Clark County Today Editor Ken Vance offers the Interstate Bridge Replacement Program’s response to follow-up questions to last week’s ‘revelation’

Ken Vance, editor
Clark County Today

During a meeting last week (May 8), members of the Oregon Transportation Commission (OTC) received updates on both the Interstate Bridge replacement project as well as the Rose Quarter project. Clark County Today has reported that both projects have significant cost increases, causing funding challenges for both Oregon and Washington. Additionally, construction will occur simultaneously impacting the estimated 70,000 SW Washington citizens who work in Oregon plus regional freight haulers.

“Construction could take up to 15 years,” said Ray Mabey, assistant program administrator for the Interstate Bridge Replacement Program (IBR). 

IBR officials expect to receive a Record of Decision (ROD) early next year, allowing for construction to begin shortly thereafter.

According to Rep. John Ley, the most eye-opening revelation was that apparently only “one team” is interested in bidding to be the overall general contractor for the project. They admitted this is troubling and that it doesn’t bode well for costs. They hope to redesign their bid packages to see if they get more interest. There are 28 bid packages (at the moment) shown on the website.

The total project cost was shown to be between $6.3 billion and $7.04 billion. However later this fall the IBR team will update cost projections. Everyone in both states expect the total project cost to increase significantly, and last week’s revelation has done nothing to change that perception.

After publishing this recent news, I sent a couple of follow-up questions to the IBR media team. Here are those questions and the responses from the Interstate Bridge Replacement Program:

CCT: It was stated today to the Oregon Transportation Commission that there is only a single firm that has bid/expressed interest in acting as the overall contractor for the project. Who is that firm? What is the IBR team doing to keep the cost under control with just a single overall contractor and a high number of subcontractors? It was also said that the updated cost estimate would come this summer or fall. Can you be more specific on when we will get an update on the total cost of the project, and will this include the cost of the various components of the project?

IBR response: “The Program is continuing to meet with industry firms to get feedback. The Program is looking at options to increase potential interest from firms, such as exploring alternative delivery methods, assessing the size of construction packages, and holding industry outreach events. Since the contract bidding process has not formally started, we do not have more specific information to share about firms that have expressed an interest in future bidding on the first construction package covering the replacement of the Columbia River Bridge.

“The IBR Program is actively managing the identified risks to program costs and budget and will continue to refine the cost estimate as the design and environmental process progresses. We expect to have an updated cost estimate and financial plan for the entire IBR Program including individual construction package estimates this fall, which will include updated information related to market or other conditions that could affect construction costs. We will manage the budget we have and deliver within the available funding.

“We are closely tracking other projects and industry trends to incorporate lessons learned and proactively address challenges they have experienced. As with all construction projects, the longer we wait, the more expensive this becomes. Staying on schedule is critical to mitigate risks to program costs and ensure that we’re able to maximize current funding sources. If we end up in a situation where costs exceed our funding sources, we have a lot of tools to draw from to address the issue. Some of these tools include value engineering, adjustments to the timing of construction packages, or exploring additional funding sources. We know that nothing ever gets cheaper so pushing construction of the program out only adds to the cost.”

CCT: It’s been said that every year of delay adds $300 million to the cost.  It was revealed that the IBR now expects construction to last 15 years. That is 5 years longer than the previous 10-year construction timeline. Does that add $1.5 billion to the cost, simply because of the additional 5 years of construction?

IBR response: “We know that construction of IBR Program investments will last at least 10 years. As we get closer to delivery and move into more detailed design, we will have more clarity on how many years construction is anticipated to last. We are in the process of updating our construction delivery plan which will include upcoming consulting and contracting opportunities. This information is also anticipated to include updates on construction packages, construction schedule, sequence and duration.’’ 

My observations 

The response indicates the IBR has other “tools” to use. So why don’t they use those tools to keep the project within the current revenue forecast of $6 billion?

They state: “We will manage to the budget we have and deliver within the available funding.”

So, why did they announce 2 1/2 years ago that the cost was going up, beyond the current $5-$7.5 billion range?

Why couldn’t their “value engineering” deliver the project within that price range?

I’m more than just a little skeptical that IBR officials are doing everything they can to limit the cost of this project. I’m sure there are plenty of citizens on both sides of the Columbia River who are as well.