McKee and Alviti Fail to Disclose Real Cost of Replacing Washington Bridge

GoLocalProv News Team and Josh Fenton

McKee and Alviti Fail to Disclose Real Cost of Replacing Washington Bridge

RIDOT Director Peter Alviti and Governor Dan McKee. PHOTO: GoLocal
At Friday’s press conference, Governor Dan McKee and Rhode Island Department of Transportation (RIDOT) Director Peter Alviti announced yet another plan to replace the failed Washington Bridge.

The Washington Bridge is one of the most critical pieces of infrastructure in the northeastern United States. It connects I-195 to the single busiest highway on the East Coast, I-95.

McKee and Alviti have repeatedly held press conferences and made claims only to have those statements proven to be false.

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In March of 2024, McKee and Alviti held a press conference and announced that the replacement of Washington Bridge would be completed as soon as March of 2026, but could be as late as August of 2026. 

They claimed the cost would be between $250 million and $300 million. That budget and timeline included the demolition of the failed structure.

Those claims were false.

That came after McKee and Alviti had told the public that the Washington Bridge would not need to be replaced and in another instance Alviti claimed the failure of the bridge was caused by a single truck.

None of those statements were true either.

 

This schedule was presented by McKee and Alviti in March of 2024, claiming the Washington Bridge would be completed by September of 2026.

 

At that same press conference, McKee promised to hold those responsible for the failure of the bridge accountable. "The day of accountability is coming and coming soon," said McKee.

WATCH VIDEO BELOW

 

 

On Friday, the two said in a press statement the bid by Walsh Construction Company set "the construction contract hard cost at $339 million. With other soft costs for inspections and potential incentives and contingencies, the total rebuild cost could be up to $427 million.”

Call it a sleight of hand.

But what McKee and Alviti did not disclose was that the cost to replace the bridge is more than $100 million higher.

That $100 million includes “emergency costs” on the failed bridge and the demolition costs of the Washington Bridge.  Those costs have skyrocketed, and those total costs are yet to be reported.

In October of 2024, GoLocal reported that Aetna Bridge, the company that was given the contract for the demolition of the Washington Bridge in June of 2024 despite being the high bidder, then received a no-bid change order for tens of millions of dollars more.

In October, RIDOT signed a change order with Aetna Bridge for $38,410,000.

The westbound Washington Bridge has been closed since December of 2023. McKee's new estimated completion date is November of 2028. PHOTO: GoLocal
Between that, and the original demolition contract award to Aetna in June for $45,777,000, Aetna has now been awarded $84,187,000.

The demolition of the bridge was originally budgeted for $40 million by RIDOT.

What isn’t known is whether any additional change orders have been issued since October of 2024 and what the additional costs are.

In addition, Barletta Heavy Division was paid millions in what was dubbed an “emergency project” on the failed Washington Bridge.

Barletta recently signed a non-prosecution agreement with the Rhode Island Attorney General and paid $11 million to the state for its role in the dumping on contamination material in the Olneyville neighborhood of Providence in the construction of the 6/10 project. Barletta had previously paid the Department of Justice $1.5 million for dumping the contaminated material. 

GoLocal unveiled the dumping of contaminated material in September of 2020. Alviti repeatedly denied the report and claimed there was no contamination. 

But while Barletta was under indictment by the Attorney General, they continued to receive tens of millions of payments from RIDOT for work on the Washington Bridge, including millions after the bridge was closed.

In an email to GoLocal on Friday, RIDOT Spokesman Charles St. Martin wrote, “The new price does not include the demolition costs or other payments under the emergency project to Barletta.”

Speaker of the House Joseph Shekarchi told GoLocal,“Rhode Islanders who rely on the Washington Bridge have had their daily lives disrupted for nearly 18 months. We will review today’s announcement and evaluate the impact on the budget that the House Finance Committee is preparing. As the bridge project moves forward, the House of Representatives will continue its work ensuring the Administration is accountable.”

An email from Larry Berman, spokesman for Shekarchi, flags additional concerns. “We will be looking for them to give us an apples-to-apples – all in (demo [and] new construction), to the $455M prior budget was based on. This is how [SEE SLIDE BELOW] we can calculate the additional state match needed – regardless of federal source (GARVEE or federal grants), the state must contribute 20%.

 

House Finance Committee

 

RIDOT notified the General Assembly in January that the proposed cost had increased again. This time by another $26.4 million.

“The Governor’s recommended budget maintains the approved amount of $35.0 million from State Fiscal Recovery funds for FY 2025 as a partial state match for the Washington Bridge Project. His budget does not alter the FY 2025 budget assumptions for a total project cost of $455.2 million, with a state share of $83.6 million.  The contract for the bridge replacement has not been awarded, and as noted, there were change orders for the demolition component.  These will impact the actual project costs.  Any additional federal funds would need a state match,” said Berman.

What is clear, in this near-endless series of false statements, is that the total cost of replacing the failed Washington Bridge has yet to be disclosed.

Clearly, the cost to replace the bridge is far in excess of the $250 to $300 million promised by McKee and Alviti in March of 2024, and it is in excess of the $427 million now claimed by the duo on Friday.

 

 READ THE FULL REVIEW BY THE HOUSE FINANCE COMMITTEE BELOW

 

A House Finance Committee report on the Financing of the Washington Bridge raises more questions about the financing structure.

 

FY 2025 Budget As Enacted:

Washington Bridge: The Department received a $25.0 million federal discretionary grant toward a $70.0 million project to rehabilitate the Washington Bridge.  The project cost was subsequently increased to $78 million.  The bridge was built in 1969 and carries approximately 70,000 vehicles per day along I-195 between Providence and East Providence.  The project includes rehabilitation of the westbound section of the bridge, realigning ramps, and addressing congestion issues.  The Department assumed construction starting in 2021 and the current Transportation Improvement Program includes expenses of $12.5 million for federal FY 2022.  On December 11, 2023, the Department closed the westbound section of the bridge due to finding a critical failure of some bridge components.  Its quarterly RhodeWorks report, dated January 30, 2024, notes that inspections and analysis of the Washington Bridge must be completed to determine the scope of work that must occur.

 

The report issued on March 14 called for a full replacement of the westbound span.  The preliminary estimate was $250 million to $300 million and demolition and a design/build lasting 30 months.  The Department obtained services from two consultants that will oversee the bridge project, and helped revise the project cost to $455.2 million to include a change of scope, contingency and construction incentives.  This includes $46.4 million for emergency expenses such as tie rod repairs, bridge inspections, and municipal/State Police reimbursements.  It includes $40.5 million for demolition expenses; the request for proposals was issued on April 26 and responses are due by June 21.  The Department’s timeline indicates the project would be awarded in mid-July, with demolition starting in July/August and completing by March 2025.  A total of $3.0 million in incentives will be provided if the project is completed before March.  The contractor would also be charged $12,000 to $37,500 daily if it exceeds the completion date.

 

The project cost also includes $368.3 million for replacement expenses.  The request for proposals was issued on April 30 and calls for a design/build approach.  The proposals are due by July 3 and the Department anticipates the project being awarded by July 31 with design starting in August 30.  Similarly, $10.0 million of incentives would be provided if the project is done by August 2026.  There is a $30,000 daily charge if the date is exceeded.

 

On March 25, the U.S. Department of Transportation issued a Notice of Funding Opportunity: Multimodal Project Discretionary Grant Opportunity, which consists of three funding categories.

 

$1.7 billion - National Infrastructure Project Assistance grants program
$2.7 billion - Nationally Significant Multimodal Freight and Highway Projects grants program
$780 million - Rural Surface Transportation Grant program

 

The funds will be available for obligation on October 1, 2024 and must be obligated by September 30, 2028.  There is no statutory deadline for expenses to be incurred.  Generally, discretionary grants are awarded in the fall.  On May 6, the Department submitted its application requesting $221.0 million toward the replacement cost of the project. 

 

On that same day, the Governor requested an amendment, which would authorize issuances of up to $334.6 million of new debt through GARVEE bonds, and $40.0 million through Motor Fuel Revenue bonds as partial match for the replacement of the Washington Bridge.  Another requested amendment includes use of $20.0 million from repurposed State Fiscal Recovery funds, and the Transportation Improvement Program has $37.0 million of available federal funds for the project.  The amendment did not identify a source for the remaining $23.6 million.  Assuming an interest rate of 5.0 percent, the debt service is estimated at $18.7 million for the first two years, increasing to $66.6 million in later years when older debt is defeased to have overall payments be more level.

 

The Assembly concurred with the issuance of federal GARVEE bonds; the amount to be issued would be less if federal discretionary grant funds are secured.  It provided pay-go funding for the state share, including $45.0 million from Rhode Island Capital Plan funds, $35.0 million from State Fiscal Recovery funds, and $3.6 million from Department of Transportation sources.  Assuming issuance of $334.6 million, an interest rate of 5.0 percent and 15-year term, the debt service is estimated at $16.7 million for the first seven years, increasing to $62.2 million.

 

Governor’s FY 2026 budget recommendation

The Governor’s recommended budget maintains the approved amount of $35.0 million from State Fiscal Recovery funds for FY 2025 as a partial state match for the Washington Bridge Project. His budget does not alter the FY 2025 budget assumptions for a total project cost of $455.2 million, with a state share of $83.6 million. 

The contract for the bridge replacement has not been awarded, and as noted, there were change orders for the demolition component.  These will impact the actual project costs.  Any additional federal funds would need a state match.


Washington Bridge Failure Timeline

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