the latest on privatizers
and privateers!"
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MINNESOTA BRIDGE REOPENS |
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More than a year ago, the Interstate 35W Bridge in Minneapolis collapsed into the Mississippi River, killing 13 people and shutting down a major traffic artery. Ultimately, the main cause of the collapse was traced to the defective design by a private engineering firm of gusset plates (metal plates that hold together steel beams at junctions). When a bridge collapsed due to a tanker truck fire in California earlier that year, it was quickly redesigned by state engineers, an expedited competitive bidding process was used to select the construction contractor, and state inspectors ensured that the expedited work was done properly. The bridge was reopened in 26 days! , the state decided to award a design-build contract, meaning one firm was hired to design and build the project and the selection was made without competitive bidding. There were four proposals. The state selected the most expensive proposal, costing $60 million more than the two lowest bids and the engineers’ estimate of what the bridge should cost. Also, the successful contractor, Flatiron Construction Corporation, was allowed to take 437 days, which was 70 days longer than its competitors, but were paid a substantial bonus for finishing early! Additional time was allowed even though the state estimated the economic impact on drivers and businesses would be $400,000 per day.The bridge opened on September 18. However, there is some question as to whether the contractor achieved "substantial completion" on that date, which is a prerequisite for receiving the bonus. State officials estimated that the contractor would ultimately get $25 million in bonus money, in addition to their $234 million price for building the bridge. According to the state, federal funds will pay for the bonus. Minnesota Department of Transportation Commissioner Tom Sorel said he has "confidence that this bridge will carry traffic safely for at least 100 years." According to the Associated Press, the warranty on the bridge is only three years for structural and pavement elements and two years for everything else. . . . . . . . . . . . . . . . . . . . . . . . Outsourcing News will provide you with highlights and updates on these and many other projects. For more information, visit: The Outsourcing-News.org Website Here you will find the latest news and developments in outsourcing throughout the United States and around the world, presented in an easily accessed and understandable format, with a couple of characters -- Buck Stevenson and Pirate Captain Mad Dog -- to entertain and guide you along the way. News stories, reports, videos, on-line polls, and much more are presented and regularly updated on Outsourcing-News.org. It’s your source for the latest information on outsourcing around the globe! |
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P.O. Box 1677, Sacramento, California
95814 |
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