Making our case for a $1.2 billion P3 building project

Public-private partnerships aren’t just being used for transportation projects. On July 28, a Skanska team submitted our qualifications for the University of California, Merced’s 2020 project, which aims to double the campus’ size by 2020 through some 1.9 million square feet of construction spread among academic, housing, research and other building types. This is the largest social infrastructure P3 project in the U.S., with a client-estimated value of about $1.2 billion.

Our team – Merced 2020 Partners – is made up of Skanska Infrastructure Development and Fengate Capital Management as equity developers; Skanska USA Building, Webcor Builders and Lyles Construction Group in a construction joint venture; and a design joint venture led by CannonDesign. An operations and maintenance firm has yet to be chosen.

“Our Merced 2020 Partners team is one of the most experienced proposers with a combined 52 P3 and infrastructure projects valued at more than $36 billion,” said Larry Casey, senior vice president of sales and marketing. “We are offering an integrated project delivery approach to bring the best value and a unique, sustainable project to the University of California.”

Our team’s submission consisted of 13 copies of six volumes; despite the package’s size and complexity, our team was able to complete the qualifications in just over three months. In true One Skanska fashion, Skanska ID and USA Building worked closely together with our partners to develop a winning proposal for this project in California’s San Joaquin Valley.

“Our ability to identify this project, build a premier team, and respond quickly to the request for qualifications shows very clearly how well Skanska ID and Skanska USA Building can work together when we think of ourselves as One Skanska,” said Mark Kempton, project director.

A shortlist announcement is expected in early September, followed by the release of the RFP in November. Final proposals will be due in mid-2015. The project is on a fast track schedule, to be completed by 2020. The client intends for construction to start in 2016 with at least one building completed by late 2017.

The 2020 Project is focused on UC Merced’s triple-net-zero goal for its campus: consume zero net energy, produce zero landfill waste and produce zero net greenhouse gas emissions.

Five other teams also submitted qualification statements:

Edgemoor Plenary EdR Partners, which includes Edgemoor Infrastruture and Real Estate, Clark Construction Group and Skidmore, Owings, and Merrill

E3 2020, which includes Balfour Beatty, Sundt Construction and SmithGroupJJR

Gateway2Learn, which includes HOCHTIEF PPP Solutions North America, Turner Construction and NBBJ

Innovation Partners, which includes Hunt Development Group, Shikun and Binui, Sasaki Associates and Moss and Associates

Merced Campus Collaborative, which includes Lend Lease Investments, Macquarie Capital Group, McCarthy Building Companies, Lend Lease Construction and Moore Ruble Yudell

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