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Project Profile: South Carolina 27 in 7

South Carolina 27 in 7

photo credit: South Carolina Department of Transportation (SCDOT)

Location

South Carolina (statewide)

Project Sponsor / Borrower

South Carolina Department of Transportation (SCDOT)

Program Areas

Alternative Project DeliveryProject Finance

Mode

Highway / Bridge

Description

This statewide effort from 1999 to 2008 accelerated the implementation of 200 highway improvement projects worth over $5.0 billion from 27 to 7 years.

SCDOT entered into partnerships with two private construction and resource management (CRM) firms to undertake strategic planning and financial management and coordinate design and construction activities, all without augmenting the size of the state agency. The state was divided into two regions, with Fluor Daniel responsible for the West and Parsons Brinckerhoff for the East. FHWA also worked closely with SCDOT to administer the partnership and a number of other innovative financing programs.

27 in 7 encompassed Interstate widening projects; interchange improvements; the 16-mile, four-lane Southern Connector; and the Cooper River Bridge Replacement, the single largest project in the history of SCDOT. The CRM contractor developed project and cash management software and procedures to manage projects and the bond proceeds by SCDOT and its two CRM partners.

Cost

Total Program Value - $5.3 billion

CRMs each responsible for $750 million subprograms

Funding Sources

Debt financing backed by tolls receipts on selected facilities and future federal and state aid receipts

  • TIFIA
  • State Infrastructure Bank
  • Bonding
Project Delivery / Contract Method

Best Qualified Competitive RFP Process.

The CRM contracts were lump sum for management functions over five years, with a milestone payment schedule for design and construction engineering and inspection services. Right-of-way services provided on a per-parcel fee basis.

Private Partner

Program managers - Fluor Daniel (West Region) and Parsons Brinckerhoff (East Region)

Project Advisors / Consultants

Not available

Lenders

Bondholders, USDOT TIFIA

Duration / Status

Program completed in 2008

Financial Status

Closed

Innovations
  • 27 in 7 was the first CRM partnership of this magnitude in the United States. The program included an incentive/disincentive bonus/penalty program to encourage achievements in innovation, schedule, cost control, and customer satisfaction. The value of resulting cost savings to SCDOT paid for the management fees paid to the Department's private CRM partners.
Related Links / Articles

South Carolina Transportation Infrastructure Bank

Contacts

Not available

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