Firm selected to complete Phase 1 of Key Bridge rebuild won’t be retained

The firm contracted to complete Phase 1 of the Key Bridge rebuild will not be retained for Phase 2, state and federal officials announced Tuesday. Kiewit, an Omaha-based construction company, was selected in August 2024 to complete the first phase of the rebuild, part of a $73 million contract.However, an agreement on a price and timeline for Phase 2 could not be reached, according to Maryland Gov. Wes Moore.| MAP: Interactive Timeline of Dali’s departure to point of impact”As we prepare to enter Phase 2 of construction, our team approached negotiations with our contractor with clear eyes and firm imperatives,” Moore said in a news release. “But after weeks of engagement, it became evident that the contractor’s proposed price and timeline for moving forward was unreasonably high and therefore unacceptable. This was informed by the state’s independent cost estimates. I concluded that accepting this proposal was not in the best interest of the people of Maryland and the American people. And I will not move forward with any arrangement that fails that test.”Work at the site of the bridge rebuild will continue despite the change in firm, according to Maryland Transportation Authority Executive Director Bruce Gartner.”It’s all about the negotiations for price and schedule over the past month,” Gartner said. “We met with them several times and we could not close the gap for what we thought was a reasonable price for moving forward with the Key Bridge.”| SPECIAL: WBAL-TVMPT Documentary: Key Bridge Disaster: Reflect, Recover, RebuildThe decision comes months after Moore and U.S. Transportation Secretary Sean Duffy met to discuss the bridge’s timeline and cost sharing.”While this isn’t the ideal path moving forward, we are going to work as aggressively as possible on that schedule, and we don’t have a new schedule yet. That’s something we will be evaluating and deliver with a new contractor.”The rebuild cost has long been a point of contention. Initial estimates in the months after the collapse established the rebuild would cost less than $2 billion.In November, a new estimate came out that put a new estimate as high as $5.2 billion.In a news release, Duffy said his department engaged in “vigorous oversight” and negotiations with Maryland officials before deciding to find a new firm for the rebuild’s second phase.”We need to be responsible for the taxpayers for this bridge,” Gartner said. “We need to deliver this project responsibly. We are working closely with the U.S. DOT on this project, and we have to deliver in a responsible way.”Phase 1, which Kiewit was hired for, covers pre-construction and design. Phase 2, which will involve another contractor, is the final design and engineering.In a statement to WBAL-TV 11 News, Kiewit said:”Kiewit Infrastructure Company has been proud to partner with MDTA during Phase 1 of the progressive design-build delivery model for the Francis Scott Key Bridge Rebuild, a project crucial to the region’s long-term transportation infrastructure. This collaborative approach enabled our team to work closely with MDTA and advance the design at an accelerated pace and deliver strong foundational construction work to help the project advance. The PDB model, which is intended to provide flexibility as scope, cost and funding evolves, allows project owners to assess available resources and make informed decisions about the project’s path at defined intervals.”While we’ve been unable to reach agreement to advance into Phase 2, the full construction phase, we’re proud of the progress achieved and the strong working relationship developed throughout Phase 1. “Although we’re disappointed by this decision, we’re committed to completing our current scope of Phase 1 work, in addition to integral early construction packages. Kiewit is focused on supporting the success of this vital project for Maryland and the surrounding region.”