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Key Bridge rebuild contractor recommended itself for millions in contracts for a pier project, audit says

Dan Belson, The Baltimore Sun on

Published in News & Features

BALTIMORE — The construction giant selected by Maryland officials to replace the fallen Francis Scott Key Bridge recommended itself for at least $64 million in contracts while serving as the construction manager for a Connecticut pier project, according to a state audit.

The process, during which Kiewit Infrastructure developed bid packages for subprojects that it occasionally bid on itself, alarmed auditors and Connecticut lawmakers overseeing the pricey redevelopment of a pier terminal in the Port of New London. In addition to opening up the opportunity for the Omaha-based contractor to apply for subcontracts with an unfair advantage over other construction firms, the arrangement also allowed for Kiewit to assess its own bids against competitors.

Kiewit did not immediately return a request for comment on its management of Connecticut’s State Pier project. The firm received a $73 million contract in August for the first phase of design work to rebuild the Key Bridge, which plummeted into the Patapsco River after being struck by an adrift cargo ship. Six construction workers died in the March 22 collapse.

The 2023 report by Connecticut’s Auditors of Public Accounts said the global construction firm was awarded contracts to “self-perform” on six bid packages related to infrastructure improvements” on the State Pier project, for which it served as the construction manager. Auditors reviewed two subprojects — worth more than $64 million — for which Kiewit selected itself to perform the work.

As construction manager, Kiewit “developed the projects’ bid package strategy, qualitative criteria, and materials,” auditors said, and if selected for a subcontract, was responsible for monitoring its own performance. The Connecticut Port Authority, which has the final say on selecting subcontractors, approved of Kiewit’s recommendation of itself in both instances. Reporting by the Connecticut Mirror found more instances of Kiewit recommending itself for contracts in the project, including in cases in which competing construction firms submitted lower bids to the state.

 

The design-build project to construct a new bridge across the Patapsco River is expected to total at least $1.7 billion, most or all of which is expected to be covered by federal funds.

The Maryland Transportation Authority, the state agency responsible for the old bridge and overseeing the rebuild, did not immediately return a request for comment on Kiewit’s history with Connecticut and oversight for the bridge project. Kiewit has previously done work for MDTA in the past and has amassed a large portfolio of bridge construction projects around the world. The construction giant had said it boasts a “long track record of delivering complex, schedule-intensive work” by leveraging its experience in bridge, marine construction and dredging.

Negotiations with Kiewit over a “guaranteed maximum price” for the Key Bridge replacement will likely include more opportunities for other construction firms to participate in subprojects, MDTA officials said.

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©2024 The Baltimore Sun. Visit at baltimoresun.com. Distributed by Tribune Content Agency, LLC.

 

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