: We build and foster relationships with the minority and women business community, various related associations and groups so they can learn who we are, we can know who they are, and we can educate them about potential contract opportunities.

• Continued Commitment: We have a company-wide commitment to diversity and utilizing DBE firms on our projects.

• Consistent Results: Our commitment and extensive DBE compliance program have consistently resulted in substantial DBE utilization and DBE goal achievement.

Takeaways– For Contractors: Size the packages for the current

capabilities and capacity of the market

• Need subs to keep us updated on capacity and capabilities before and during project

– For Subs: Be patient

• These projects take longer to develop compared to traditional DBB projects

Questions?

I-70 East & C470October 22nd Meeting

Lessons Learned• Firms should educate themselves and get involved early

• All parties involved need to understand that these projects are not business as usual

• Setting participation goals based on the availability & capability of “Ready, Willing and Able” firms

• Prime Contractors scaling and breaking up subcontracts (where applicable) to make them attractive to small businesses

• Hold Business development workshops that explore contracting and management issues to prepare firms for longevity

Our principles, our way of working…

Local ParticipationMyths of Mega Projects:• Monopolized by giant firms, leaving no room for local participation• Destroy traditional pay scales and union participation• Exports local work, jobs, dollars• Do not address the needs of the local communities affected by

projects

Reality:• Drive up the demand for good local companies• Bring new and additional money and jobs to the local market• Create a boost to the local economy and fosters economic

development and growth • Contribute to community and social programs through strategic

partnerships with existing stakeholders

Your Path for Success

Certification Safety Program Quality Program Consider Creating Your Own Joint Venture Consistent, Proactive Engagement Quote the Project!

Key Takeaway

Educate yourself on the project & Teams and get involved early…

Major Projects: prime tier contractors, subcontracts, suppliers and consultants –understand and get involved

OPPORTUNITY & SOLUTIONS • Willis: Our specialty is insurance, bonding and related risk

management services & strategies. • Revenues approaching $4B annual 17,000 employees

worldwide.• Involved with hundreds and hundreds of major public

private transportation projects on every major continent .• Jeff Burns, Head of Innovation, Willis Global

Construction.

Supplier Contract

INFRASTRUCTURE AT THE TOP CONTRACTUAL STRUCTURE – RISK ALLOCATION

60

Equity Sponsor

A

Equity Sponsor

B

Equity Sponsor

C

PROJECT COMPANYSpecial Purpose Vehicle

LENDERS / BONDSSenior & Subordinated PUBLIC ENTITY

CONSTRUCTION CONTRACTOR SUPPLIER O&M

CONTRACTOR

Sub-Contractor Sub-Contractor Sub-Contractor

Loan AgreementFinancial Covenants, Remedies, Reserve and Insurance Requirements and Flow of Funds

Concession AgreementPerformance requirements, Risk Allocation, Schedule, Force Majeure, Relief Events

Sub-contracts Sub-contracts Sub-contracts

EPC ContractInsurance Requirements

O&M ContractInsurance RequirementsSources and forms

of Insurance and Guarantees

Sources and forms of Insurance and Guarantees

80% OF SUB TIER CONTRACTS ARE UNDER $1M. Is insurance an obstacle?

• Talk to your broker or insurer.• Review the current specifications for highway work.• Get familiar with DBJVs typical contracting practices. • Network. • Understand the expectations and contracting practices of your potential

client.• Does your bonding comply?

Talk to your broker or insurer. • SBA, NASBP, and other local groups.• Creative team approaches to sub tier bonding may help.

If you are in the risk management area:• Several opportunities within the project for the various interested

parties• Consider a JV on larger projects, if your services are

complementary.

One take away……

Innovation and understanding of the work (yours), your ability to do the work, making sure you understand the needs and objectives of the project and that of your potential client, will always be preferred, regardless of the project delivery method.

Global Construction

LASHEITA SAYER

ZoZo Group

Public Information Team

Public Information Services

Phone Mgmt

Public Meetings

Web Updates

Press Releases

Flyer Distribution

Public Information

and Outreach

Certified

DBE

RTD/SBE

ACDBE

MPM SDC

Its not enough

Now What

Empathize with the Prime

Address the Concern

Defining On Time

Stay Top of Mind

Illustrate That You Are

CapableCompetent

Certified

Big Company Talent, Small Company Spirit

National engineering and management firm founded in 2003 by Jonnie Thomas, P.E. and Marvin Thomas

Core Capabilities in Engineering, Communications Engineering, Project Controls and Construction Management

Veteran owned DBE, MBE, SBE in 18 markets

Headquartered in Denver with offices in Seattle and Boston

Jonnie L. Thomas, CEO

Marvin L. Thomas, President

Light Rail controls and SCADA oversight lead

Successful implementation of the communications controls system which included: • High speed IP network, parking lot management

system, fiber optic network, a new control center, IT elements on the new Elati rail maintenance center, train-to-wayside communication system, and real time public address and variable message sign system

FasTracks- Program Controls Management and integrated Master Schedule Development for the overall program.

Systems engineering, construction management, project controls performed for various projects including the Eagle Public Private Partnership (PPP), US36 Managed Lanes and the North Metro Rail Project.

Prime on the RTD CMSC (Construction Management Support Contract) which includes DBE compliance management.

Various procurement methods supported: PPP, Design/Build, Design-bid-Build, CM/GC.

Joint collaboration with RTD and CDOT on various large projects.

Engage DBE’s early in the proposal process Be creative – augment project staff with DBE

expertise through the life of the project if possible

Utilize DBE firms for niche/specialty services ie: CPM Scheduling, Document Controls, etc.

Maintain open door policy to resolve issues Prompt Payment

Build quality relationships Be a valued and trusted partner Build a solid team with specialty expertise Be proficient – always produce a quality work

product and ethic Be consistent and persistent, reach out both

verbally and with written communiques to potential partners often

Thank You

Be CapableLessons Learned

Quote the Project!

Educate yourself

Not every firm will get contract(s) – but many will

Get involved early

Be Competent

Get CertifiedSignificant opportunities

Don’t put all your efforts into 1 project

Look for ways to engage

Consistent, Proactive Engagement

Consider Your Own Joint Venture

PracticeSafety

Be a trusted partner

Build quality relationships

Be Proficient

Reach out Be

consistent

Persistence

NETWORKING SESSION