Life in the Fast Lane

Georgia’s Fast Forward Program has Highway Construction at Record Levels

By Bruce Buckley

With major highway projects speeding along and a record amount of work being let in 2006, Georgia’s Fast Forward program is living up to its name.

Gov. Sonny Perdue introduced the six-year $15.57 billion Fast Forward Congestion Relief Program in 2004 to address the state’s widening funding gap and accelerate stalled projects. The plan infused additional funding into Georgia Department of Transportation projects through various bond packages, promising to deliver in six years what it would normally take GDOT 18 years to accomplish.

Almost three years later, some of the largest projects in the state’s history are under way on critical corridors.

“We have a lot of work to get out, and so far we’ve had no trouble spending the money,” says Todd Long, director of preconstruction with GDOT.

In fact, the state is spending more money than ever. In fiscal 2005, which spans July 1 to June 30, GDOT awarded $1.14 billion. The next year, it approved a record $2.25 billion in lettings. As the state nears the close of fiscal 2007 on June 30, another record-setting year could be in the works.

At the core of the state’s plan is an aggressive bonding program. The state had initially planned to spend $11 billion from its regular program between 2005 and 2010. Under Fast Forward, the state is seeking additional funds through $3 billion in GARVEE bonds for those years. By using GARVEE bonds, which stands for Grant Anticipation Revenue Vehicles bonds, the state is banking on repayment through future federal highway reimbursements—getting money now for what it would receive later.

GDOT says the plan has been well received so far, with rating agencies offering a 4.5% interest rate on the first $450 million in bonds sold.

The program also includes an additional $1.5 billion in General Obligation and Guaranteed Revenue bonds during its six years.

More than half of GDOT’s overall funding is slated for projects in the 18 counties of the Atlanta metro region. Major corridors, such as interstates, are another main target. As a result, the additional funding is giving the biggest boost to large projects that otherwise might not get off the ground.

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In fiscal years 2005 and 2006 combined, nearly $900 million went exclusively to interstate projects. In 2007, about $1.1 billion will go toward interstate improvements, including several projects that ring in at more than $200 million each.

Meanwhile, the Governor’s Road Improvement Program, which often includes projects valued between $30 million and $50 million, doled out $350 million in lettings in 2005 and 2006 combined. In 2007, that tally will jump to $320 million.

The program has been a boon for highway contractors across the state, particularly the major players.

“Georgia DOT is looking at record-setting numbers,” says Bill Hammack, president of C.W. Matthews Contracting in Marietta, Ga. “We’re proud to be in a state where a governor has stepped up and recognized the tremendous need for transportation improvements.”

C.W. Matthews was a beneficiary of the new program early on, landing the $147.4 million reconstruction of the Interstate 85 and State Route 316 interchange. The project, which at the time of award was GDOT’s largest contract ever, includes two new large flyover bridges, work on 11 other bridges, 23 substantial walls and the addition of HOV lanes throughout the interchange. The project broke ground in December and is expect to be complete by the end of 2008. Moreland Altobelli Associates of Norcross, Ga., is the engineer.

In June, Georgia DOT set another record, awarding a $199 million contract to Tidewater Skanska of Virginia Beach, Va., for a 5.7-mi widening of Interstate 95 near Brunswick. The project, which broke ground in October, will expand the road from four lanes to six. The scope includes four double bridges and approaches with one being constructed over CSX rail lines, another over U.S. Highway 341 and a third over Gibson Creek. Other work includes intelligent transportation systems, electrical and signage.

That record didn’t stand long. In December, Archer Western Contractors of Atlanta signed the state’s largest contract to date—a $218 million widening and interchange reconstruction of Interstate 85 in Coweta and Meriwether counties. The project scope includes the addition of lanes along 14.3 mi of interstate between state routes 403 and 34, reconstruction of 17 bridges and installation of CCTV and video detection systems.

The project broke ground in January and completion is expected in June 2009. Engineers include R.K. Shah & Associates of Smyrna, Ga.; Sastry & Associates of Alpharetta, Ga.; and JB Trimble of Atlanta.

Archer Western has been a big winner among the companies vying for Fast Forward contracts. The company also has a $146 million widening and interchange reconstruction job on Interstate 75 between State Route 300 and County Route 361 in Crisp County. The 12.8-kilometer project includes construction of eight bridges and rehab of three bridges and approaches. The project started in October and is expected to finish in 2009.

Other Archer Western jobs include the $83.5 million reconstruction and widening of the I-75/I-475 interchange in Bibb County as well as an $81 million pavement replacement project on I-75 in Cherokee, Cobb and Bartow counties.

Although funding has been a prime force in accelerating projects through Fast Forward, GDOT is also streamlining the process by trying to speed up right-of-way acquisition and outsourcing more engineering duties.

“GDOT has cut several months off the time that it used to take just a few years ago,” says Dominic Saulino, director of transportation at engineering firm HNTB in Atlanta. Saulino credits the department’s development of a turnkey approach, where consultants are responsible for entire projects from the NEPA process through final design.

GDOT is also experimenting with more design-build projects, particularly in areas that don’t require right of way. The department is planning to award a design-build contract for a large interchange to service the $1.2 billion Kia Motors plant under construction in West Point, Ga. The project will need to be completed before the plant begins testing operations in March.

While Fast Forward has focused attention on the need for major capital projects, others have lagged. GDOT’s Long says the department has cut back significantly on its resurfacing program. The department aims to resurface 10 percent of its roadways each year to ensure they are properly maintained. However, in fiscal 2006, only 4.7% were resurfaced under the program.

Steve Parks, executive director of the Georgia Highway Contractors Association, says he expects that resurfacing could drop below 3% in fiscal 2007.

“Georgia has a long history, going back to the 1950s, of maintaining its roads at a high level before embarking on additional capital outlays,” he says. “It’s proven to be a wise choice. But if you focus only on capital projects, you’ll create more heavy maintenance needs. It will lead to more expensive reconstruction in the long run as opposed to routine maintenance. We’re heading in that direction.”

Although GDOT has so far been able to secure the anticipated funds for the program, those dollars are being stretched as it heads into the second half of the program. Long says lettings should continue at above $2 billion for the next three years, but rising costs mean fewer projects will receive that funding.

“We’re going to have a problem delivering all of the projects we said we would [in 2004] because the money isn’t there to address the (cost) escalations,” he says. “We’re at a point where the Atlanta Regional Commission is no longer having a call for projects every year. It’s a call for deletions.”

Some of the large projects on GDOT’s list could move to the private sector. Last year, the department signed its first-ever Public Private Initiative agreement. The $38.5 million deal with a joint venture of Bechtel and Kiewit Southern is aimed at offering congestion relief options along I-75 and I-575, known as the Northwest Corridor.

The project could include a combination of high-occupancy vehicle, high-occupancy toll, express toll and truck-only toll lanes. The department is also considering tolling and PPI proposals on Interstate 285, Interstate 20 and Georgia 400.

In the meantime, Long promises that numerous large projects are scheduled for bidding in the coming months, including the final I-95 widening projects and work along I-75. He also expects eight to 10 projects under the Governor’s Road Improvement Program to go out for bid in the next six months.

While many companies are riding high on work from the Fast Forward program, some fear the hangover. The program will address significant needs within its six-year window, but contractors are uncertain what will happen to the program after 2010.

“At the end of the governor’s Fast Forward program, there’s no mechanism in place for sustained highway construction,” Hammack says. “What do we do in the long term to allow this growth to continue?”

Although nothing is in place yet, Parks says several proposals are in the works to address future funding concerns, so that the state’s program doesn’t go from fast forward to fizzling out.