The state legislature has given the department approval to apply the alternative to traditional bidding for three projects totaling no more than $200 million. The agency chose improving the Highway 10 and Interstate 430 interchange in Little Rock as its first project under the new pilot program.
Under the program, contractors submit requests for proposals to be involved in the design phase of the project. After the design phase, the contractor submits its cost estimate to build the project. If that cost is within 10 percent of the DOT’s cost estimate, the contractor wins the bid, according to the legislation. The contract sets a ceiling price that the contractor cannot exceed.
If the DOT and contractor’s cost estimates exceed a 10 percent difference, then the project goes through a competitive bidding process.
For the first project under the pilot program, the cost cannot exceed $70 million, according to the legislation. The Little Rock interchange project is estimated to cost $58 million.
In April, the DOT awarded the pre-construction work for the Little Rock interchange to Kiewit Infrastructure South of Fort Worth, Texas, according to ArkansasOnline.
According to the Federal Transit Administration, CMCG involves the contractor in the early stage to provide engineering and constructability reviews. The contractor is chosen for prior performance, safety record and other criteria.
