PPP tapped to build, operate Denver commuter rail project  Denver Transit Partners for the single-largest FasTracks contract to build and operate commuter rail lines to Denver International Airport (rendering shown), Arvada-Wheat Ridge and south Westminster. Image courtesy of RTD.

by DJ Reetz edited by Ellsworth Grant

The recently awarded Eagle P3 project, part of the massive Fastracks light-rail build-out, means big opportunities for Denver area DBEs according to local business and community leaders involved in the project.  The Eagle P3 project proposed by the Denver Regional Transportation District was recently contracted to Denver Transit Partners (DTP); a conglomeration of firms led by Fluor Corporation and Macquarie Capital Group Limited. The winning team also includes Balfour Beatty Rail, Parsons Brinckerhoff, Balfour Beatty’s professional services arm, Ames Construction, Hyundai-Rotem USA (Hyundai), Alternative Concepts, Inc. (ACI), Fluor/HDR Global Design Consultants, PBS&J, Interfleet Technology, Systra, Wabtec and many others.

According to RTD, the project is set to begin the design/build phase of operations later this year.

Under the contract DTP will be responsible for the design, construction and maintenance of the East Corridor Light rail line running to Denver International Airport, the Gold Line running to Wheat Ridge, a segment of the North Corridor line, as well as a maintenance facility.  Additionally the contract stipulates that DTP provide rail cars as well as all necessary equipment to operate the light rail lines.

As a requirement of the contract, Denver Transit Partners is mandated to utilize DBE contractors in a portion of the design and construction process.

“This is going to mean a great opportunity for a lot of folks,” said Pauletta Tonilas, RTD Fastracks spokesperson. According to Tonilas, the project will require the creation of more than 5,400 jobs during the peak construction period between 2012 and 2013.

RTD Board Chair Lee Kemp

“This is a combination of direct construction jobs and factory, manufacturing and supplier jobs,” said Lee Kemp, Chair of the RTD Board of Directors.

Of these jobs RTD has mandated that a significant portion be allocated to DBEs.

According to both Tonilas and Kemp, RTD has required that Denver Transit Partners utilize DBEs for 19 percent of the design work in the project.  Additionally, DBEs are required to make up 20 percent of the construction contracts for the project as well.

SBEs were not forgotten in the design of the contracts either, receiving a mandatory 19 percent of contracts during the design phase and 18 percent during construction, as well as a 17 percent mandate for maintenance work after construction is complete.

Linda Wilson, the DBE/SBE liaison for Denver Transit Partners stressed the group’s commitment to meeting those goals.  Although, as Wilson pointed out, the contract has just recently been awarded and definitive plans have not yet been solidified, there will certainly be a plethora of opportunities for DBE’s arising from the project.

“There will be many, many opportunities,” Wilson said. The proposal originally submitted to RTD during the bidding phase of the project included over 50 contracts for DBE’s in the short term, Wilson said, although there may be more.

“50 will be a drop in the bucket compared to what it’s going to be [once the project is underway and plans are finalized,]” she said.

Total Contract Values by Ethnicity

$119 million dollars was allocated to DBE/SBEs in DTP proposal said Wilson. Contracts that will be spread around rather than awarded to a small number of companies in order to maximize the amount of opportunities available for businesses participating in the program.

Meeting the strict requirements for DBE use placed on the company by RTD is not a problem, Wilson said.

“We are committed to meet and exceed the DBE goals,” she said, emphasizing how aggressive DTP’s outreach program has been. “We have a huge outreach database.”

According to Wilson meeting the DBE numbers required by the contract is extremely important. “Fluor has an extensive history of exceeding well over the numbers [mandated for DBE’s,]” Wilson said.

The commitment to DBEs and SBEs was also  something that was very important in the selection of DTP for the multi-billion dollar contract, said RTD Board Member Angie Malpiede.

Malpiede emphasized RTD’s commitment to SBEs and DBEs; a commitment she wanted to ensure would be reflected by the choice of DTP for the project.

Helga Grunerud Executive Director of The Hispanic Contractors of Colorado and a Leading Advocate of DBE Inclusion

Helga Grunwald, Executive Director of the Hispanic Contractors of Colorado, said she has witnessed RTD’s dedication to the disadvantaged and under utilized business community first hand.

“RTD is very aggressive [pursuing the use of DBE’s,]” said Grunwald. As for the opportunities presented by the project for small and minority owned businesses, Grunwald says she is extremely optimistic.

“We’re so excited about this,” Grunwald said.  “We have a great relationship with RTD.”  Grunwald said she anticipates opportunities for minority owned businesses not just during the design and construction phase, but also during the decades to follow for maintenance work similar to what has already been done on the existing light rail lines.

The creation of Fastracks jobs means partnering with the community, said Tonilas.  As part of the project, RTD has joined forces with the Colorado Department of Transportation, the Environmental Protection Agency, the Department of Housing and Urban Development, as well as institutions such as the Community College of Denver to create the RTD Workforce Development Initiative.  The purpose of the program is to train members of the community for jobs that will be created by the Eagle P3 project, not just in construction but also in the operation and maintenance of the train lines.

Beyond the creation of jobs for the construction and maintenance of the train lines, the project will likely stimulate the economy in areas through which the routes will pass.

Director Angie Malpiede was sworn in as Director for RTD District C on March 9, 2010. She was selected by Denver Mayor John Hickenlooper and confirmed by the Denver City Council to fill the vacancy created by the resignation of Director Juanita Chacon. District C encompasses Northwest Denver and parts of Southern Adams County and Eastern Jefferson County.

Angie Malpiede said she sees the project as a great opportunity for economic growth in the Denver Metro area. “That’s the whole goal of this process,” Malpiede said.  The communities in the Denver Metro Area voted for the tax to pay for the endevour, “they should also reap the benefits,” she said.

Malpiede sees the light rail line as a trigger that will set in motion economic growth; growth such has already been seen along the existing light rail lines. “In my mind I’m seeing a variety of businesses that will begin,” Malpiede said.

According to Pauletta Tonilas, the light rail lines are expected to bring about 800 jobs every year for the first four years following the scheduled completion of the project in 2016, a number including not just jobs created directly by the train lines themselves, but also by businesses that will develop due to the influx of people.

The movement of people along the train lines is something Linda Wilson said she is hopeful will bring about new business and jobs.  “It’s going to snowball,” she said.

The Eagle P3 Project is set to begin later this year, presenting what all involved believe will be a great economic opportunity for the metro area.