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Financial Plans: Woodrow Wilson Bridge Project 2010 Financial Plan Annual Update

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Submitted in partnership by:
District of Columbia Department of Transportation
Maryland State Highway Administration
Virginia Department of Transportation

Logo: District of Columbia Department of Transportation Logo: Maryland State Highway Administration Logo: Virginia Department of Transportation

Date Submitted: June 23, 2011

 

MARYLAND DEPARTMENT OF TRANSPORTATION - STATE HIGHWAY ADMINISTRATION

VIRGINIA DEPARTMENT OF TRANSPORTATION

WOODROW WILSON BRIDGE PROJECT
I-95/I-495 from west of Telegraph Road to east of MD210

2010 FINANCIAL PLAN ANNUAL UPDATE

LETTER OF CERTIFICATION

The Maryland State Highway Administration and Virginia Department of Transportation have developed a comprehensive annual update to the Woodrow Wilson Bridge Project financial plan in accordance with the requirements outlined in FHWA's January 2007 Major Project and Financial Plan Guidance.1 This plan provides detailed cost estimates to complete the project and the estimates of financial resources to be utilized to fully finance the project.

The expenditure data in this Financial Plan Annual Update provides an accurate accounting of costs incurred as of September 30, 2010 and includes an estimate of future costs based on engineers' estimates for the remaining projects with expected construction cost escalation factors. While the estimates of financial resources rely on assumptions regarding future economic conditions and demographic variables, they represent realistic estimates of available monies to fully fund the project.

We believe this Financial Plan Annual Update provides an accurate basis upon which to schedule and fund the Woodrow Wilson Bridge Project. Furthermore, the day-to-day implementation of the project is firmly based on a "manage to budget and schedule" principle by the Agencies.

To the best of our knowledge and belief, the 2010 Financial Plan as submitted herewith, fairly and accurately presents the financial position of the Woodrow Wilson Bridge Project, cash flows, and expected conditions for the project's life cycle. The financial forecasts in this document are based on our judgment of the expected project conditions and our expected course of action. We believe that the assumptions underlying the financial plan update are reasonable and appropriate. Further, we have made available all significant information that we believe is relevant to the Financial Plan and, to the best of our knowledge and belief, the documents and records supporting the assumptions are appropriate.

This submission serves as another milestone where the States have fulfilled all of the requirements set forth by the Federal Highway Administration to supply timely and accurate financial information on the Woodrow Wilson Bridge Project. In addition, as stated in the Initial Financial Plan document as well as this submission, the States continue the commitment to fully fund this project through completion.

Given the District of Columbia's portion of the project was successfully completed in 2004, they are no longer an active participant in the remaining construction of the Woodrow Wilson Bridge Project and are therefore no longer a signatory of this letter of certification.

Respectfully Submitted:

Signature: Neil Pedersen Neil Pedersen
Date 5/17/11
Administrator
Maryland State Highway Administration

Signature: Gregory A. Whirley Gregory A. Whirley
Date 6/23/11
Transportation Commissioner
Virginia Department of Transportation


1 http://www.fhwa.dot.gov/ipd/project_delivery/resources/general/mpg_memo.htm and http://www.fhwa.dot.gov/ipd/project_delivery/resources/financial_plans/guidance.htm

TABLE OF CONTENTS

 

Summary

This financial plan serves as the ninth annual update to the Woodrow Wilson Bridge Project's Initial Financial Plan (IFP), which was approved in September 2001. Contained in this document are project estimate, expenditure, funding, and schedule data as of September 30, 2010. This document has been developed to serve as an addendum to the Initial Financial Plan, and that baseline document as well as the subsequent annual updates should be referenced to gain a complete picture of the project's finances.

As of September 30, 2010, the total cost to complete the Woodrow Wilson Bridge Project as defined by the project's Record of Decision is $2.520 billion, an increase of $77 million from the $2.443 billion baseline budget presented in the project's Initial Financial Plan. The current cost estimate of $2.520 billion is $1.1 million lower than the 2009 estimate. The Maryland project wide congestion management system budget has been reduced based on the current cost to complete projection.

The remaining activities for the Woodrow Wilson Bridge Project are associated with contract closeouts for the river crossing, U.S. Route 1, I-295, and MD210 interchanges, as well as the continued construction of the Telegraph Road interchange and the Jones Point Park improvements. The balance of the project (principally Telegraph Road) is scheduled to be complete in the second quarter of calendar year 2013. VDOT will make every effort to complete the project by December 2012.

Through the end of September 2010, the project has expended $2.275 billion, or 90% of the current project estimate. The actual expenditure rate was slower than the forecast presented in the Initial Financial Plan due to the delay in advertising and awarding the superstructure contracts, and savings achieved in right-of-way acquisitions. Annual expenditures peaked in Federal Fiscal Year 2006 and will decline as major project elements are completed over the remaining years.

When compared to the Initial Financial Plan, the sources of funding and the contributions from those sources have remained relatively unchanged. This financial plan update summarizes the projected cash flow requirements and acknowledges that the States will have the necessary funding in place to meet those cash flow needs.

While Virginia's cost estimate has increased approximately $78 million relative to the Initial Financial Plan, Virginia will recover funds necessary to offset the increase in cost with the sale of the towers within the Hunting Point property, the sale of the Eisenhower Avenue property, and the sale of 11 additional parcels. As noted in the cash flow projections, the majority of the increase in costs will not be realized until Federal Fiscal Year 2012. By that time, the proceeds from the sale of the majority of the properties should take place in sufficient time to offset the increase in cost relative to the Initial Financial Plan budget such that Virginia's financial position continues to be on budget relative the Initial Financial Plan. The deferral of the US Route 1 HOV ramps, which resulted from the Southern Mobility Study, will help mitigate any risks or uncertainties associated with the economy during this time frame.

Through the presentation of this financial plan update, the project sponsors believe that the Woodrow Wilson Bridge Project team continues to have the structure, strategies, and determination to successfully complete the project as forecasted in this financial plan update.

Section 1 - Introduction

As the ninth annual update to the August 2001 Initial Financial Plan (IFP), this document will build off of the baseline information presented in the IFP, and the subsequent updates by presenting a revised cost estimate, schedule, and funding data as well as specific discussions regarding any significant changes to that data.

This annual update will be presented as follows:

Section 2 - Project Cost Estimate: A detailed update to the project cost estimate will be presented.

Section 3 - Project Implementation Plan: The current schedule will be presented and will be compared to the baseline.

Section 4 - Project Financing & Revenues: Funding summaries will outline all funding received as well as future funding to be provided to the project.

Section 5 - Project Cash Flow: The comparison between funding inflows and expenditure outflows will be presented for the remaining duration of the project.

Section 6 - Other Factors: A discussion on the impact of the funding needs for the Woodrow Wilson Bridge Project on Virginia and Maryland statewide budgets will be presented. Also, an update on cost containment strategies and the organizational management will be included.

Section 7 - Cost and Revenue History: This section will explore significant cost, revenue, scope, and schedule changes over the past year relative to the 2009 update.

Section 8 - Cost and Revenue Trends: With historical data from Section 7 as well as other potential impacts in the future, this section will explore the implications of these trends on the remainder of the project.

Section 9 - Revenue Shortfall Mitigation: Identified or potential funding shortfalls will be discussed in greater detail to supplement the discussion in Section 4.

Section 10 - Summary of Significant Cost Reductions: Those contracts or projects that experienced a decrease in cost greater than $10 million from the 2009 estimate will be presented.

Section 11 - Summary of Significant Cost Increases: Those contracts or projects that experienced an increase in cost greater than $10 million from the 2009 estimate will be presented.

Before this update discusses the detailed financial and schedule progress since last year, a brief update of general project progress will be presented to supplement the historical background presented in the IFP and annual updates.

PROJECT PROGRESS SINCE SEPTEMBER 2009

River Crossing Bridge: (Managing Agency: Maryland State Highway Administration)

The full width of the bridge spans were open to traffic in December 2008. The Bascule Span contract is now in the close-out phase and the Virginia and Maryland Approach contracts have completed the closeout process. The following discussion provides an overview of the significant construction contract financial statistics as well as progress achieved since September 2009.

River Crossing Construction Contract Key Statistics

Active Contract Statistics BR 3A Bascule BR 3B VA Approach BR 3C MD Approach MM 6 Anacostia
Base Contract Amount $185,919,605 $115,505,592 191,182,746 $6,174,058
Change Order Budget $17,107,965 $12,193,866 $19,756,991 $842,639
Total Contract Budget $203,027,570 $127,699,458 $210,939,737 $7,016,697
Contract Expenditures to Date $201,890,470 $127,699,458 $210,939,737 $7,016,697
% Contract Spent to Date 100% 100% 100% 100%
Change Orders to Date* $17,107,965 $12,193,866 $19,756,991 $842,639
Change Orders to Date (% of Base) 9% 11% 10% 14%
Remaining Change Order Budget $- $- $- $-
Constr Admin Budget $22,585,135 $17,678,569 $21,782,347 686,696
Constr Admin Spent $22,535,135 $17,678,569 $21,782,347 $686,696
% Constr Admin Spent to Date 100% 100% 100% $100%

* -Projected close-out forecast, including work orders and overruns/underruns

BR-3A - Superstructure Bascule Span Contract (PG-345-5173)

The Bascule Span contract was completed on November 30, 2008 and is currently in the close-out phase.

BR-3B - Superstructure Virginia Approach Contract (PG-517-5173)

The Virginia Approach contract was completed on September 5, 2008.

BR-3C - Superstructure Maryland Approach Contract (PG-515-5173)

The Maryland Approach contract was completed on December 31, 2008.

River Crossing Wetland Mitigation Contracts

Contract MM6 - Anacostia East was completed on November 18, 2009. All Maryland mitigation contracts are now complete and in the monitoring phase.

Interstate 295 Interchange: (Managing Agency: Maryland State Highway Administration)

MA-4 - I-95 / I-495 / I-295 Interchange Inner Loop Local, Inner Loop Express Contract (PG-502-5173)

Construction activities for this contract were completed on June 18, 2010 and the project is currently in the close-out phase.

Active Contract Statistics MA 4 Inner Loop
Base Contract Amount $93,187,408
Change Order Budget $11,222,726
Total Contract Budget $104,410,134
Contract Expenditures to Date $104,293,134
% Contract Spent to Date 100%
Change Orders to Date* $8,419,018
Change Orders to Date (% of Base) 9%
Remaining Change Order Budget $2,803,708
Constr Admin Budget $14,973,015
Constr Admin Spent $14,833,015
% Constr Admin Spent to Date 99%

* - Includes work orders and overruns/underruns

Future I-295 Contract Advertisement Schedule

MA5 - I-295 Ramps C & D - TBD

As a result of the Southern Mobility Study, it was determined that projected traffic levels in this region were not significant enough to justify the construction of these HOV ramps. As a result, these contracts are indefinitely deferred.

Reforestation Contracts

The two Maryland reforestation contracts are complete. One contract has received final acceptance and the other contract remains in the monitoring phase.

Maryland 210 Interchange: (Managing Agency: Maryland State Highway Administration)

Maryland 210 Construction Contract Key Statistics

Active Contract Statistics MB 3 Bridges, Roadway & Oxon Hill MB 4 Inner Loop Local, Outer Loop Express
Base Contract Amount $40,824,171 $59,469,628
Change Order Budget $1,759,014 $2,080,574
Total Contract Budget $42,583,185 $61,550,202
Contract Expenditures to Date $42,583,185 $61,546,702
% Contract Spent to Date 100% 100%
Change Orders to Date* $1,759,014 $2,080,574
Change Orders to Date (% of Base) 4% 3%
Remaining Change Order Budget $- $-
Constr Admin Budget $6,127,763 $8,409,476
Constr Admin Spent $6,127,763 $8,409,476
% Constr Admin Spent to Date 100% 100%

* - Projected close-out forecast, including work orders and overruns/underruns

MB3 - Bridges, Roadway, & Oxon Hill Road Separation Contract (PG-507-5173)

Construction activities associated with this segment were completed on December 21, 2007.

MB4 - Inner Loop Local, Outer Loop Express (PG-509-5173)

The contract was completed on January 23, 2009 and is now in the close-out phase.

Future Maryland 210 Contract Advertisement Schedule

MB5 - Balance of Maryland 210 - TBD

As a result of the Southern Mobility Study, it was determined that projected traffic levels in this region were not significant enough to justify the construction of these HOV ramps. As a result, these contracts are indefinitely deferred.

U.S. Route 1 Interchange: (Managing Agency: Virginia Department of Transportation)

US Route 1 right of way parcels are clear for construction; however, several VDOT owned residue parcels remain to be sold. The utility relocations are complete.

As a part of this annual update, VDOT has identified the value of remaining right of way parcels that will eventually be sold. These include the Hunting Point property, the Eisenhower Avenue office site, as well as 11 additional residue parcels from the Woodrow Wilson Bridge Project. The estimated aggregate value of these properties is approximately $98 million and will offset increases in cost estimates for other project elements at the appropriate time.

Key Right of Way Statistics
Total Right of Way & Admin Budget $156,138,994
Gross Expenditures thru Sept. 2010 $157,200,087
Rental Receipts Credits $2,969,343
Net Expenditures thru Sept. 2010 $154,230,744
% Work Complete 99%

In the 2009 annual update, approximately $23 million in rental receipts associated with the Hunting Point property were made available to offset expenditures associated with right of way acquisitions for the US Route 1 Interchange. The right of way portion of the project cost estimate was decreased to recognize the use of these rental receipts. Over the past year, VDOT has decided to use these rental receipts to offset construction costs associated with the US Route 1 interchange instead of right of way acquisitions. As such, the VA 6/7 construction administration estimate of $29 million has been decreased to approximately $6 million to recognize the use of these rental receipts and the right of way estimates have been increased back to the level shown in the 2008 annual update.

Over the past year, VDOT has received another $3 million in rental receipts in addition to the $23 million through 2009 that was transferred to the VA 6/7 construction administration estimate. This $3 million received over the past year remains in the right of way estimate to offset expenditures, as shown in the right of way summary table at the bottom of the previous page.

U.S. Route 1 Construction Contract Key Statistics

Active Contract Statistics VA 4 Tie-In Contract VA 6/7 Main Contract
Base Contract Amount 54,620,866 146,577,167
Change Order Budget 7,852,141 42,300,615
Total Contract Budget 62,473,008 62, 188,877,781
Contract Expenditures to Date 473,008 187,710,383
% Contract Spent to Date 100% 99%
Change Orders to Date* 7,852,141 41,983,579
Change Orders to Date (% of Base) 14% 29%
Remaining Change Order Budget - 317,036
Constr Admin Budget 10,190,844 5,827,494
Constr Admin Spent 10,190,844 5,827,494
% Constr Admin Spent to Date 100% 100%

* -Includes work orders and overruns/underruns

VA-4 - Tie-In Contract (0095-96A-106, C511, B648-650, C504, L802)

Construction activities associated with this segment were completed on July 29, 2008.

VA-6/7 - Main Construction Contract (0095-96A-106, C501, B624/625/630/635-9/654/657, D651-3)

Construction activities were completed in January 14, 2010 and the project is now in the close-out phase.

Future U.S. Route 1 Contract Advertisement Schedule

VA10 - U.S. Route 1 HOV Ramps - TBD

As a result of the Southern Mobility Study, it was determined that projected traffic levels in this region were not significant enough to justify the construction of these HOV ramps. As a result, these contracts are indefinitely deferred.

Virginia Environmental Mitigation Contracts

Wetland mitigation projects are currently in the monitoring and establishment period as required by the Project Environmental Permits.

VM5 - Jones Point Park Improvements (0095-96A-106, C508, PE104, C509, L804)

Preliminary engineering activities associated with Jones Point Park are nearly complete and contractor bids were received on September 22, 2010. Contract award is anticipated for October 2010, with a November 2010 Notice to Proceed.

Key Preliminary Engineering Statistics
Total Preliminary Engineering Budget $3,536,437
Expenditures thru Sept. 2010 $3,335,010
% Work Complete 94%

Telegraph Road Interchange: (Managing Agency: Virginia Department of Transportation)

Telegraph Road right of way parcels are clear for construction. The utility component of the total right of way budget is nearly complete and utility relocations are approximately 90% complete.

Key Right of Way Statistics
Total Right of Way & Admin Budget $44,215,661
Expenditures to Date $43,028,062
% Work Complete 97%

Telegraph Road Construction Contract Key Statistics

Active Contract Statistics VB 2/3/6 Main Contract VB 5 Main Contract
Base Contract Amount $236,393,187 $17,153,692
Change Order Budget $30,639,319 $8,232,687
Total Contract Budget $267,032,506 $25,386,379
Contract Expenditures to Date $162,358,973 $25,386,379
% Contract Spent to Date 61% 100%
Change Orders to Date* $28,257,856 $8,232,687
Change Orders to Date (% of Base) 12% 48%
Remaining Change Order Budget $2,381,463 $-
Constr Admin Budget $34,870,694 $2,583,648
Constr Admin Spent $18,262,566 $2,583,648
% Constr Admin Spent to Date 52% 100%

* -Includes work orders and overruns/underruns

VB-2/3/6 - Telegraph Main Construction Contract (0095-96A-105, C501, C503, C514, L805)

Construction activities are well underway for the last major construction contract of the Woodrow Wilson Bridge Project. Completion is scheduled for mid-2013.

VB-5 - Telegraph Road Utilities (0095-96A-105, C512, D616)

Activities associated with this utility relocation contract were completed on March 27, 2008.

D.C. Interstate 295 Project: (Managing Agency: District of Columbia Department of Transportation)

The D.C. Interstate 295 project was completed on July 30, 2004 under budget for a total of $15,746,529.

Active Contract Statistics
Final Cost to Complete $15,746,529

SECTION 2 - PROJECT COST ESTIMATE

As of September 30, 2010, the total cost to complete the Woodrow Wilson Bridge Project is estimated at $2.520 billion and is an increase of $77 million when compared to the estimate presented in the Initial Financial Plan, which was $2.443 billion. The current cost estimate of $2.520 billion is $1.1 million lower than the 2009 estimate. The Maryland project wide congestion management system budget has been reduced based on the current cost to complete projection.

The total current cost estimates for each State include the approved cost reimbursement transfers cited in the 2007 financial plan.

CURRENT PROJECT ESTIMATE

As discussed at the beginning of this section, the cost estimate to complete the Woodrow Wilson Bridge Project totals $2.520 billion. In a manner similar to the IFP and annual updates, the estimate will be analyzed by breaking down the estimate by project segment, funding mechanism, and by cost element. Supporting the discussion are the detailed financial summaries that can be found in Attachments B, C, D, and E. Attachment B summarizes the estimate by both project segment and by the appropriate cost element. Attachment C summarizes the estimate by funding mechanism, which identifies those elements that are eligible for 100% federal funds because they are directly related to the replacement of the river crossing bridge and those elements that are eligible for normal federal funding participation ratios because they are considered non-bridge elements (see IFP for further discussion on element eligibility).

Attachments D and E provide the detailed cost elements of each of the over 100 projects or sub-projects for both Maryland and Virginia, respectively.

Cost Allocation by Project Segment:

The following table summarizes the current cost estimate by project segment in year of expenditure dollars (YOE$) and compares it with the Initial Financial Plan and 2009 annual update estimate.

 

Exhibit 2-1: Current vs. Previous Financial Plan Estimates
(in $millions)
SEGMENT Initial Financial Plan Estimate 2009 Annual Update Estimate 2010 Annual Update Estimate Change from 2009 Estimate
($) = Reduction in Estimate
Change from IFP Estimate
($) = Reduction in Estimate
Virginia Project wide $52.3 $180.9 $181.0 $0.1 $128.7
Telegraph Road Interchange $272.7 $401.4 $401.1 ($0.3) $128.3
U.S. Route 1 Interchange $737.0 $608.1 $608.2 $0.2 ($128.7)
Potomac River Crossing $827.3 $827.4 $827.7 $0.3 $0.4
Interstate 295 Interchange $342.5 $304.5 $306.2 $1.7 ($36.3)
Maryland 210 Interchange $171.5 $162.9 $163.1 $0.2 ($8.4)
Maryland Project wide $24.5 $19.8 $16.5 ($3.2) ($8.0)
District of Columbia Interstate 295 $15.1 $15.7 $15.7 $0.0 $0.6
Totals $2,442.9 $2,520.6 $2,519.5 ($1.1) $76.6

The primary causes for the changes in segment cost relative to the 2009 estimate are briefly discussed below.

Virginia Project wide: Increase of $0.1 million

The Virginia Project wide estimate primarily increased due to the incorporation of revisions to the cost to complete estimate for the General Engineering Consultant contract.

Telegraph Road Interchange: Decrease of $0.3 million

The decrease was attributable to refinements to the cost to complete estimates for right-of-way and utility work and the General Engineering Consultant contract.

U.S. Route 1 Interchange: Increase of $0.2 million

The budget change was attributable to updated Jones Point Park estimates based on contractor bids received, and refinements to the cost to complete estimates for right-of-way and utility work and the General Engineering Consultant contract.

River Crossing: Increase of $0.3 million

The river crossing estimate increase was due to adjustments to monitoring and contract close out costs.

Interstate 295 Interchange: Increase of 1.7 million

The increase for the I-295 interchange was primarily attributable to cost to complete projections for both the construction contract and construction administration for Contract MA-4.

Maryland 210 Interchange: Increase of $0.2 million

The increase for the MD210 interchange was due to adjustments to projected contract close out costs.

Maryland Project wide: Decrease of $3.2 million

The Maryland Project wide estimate decreased due to the incorporation of revisions to the cost to complete for the General Engineering Consultant contract and the reduction to the project wide congestion management system budget.

District of Columbia I-295: No Change

Cost Allocation by Funding Eligibility:

The following table summarizes the current cost estimate by project segment and federal funding eligibility in year of expenditure dollars (YOE$) and compares it with the Initial Financial Plan and 2009 estimates.

Exhibit 2-2: Estimate Summary by Funding Eligibility
(in $millions)
  Initial Financial Plan 2009 Update Estimate 2010 Update Estimate
SEGMENT Bridge Non-Bridge Total Bridge Non-Bridge Total Bridge Non-Bridge Total
Virginia Project wide $30.0 $22.3 $52.3 $45.8 $135.0 $180.9 $45.8 $135.2 $181.0
Telegraph Road Interchange $0.0 $272.7 $272.7 $0.0 $401.4 $401.4 $0.0 $401.1 $401.1
U.S. Route 1 Interchange $24.6 $712.4 $737.0 $22.8 $585.3 $608.1 $25.7 $582.6 $608.2
Potomac River Crossing $825.0 $2.4 $827.3 $825.0 $2.4 $827.4 $825.3 $2.4 $827.7
Interstate 295 Interchange* $5.0 $337.5 $342.5 $5.0 $299.5 $304.5 $5.0 $301.2 $306.2
Maryland 210 Interchange $0.0 $171.5 $171.5 $0.0 $162.9 $162.9 $0.0 $163.1 $163.1
Maryland Project wide $16.6 $7.9 $24.5 $0.0 $19.8 $19.8 $0.0 $16.5 $16.5
District of Columbia Interstate 295 $0.0 $15.1 $15.1 $0.0 $15.7 $15.7 $0.0 $15.7 $15.7
Totals $901.2 $1,541.7 $2,442.9 $898.6 $1,622.0 $2,520.6 $901.8 $1,617.8 $2,519.5

* The $5 million in bridge funding is associated with the value of land needed for the bridge abutment on Rosalie Island. Maryland recognizes that a precise value will need to be confirmed through appraisal if Maryland decides to request 100% Special Federal funding for this work.

“Bridge” elements are considered eligible for 100% federal funding and those elements that are “Non-Bridge” are eligible for regular federal funding participation ratios. The funding eligibility levels have remained relatively unchanged over the past year.

Exhibit 2-3: Estimate Summary by Funding Eligibility - Summary
FUNDING SOURCE Initial Financial Plan 2009 Update Estimate 2010 Update Estimate
Virginia Bridge Funding $54.6M $68.6M $71.5M
Maryland Bridge Funding $846.6M $830.0M $830.3M
Virginia Non-Bridge Funding $1,007.4M $1,121.7M $1,118.8M
Maryland Non-Bridge Funding $519.3M $484.5M $483.2M
District of Columbia IM Funding $15.1M $15.7M $15.7M
Totals $2,443.0M $2,520.6M $2,519.5M

For a more detailed summary of the cost allocation analyses, please refer to Attachment C.

Cost Allocation by Element:

The table below illustrates the overall estimate changes that have taken place by cost element type. For a further breakdown, Attachment B contains the detailed comparisons by element for each segment.

Exhibit 2-4: Estimate Summary by Cost Element
(in $millions)
COST ELEMENT Initial Financial Plan Budget 2009 Annual Update 210 Annual Update Change 2009-2010 Change IFP-2010
Preliminary Engineering $167.7 $300.0 $298.6 ($1.3) $131.0
Right of Way $226.6 $156.6 $179.7 $23.1 ($46.9)
Right of Way Admin. $13.8 $24.2 $21.9 ($2.3) $8.1
Neat Construction $1,507.1 $1,571.8 $1,569.5 ($2.3) $62.4
Construction Admin. $213.7 $214.6 $195.6 ($19.0) ($18.1)
Construction Changes $147.5 $171.8 $172.4 $0.7 $25.0
Mitigation $123.5 $30.1 $30.5 $0.5 ($93.0)
CMS $26.9 $22.0 $21.7 ($0.3) ($5.2)
Existing Bridge Rehab $16.2 $15.3 $15.3 $0.0 ($0.9)
Project Contingency $0.0 $14.3 $14.3 ($0.0) $14.3
Totals $2,442.9 $2,520.6 $2,519.5 ($1.1) $76.6

The primary cost estimate changes between 2009 and 2010 are:

  • the $1.3 million decrease in preliminary engineering due to General Engineering Consultant contract savings,
  • the $20.8 million increase in right of way and administration due to the transfer of the Hunting Point rental receipts to construction administration,
  • the $2.3 million neat construction cost decrease due to refinements to the Jones Point Park improvements and HOV ramps, and
  • the $19.0 million decrease in construction administration budget due to the transfer of the Hunting Point rental receipts from right of way.

EXPENDITURES TO DATE

Through September 30, 2010, a total of $2.275 billion has been expended on the Woodrow Wilson Bridge Project or 90% of the current estimate. The following tables break down the expenditures to date.

Exhibit 2-5: Expenditures to Date by Segment
SEGMENT Expenditures To Date 2010 Annual Update Estimate % Expended
Virginia Project wide 162,676,217 181,003,520 90%
Telegraph Road 279,003,325 401,064,948 70%
US Route 1* 558,188,870 608,234,908 92%
River Crossing 826,425,693 827,693,473 100%
Interstate 295* 260,110,075 306,155,355 85%
Maryland 210* 157,845,059 163,085,914 97%
Maryland Project wide 14,915,082 16,536,299 90%
DC I-295 15,746,529 15,746,529 100%
Total $2,274,910,850 $2,519,520,946 90%

*Includes cost of deferred HOV ramps

BASIS OF ESTIMATE

All major projects and contracts are now active with bids received or activity underway/complete. Given both states have awarded all of their major contracts and the three smaller future contracts (VA-10, MA-5 and MB-5) will be constructed on a manage-to-budget basis, no escalation factors were required.

COST AND SCHEDULE RESPONSIBILITY

Maryland and Virginia continue their responsibility for maintaining their respective share of the project budget as called for in the Initial Financial Plan. In addition, both States continue to work together on maintaining the project schedule interface with the River Bridge and the adjacent U.S. Route 1 and I-295 interchange construction contracts. Please refer to Section 2 of the Initial Financial Plan for a detailed discussion on individual State responsibility of cost overruns and underruns, resolution of schedule impacts caused by one State that impacts the other State, and the sharing of special federal funds between Maryland and Virginia. Tools used to monitor the project's cost and schedule include the weekly agency teleconference and the project quarterly financial reports.

COMPLETED FUNDING TRANSFERS

Maryland and Virginia executed cost reimbursement agreements for the General Engineering Consultant and six construction related projects in 2003 (see Attachment P in the 2003 Financial Plan) as well as the close out of five construction projects and five new projects in the current cost reimbursement agreement (see Attachment P in the 2006 financial plan).

These agreements indicate that one State is performing work on behalf of the other State as called for in the Initial Financial Plan and therefore special federal funding allocations have been adjusted to account for these changes. Reference the top of Attachment N for the resulting cost transfers and funding transfers, respectively for those approved cost reimbursement transfers. These transfers are included in all current cash flow and funding forecasts as shown in Attachments M, N, and O.

SECTION 3 - PROJECT IMPLEMENTATION PLAN

PROJECT SCHEDULE

With construction complete and only close out activities remaining for the river crossing, as well as the U.S. Route 1, I-295 and MD 210 interchanges, attention now centers on construction of the Telegraph Road interchange and Jones Point Park improvements.

Both Maryland and Virginia are utilizing various methods to accelerate or maintain the project schedule including contractor incentive payments, constructability reviews, and alternate design options for the bidding contractors to ensure a timely and economical result. Project completion as defined in the Record of Decision is currently maintained at 2013 for all elements with the exception of two small contracts in Maryland (MA5 and MB5) and one in Virginia (VA10), for which the completion dates are to be determined. As a result of the Southern Mobility Study, it was determined that projected traffic levels in this region were not significant enough to justify the construction of these HOV ramps. As a result, these contracts are indefinitely deferred.

Further details regarding the project schedule can be found in Attachment F.

ACTUAL VS. FORECAST EXPENDITURES

Comparison of the actual expenditures realized through September 2010 versus the 2009 update indicates that there have not been any material changes to the schedule for the vast majority of the project. Attachment I provides the quarterly comparison of the previous financial plans forecasted expenditures versus the actual expenditures. After revising the schedule per Attachment F, the revised cash flow was calculated as shown in Attachment M and the chart and table below.

Exhibit 3-1: IFP vs. Current Forecast Cash Flows (Chart)

Exhibit 3-1: IFP vs. Current Forecast Cash Flows (chart)

Exhibit 3-2: IFP vs. Current Forecast Cash Flows (Table)
  Annual Expenditures Cumulative Expenditures
Federal Fiscal Year Ending Initial Financial Plan Forecast 2009 Financial Plan Forecast Current Forecast Initial Financial Plan Forecast 2009 Financial Plan Forecast Current Forecast
Sep-98 $6.9 $6.9 $6.9 $6.9 $6.9 $6.9
Sep-99 $13.2 $12.2 $12.2 $20.1 $19.1 $19.1
Sep-00 $37.2 $38.6 $38.6 $57.3 $57.6 $57.6
Sep-01 $173.9 $141.9 $141.9 $231.1 $199.5 $199.5
Sep-02 $315.5 $232.6 $232.6 $546.6 $432.1 $432.1
Sep-03 $439.3 $233.8 $233.8 $985.9 $665.9 $665.9
Sep-04 $333.9 $241.5 $241.5 $1,319.8 $907.5 $907.5
Sep-05 $287.7 $297.6 $297.6 $1,607.5 $1,205.1 $1,205.1
Sep-06 $254.5 $315.2 $315.2 $1,862.0 $1,520.3 $1,520.3
Sep-07 $163.9 $297.0 $297.0 $2,025.9 $1,817.3 $1,817.3
Sep-08 $156.4 $213.6 $213.6 $2,182.3 $2,030.9 $2,030.9
Sep-09 $123.0 $164.6 $165.2 $2,305.3 $2,195.5 $2,196.1
Sep-10 $97.2 $87.7 $78.8 $2,402.5 $2,283.2 $2,274.9
Sep-11 $40.4 $78.5 $91.9 $2,442.9 $2,361.7 $2,366.8
Sep-12   $54.5 $51.8   $2,416.2 $2,418.7
Sep-13   $40.7 $37.9   $2,456.9 $2,456.6
Sep-14   $0.0 $0.0   $2,456.9 $2,456.6
Sep-15   $0.0 $0.0   $2,456.9 $2,456.6
Out Years   $63.7 $62.9   $2,520.6 $2,519.5

METHODOLOGIES & ASSUMPTIONS

Please refer to Section 3 of the Initial Financial Plan for the methodologies and assumptions used to generate the project cost estimate. In addition, contracts VA-10, MA-5 and MB-5 have been estimated in current dollars and will be managed to budget.

IMPACTS OF POTENTIAL OF FUTURE COST CHANGES

Each State is responsible for increases based upon their contractual responsibility. If unforeseen events occur, a meeting/teleconference with the appropriate parties (FHWA/MSHA/VDOT/GEC) will be scheduled to address the impact of potential changes. In addition, the corresponding adjustments will be incorporated into the annual updates to the financial plan.

SECTION 4 - PROJECT FINANCING & REVENUES

APPROVED SPECIAL FEDERAL FUNDING

Since the 2009 financial plan update, there has been no change to the special federal fund obligation limitation available to the project. Through September 2010, the project has received a total of $1.544 billion in special federal funds.

Exhibit 4-1: Approved Special Federal Funding Summary
Federal Fiscal Year 36P Obligation Limitation Q99 Obligation Limitation Q99 RABA Obligation Limitation 612 Obligation Limitation Cumulative Obligation Limitation
1996 $30,000,000       $30,000,000
1997 $30,000,000       $60,000,000
1998   $22,275,000     $82,275,000
1999   $66,225,000     $148,500,000
2000   $130,650,000 $8,000,000   $287,150,000
2001   $175,800,000 $18,467,857 $598,680,000 $1,080,097,857
2002   $203,400,000 $29,542,304   $1,313,040,161
2003   $230,467,163     $1,543,507,324

Woodrow Wilson Bridge Memorial Act of 1995 = 36P
Revenue Aligned Budget Authority = Q99 RABA
TEA-21 = Q99
General Revenue Funds = 612

For further details of each of these funding sources, please refer to Section 4 of the Initial Financial Plan.

In previous financial plans, it was assumed that the $69.7 million in obligation limitation placed on the TEA-21 special federal funding would be provided by the Federal Government to fulfill its commitment of providing the full balance of TEA-21 funds. Given that the more recent passage of the subsequent reauthorization did not include this balance of special federal funds, the States have made the necessary financial adjustments such that this funding source is no longer assumed as anticipated funding and has been replaced by a combination of regular sources available to the States. However, should this $69.7 million become available at a future date, the States will replace those regular sources currently available to the project with these funds.

Allocation of Special Federal Funds Between States

The total obligation authority for the project totals $1,543,507,324. Based on the 2009 financial plan, the allocation of special federal funds was as follows (see Attachment N of 2009 Financial Plan):

Virginia Special Federal Funds Upset Limit = $558,526,888
Maryland Special Federal Funds Upset Limit =   $984,980,436  
Total Special Federal Funds $1,543,507,324

OTHER COMMITTED AND ANTICIPATED FUNDS - VIRGINIA

The Commonwealth of Virginia is committed to completing the Woodrow Wilson Bridge Project per the Record of Decision and therefore commits the balance of funding required to complete the Virginia elements will be made available as required. Virginia's total estimate is currently $1,190.3 million (see Attachment E) and Virginia will require an additional $631.8 million outside of the special federal funds available. Virginia will provide the necessary funding for the project as called for in Attachments N and O. The next annual update to the Virginia six-year program will reflect the latest data as contained in this update.

Funding sources that Virginia could utilize include, but are not limited to, regular federal-aid apportionments, federal discretionary programs, other federal funds, bond revenues, and other State funding sources and are subject to the federal authorization/appropriation and State appropriation processes. Based on current revenue projections, this project will consume a large portion of VDOT's interstate and/or NHS funds. Every possible effort will be taken during program development to minimize statewide impacts and balance overall available funding with other statewide priorities. VDOT continues to commit that funding will be made available to the Woodrow Wilson Bridge Project as required during the annual update of the statewide six-year program. Attachment L also summarizes those projects that have received federal funds from regular sources outside of the Woodrow Wilson Bridge Project special federal funds.

In addition to the sources listed above, VDOT has utilized the net rental receipts from the Hunting Point complex. Through September 2010, the project has realized net rental receipts of approximately $26 million. These rental receipts have been used to offset project right of way acquisition and construction administration expenditures associated with the VA 6/7 contract. The funds received from the future sale of Hunting Point, the Eisenhower Staging area site, and other surplus real estate assets (approximately 11 parcels) within the project limits, will be utilized in future years to offset additional project expenditures.

OTHER COMMITTED AND ANTICIPATED FUNDS - MARYLAND

The State of Maryland is also committed to completing the Woodrow Wilson Bridge Project per the Record of Decision and therefore commits that the balance of funding required to complete the Maryland elements will be made available as required. Maryland's total estimate is currently $1,313.5 million (see Attachment D) and Maryland will require an additional $328.5 million. Maryland will provide the necessary funding for the project as called for in Attachments N and O. The next annual update to the Maryland six year plan will reflect the latest data as contained in this update.

Funding sources that Maryland could utilize include, but are not limited to, regular federal-aid apportionments, federal discretionary programs, other federal funds, bond revenues, and other State funding sources and are subject to the federal authorization/appropriation and State appropriation processes. Considering the size of MSHA's capital program and assuming that federal funds continue at least at the levels currently received, this commitment is not expected to have an undue impact on Maryland's statewide program. In addition, Maryland has been utilizing other federal funds during the life of the project, such as ISTEA funds (360) and the 1993 DOT Appropriations Act (341). Attachment L identifies those projects that are using these “regular” federal funds.

OTHER COMMITTED FUNDS - DISTRICT OF COLUMBIA

As noted in the Initial Financial Plan, the District of Columbia funded the I-295 project with Interstate Maintenance (IM) funds that are 90% federally reimbursable. The 10% city match originated from the District of Columbia Highway Trust Fund.

SUMMARY OF COMMITTED & ANTICIPATED FUNDING

Based on the committed and anticipated funding sources outlined above, the following chart summarizes the sources and amounts of funding required to complete the Woodrow Wilson Bridge Project. “Committed Funds” are funds or obligation authority that are either immediately available or are programmed in either State's six-year plan. “Anticipated Funds” are either Federal obligation authority that the U.S. Department of Transportation will receive on behalf of the project or State funding from sources other than special federal funds that fall outside either State's six-year plan.

Exhibit 4-2: Summary of Project Funding
Funding Source Responsibility Committed Anticipated Total
Special Federal Funds Federal $1,543.5M   $1,543.5M
Virginia Various Sources Virginia $619.7M $12.1M $631.8M
Maryland Various Sources Maryland $277.6M $50.9M $328.5M
District of Columbia IM D.C. $15.7M   $15.7M
Totals   $2,456.5M $63.0M $2,519.5M

KEY REVENUE ASSUMPTIONS, RISKS, AND MITIGATIONS

Based on the committed and anticipated funding sources previously described, the following chart summarizes the potential risks of not receiving the anticipated funding.

Exhibit 4-3: Summary of Key Revenue Assumptions, Risks, and Mitigation
Revenue Source Assumptions & Justification Discussion/Potential Risks Risk Mitigation
TEA-21 All special federal funds are fully available to project. None Not required
Virginia Commitment Virginia has approved the State contribution. None Not required
Maryland Commitment Maryland has approved the State contribution. None Not required
State of Virginia Anticipated Contribution Virginia is committed to providing the remaining funds through other federal and/or State sources. None Not required
State of Maryland Anticipated Contribution Maryland is committed to providing the remaining funds through other federal and/or State sources. None Not required

SECTION 5 - PROJECT CASH FLOW

The Woodrow Wilson Bridge Project continues to be funded entirely from federal and State funds. All revenue analyses presented are based on the assumption that the anticipated funding measures discussed in Section 4 will be approved.

REVENUE TIMING - SPECIAL FEDERAL FUNDS

As discussed in Section 4, a total of $1.543 billion in special federal funds are available to the States. Currently, the States have obligated a total of $1.543 billion in special federal funds, $460 million in regular federal funds and $90 million in advance construction (AC) funds (see Attachment L). The advance construction (AC) funds are primarily assumed to convert to regular federal funds in the near future.

The following exhibit shows the total federal obligation limitation for the special federal funds by fiscal year. Detailed tables can be found in Attachment K.

Exhibit 5-1: Estimated Total Special Federal Funding by Fiscal Year
Federal Fiscal Year Obligation Authority to Date
1996 $30,000,000
1997 $30,000,000
1998 $22,275,000
1999 $66,225,000
2000 $138,650,000
2001 $792,947,857
2002 $232,942,304
2003 $230,467,163
TOTAL $1,543,507,324

Per the analysis in Attachment N, Virginia and Maryland have nearly obligated the complete $1.543 billion. The table below summarizes the anticipated special federal funding requirements by quarter for the next year.

Exhibit 5-2: Special Federal Funding Obligation Forecast
Year Ending Cumulative Special Federal Funds Available Virginia Special Federal Funds Maryland Special Federal Funds Cumulative Total Special Federal Funds
Current Funding Available $1,543,507,324 $558,526,888 $984,980,436 $1,543,507,324
Obligated T o Date $1,543,507,324 $557,803,611 $984,718,738 $1,542,522,349
Sep-11 $1,543,507,324 $723,277 $261,698 $1,543,507,324
Totals $1,543,507,324 $558,526,888 $984,980,436 $1,543,507,324

REVENUE TIMING - REGULAR FEDERAL & STATE MATCH FUNDS

An underlying assumption that is used throughout the financial analyses as presented in Attachments N and O is that once special federal funds are exhausted, the States will utilize regular statewide federal funds to fund the remaining projects. The participation ratio is typically 80% Federal, 20% State (80/20) as all 100% eligible bridge components will have been funded by the special federal funds. This assumption does not preclude either State from using other sources or innovative financing methodologies as described in Section 4 and the IFP. Separately, the D.C. project is funded on a 90/10 basis.

As a result of the analysis presented in Attachment N, Virginia and Maryland are prepared to obligate the balance of the Woodrow Wilson Bridge Project as called for by the schedule below.

Exhibit 5-3: Regular Federal Funding Obligation Forecast
Year Ending Virginia Regular Fed Funds Obligated Maryland Regular Fed Funds Obligated DC IM Funds Obligated Cumulative Total Regular Federal Funds Obligated
Obligated To Date $285,458,561 $174,256,686 $14,171,876 $473,887,123
Sep-11 $66,591,827 $1,557,976 $- $542,036,926
Sep-12 $49,130,169 $- $- $591,167,095
Sep-13 $- $- $- $591,167,095
Sep-14 $- $- $- $591,167,095
Sep-15 $- $- $- $591,167,095
Out Years* $9,023,255 $40,704,488 $- $640,894,838
Totals $410,203,812 $216,519,150 $14,171,876 $640,894,838

*Out Years figures include the deferred HOV ramps under contracts MA5, MB5, and VA10.

In addition to the obligation forecast, the States are also prepared to fund the State match as called for in the table below. For further details on the State match calculations, please refer to Attachment O.

Exhibit 5-4: State and D.C. Match Cash Flow Forecast
FFY Ending Virginia Maryland DC Cumulative Future State/DC Match
State Match Expended to Date $191,763,493 $100,348,040 $1,574,653 $293,686,186
Sep-11 $10,788,962 $1,201,445 $- $305,676,593
Sep-12 $9,744,313 $245,847 $- $315,666,753
Sep-13 $6,858,968 $- $- $322,525,721
Sep-14 $- $- $- $322,525,721
Sep-15 $- $- $- $322,525,721
Out Years* $2,416,940 $10,176,122 $- $335,118,783
Totals $221,572,676 $111,971,454 $1,574,653 $335,118,783

*Out Years figures include the deferred HOV ramps under contracts MA5, MB5, and VA10.

While the Commonwealth of Virginia is currently using tapered match on a number of projects, this financial plan conservatively assumes all cash flows will be disbursed assuming the projects would be treated as a regular reimbursable agreement. The tapered match will essentially allow Virginia to pay the State match portion towards the end of the life of the tapered match project. However, Virginia is “depositing” State match dollars each year via the table above in their six-year plan to pay off the eventual State match for the tapered match project.

TOTAL OBLIGATION AND STATE CASH FLOW SUMMARY

Per the funding forecasts presented above, the following table summarizes the origin and timing of all funding required to complete this project per the current schedule.

Exhibit 5-5: Total Revenue Forecast Summary
(in $million)
  Obligated Special Federal Funds Obligated Regular Federal Funds State Match Cash Flow  
FFY Ending VA MD VA MD DC VA MD DC Grand Total
Actuals $557.8 $984.7 $285.5 $174.3 $14.2 $191.8 $100.3 1.6 $2,310.1
Sep-11 $0.7 $0.3 $66.6 $1.6 $- $10.8 $1.2 $- $2,391.2
Sep-12 $-   $49.1 $- $- $9.7 $0.2 $- $2,450.3
Sep-13     $- $- $- $6.9 $- $- $2,457.2
Sep-14     $- $- $- $- $- $- $2,457.2
Sep-15     $- $- $- $- $- $- $2,457.2
Out Years*     $9.0 $40.7 $- $2.4 $10.2 $- $2,519.5
Totals $558.5 $985.0 $410.2 $216.5 14.2 $221.6 $112.0 1.6 $2,519.5

*Out Years figures include the deferred HOV ramps under contracts MA5, MB5, and VA10.

SECTION 6 - OTHER FACTORS

IMPACTS ON STATE DOT BUDGETS

As discussed earlier, Maryland, Virginia and the District of Columbia have already specifically committed the necessary funding to meet the six-year plan projections. In addition, each State remains fully committed to completing the entire project by funding the remaining balance required during the remaining years of the project outside of the six-year plan.

Based on current revenue projections, this project will consume a large portion of VDOT's interstate funds. Every possible effort will be taken during program development to minimize statewide impacts and balance overall available funding with other statewide priorities. VDOT continues to commit that funding will be made available to the Woodrow Wilson Bridge Project as required during the annual update of the statewide six-year program.

For Maryland, considering the size of their statewide capital program and assuming that federal funds continue at least at the levels currently received, their commitment is not expected to have an undue impact on their statewide program.

SPECIAL COST CONTAINMENT STRATEGIES

Referencing the Initial Financial Plan's discussion for special cost containment strategies, the project continues to implement value engineering studies, constructability reviews, regular cost and schedule management reporting, “manage to budget and schedule” techniques, and routine project management interfaces between the sponsoring agencies to ensure the project is as timely and on budget as possible.

MAJOR RESPONSIBILITIES OF ALL PARTIES INVOLVED

As discussed in the Initial Financial Plan, the States, District of Columbia, and GEC continue to work together as a proactive team to ensure that the best interests of the project and sponsoring agencies are maintained at all times. A few of the tools that assist management throughout the construction phase include quarterly financial reports, monthly project wide schedule updates, operation plans with regard to GEC program, right of way, and construction management, and weekly project management conference calls.

SCHEDULE FOR FUTURE ANNUAL UPDATES

The next annual update to the financial plan will be submitted in December 2011.

SECTION 7 - COST & REVENUE HISTORY

Since the approval of the Initial Financial Plan, the revenue sources and project scope have not materially changed. From a cost and schedule perspective, the following summary will serve as the starting point for future updates to this financial plan.

COST & SCHEDULE HISTORY

(All schedule data presented in calendar quarters)

2001 INITIAL FINANCIAL PLAN - AUGUST 2001
Cost Estimate: Completion Schedule:
Virginia Share - $1,062 million Maryland 210 Q4 2010
Maryland Share - $1,365 million Interstate 295 Q1 2007
District of Columbia -   $15 million   River Crossing Q4 2006
Total - $2,443 million U.S. Route 1 Q2 2008
    Telegraph Rd   Q1 2011  
    Overall Project Q2 2011
2002 FINANCIAL PLAN UPDATE - DECEMBER 2002
Cost Estimate: Completion Schedule:
Virginia Share - $1,062 million Maryland 210 Q4 2011
Maryland Share - $1,486 million Interstate 295 Q2 2008
District of Columbia -   $16 million   River Crossing Q1-Q2 2008
Total - $2,564 million U.S. Route 1 Q3 2008
Increase $121 Million Telegraph Rd   Q1 2011  
    Overall Project Q4 2011
    Duration Extended 2 Quarters

2002 Update Discussion: The net cost increase for the overall project is primarily attributable to the increase in the engineer's estimate for the river crossing superstructure contract (BR3A, 3B, and 3C). Further discussion regarding changes in the cost estimate can be found in Section 2. The schedule was extended primarily for Maryland 210 contracts MB-3 and MB-4, which were deferred to match anticipated Maryland funding availability.

 

2003 FINANCIAL PLAN UPDATE - DECEMBER 2003
Cost Estimate: Completion Schedule:
Virginia Share - $1,120 million Maryland 210 Q4 2007
Maryland Share - $1,291 million Interstate 295 Q2 2008*
District of Columbia -   $16 million   River Crossing Q1-Q2 2008
Total - $2,427 million U.S. Route 1 Q2 2009
Decrease $(137) million Telegraph Rd   Q2 2011  
    Overall Project Q2 2011
    Duration Reduced 2 Quarters

* - Excludes HOV Lane Construction. Including HOV Lane Construction, I-295 will be complete in Q4 2012, U.S. Route 1 will be complete in Q2 2011, and the overall project will be complete Q4 2012.

2003 Update Discussion: The net cost decrease for the project is attributable to the decrease in the estimates for the river crossing superstructure contracts BR-3B and 3C due to low bids. Virginia's cost increased due to a scope transfer from Maryland to Virginia with a corresponding increase in special federal funding. From a schedule perspective, Maryland 210 construction has been accelerated due to the favorable bid results for the river crossing superstructure contracts.

2004 FINANCIAL PLAN UPDATE - DECEMBER 2004
Cost Estimate: Completion Schedule:
Virginia Share - $1,120 million Maryland 210 Q2 2012
Maryland Share - $1,313 million Interstate 295 Q2 2008**
District of Columbia -   $16 million   River Crossing Q2-3 2008***
Total - $2,449 million U.S. Route 1 Q2 2009*
Increase $22 million Telegraph Rd   Q1 2011  
    Overall Project Q2 2012
    Duration Increase 4 Quarters

* - Excludes HOV Lane Construction.
** -Excludes HOV Lane Construction. Also, Interstate 295 date does not include the removal of the crossover or final landscaping.
*** - The River Crossing date range is referencing the scheduled traffic switch range date for the inner loop.

2004 Update Discussion: The $22 million increase in the cost estimate relative to the 2003 financial plan is primarily attributable to an increase in estimated neat construction costs associated with the Maryland 210 interchange, where a small contract (MB-5) was added. In summary, the total cost for the project remained relatively unchanged with an increase of only 0.9% relative to the 2003 update and only $6 million or 0.25% more than the Initial Financial Plan estimate of $2,443 million.

The revised completion date for the project as defined by the Record of Decision is the second quarter 2012. This is four quarters longer than the 2003 financial plan projected completion in the second quarter 2011. It is important to note that this is only due to the addition of one small construction contract (MB-5) for the Maryland 210 interchange that will not begin until mid 2011. This schedule adjustment does not affect the completion dates for the river crossing, the other interchange completion dates, or the completion of the significant elements for the Maryland 210 interchange relative to the 2003 financial plan schedule. Over the coming year, Maryland will be examining ways to accelerate MB-5 such that the planned end date for the project will return to the second quarter of 2011.

2005 FINANCIAL PLAN UPDATE - DECEMBER 2005
Cost Estimate: Completion Schedule:
Virginia Share - $1,120 million Maryland 210 Q2 2008***
Maryland Share - $1,308 million Interstate 295 Q2 2009*
District of Columbia -   $16 million   River Crossing Q3 2008**
Total - $2,444 million U.S. Route 1 Q2 2009*
Decrease $(5) million Telegraph Rd   Q3 2011  
    Overall Project Q3 2011
    Duration Reduced 3 Quarters

* - Excludes HOV Lane Construction.
** - The River Crossing date range is referencing the scheduled traffic switch range date for the inner loop.
*** - Excludes completion of Contract MB-5.

2005 Update Discussion: The total cost for the project remained relatively unchanged with a decrease of only $5 million relative to the 2004 update and an increase of only $1 million relative to the Initial Financial Plan estimate of $2,443 million.

The schedule remained relatively the same as the 2004 overall schedule. Of significant note, given the successful budget savings achieved by low bids, value engineering, etc., Maryland successfully accelerated the Maryland 210 contracts such that the interchange will be completed two and a half years ahead of schedule relative to the original Initial Financial Plan schedule.

2006 FINANCIAL PLAN UPDATE - DECEMBER 2006
Cost Estimate: Completion Schedule:
Virginia Share - $1,146 million Maryland 210 Q3 2008**
Maryland Share - $1,315 million Interstate 295 Q2 2009*
District of Columbia -   $16 million   River Crossing Q4 2008
Total - $2,476 million U.S. Route 1 Q4 2010
Increase $32 million Telegraph Rd   Q4 2011  
    Overall Project Q4 2011
    Duration Increase 1 Quarter

* - Excludes HOV Lane Construction.
** - Excludes completion of Contract MB-5.

2006 Update Discussion: The total cost for the project changed with an increase of $32 million relative to the 2005 update and an increase of $33 million relative to the Initial Financial Plan estimate of $2,443 million. The primary changes to the cost estimate were in Virginia with the transfer of approximately $10 million in right of way costs previously paid by another VDOT project that ultimately benefited the Woodrow Wilson Bridge Project as well as an increase in cost associated with the main construction contract for the Telegraph Road interchange.

The schedule remained relatively the same as the 2005 overall schedule, with one quarter of additional time required to complete the overall project relative to the 2005 schedule. VDOT will proceed with the construction of VA-10 (Ramps M, N, and Q) within the U.S. Route 1 Interchange with anticipated completion of the 4th quarter of 2010.

2007 FINANCIAL PLAN UPDATE - DECEMBER 2007
Cost Estimate: Completion Schedule:
Virginia Share - $1,194 million Maryland 210 Q4 2008**
Maryland Share - $1,315 million Interstate 295 Q2 2009*
District of Columbia -   $16 million   River Crossing Q4 2008
Total - $2,524 million U.S. Route 1 Q4 2010
Increase $48 million Telegraph Rd   Q2 2013  
    Overall Project Q2 2013
    Duration Increase 6 Quarters

* - Excludes HOV Lane Construction of Contract MA-5.
** - Excludes completion of Contract MB-5.

2007 Update Discussion: The total cost for the project increased $48 million relative to the 2006 update and is an $81 million increase relative to the Initial Financial Plan estimate of $2,443 million. This change is due primarily to the low bid results of the Telegraph Road VB-2/3/6 construction contract. This overall increase relative to the Initial Financial Plan will ultimately be offset by the future sale of the Hunting Point and Eisenhower Avenue properties as well as the net rental revenues from Hunting Point.

The schedule has changed from the 2006 overall schedule, with six quarters of additional time required to complete the overall project. This is due to the Telegraph Road construction, now scheduled to be completed in Q2 2013. VDOT will make every effort to complete the project by December 2012. By doing so, the duration increase compared to the Initial Financial Plan would be 4 quarters.

2008 FINANCIAL PLAN UPDATE - DECEMBER 2008
Cost Estimate: Completion Schedule:
Virginia Share - $1,211 million Maryland 210 Q1 2009*
Maryland Share - $1,315 million Interstate 295 Q3 2009**
District of Columbia -   $16 million   River Crossing Q4 2008
Total - $2,541 million U.S. Route 1 Q2 2009***
Increase $17 million Telegraph Rd   Q2 2013  
    Overall Project Q2 2013
    No Change to Overall Duration

* - Excludes completion of Contract MB-5.
** - Excludes HOV lane construction for Contract MA-5.
*** - Excludes HOV ramp construction (Contract VA-10) and Jones Point Park (to be complete Q2 2012)

2008 Update Discussion: The total cost for the project increased $17 million relative to the 2007 update and is a $98 million increase relative to the Initial Financial Plan estimate of $2,443 million. The increase is primarily attributable to the cost to complete the main U.S. Route 1 construction contract. This overall increase relative to the Initial Financial Plan will ultimately be offset by the future sale of the Hunting Point and Eisenhower Avenue properties, 11 other right of way parcels, as well as the net rental revenues from Hunting Point.

There is no change to the overall completion of the project, which is scheduled for Q2 2013.

2009 FINANCIAL PLAN UPDATE - DECEMBER 2009
Cost Estimate: Completion Schedule:
Virginia Share - $1,190 million Maryland 210 Q1 2009*
Maryland Share - $1,315 million Interstate 295 Q1 2010**
District of Columbia -   $16 million   River Crossing Q4 2008
Total - $2,521 million U.S. Route 1 Q1 2010***
Decrease $(21) million Telegraph Rd    Q2 2013  
    Overall Project Q2 2013
    No Change to Overall Duration

* - Excludes completion of Contract MB-5.
** - Excludes HOV lane construction for Contract MA-5.
*** - Excludes HOV ramp construction (Contract VA-10) and Jones Point Park (to be complete Q2 2012)

2009 Update Discussion: The total cost for the project decreased $21 million relative to the 2008 update and is a $78 million increase relative to the Initial Financial Plan estimate of $2,443 million. The decrease over the past year is primarily attributable to the recognition of rental receipts from the Hunting Point complex which have now been made available to offset project right of way acquisition expenditures. This overall increase relative to the Initial Financial Plan will ultimately be offset by the future sale of the Hunting Point and Eisenhower Avenue properties, 11 other right of way parcels, as well as additional net rental revenues from Hunting Point.

There is no change to the overall completion of the project, which is scheduled for Q2 2013.

2010 FINANCIAL PLAN UPDATE - DECEMBER 2010
Cost Estimate: Completion Schedule:
Virginia Share - $1,190 million Maryland 210 Q1 2009*
Maryland Share - $1,314 million Interstate 295 Q1 2010**
District of Columbia -   $16 million   River Crossing Q4 2008
Total - $2,520 million U.S. Route 1 Q1 2010***
Decrease $(1) million Telegraph Rd    Q2 2013  
    Overall Project Q2 2013
    No Change to Overall Duration

* - Excludes completion of Contract MB-5.
** - Excludes HOV lane construction for Contract MA-5.
*** - Excludes HOV ramp construction (Contract VA-10) and Jones Point Park (to be complete Q2 2012)

2010 Update Discussion: The total cost for the project decreased $1 million relative to the 2009 update and is a $77 million increase relative to the Initial Financial Plan estimate of $2,443 million. The decrease over the past year is due to the Maryland project wide congestion management system budget being reduced based on the current cost to complete projection.

There is no change to the overall completion of the project, which is scheduled for Q2 2013. VDOT will make every effort to complete the project by December 2012.

CURRENT EXPENDITURE PROJECTIONS VS. INITIAL PROJECTIONS

Please refer to Section 3 for further discussion on current expenditure projections versus the original Initial Financial Plan projections.

SECTION 8 - COST & REVENUE TRENDS

COST TRENDS OVER PAST YEAR

The States have been quite fortunate to receive bids that are predominantly under budget. Winning low bid amounts have come in under the engineer's estimate 29 times out of 37 and approximately equal to the Initial Financial Plan budget (see Attachment G).

The States have observed no significant cost trends over the past year, but will continue to monitor raw and finished material prices and identify and adequately budget for any future impacts as necessary.

REVENUE TRENDS OVER PAST YEAR

The States will continue to fully fund the project to meet the project schedule as presented in this plan. The States also acknowledge that the effect of the funding requirements for this project is not expected to have an adverse impact on the overall statewide transportation program.

FUTURE IMPLICATIONS OF TRENDS

It is expected that the few remaining contracts should see a normal level of contractor competition. In addition, given that the remaining contracts are not significant relative to the overall project construction budget and that project contingency budgets remain, there is a low likelihood of any negative implications to the project.

ADJUSTMENTS IN FINANCIAL PLAN TO ACCOUNT FOR TRENDS

All trends have been considered in the current estimate for the Woodrow Wilson Bridge Project. If future trends should arise, the sponsoring agencies are committed to identifying and acting on those trends in a timely manner and those trends will be reflected in the routine management reporting tools and meetings.

SECTION 9 - REVENUE SHORTFALL MITIGATION

This annual financial plan update has included all necessary Federal, District of Columbia, Maryland, and Virginia revenues to offset the anticipated project expenditures through the end of the project. In addition, Virginia will be recovering costs via the sale of excess right of way parcels to provide additional contingency to cover unanticipated costs in the future, in order to maintain the overall Virginia project budget.

SECTION 10 - SIGNIFICANT COST REDUCTIONS

The following table identifies those individual projects that have experienced a reduction in cost in excess of $10 million relative to the 2009 estimate update. Further general discussion on cost trends can be found in Section 2.

Exhibit 10-1: Significant Cost Reduction Summary
Project/Item 2009 Estimate Current Estimate Decrease Cause for Decrease
US Route 1 Construction Administration $52.2 M $30.9 M $21.3 M Hunting Point rental receipts transferred from right of way to construction administration.

SECTION 11 - SIGNIFICANT COST INCREASES

The following table identifies those individual projects that have experienced an increase in cost in excess of $10 million relative to the 2009 financial plan update. Further general discussion on cost trends can be found in Section 2.

Exhibit 11-1: Significant Cost Increase Summary
Project/Item 2009 Estimate Current Estimate Increase Cause for Increase
US Route 1 Right of Way* $113.8 M $137.0 M $23.2 M Hunting Point rental receipts transferred from right of way to construction administration.

* Figures do not include the administration portion of the US Route 1 right of way costs.

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