HOUSTON, April 5, 2004 (PRIMEZONE) -- During a special public meeting today, the Port of Houston Authority (PHA) commission evaluated and ranked competitive sealed proposals and authorized negotiation of a contract for construction of the container yard for Phase 1A of the Bayport Container and Cruise Terminal. Zachry Construction Corporation received the commission's top ranking for contract negotiation followed by Texas Sterling Construction, L.L.P. and McCarthy Building Companies, Inc., respectively. Pending the successful outcome of negotiations, the contract award is expected range between $34 million and $40 million.
As finalists for the Bayport container yard contract, each of the three companies made 15-minute oral presentations of their competitive sealed proposals to the commission. In addition to competitive pricing, the commission asked each company to highlight their plans for promoting environmental quality, small business sub-contractor participation, and community outreach on the Bayport container yard project.
Zachry Construction, which submitted the lowest proposal in the amount of $36,937,583, stated its commitment to meet and exceed the PHA's requirements in all of these areas. The company committed to provide an electrical batch plant on-site at Bayport to reduce truck traffic, dust, and air emissions. To minimize impacts to local residents and roadways, the company will also limit the amount of construction work performed at night. Additionally, Zachry's plan calls for 67 percent small business sub-contractor participation by Aviles Engineering Corporation, A-1 Hyromulch of Texas, Inc., Advancetech Systems 2, Inc., A&N Consulting, BMT 2000, L.P., Busby Associates, Inc. CRA, Inc. Emerald Standard Services, Inc., D'Ambra Construction Corporation, Great Bear Construction, Highway Pavement Specialties, Inc., LA Utilities, Inc., Miller Paving & Construction, Inc., Silva Contracting Co., Inc. Ed Wilkinson, CPA, Jerry L. Driver Services, and Trinh Design.
Earlier this year, Zachry also received the commission's top ranking for negotiation of an estimated $57 million contract for dredging and wharf construction at Bayport. "We are very excited to be considered for these opportunities to work with the Port of Houston Authority on the Bayport project," stated David S. Zachry, P.E., president of Zachry's civil group. "We believe the synergies created by our work on the dredging, wharf construction, and container yard construction projects will provide tremendous value to the port authority because of our commitment to cost control, environmental performance, small business participation, and community relations."
PHA's competitive sealed proposal process does not use price as the sole determining factor for selection of contractors. A range of criteria is also used to determine the best value for the PHA, including vendor reputation, commitment to small business participation, overall compliance with PHA policies, and overall compliance with the technical specifications of a contract.
"Zachry's container yard construction proposal presented a win-win proposition for the port authority - lowest cost, highest level of small business participation, and strongest commitment to environmental excellence and community outreach," stated PHA Chairman Jim Edmonds. "We look forward to the successful completion of contract negotiations with Zachry."
Bayport Background
In January, PHA and the Corps signed the federal permit for the Bayport project, marking the critical step in the process to build the $1.2 billion terminal. Phase 1A is designed to include 1,660 feet of the ultimate 7,000 ft. wharf and approximately 65 acres of the ultimate 1,043 acre facility. Pending the outcome of a federal court hearing and the start of construction, the facility's first phase is targeted to be operational in mid- to late 2006. Additional phases are planned to be built incrementally over several years according to market demands.
The Bayport complex will ultimately have enough space for seven ships and a 378-acre container storage yard. It will have a maximum capacity of about 1.4 million containers - a 200 percent increase over PHA's current container handling capacity. The facility is expected to create approximately 39,000 jobs and contribute approximately $1.6 billion to the Texas economy through wages and tax revenues.
The PHA has been advertising for and receiving RFQs and proposals for the Bayport project over the past several months in an effort to save time and money. The entire proposal and contracting process can take six to eight months from the time proposals are submitted, evaluated by staff, reviewed by commissioners and then awarded. The PHA estimates that as many as 16 contracts totaling more than $180 million will be awarded during the first part of the Bayport project. More than half of that amount is expected to be packaged in contracts that are eligible for the Small Business Development Program, resulting in as much as 35 percent participation by qualified small businesses.
In February, U.S. District Judge Vanessa Gilmore declined to issue a preliminary injunction as requested by the plaintiffs. Instead, the judge scheduled a fast-track process that will allow for a ruling on the merits of the plaintiffs' claim. The process will begin this month and end on May 4 with a decision by the federal court. The PHA agreed to a standstill on the construction of the Bayport terminal until the ruling is issued.
The lawsuit was filed in June 2003 by the City of Shoreacres, other local municipalities and organizations opposed to PHA's construction of the Bayport terminal. The plaintiffs contend that the Corps' delineation of jurisdictional wetlands was improper, among other allegations. The lawsuit did not name PHA as a defendant; however, PHA filed a motion to intervene in the lawsuit on behalf of the Corps.
In addition to coastal prairie preservation, PHA's design for the Bayport facility includes several other mitigation measures to compensate for environmental impacts. For example, the use of clean fuel and clean engine technology will help reduce air emissions. PHA's existing container facility at Barbours Cut recently completed an initiative to convert 28 rubber-tired gantry cranes and 25 yard tractors to Purinox, a diesel emulsion fuel that produces significantly lower levels of air emissions. The initiative was funded by $212,000 in grants awarded to PHA by the Texas Emissions Reduction Program (TERP). Previous tests of Purinox on Barbours Cut equipment engines have resulted in a 25 percent reduction in nitrogen oxide (NOx) levels and a 30 percent reduction in particulate matter.
Air emissions reduction, solid waste recycling, and storm water quality improvement are the key objectives of PHA's environmental management system (EMS). In 2002, Barbours Cut and PHA's central maintenance facility became the first of any U.S. port facilities to implement an EMS that complies with ISO 14001, the global standard for environmental excellence. PHA is committed to meeting ISO 14001 standards upon the completion and opening of the Bayport facility.
Another mitigation measure planned for the Bayport facility is a three-mile long buffer zone around the facility that will include a landscaped sight and sound berm that will be 20 feet tall. The buffer zone also includes part of an extensive storm water collection system that will protect Galveston Bay. Lighting systems designed to use black light poles and specially designed fixtures will limit night-time impacts at the facility. PHA's Bayport plan also involves jurisdictional wetland replacement at a ratio of more than three to one to increase the habitats available for fish, waterfowl and other coastal wildlife. Furthermore, the beneficial use of dredged material will create an additional 200 acres of inter-tidal marsh.
The next meeting of the PHA Commission is scheduled for 2 p.m. on Monday, April 26, 2004 in the 4th floor board room of the PHA Executive Office Building, located at 111 East Loop North in Houston.
The Port of Houston Authority owns and operates the public facilities located along the Port of Houston, the 25-mile long complex of diversified public and private facilities designed for handling general cargo, containers, grain and other dry bulk materials, project and heavy lift cargo, and other types of cargo. Each year, more than 6,600 vessels call at the port, which ranks first in the U.S. in foreign waterborne tonnage, second in overall total tonnage, and sixth largest in the world. The Port Authority plays a vital role in ensuring navigational safety along the Houston Ship Channel, which has been instrumental in Houston's development as a center of international trade. The Barbours Cut Container Terminal and Central Maintenance Facility are the first of any U.S. port facilities to develop and implement an innovative Environmental Management System that meets the rigorous standards of ISO 14001. Additionally, the port is an approved delivery point for Coffee "C" futures contracts traded on the New York Board of Trade's Coffee, Sugar & Cocoa Exchange. For more information, please visit www.portofhouston.com
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