Wednesday was a big day for transportation deals in Utah - particularly for Peter Kiewit Sons Inc., based in Omaha.
The Utah Transit Authority board of directors conditionally selected Gilbert Western Corp.'s $29.3 million bid to build the TRAX light-rail corridor from 10000 South in Sandy to 1300 South in Salt Lake City. The Murray company is a wholly owned subsidiary of Kiewit Construction Group Inc.Hours earlier, the Utah Department of Transportation selected Wasatch Constructors' $1.325 billion proposal to rebuild I-15 from 10800 South in Sandy to 600 North in Salt Lake City. Kiewit is the lead company involved in Wasatch Constructors, a consortium of construction, engineering and supply firms.
"Kiewit is a very large, worldwide firm," said UTA light rail project manager Rick Thorpe. The firm's companies have constructed highways, serviced the mining industry and worked on Dallas' light-rail system, DART.
"They do excellent work," Thorpe added.
Also competing for the light rail contract was Salt Lake City's Gibbons & Reed Co., a subsidiary of Granite Construction Co., one of the partners in the Wasatch Constructors consortium.
UTA, which selected four other bids Wednesday for the $312 million TRAX project, also has reason to celebrate. Halfway through the bidding process, UTA is about $23.7 million under budget, according to a TRAX bid summary obtained by the Deseret News. Thorpe says it is too early to determine the fate of extra funds should the trend continue.
UTA so far has selected more than $106 million in bids for which it has budgeted nearly $130 million.
Wednesday, the board selected just over $39 million in bids - about $16 million under budget. Its conditional selection of Gilbert Western to build joint-use light rail/freight tracks and associated facilities along the north-south corridor alone was about $14 million under budget.
But the board's 9-5 vote to select Gilbert Western came after ample argument by board members, some of whom suggested throwing out the bids and starting over.
At the root of the discussion were federal guidelines requiring the six bidding companies to subcontract 15 percent of the would-be work to disadvantaged business enterprises - small businesses owned by women, minorities or people with disabilities.
The guidelines, which board member Manuel Romero said aim to help such businesses enter "the good 'ol boy network," apply to the corridor because the project is federally funded.
But two bidding companies had filed protests with the board, and another was poised to follow suit, Thorpe said. The companies were Gilbert Western, Gibbons & Reed and NPI Inc. of Boise, said UTA spokesman Bill Barnes.
Gibbons & Reed Co. submitted the lowest bid of about $27.4 million - some $2 million less than Gilbert Western's. But it had less than 3 percent to disadvantaged business enterprises, Thorpe told the board. The company also did not make a good-faith effort to meet the 15 percent goal, he said.
Still, the cheaper price enticed some board members.
"If we were spending our own money, then $2 million would reach up and grab us," said Dan Berman, who suggested starting the bidding process over to prevent potential litigation. "And we have a greater obligation in using public funds."
The second-lowest bidder, the selected Gilbert Western, didn't meet requirements either. The company's bid included 22 percent disadvantaged business enterprises, a company employee said. However, since one subcontractor did not meet UTA requirements for such enterprises, UTA recognized the company as having 10 percent.
After some two hours of discussion and failed votes, the board decided that Gilbert Western will secure the contract only if the company is found to have sought disadvantaged business enterprises compliance in good faith. Such a standard is determined by reviewing paperwork such as how the bidders sought out the enterprises, like through national advertising, Thorpe said.
Should the board determine Gilbert Western did not use good faith, it will select NPI, whose $29.7 million bid was the third lowest. NPI meets the disadvantaged business enterprises requirement, Thorpe said.
But Gilbert Western expects to be awarded the contract, said company vice president John Condas.
"We were the lowest responsive bidder," Condas said in a telephone interview. "I believe the UTA also feels confident in our abilities. . . . There's obviously a final review to be made, and we're going to live up to our commitment on the project for good-faith effort."
A decision on the contract is to be announced Friday afternoon.
Aside from the north-south corridor, the TRAX project is to run along 200 West from 1300 to 700 South, from 700 South to Main, then north to South Temple and over to the Delta Center near 300 West. Construction is to begin next month and end in March 2000, UTA's Mike Allegra said.
Four other companies were selected Wednesday for TRAX work.
L.B. Foster Co.'s nearly $1.6 million bid was selected to provide special trackwork for the corridor, business district and vehicle storage facility. The company was one of five bidders.
CXT Inc. was selected to make and deliver 45,000 concrete cross ties and 24 pedestrian crossing panels for station platforms. It bid nearly $3 million on the project, about $15,000 less than competitor Rocla Concrete Tie.
Carter-Burgess/Jacobson was selected to provide construction management for an estimated $5 million. The firm was chosen on its high rank. It beat two other firms.
Lastly, the board chose Amcor Precast to make and deliver 3,724 feet of concrete grade crossing panels in the corridor. It bid about $587,600 - less than $1,000 under competitor Premier.
*****
ADDITIONAL INFORMATION
TRAX bids
The figures constitute bids selected to date. An * designates bids selected Wednesday. An ** designates a conditional agreement.
TASK BUDGET BID FIRM
Project Management $5.47 million $5 million PB
Civil Design $6.02 million $5.9 million BRW/DMJM
System Design $3.45 million $3.64 million Wong
*Construction Management $4.9 million $4.9 million Carter-Brugess
**Railroad Corridor $43 million $29.3 million Gilbert Western
*Special Trackwork $3 million $1.57 million L.B. Foster
*Concrete Ties $3.5 million $2.9 million CXT
*Concrete Panels $821,700 $587,567 Amcor Precast
Power Substations $7.7 million $4.17 million Impulse
Rail $3.5 million $2.3 million A & K
Light Rail Vehicles $48.6 million $45.93 million Siemens
TOTAL BUDGET - $130 million
TOTAL BIDS - $106 million
SURPLUS - $23.7 million
SOURCE: UTA