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Losing Bids On I-35W Bridge Project Could Still Have Value

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By BRIAN BAKST, The Associated Press

Published: September 15, 2007

ST. PAUL - Next week, four teams bidding to replace the fallen Interstate 35W bridge in Minneapolis will learn which has the inside track on a project that could be worth a quarter-billion dollars.

But even the losers won't walk away empty-handed.

The Minnesota Department of Transportation is ready to pay $500,000 to each of the unsuccessful bidders, which a spokesman said is the largest stipend the agency has ever offered. If they accept the money - they are free to turn it down - the department gets the right to use any ideas losing teams submit.

Four teams met Friday's deadline to submit design proposals and they must attach a price tag to them by Tuesday. On Wednesday, the department will open the bids. The plan is to pick the winner by the end of the month. The project is expected to cost between $200 million and $250 million, and the builders can earn up to $27 million in incentives for speedy completion.

The four teams are: C.S. McCrossan Inc.; Ames Construction Inc. and Lunda Construction Co.; American Bridge Co. and Walsh Construction Co.; Flatiron Construction Corp. and Johnson Bros.

Three days after the Aug. 1 collapse that killed 13 people, Minnesota's transportation department issued its first call for contractors to compete to build the replacement. In that invitation, the agency offered a $300,000 stipend. About two weeks later the enticement was up to $400,000. This month, it rose to $500,000.
Department spokesman Kevin Gutknecht said the stipend increase reflects heightened expectations, including a requirement that the bridge be reinforced to accommodate a future light-rail line.

Stipends are a common feature of design-build transportation projects, an increasingly popular approach in which a contractor is responsible for both the design and construction. The money is meant to make the projects more attractive to bid on because developing a proposal can be expensive.

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