Stimulus Funds Trickle Toward Projects

Competition is fierce as bids go out for projects funded through the American Recovery and Reinvestment Act.

Stimulus Starts to Flow

By mid-summer, stimulus dollars provided through the American Recovery and Reinvestment Act were flowing in spurts and trickles through the Mid-Atlantic. Some government agencies were quicker to mobilize than others, and throughout the region eager contractors lined up en masse for a chance to bid.

In transportation, Maryland was among the first states to award stimulus projects, and had advertised all but eight of its nearly $450 million in projects by August. Pennsylvania also moved quickly with its $1 billion in ARRA funds, beginning work on 178 projects valued at $420 million by late July. Its largest award at that point was a $23.4 million contract awarded to Trumbull Corporation of West Mifflin, Pa., for preservation of the I-279 Fort Duquesne Bridge in Pittsburgh.

Stimulus funds led PennDOT to award a $23.4 million contract to Trumbull Corporation of West Mifflin, Pa., for preservation of the I-279 Fort Duquesne Bridge in Pittsburgh.

The frenzy among contractors to pick up work during a tough recession played to the favor of PennDOT, which saw bids come in at 11% below estimates on average. As a result, the state was able to use the unspent funds to add 52 more projects to the program.

“We can stretch these critically needed recovery dollars even further and reach even more areas of Pennsylvania,” Gov. Edward Rendell announced on July 28.

But stretching dollars has led to thin margins for many contractors on ARRA projects. Seth Myers, business development manager at American Infrastructure in Worcester, Pa., says his company has seen lists of bidders on projects double in length from last year with bids sometimes coming in at more than 30% below estimate.

“You scratch your head and wonder if people are just throwing out bids below cost in the short term so they can keep the lights on,” he says. “Some of these numbers are crazy. This can’t last forever.”

Maryland State Highway Administration has also seen savings on its ARRA projects, with bids coming in around 10% below estimates, according to SHA Spokesperson David Buck. No decisions would be made on how to use the unspent dollars until after all projects are awarded, he said.

Virginia is the next big state in the region to get transportation projects going. By late July, VDOT had allocated nearly half of its $694 million in funding with many of its smaller projects, such as paving jobs, awarded.

Federal Dollars Federal agencies also began to let ARRA work by the summer. The Naval Facilities Engineering Command awarded a $40.9 million fixed-price contract to Barton Malow of Linthicum, Md., for renovation at the U.S. Naval Academy in Annapolis, Md. The project, which is scheduled for completion by August 2011, includes work at the King Hall Galley and other food service operations.

Grunley Construction of Rockville, Md., is among the field of firms reaping awards under the U.S. General Service Administration’s ARRA funding for modernization of federal buildings. Grunley and its joint venture partner Gilbane Building of Laurel, Md., won a $158 million contract for Phase 2 and Phase 3 of the Herbert C. Hoover Building modernization project in Washington. The project, which began in August, modernizes nearly 400,000-sq-ft of space, including security upgrades, exterior façade repair and energy efficiency upgrades. Completion is expected by June 2013. The partners are currently completing the $40 million first phase of the eight-phase project.

Grunley was also awarded a $34.9 million contract funded through ARRA to complete renovations to the Mary E. Switzer Building in Washington. Grunley completed Phase 1 in 2008, but money was not allocated to continue the project until the passage of ARRA. Phase 2 involves modernization of 311,000 sq ft of building space and the construction of a new 18,000-sq-ft addition. In addition to complete removal of the existing interior and the installation of systems upgrades, Grunley will convert the 6th and 7th floor mechanical spaces into open office space. The project, designed by HNTB, will strive to achieve LEED Silver. Work began in July with completion scheduled for July 2011.

While many firms are landing jobs with familiar clients, ARRA has created opportunities to forge new relationships. Simeral Construction of Lititz, Pa., was awarded a $5.3 million contract by the Reading Housing Authority for kitchen, lobby and electrical renovations at five high-rise buildings in the City of Reading. The 10-month project, which began in August, marks the first time that Simeral has worked with a housing authority. Custom residential was a large portion of the company’s work a few years ago, but as that market dried up, the company sees housing authority work as a way to keep the company’s 33 employees working, says Project Manager Dale Shenk.

“We employ a lot of carpenters, so the scope of this work suits us,” he said. “If it keeps us from having to lay people off and helps our guys feed their families, that’s what’s important.”

Convention Center Hotel Gets Green Light from DC Council

WASHINGTON, DC—The $537-million Convention Center Headquarters Hotel in Washington, D.C., is free to break ground this fall, following final financing approval by the D.C. City Council in July. When completed, the 1,167-room, 14-story, four-star hotel will be one of only three Marriott Marquis properties in the country.

The $537-million Convention Center Headquarters Hotel in Washington, D.C., is free to break ground this fall, following final financing approval by the D.C. City Council in July.

Washington-based Quadrangle Development Corporation is the developer with minority partner Capstone Development of D.C. Hensel Phelps of Chantilly, Va., is the general contractor. A collaboration of Cooper Carry of Alexandria, Va., and Atlanta-based tvs designed the project.

The project will include an underground connection between the hotel and the neighboring convention center.

The Washington Convention Center Authority and the District Government will be paid for the use of the site at 9th Street and Massachusetts Avenue, NW, through a 99-year ground lease. Opening is anticipated in the first quarter of 2013.

Skanska, Facchina Start $260 Million DC Bridge Job

WASHINGTON, DC—A joint venture of Skanska USA Civil of Alexandria, Va., and Facchina Construction of La Plata, Md., has begun reconstruction of the 11th Street bridges and interchanges in Washington, D.C. The project is being executed for the District Department of Transportation under a $260 million design/build contract with Skanska acting as managing partner with a 70% share of the contract.

Crews will build three major bridge crossings over the Anacostia River. One crossing involves two separate bridge spans, each with three lanes in one direction for regional traffic. The bridge crossing will link the Southeast Freeway with Interstate 295/Anacostia Freeway.

Another crossing will be a single bridge span with four lanes, two in each direction. The project also includes two interchanges. On the west side of the river, Skanska will construct a new connection to the Southeast Freeway and 11th Street. On the east side, the existing interchange that connects local and regional traffic of the Anacostia River will be reconstructed. The project is expected to complete in May 2013.

Opus East Liquidates

ROCKVILLE, MD—Opus East, one of the largest developers in the Washington, D.C., metro area, filed for Chapter 7 bankruptcy protection in July. The company is currently liquidating assets, consisting primarily of office, industrial and mixed-use projects in the mid-Atlantic region.

Marshall Burton, executive vice president at Rockville, Md.-based Opus East, said the financial condition of Opus East has been adversely affected by general real estate and credit market conditions, and has been exacerbated by the National Oceanic and Atmospheric Administration Center for Climate and Weather Prediction project.

“The financial condition of Opus East has been acutely compromised by the lack of progress payments from the General Services Administration on more than $35 million in tenant improvements and base building enhancements from the NOAA project,” he said.

Opus had not been paid by GSA for work on the project, which began in 2007. The company sued GSA in May. The unfinished building is at M Square, a 130-acre site adjacent to the University of Maryland in Riverdale, Md.

Several Opus East projects have already changed hands. St. John Properties is taking over the 400-acre Government and Technology Enterprise office park at Aberdeen Proving Ground, which includes nearly 2 million square feet of planned space. Opus opened a 60,000-sq-ft building at the site in December, but little else has been developed.

COPT Continues National Business Park Project

ANNAPOLIS, MD—Corporate Office Properties Trust of Columbia, Md., broke ground on another piece of its National Business Park project in Annapolis Junction, Md., in July. The $35 million 161,000-sq-ft building is one of several being built at the site as part of an effort to lure federal contractors that are following the relocation of various government agencies to the area under the Base Realignment and Closure Act.

COPT completed a 188,000-sq-ft seven-story office building at the park in July.

Bradley, Nason Start $22 Million Aberdeen Project

The joint venture of Norristown, Pa.-based Bradley Enterprises and Nason Construction of Wilmington, Del., has started work on the Non-Medical Chemical Biological Facility at Aberdeen Proving Ground, Md.

ABERDEEN, MD—The joint venture of Norristown, Pa.-based Bradley Enterprises and Nason Construction of Wilmington, Del., has started work on the Non-Medical Chemical Biological Facility at Aberdeen Proving Ground, Md. The 75,000-sq-ft project is being built under a $22 million design/build contract. EwingCole is the designer. Completion is scheduled for 2011.

Forrester Wins Supreme Court, EnviroCenter Projects

ROCKVILLE, MD—Forrester Construction of Rockville, Md., recently announced several new projects. The company has been selected as the general contractor for EnviroCenter Phase II in Jessup, Md. The project consists of site redevelopment of the existing EnviroCenter site, construction of a new class A professional office space addition, and atrium and rooftop space to be used for food production. The architect is Phase2 Architecture, a division of ASG Integrative Design + Development in Jessup. Construction is scheduled to begin this fall and last approximately 10 months.

In July, the company started Phase 1 of a roof replacement project that is part of the Supreme Court Modernization Program in Washington, D.C. The 11,000-sq-ft project will involve asbestos abatement and demolition of the existing roof system and metal flashing coated with lead paint.

The company is currently building the Fort McHenry National Education and Administration Center in Baltimore, Md. The $6 million project involves a new 17,000-sq-ft education and administration center, which will include exhibits, classroom, auditorium, consolidated staff offices, bookstore, library, conference rooms, multipurpose rooms, partner group office space, and accessible restroom facilities. The building was designed by GWWO, Inc./Architects of Baltimore, Md., to achieve at least LEED Silver rating. Construction began in May and is scheduled to finish in July 2010.

Structure Tone Inks Three New Deals

ARLINGTON, VA—Structure Tone of Arlington, Va., recently won several new contracts around the region. The company is working at Crystal Park 2 for Vornado/Charles E. Smith and a confidential client at 2121 Crystal Drive, Arlington, Va. The project entails construction of 22,000 square feet on the third floor. The LEED-CI project, designed by RTKL, is seeking Silver certification.

The company has been selected as general contractor for the 4,320-sq-ft build-out of the fifth floor of the Continuing Education Center for the Sanford Brown Institute in Landover, Md. The project includes construction of three classrooms and teachers’ offices.

Cushman and Wakefield selected Structure Tone for a 12,650-sq-ft renovation of an existing office space at 11011 McCormick Road, Hunt Valley, Md. The scope-of-work includes demolition of current space and the renovation/rebuild of office areas. Design Collective Architects is the designer.

Hill Adds $5 Million CM Services Contract and Two Bases

PHILADELPHIA—Hill International of Philadelphia recently received a contract to provide construction management support services at Dover Air Force Base in Delaware and the Aberdeen Proving Ground in Maryland. Hill’s subcontract is with Homeland Security Construction Corp., which was awarded a prime contract from the Philadelphia District of the U.S. Army Corps of Engineers. The contract, which includes a one-year base term and three one-year option terms, has an estimated value to Hill of approximately $5.0 million. Hill’s services under the contract include field office construction management support services, quality assurance services and construction safety services.