Louisville-Southern Indiana Ohio River Bridges Project

East End Crossing

Jim Stark, INDOT Deputy Commissioner,Innovative Project Delivery

July 17, 2013

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.

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

What’s missing?

Geography Lesson

Downtown Crossing (KYTC)

East End Crossing (IFA/INDOT)

One Project – Two Bridges

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

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

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)

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

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

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.

History Lesson

Bi-State Partnering Dec. 2011 – 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. 2012 – IFA/INDOT begin development of P3 procurement thru a DBFOM structure via Availability Payments to Developer

History Lesson

History Lesson

P3 Procurement???

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.

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

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

Nossaman

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

Bi-State Advisory

Steve Schultz, LASIBA

Bob Tally, FHWA

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

Legal

INDOT - Co Lead

IFA - Co-Lead

Nossaman

Ice Miller

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

Bi-State Advisory

Bi-State Development Agreement

FHWA

Risk Allocation

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 200-900)

East End Crossing P3 Primer

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

East End Crossing P3 Primer

Best Value Selection-Availability Payment

Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan/Feb Mar.

IndustryDay

6 Responses Received

Draft RFP 1 Industry

Review Period

Q&AATC’s

One-on-One’s

Preferred Proposer

AnnouncedFinancial

Close March 28, 2013

RFQIssued

4 Teams Shortlisted

FinalRFP

4 Proposals Received

Commercial Close/NTP1

East End Procurement Timeline

DraftRFP 2

Procurement Timeline 2/16-17/2011 – Industry Forum – Proponent teams

started forming

March 9, 2012 – RFQ Issued

April 23, 2012 – 4 teams shortlisted

May 4, 2013 – Draft RFP issued

May-July 2012 – 1-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

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

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)

Procurement Results

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

Looking Forward

East End Crossing

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.

Lessons Learned

Thanks for your time and attention

Questions