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Maryland outlines four‑part procurement after off‑ramping contractor for Key Bridge rebuild
Summary
Maryland transportation officials told the House Environment and Transportation Committee that designers are roughly 70% complete, the MDTA off‑ramped the progressive design‑build contractor after price and schedule disputes, and the state will split the rebuild into four procurements with a current cost estimate near $5 billion and expected FHWA reimbursement.
Maryland transportation leaders told legislators June 2 that work on the Francis Scott Key Bridge rebuild will continue while the state retools its procurement approach after negotiating unsuccessfully with the progressive design‑build contractor.
Katie Thompson, Secretary of the Maryland Department of Transportation, said design work for the replacement bridge is nearing 70 percent and that the state invoked an off‑ramp provision in its agreement with the contractor, Kiwit, after final price and schedule proposals diverged materially from independent cost estimates. Thompson said Kiwit will continue to complete early works packages through the end of the year while MDTA moves to new contracts.
The Maryland Transportation Authority plans to split the construction work into four separate procurements: a demolition and miscellaneous marine package (estimated $50–100 million), a large marine/mainspan design‑build package (estimated $3.5–4.0 billion), and south and north land‑approach contracts delivered through design‑bid‑build. Jim Harkness, chief engineer at MDTA, said the split is intended to increase competition, allow bidders to target multiple packages, and open opportunities for smaller and local firms.
Officials said the decision to off‑ramp followed weeks of negotiations in which Kiwit’s proposed construction price and timeline differed substantially from MDTA’s independent cost estimators and federal review. "When we were so far apart that we couldn't in good conscience move forward, that's when we decided to off‑ramp," Bruce Gartner, MDTA executive director, said.
On costs, Thompson and MDTA officials reiterated that the initial $2 billion figure reflected a 0%‑design placeholder used to access emergency relief funds, and that independent estimators and Federal Highway Administration (FHWA) review produced a current, higher estimate in the roughly $5 billion range. Thompson said the state is "at the higher end, the five‑billionish," and that MDOT continues to pressure‑test assumptions but has confidence in the multi‑firm estimates.
MDTA reported approximately $457 million spent to date, covering early design, early works and salvage/debris removal; the MDTA board has authorized about $700 million overall to date. Officials said insurance proceeds of roughly $350 million plus interest will be exhausted and that emergency relief funding and settlement proceeds are expected to fund the balance. "By law, federal reimbursement processes administered by FHWA are expected to cover eligible costs," Thompson said, noting ongoing coordination with US DOT and FHWA.
Committee members pressed officials about disadvantaged‑business (DBE) goals and project labor agreement (PLA) policies; MDTA said federal DBE rules remain in flux after a recent US DOT interim final rule and that each procurement will require federal review to set DBE goals. Officials said they will assess the appropriateness of PLAs on a contract‑by‑contract basis as federal guidance evolves.
On schedule, MDTA said demolition procurement could be advertised this summer with awards this fall, the south land approach advertised this fall with a notice‑to‑proceed in spring 2027, and the mainspan design‑build proceeding through a two‑step qualifications then RFP process with selection anticipated the following summer. Officials said overlapping work will be coordinated so approach and mainspan contractors can interface.
Thompson and MDTA stressed that procurement documents, bonding and other contractor protections will be applied to reduce the risk of contractor failure and that they have embedded independent cost estimators and a construction management framework to monitor spending and schedule.
The committee also sought more detailed legislative briefings; MDTA officials said they will provide procurement postings and industry‑forum materials and noted quarterly reporting requirements to appropriations chairs.
The briefing closed with MDTA saying early construction activities will continue and with the agency reiterating its plan to advance competitive procurements to deliver the rebuild as quickly and economically as possible.
