Asheville I-26 Connector Contract the ‘Largest’ in NC History; What about Local Companies?

Project Overview

The $1.15 billion final contract for the I-26 Connector project has been deemed the largest contract ever awarded in the state of North Carolina. According to a presentation by North Carolina Department of Transportation (NCDOT) Engineer Nathan Moneyham on May 17, the scale of the project and the contract is unprecedented in the state’s history. Section B of the I-26 Connector project, which stretches from Haywood Road in West Asheville and spans the French Broad River to connect to U.S. 19/23/70 and U.S. 240, was awarded to contractor Archer-Wright Joint Venture on May 15. The scope of the project also includes enhancements to Riverside Drive in the area. The French Broad River Metropolitan Planning Organization (FBRMPO) is overseeing the project, serving as a collaboration between local and state government entities to make transportation planning decisions. Established in 1962, the FBRMPO operates in adherence to federal legislation requirements for transportation funding.

Design-Build Process

The NCDOT Design-Build process consists of two stages. Initially, NCDOT compiles a shortlist of contractors based on contract applications. Subsequently, NCDOT engineers evaluate designs to determine the “best value” proposal, leading to the selection of the contractor for the project. Recent design-build contracts in North Carolina include a $242 million contract for a US-70 expansion in Craven County, a $287 million contract for a new freeway in Wake County, and a $53 million upgrade to U.S. 70 in Cleveland County, as per information available on the NCDOT website.

Benefits for Local Companies

During the FBRMPO meeting, concerns were raised about the impact of the I-26 Connector project on different neighborhoods, particularly the Burton Street neighborhood in West Asheville, a historically Black community expected to undergo significant changes due to the project. City councilmember Kim Roney inquired about how hiring local minority and women-owned contracting companies could lead to long-term positive impacts for such neighborhoods. Moneyham shared that NCDOT has segmented certain elements of the project out of the main contract, allowing smaller local contractors to handle those specific tasks. This approach aims to provide opportunities for smaller, local businesses, especially in areas adjacent to affected neighborhoods, to participate in the project.

Optimization and Refinement

The I-26 Connector project, which has been in planning for over three decades, has faced funding setbacks over the years. The recent bid process indicated that all bids exceeded the estimated project cost, prompting NCDOT to introduce an “Optimization and Refinement” process to prevent significant delays. As part of this process, technical modifications were made, and a proposed adjusted bid price of $846 million was considered for evaluation purposes only, not as an actual adjustment to the bid. The substantial difference between this adjusted price and Archer-Wright’s $1.15 billion bid was a result of the optimization process. NCDOT plans to continue working with Archer-Wright Joint Venture over the next six months to further streamline costs and ensure that the project remains on track for construction. The focus is on identifying and rectifying construction inefficiencies to bring down the overall expenses while upholding the project commitments.

Closing Thoughts

The I-26 Connector project signifies a significant infrastructure undertaking for Asheville, with far-reaching implications for local businesses, neighborhoods, and the city itself. While challenges persist, the commitment to optimizing costs and involving local contractors highlights a collaborative approach to realizing this transformative project. As the project progresses, the community will be closely watching for updates on the construction timeline and the involvement of diverse contractors in the various phases of the I-26 Connector development.