Use of Progressive DesignBuild to Deliver Infrastructure Upgrades

Use of Progressive Design-Build to Deliver Infrastructure Upgrades to a Class-1 Freight Corridor Charles (Chuck) Gullakson, P. E. CSX Transportation Philip Sheridan, P. E. , DBIA Clark Civil, LLC

Agenda • CSX use of DBIA Best Practices and Progressive Design-Build for Phase 2 of National Gateway Initiative • Follows on successful use of P-3 on Phase 1 of National Gateway Initiative • Progressive Design-Build initially chosen due to some unique challenges facing the Virginia Avenue Tunnel Project in Washington, DC • Based on success with Progressive Design-Build at VAT CSX expanded use for all remaining Phase 2 projects

Key Points • One of the largest known uses of Progressive Design-Build by the Class 1 Rail Industry • Pure Qualification Based Selection process was used to select a Contractor led Design-Build Team • PDB was used to deliver projects ranging in size from less than $150, 000 to over $250, 000 • PDB was used to leverage the strength of early contractor involvement to optimize the efficiency of the NEPA process and speed of project delivery

National Gateway: Critical to meeting future freight demands NW Ohio Transfer Yard Chicago n 61 clearance projects in 6 states and the District of Columbia to achieve 21’ 0” clearance n Construction work varies from minor modifications to complete reconstruction of bridges, tunnels and other infrastructure (including VAT) n New/enhanced terminals along the National Gateway corridors utilizing the latest technology Pittsburgh Boston Chambersburg New York Baltimore St. Louis Memphis Hampton Roads Wilmington National Gateway Project New Orleans Florida Current and Planned Double Stack Routes 4

Virginia Avenue Tunnel n n n 5 A single track, low clearance tunnel in Southeast DC 3800 feet long / 112+ years old A major bottleneck to east coast rail operations

CSX Virginia Avenue Tunnel History • History of Virginia Avenue Tunnel • Original sections built between 1872 -1873 of rubble stone masonry (7 th St. to 11 th St. , SE) • In 1902 an Act of Congress passed that required realignment of most rail traffic in Washington, DC • Between 1904 -1906 balance of tunnel built of brick, cubic stone and unreinforced concrete masonry (2 nd St. to 8 th St, SE)

CSX Virginia Avenue Tunnel History • History of Tunnel • Originally contained two tracks • Approximately 3, 800 feet long • By 1930 s – was single tracked due to increases railcar sizes, creating a bottleneck on network • Insufficient vertical clearance for double stack intermodal freight trains (18’ +/- vs. 21’ needed) • Ever increasing maintenance costs as tunnel neared end of its useful life – 350’ section collapsed in 1985

CSX Virginia Avenue Tunnel History 1904 Tunnel Construction

Concerns Driving Need for Replacement • Need to improve overall rail fluidity and efficiencies over the network to better serve CSX’s customers • CSX was seeing ever increasing need for: • • More Frequent Structural Inspections Periodic Track Reconstruction Cleaning of Drainage Structures in Tunnel Replacement of Sump Pump Systems

Key Challenges that drove decision to use PDB • Project location in a dense urban environment • Close proximity to residences, government offices, businesses and Interstate highway • Age, condition and material of existing tunnel • Complexity of existing public utilities • Need to use construction methodologies that assured ability to maintain active rail traffic

Why Use PDB? • PDB was selected to leverage the strength of early contractor involvement to optimize the efficiency of the NEPA process and speed of project delivery • CSX needed to obtain a Final NEPA determination without schedule risk or need to submit an EIS supplement to align with different methodologies • Required Constructability From Beginning

PDB Procurement Process • CSX Issued RFQ’s to five pre-selected general contractors using a pure QBS selection process Goals: To find the Contractor led Design-Build Partner that could best work with CSX and their NEPA consultant team to work through the NEPA determination process To select an constructible build alternate to provide double stack, double track clearance through the VAT Project alignment that would not require a supplemental EIS evaluation

PDB Evaluation Process • Teams were evaluated on the following criteria: • • • Safety Team Members Experience with Project Type Local Presence and Experience working in DC Knowledge of Local Permitting Processes Capabilities and depth of Available resources Tunnel construction experience Work on/around Class 1 rail corridors MOT in urban environments • Each team had a one hour call with CSX procurement team where project goals were explained to the proposers prior to submission of RFQ responses

PDB Selection Process • Qualification Proposals were evaluated by a cross disciplinary group at CSX including: • Construction, Engineering, Environmental, Legal, Operations and Procurement • Following ranking of Proposals each team was required to make an Oral Presentation to the Evaluation Committee followed by Q&A • Final award was made following Oral Presentations • Selected Design-Build Team was working with NEPA team within two weeks of award

Selection Timeline Recap • June 28, 2011 Calls to Contractors • July 22, 2011 RFQ’s Distributed • August 23, 2011 Qualifications Received • August 31, 2011 Oral Interviews • September 8, 2011 Selection Made • September 14, 2011 1 st Public Scoping Session • October 3, 2011 Step 1 Negotiations Complete

Invited Contractor 1 st Steps • Upon receipt of first contact by CSX the contractor had to work rapidly to select a lead design partner and assemble a core team of highly qualified individuals who would lead the team in development of RFQ response and oral presentation

Defining Win Themes • Quickly identified several key themes necessary to be successful proposer • Knowledge of construction in the Project market • Past track record of successfully obtaining NEPA approvals • Local presence with appreciation of working closely with district agencies and the community (our backyard) • Strong understanding of Design-Build Best Practices and Progressive Design Build delivery method • Highly collaborative project leaders truly committed to a single Team approach • Ability to self perform critical aspects of the work as part of risk management approach

Working Together • Upon selection, CSX Team quickly developed a 2 Step approach to the contract • Step 1 - Professional Services style contract that required Design. Builder to provide technical support to CSX and their EIS Prep Team • Step 2 - GMP Design-Build contract to construct the preferred alternative from the Record of Decision

Step 1 Scope of Work • Alternative concept development • Preliminary scheduling and budgeting • Geotechnical and environmental field sampling • Extensive existing condition surveys • Preparation of numerous technical studies and reports such as traffic analysis, SOE schemes, environmental impact mitigation measures, etc. • Providing subject matter expertise support at public hearings and meetings with FHWA & DDOT

VAT NEPA Timeline • Extensive community engagement began in mid-2000 s • Federal NEPA process began in Summer 2011 • • Over 200 meetings with the public, government agencies, elected officials • • “Federal action” triggered by use of federal air-rights, I-695 ramp impacts Lead federal agency – FHWA Lead local agency – District-of-Columbia DOT Started as an EA in Fall 2011, was changed to EIS in Summer 2012 11 initial concepts with 4 retained in the EIS (including “no-build”) Draft EIS – Published July 2013 Final EIS with Preferred Alternative – Published June 2014 Record-of-Decision (ROD) – Published November 2014 Construction NTP Issued in May 2015 153 NEPA mitigation commitments in total

Step 2 GMP Negotiations • During preparation of Final EIS document CSX and Design-Builder successfully negotiated the Step 2 GMP contract • This assured the team would be able to start final design immediately should a build alternative be selected • This approach was necessary to help in expediting delivery of the project, while efficiently addressing NEPA commitments and local construction permitting processes

Step 2 GMP Negotiations • Step 2 GMP contract utilized DBIA’s Standard Documents • 530 Standard form of Agreement • 535 Standard form of General Conditions • Key features • Shared savings clause • Portion of DB fee is earned via incentive payments awarded based on a quarterly evaluation of Design-Builder’s performance on key metrics

Execution of New CSX Virginia Avenue Tunnel • Selected Alternative was one of three “on-line” concepts that called for construction of a new tunnel adjacent to the existing one • Tunnel reconstruction is followed by complete reconstruction of the surface roadways including significant betterments required as part of the mitigation commitments

Sequence of Construction

Sequence of Construction To Richmond / East coast Ports To Pittsburgh / Chicago / Baltimore 2 nd New Tunnel I-695 Piers and Straddle-Bents I-695 Columns Original 1870 / 1904 Tunnel 1 st New Tunnel

CSX Virginia Avenue Tunnel ü Evaluated 11 preliminary concepts ü In-depth analysis of 3 build alternatives for EIS leading to selection of a preferred build alternative ü Able to start construction within 6 months of Record of Decision

Coordination with agencies and outside parties § § § § DDOT DCRA DCSHPO DGS DPR DOEE DSLBD ANC’s NAVFAC / Marines NCPC Garfield park Southeast BID Barracks row UFA § Nationals ballpark § Architect of the capitol § DC Water § Washington Gas § Pepco § Verizon § Comcast § DC Street light and signal § Zayo § Adjacent construction projects § Adjacent property owners 28

Key Features of New Tunnel • 21’-3” Vertical clearance & 9’ horizontal clearance • Structure designed for AASHTO HS-25 • Drilled piles for SOE and secant pile walls • Intermediate access points from surface with cross passages in tunnel • Improved drainage systems, full waterproof wrap • Safety inspection walkway/power &comm. duct bank • LED lighting/ventilation fans/backup generators • PTC communication compatible • Extensive security measures

Project Features and Challenges • Tiber Creek Sewer – spandrel arch bridge • 6 th Street siphon • Utility relocation and support in place • Marine chiller underpinning • Six cross street bridges & multiple MOT changes • Phase 1 Tunnel demolition under live traffic • Remnants of abandoned 1872 tunnel • Working in a very dense urban environment • Working in the public space - DDOT

Phase 1 Tunnel Demolition 31

Work Adjacent to Active Tracks

“Four-level” Crossing at Tiber Creek (I-695 above 2 nd Street) 14’ 6” 33

Phase 1 Trench Through Neighborhood

Concrete Wall Form Traveler

Phase 2 Demolition

Schedule Overview ROD 11/04/14 Permits - DCRA Permits - DDOT As of March, 2017 Phase 1 Milestone of first tunnel running double stacks cars was reached 1 month early on December 23, 2016 Site Preparation Utility Relocations Phase I Tunnel Single-Track/Double-Stack Phase II Tunnel Surface Restoration Double-Track/Double-Stack Project Completion Nov-14 Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17 Feb-18 May-18 Aug-18 Nov-18

Keys to Success to date • • • Commitment to Safety Strong collaboration Ongoing value engineering Don’t let issues linger, elevate timely Prompt owner decision making Co-location (contractor/designer/owner) • Work as a single team focused on delivering BEST VALUE which we have defined as follows: The proper balance of cost, schedule, risk and certainty of outcome for all parties

CSX National Gateway Initiative Phase 2 • CSX modified previous Two Step Progressive Design-Build contract format to have a master contract for 11 initial clearance projects with each project being performed under a task order that spelled out the specific contract conditions for delivery • Ultimately used to clear 17 sites to date • Work varied from minor modifications to complete reconstructions • The task order contract format allowed CSX to add new tasks (projects) rapidly without needing to go through individual contract negotiations

CSX National Gateway Initiative Phase 2 • Contractor led Design-Build team working with two different lead designers progressed each project through initial design development and permitting under the Step 1 Professional Service style Agreement portion of the contract • At a mutually agreed point between CSX and Design-Builder a Step 2 task order was executed to deliver final design and construction services

CSX National Gateway Initiative Phase 2 • Each task order had provisions for the final method of delivery and contract format: • Lump Sum Design-Build • GMP Design-Build • Construction Manager at Risk • Method selected generally varied on the risk sharing approach and the amount of self perform work being done by the Design-Builder

CSX National Gateway Initiative Phase 2 • 17 locations cleared in VA, WV, MD and DC • • • 3 abandoned bridge removals 3 remove/replace overhead highway bridges 6 track lowering's beneath bridges 2 bridge raises (1 highway/1 railroad) 1 mountain tunnel crown raise 2 mountain tunnel invert lowering's • All Projects were completed on schedule or early • All Projects were completed within the agreed budgets

Progressive Design-Build Benefits • Flexibility to deliver projects ranging in size from less than $150, 000 to over $250, 000 • Leverages the strength of early contractor involvement to optimize the efficiency of the NEPA process • Appropriately balances project risks and speed of project delivery

Progressive Design-Build Benefits • Success of PDB requires highly collaborative Project Teams which are committed to shared risks and rewards • Success of PDB requires open and clear lines of communication at all Project Levels • Success of PDB requires regular evaluation and feedback of Team performance both ways

Baltimore Clearance Improvement Program • Achieve Double Stack Vertical Clearance through Baltimore City • Howard Street Tunnel • 8, 703 Ft. Long • Build Primarily in 1890 - 1895 • Ten (10) Other Obstructions between HST and Seagirt Terminal • Three (3) Bridge Modifications • Seven (7) Track Lowering Sites • Seeking Public Funding for 2018 Construction Start

Baltimore Clearance Improvement Program • Howard Street Tunnel • Bridge Modifications • North Ave. • Guilford Rd. • Harford Rd. • Track Lowering Sites • • Mt. Royal Station MTA Bridge Sisson St. Huntington Ave. Charles St. Paul/Calvert St. Barclay St.

QUESTIONS First Double Stack Train through New Tunnel December 23, 2016