Last week, the Ohio Department of Transportation responded to concerns from Ohio Inspector General, Thomas P. Charles, regarding stipends for losing design-build teams on the $450M I-90 Inner Belt Bridge Project.   (See the full response at http://watchdog.ohio.gov/agency_responses/response_2010107.pdf)  ODOT is now requiring losing teams to submit costs of preparing responses to the Request for Proposals in order to receive the $1M stipend.  ODOT is also taking a “joint interest” in all intellectual property submitted by the losing teams in the RFP responses in an effort to justify its contention that it can pay the stipends under the State’s qualification-based selection statutes (which is typically reserved for hiring architects or engineers on traditional design-bid-build projects).

This move comes in response to the Inspector General’s April 16, 2010, report concluding that payment of stipends would be a misuse of public funds.  (See full report at http://watchdog.ohio.gov/investigations/2010107.pdf )  The report is extremely critical of the design-build process in general and stipends in particular.  It concludes that:  1) stipends are not authorized under Ohio law; 2) ODOT failed to produce evidence that a lack of stipends with dissuade teams from participating or hurt the project; 3) ODOT failed to require any substantiation of costs by the losing design-build teams. 

In the end, the Inspector General gave ODOT three recommendations for using stipends:  1) cite the legal authority or establish procedures for issuing stipends; 2) require losing teams to submit costs; and 3) ensure that stipends do not exceed actual costs.  It now appears (based on ODOT’s response) that stipends will be issued on the Inner Belt project in conformance with these recommendations.  But the Inspector General’s Report provides three important reminders to design-builders:  1) wherever possible, make sure enabling legislation follows DBIA model language and best practices (including express authorization of stipends to losing teams); 2) additional research on the value of stipends must be done; and 3) additional outreach to, and education of, owners and the general public regarding the benefits of design-build is necessary.

The U.S. Army Corps of Engineers (Fort Worth District) awarded Mortenson Construction (headquartered in Minneapolis) a $48.9 million design-build contract for a barracks complex at Fort Sill, Oklahoma.  HDR Architects is the team architect. 

Following is a description of the project from Mortenson’s website:

“The new project involves the design and construction of an apartment-style barracks facility for single enlisted personnel. Each new barracks will provide living units for approximately 90 people. The total UEPH complex will provide space for 620 soldiers. Each living unit will have two bedrooms with shared bathroom and kitchen. Two of the buildings will have activity rooms and formal lobby areas. All buildings will have centralized laundry/tornado shelters, janitor’s closets, and recyclables storage. The complex will use closed-loop geothermal systems for heating and cooling, which will provide a significant energy usage savings. Each barracks will have its own geothermal ground loop system, vertical wells and pumps, located adjacent to the building. Built on a concrete ribbed mat slab, each UEPH structure will consist of steel stud bearing walls and formed concrete floor decks. The terra cotta colored standing seam metal roof and stone-accented tan brick walls will be compatible with the existing architecture at Fort Sill. The high tower and canopy will provide an architectural focal point at the end of each building, emphasizing the entrance and visually tying all seven barracks together in a dramatic progression of structures along the length of the site. The UEPH Barracks will be designed to comply with Department of Defense Anti-Terrorism/Force Protection (ATFP) requirements and to achieve LEED Silver certification.”

http://www.mortenson.com/NewsArticle_2010_060710_FCG_UEPH_Barracks_Fort_Sill.aspx

The Minnesota Department of Transportation issued an RFP to five design-build teams on June 3.  The project is the Highway 52 Elk Run Interchange.  The teams are:

• C.S. McCrossan Construction, Inc.
• Duininck, Inc.
• Hoffman Construction Company
• Peterson-Reily Constructors, LLC
• Shafer Contracting Co., Inc.

Technical proposals are due August 13, and price proposals are due August 30.  Mn/DOT will announce the winner September 2, and construction will begin in the fall.

The Cleveland Medical Mart and Convention Center and Cuyahoga County, Ohio, have awarded a design-build contract for a new convention center to a team headed by Turner Construction Company and URS.  http://www.onlinetmd.com/medical-device-manufacturing-cleveland-medical-mart-052110-tmd.aspx.  The center will provide trade show and conference facilities for the medical industry.

LMN Architects was previously retained as the design-criteria consultant.

The Michigan Department of Transportation is soliciting responses to a Request for Qualifications to design and reconstruct the interchange of M-59 and Crooks Road.  Responses to the RFQ are due May 27, 2010 – http://www.michigan.gov/mdot/0,1607,7-151-9625_21540_54603-236437–,00.html.

The project will include replacement of the Crooks Road bridge over M-59, reconstruction of all ramps, and construction of two new ramps.