Kiewit Named ENR California's Contractor of the Year
Combining prominent transportation and energy projects, impressive revenue growth in the Golden State and an active community outreach program, Kiewit has been selected as ENR California's Contractor of the Year.
Kiewit is based in Omaha, Neb., but put down roots in California long ago, opening an office in the state in the 1940s. It now has offices in Fairfield, Poway and Santa Fe Springs.
High-profile transportation projects are helping to reinforce Kiewit's presence in the Golden State. In Southern California, Kiewit has teamed with joint-venture partner Parsons to build a $486-million Metro Gold Line Foothill light-rail extension from Pasadena to Azusa. In Northern California, Kiewit is constructing the $890-million Bay Area Rapid Transit District (BART) Warm Springs extension, from the existing Fremont Station to a new station in the city of Fremont's Warm Springs area.
Booming Business
In this year's Top Contractors ranking, Kiewit shot up to No. 3, from ninth place last year, as its 2011 California revenue soared 81%, to nearly $1.1 billion.
Market diversity has spurred Kiewit's success. Transportation is the company's largest sector, but it also serves the petroleum, power, water supply, buildings, industrial process and sewerage-solid waste markets.
Tom Shelby, president of the Kiewit Power division in Lenexa, Kan., says the company and its subsidiaries had a strong year in California, not only in power and transportation, but also in petroleum.
"We made more than nine times the revenue in pipelines and more than 20 times the revenue in refineries from 2010 to 2011," says Shelby. "Our overall revenue in petroleum increased by more than 1,000%. This is a testament to opportunities in the state." He also says that Kiewit's power business revenue grew by 312%.
Kiewit is undertaking three major power projects in California:
• Haynes Generating Station modernization, Long Beach. Owner: Los Angeles Dept. of Water and Power. When finished in December 2013, the re-powered plant will meet new California emissions standards and reduce pollutants. It also will have a 10-minute start capability, which will ensure power reliability during periods of high demand and act as a backup to renewable electricity sources.
• Marsh Landing Generating Station, Antioch. Owner: GenOn. Located on the existing Contra Costa Powerplant site, the station will use existing infrastructure while also adding capacity to meet local needs. The engineering/procurement/construction contract calls for an 800-megawatt natural gas-fired plant with four 200-MW simple cycle units. Completion is scheduled for April 2013.
• The Walnut Creek Energy Plant, City of Industry. Owner: Edison Mission Group. Scheduled for a June 2013 completion, the new natural gas peak plant will consist of five 100-MW turbines, each 60 ft long by 20 ft wide and will also be capable of powering up within 10 minutes to help out the system grid, which is relying more and more on renewables (solar and wind).
But Kiewit's role in the transportation segment in California stands out. Ken Riley, senior vice president and infrastructure division manager, Santa Fe Springs, says the company and the state have a long, successful history, beginning with the construction of various portions of interstates decades ago and continuing with last year's "Carmaggedon" event.
Many in Southern California were riveted by media coverage of the mid-July 2011 project, which called for shutting part of busy Interstate 405 in Los Angeles for two days while the construction team dismantled the Mulholland Drive Bridge, which crossed over "the 405." Coincidentally, Kiewit had built the bridge, in 1960. The teardown was part of the I-405 Sepulveda Pass widening project. Kiewit finished the teardown 18 hours ahead of schedule, earning a hefty bonus. The feared traffic cataclysm didn't occur.
Looking at the highway, transit and aviation sectors broadly, John Jansen, senior vice president and infrastructure division manager in Fairfield, says, "The challenges in transportation funding mirror other markets. But there are bright spots with some new procurement options, such as design-build and [public-private partnerships], which provide more flexible operations."
The Southern California and BART transit projects also are progressing, as is a big airport endeavor:
• Metro Gold Line Foothill light-rail extension, Phase 2A, Pasadena. Owner: Metro Gold Line Foothill Extension Construction Authority. With JV partner Parsons, Kiewit is overseeing a design-build project that will include 11.5 miles of main double track, 15 bridges and a maintenance and operations facility. Completion is slated for 2015.
It is the second of three segments of the new $1-billion line. The first was Los Angeles-Pasadena, completed in 2003, and the third will be Azusa-Montclair, for which no completion date has yet been determined.
• Warm Springs Extension, Fremont. Owner: BART. The project, scheduled to be finished in 2015, will add 5.4 miles of new tracks from the existing Fremont Station south to a new station in the Warm Springs District of the city of Fremont. There is an optional station to be located approximately midway, in the Irvington District, depending on funding.
• Landside Portion of the San Diego International Airport Green Build Improvement Project. Owner: San Diego International Airport. In a joint venture with Sundt Construction, Kiewit is building a dual-level roadway to separate arriving and departing passenger traffic and reduce current curbside congestion. The plan also includes a check-in curb in front of Terminal 2, allowing most passengers to get boarding passes and check bags at automated kiosks before entering the terminal. Other project components are parking and roadway improvements. Completion is set for 2013.
In addition, Kiewit recently completed the Carlsbad Double Track project for Amtrak. The team expanded a 2-mile stretch of the coastal rail line to two tracks from one. The scope included a 213-ft-long, three-span girder bridge over the environmentally sensitive Aqua Hedionda Lagoon.
Community Action
Over the years, Kiewit has held numerous community events in California and contributed to charities and foundations. It has raised more than $120,000 for Oakland's Children's Hospital and Guide Dogs for the Blind and brought in more than $133,000 at its annual SoCal Charity Classic golf tournament for the Children's Miracle Network hospitals.
It has taken part in quarterly blood drives and supported the Contra Costa/Solano Food Bank, Toys for Tots, Wish Upon a Wreath & Cops for Kids Holiday Toy Donation. The company is a member of and volunteer for the Solano Land Trust. It also has participated in the Society of Women Engineers and career development workshops at the University of California, Davis.
In Southern California, Kiewit contributes to the Los Angeles and Orange County Food Banks, Midnight Mission, Walk-for-Wishes, American Cancer Society Relay for Life, Fred Jordan Mission and Habitat for Humanity, among other charities.
For several years at its Vallejo yard facility, Kiewit has hosted an outreach and training program for Bay Area youth to introduce high school students to potential opportunities in the construction industry.
In addition, Kiewit recently was nominated for the 2012 Associated General Contractors' Constructor Awards, in the Meeting the Challenge of the Difficult Job-Heavy Engineering classification, for its Lower Crystal Springs Dam Project. It won first place in AGC's Safety Excellence Awards in the Federal & Heavy Division, 700,001-1 million hours category. And the city of Los Angeles presented an award to the company in recognition of its service to its citizens.
