Stimulus Hits Home

With debate on Capitol Hill ended over the economic stimulus, states are reaping the results. As funding spreads across a broad spectrum of sectors and administrators eye “shovel-ready” work, contractors see mixed opportunities.

States Start to See Stimulus

Funding provided through the Obama Administration’s economic stimulus package is starting to filter to the state and local levels, leaving mixed reactions within the industry about its potential impact.

More than $2.7 billion in funding is moving to state departments of transportation in the Mid-Atlantic, including $1 billion for Pennsylvania, $694 million for Virginia, $431 million for Maryland, $123.5 million for the District of Columbia, and $121.8 million for Delaware.

With a mandate to pour stimulus money into shovel-ready projects, many DOTs are looking for quick turnarounds. Following passage of the bill, Maryland Gov. Martin O’Malley announced that funds would largely go to rehabilitating infrastructure, rather than new projects. Out of the initial $223 million in Maryland funding, the state plans to use $146 million for resurfacing.

Tony Cygan, business development manager at Cianbro Corp. in Baltimore, says the bill is likely to create jobs, but he’s uncertain of the long-term benefit.

“The disproportionate amount of road resurfacing they are proposing in Maryland doesn’t create the job impact that’s in the sprit of the package,” he says. “The rush to pass the bill bred some short-term thinking that will lead to short-duration work and less of the sustained projects that create long-term benefits.”

Faced with a focus on smaller projects, some medium and large heavy civil firms are left wondering what is in the bill for them. Joe Prego, vice president of business development at American Infrastructure in Worcester, Pa., says he expects to land work as states are forced to package together numerous smaller jobs.

“They can’t possibly bid this stuff individually,” he says. “You’d need a cast of thousands [at the DOTs] to put all of that on the street and they simply don’t have the manpower.”

Among the biggest beneficiaries of the stimulus package are the water infrastructure sectors. The bill provides state water revolving funds nationwide with nearly six times the 2008 amount of federal funding for clean water and more than double the amount of drinking water funding. Clean water funding includes $154.9 million for Pennsylvania, $94.5 million for Maryland, $80 million for Virginia, $19.1 million for Delaware and $19.1 million for D.C.

The funding arrives at a time when the Mid-Atlantic states are struggling to meet deadlines to reduce nutrients in treated wastewater that flows into the Chesapeake Bay.

Federally-owned and funded buildings in the area will also see a boost. The bill calls for $4.5 billion in energy-efficiency modernization of federal buildings, potentially creating significant work at numerous facilities around the District. The Baltimore-Washington region is also home to some of the only new construction megaprojects that will specifically receive funds through the bill. The Social Security Administration has been provided $500 million toward the construction of a new National Computer Center in the Baltimore area. Another $450 million will go to the new Department of Homeland Security headquarters project at St. Elizabeth’s Hospital in Washington.

The Department of Defense’s BRAC and MILCON programs will also get a big boost. Nationally, $4.2 billion is appropriated for facility renovations and energy-efficiency upgrades at DOD facilities. Another $2.8 billion will be used for new construction with a focus on standardized facilities, such as barracks and child care centers.

Mike Crase, senior manager of the Federal Services Group at Gilbane in Laurel, Md., says that although the stimulus money won’t provide the same dramatic impact as BRAC did, the timing is good.

“BRAC funding has hit its peak and now it’s decelerating,” he says. “No matter what amount of work is thrown out there, it will be easily absorbed [by companies]. The big BRAC jobs are already moving, so once those stimulus projects roll out, you’ll see the site work guys chomping at the bit.”

Clark, Skanska Nab More BRAC Work

WASHINGTON—While the private sector pauses, several contractors continue to reap significant public work through the Base Closure and Realignment Act. Clark Design/Build and Shirley Contracting Co., entities of Bethesda-based Clark Construction Group, broke ground on the Department of Defense’s $695 million BRAC 133 Project at Mark Center in Alexandria, Va. Substantial completion is scheduled in 2011.

The project’s major design partners include HKS, Inc. of Washington, D.C., and Wisnewski Blair & Associates, Ltd. of Alexandria, Va.

The 16-acre DoD campus provides 1.8 million square feet of office space for DOD. Clark is leading design and construction of a 15-story and a 17-story office tower. Additional work includes the design and construction of two parking garages, a transportation center, a visitor access control center, and a remote inspection facility.

The Rockville, Md., office of Skanska USA Building won a $31.8 million contract from the U.S. Army Corps of Engineers, Baltimore District, to build the Adjudication Co-Location Activities Facility at Fort George G. Meade, Md. The architect of record is HSMM/HOK of Washington.

The design-bid-build contract calls for the construction of a three-story, 151,590-sq-ft structure to provide office, administrative and other support space. Completion is expected by March 2011.

Poplar Point Plans Popped

WASHINGTON—A planned $2.5 billion development in southeast Washington, D.C., which was billed as the largest economic development project in the city’s history, has been put on ice. Clark Realty Capital of Arlington, Va., and the district have parted ways as the uncertainty of the recession looms.

“In this extremely challenging economic environment it is no longer practical for Clark to pursue the deal structure we currently have in place,” said Neil Albert, deputy mayor for planning and economic development, in a Jan. 30 statement.

Clark Realty representatives said the company sought to form a cooperative public-private partnership with the city that would share rewards and allow the project to adapt to changing market conditions over its expected 20-year duration.

“The District was interested in a more traditional purchase and sale arrangement with guarantees of speculative development that Clark thought was unwise,” according to a company statement. “Clark has avoided speculative development and been fortunate to remain financially stable in what are very challenging economic times for the real estate industry.”

Initial plans for the 110-acre development along the Anacostia River included 1.5 million sq ft of office space, 3,200 residential units, 400,000 sq ft of retail space, 225,000 sq ft of hotel and a K-12 school. The site would have also been home to a new $250 million Major League Soccer stadium for D.C. United.

Hill Lands Prison Procurement Deal

GRATERFORD, PA—Hill International was awarded a contract from the Commonwealth of Pennsylvania's Department of General Services to provide construction management services for the new $400 million State Correctional Institution at Graterford, Pa. The task order, which involves the procurement phase only, has an expected value to Hill of approximately $2.5 million.

The new Graterford Prison, which is expected to be completed by 2012, will consist of a 4,100 bed maximum- and medium-security facility.

Sands Casino Officially Stalled

BETHLEHEM, PA—In light of the sour economy, the Pennsylvania Gaming Control Board approved a request by The Sands Casino Resort Bethlehem to permit the casino to modify the scope of the $743 million project, Feb. 3, delaying substantial portions of work.

The Sands will delay completion of the hotel, retail and multi-purpose facility portions of its project until after the initial opening of the permanent slot machine facility in May. Alvin H. Butz is the construction manager on this phase of the project.

During the Feb. 3 hearing, Sands' officers testified that current economic conditions and increased costs necessitate these changes. Officers told the board that the company will proceed with the casino, parking garage, four restaurants and two bars.

The board is requiring The Sands to meet with the board's Financial Suitability Task Force on a monthly basis. When the task force decides that The Sands is in a position to complete the project, a hearing will be scheduled to discuss when the unfinished portions of the project will be completed.

Southwest Waterfront Approved

WASHINGTON—Despite market uncertainty, D.C. planners are holding on to hope for development of the southwest waterfront. The District of Columbia Council made final approvals in December to kick start the $1.5 billion revitalization of the Southwest Waterfront by developer Hoffman-Struever Waterfront—a joint venture of PN Hoffman and Struever Bros. Eccles & Rouse.

The District has approved $198 million in public financing for the project. PN Hoffman estimated that entitlements and design were expected to start in early 2009.

The master plan includes approximately 770 residential units with 30% being affordable housing; a Maritime Center; three new hotels; and a mix of Class A commercial office, retail, and restaurant space.

Oak Earns Seven Locks Contract

BETHESDA, MD—Montgomery County Public Schools awarded Oak Contracting of Towson, Md., a construction management contract in February for Seven Locks Elementary School in Bethesda, Md.

Crews will demolish the existing single-story building and construct a partial two-story replacement building on the same site. The replacement is designed by WMCRP Architects of Landover, Md.

Kenbridge Starts Va. Middle School

ORANGE COUNTY, VA—Kenbridge Construction Company began construction of the new Orange County Middle School in January. Located in Orange County, Va., the new school will be a two-story, steel-frame and masonry building with a brick exterior. Kenbridge is working with Moseley Architects on the $31,000,000 contract. Completion of the 170,000-sq-ft project is set for October 2010.

Harkins Heads St Charles Project

ST CHARLES, MD—Harkins Builders has broken ground on the 240,000-sq-ft Gleneagles Apartments project in St. Charles, Md. The development will consist of eight buildings on an 11-acre site and will include 1-, 2- and 3-bedroom units ranging in size from 900 to 1,830 square feet.

Completion is expected in early 2010 with the first building available for occupancy in the fourth quarter of 2009. Collins & Kronstadt of Silver Spring, Md., is the architect.

Forrester, Group Goetz Wins $10 M Design-Build Contract

WASHINGTON—A joint venture of Washington-based Columbia Enterprises and Forrester Construction of Rockville, Md., was awarded a $10 million design-build contract for renovation of 40,000 square feet of existing interior space at the Walter E. Washington Convention Center in January. Group Goetz Architects of Washington is the architect. Completion is slated for December 2009.