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Missouri Launches Largest Bridge Improvement Program in State History

The Missouri Department of Transportation (MoDOT) has announced the launch of the Safe & Sound Bridge Improvement Program, the largest of its kind in Missouri's history. This initiative will repair or replace 802 bridges statewide, significantly improving the transportation infrastructure. Construction is set to commence in Spring 2009, following a series of negotiations and assessments to ensure affordability and feasibility. The program emphasizes immediate action and effective procurement strategies to address critical infrastructure needs, ensuring safety and soundness for all citizens.

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Missouri Launches Largest Bridge Improvement Program in State History

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  1. Safe & SoundBridge Improvement Program

  2. ‘MHTC Launches Largest Bridge Program in Missouri’s History’ • Statewide system improvement • 802 bridges repaired or replaced • Construction begins in Spring 2009

  3. Pricing/Negotiation History • Fall ’06 – DBFM procurement began • Spring ’07 – initial technical proposals received • Late Summer ’07 – special legislative session • “We know that the concept is viable, now we have to determine if it is affordable.”

  4. Pricing/Negotiation History Preferred Pricing Structure – November ‘07 MBP - $83.2 million/year TU - $125.5 million/year Alternative Pricing Structure – November ‘07 MBP - $70.7 million/year TU - $93.9 million/year

  5. Pricing/Negotiation History BAFO – December ‘07 MBP - $59.1 million/year (25 years) TU - $65.3 million/year (35 years) • MBP selected as apparent best value proposal. (Commission action on 12/19/07) • MBP price came with conditions – “less for less.”

  6. Pricing/Negotiation History February ‘08 MBP - $52.7 million/year • Accepted by MoDOT, contingent on MBP acceptance of market risk up to contract execution. • MBP unwilling to accept market risk. • MoDOT agreed to continue discussions.

  7. Pricing/Negotiation History March ‘08 • Parties tentatively agreed on contract terms. • Price range – $62-64 million with daily fluctuations. • MBP financing team indicates problems with use of original financing mechanism.

  8. Pricing/Negotiation History April / May ‘08 • Price range – $66-77 million per year. • MoDOT refinancing of debt at 6/7-year “put” estimated to be $56-59 million per year. • Key decision items identified.

  9. Pricing/Negotiation History June ‘08 • Limited Notice to Proceed issued (up to $10 million) for design and field tasks. July ‘08 • MoDOT prepares District staff for contract execution and implementation. • Traffic control (detours) for closed structures • Web site development • Quality control expectations

  10. Pricing/Negotiation History August ‘08 • USDOT/FHWA determine that MoDOT procurement was valid.

  11. Pricing/Negotiation History September ’08 • Estimated price is $65-74 million per year. • MoDOT’s optional bond refinancing is estimated to be $65-71 million per year. • MoDOT budgeted $50 million annual payment.

  12. Financial Impact Financial Analysis of Future Payments • Current state revenue trends could impact project commitments in current STIP. • Federal funding outlook is grim. • At the $65-74 million annual price, it is not possible to implement the DBFM contract and honor the MHTC’s approved funding distribution process.

  13. Recommendation toLaunch Safe & Sound Conclude current procurement. • Financial market crisis has made private financing for a project of this magnitude unaffordable. Proceed immediately with an alternate method to improve 802 bridges. • Construction underway Spring 2009.

  14. Recommended Alternate Procurement Process • Use Modified Design-Bid-Build process to improve 248 bridges. • At least 100 bridges under construction by Spring ’09 • Multi-bridge packages by location, type, size, etc. • Immediately seek Design-Build proposals for remaining 554 bridges. • Two proposals are needed per Missouri law. • MoDOT will finance the project.

  15. Alternate Procurement Costs MoDOT estimated costs for alternate procurement. • GARVEE bonds issued by MoDOT. • Approximately $50 million estimated annual cost to MoDOT.

  16. RecommendedCommission Actions • Concur that financial market crisis has made the current process unaffordable. • Authorize payment of a $2 million stipend to Missouri Bridge Partners. • Launch Safe & Sound with alternate procurement process.

  17. Questions?

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