High-Speed Rail Authority Announces Bid Results for Local Construction

The California High-Speed Rail Authority (Authority) has identified Dragados/Flatiron/Shimmick as the apparent best value team for the design-build contract for Construction Package 2-3 (CP 2-3), the 65-mile segment from Fresno to north of Bakersfield.

The Authority estimated the cost of CP 2-3 to be between $1.5 billion to $2 billion, and determined that Dragados/Flatiron/Shimmick, which bid $1.2 billion, was the “apparent best value.”
CP 2-3 represents the continuation of construction of the high-speed rail program to the south. CP 2-3 will extend in excess of 65 miles from East American Avenue in Fresno to one mile north of the Tulare-Kern County line. CP 2-3 includes approximately 36 grade separations in the counties of Fresno, Tulare and Kings, including viaducts, underpasses and overpasses.

“Today is a significant milestone as we continue building the nation’s first high-speed rail system,” said Authority CEO Jeff Morales. “The proposals underscore the value of world class competition and the design-build approach to deliver high-speed rail in California.”

In the competitive bidding process, three teams submitted proposals to the Authority for the design-build contract. Design-build combines project design and construction into a single contract. The proposals were evaluated and ranked based on 30% for technical merit and 70% for cost. Factors such as an understanding of the project, schedule capacity, project approach and safety were part of the technical scoring.

In October 2013, the Authority issued a request for qualifications for potential design-build teams interested in the contract. Five teams were qualified and began competing for the contract. On October 30, 2014, three teams submitted their proposals, which were reviewed by an evaluation panel comprised of California state personnel.

The design-build contract includes the Authority’s Community Benefits Agreement (CBA), which is designed to help find construction jobs and training opportunities for residents who live in economically disadvantaged areas along the high-speed rail corridor. The CBA supports employment of individuals who reside in disadvantaged areas and those designated as disadvantaged workers, including veterans. It also helps remove potential barriers to small businesses, disadvantaged business enterprises, disabled veteran business enterprises, women-owned businesses and microbusinesses, as part of the Authority’s 30% small business participation goal.

The Authority will continue to work through the ongoing procurement process, and a contract will be presented to its board of directors in the coming weeks.

For more information on the procurement process for the design-build contract, visit www.hsr.ca.gov/Programs/Construction/Design_Build_Construction_Pkg_2_3/index.html.

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