The PIEP has completed a number of significant accomplishments to date including securing all construction and environmental permits, a lengthy, complicated and expensive process. The project has also created 65 acres of new land, constructed a 5-mile long haul road from Joint Base Elmendorf-Richardson and created and operated gravel pits on the adjoining military base. Additional work includes the installation of a new rail line around the back of the port property, upgraded and buried power, and the replacement of drainage, roads, and water treatment systems within the existing port property. Security systems have been upgraded to meet federal requirements and include the construction of several security checkpoints and a security operations center. In April, 2011 the POA received 43 acres of industrial property from the United States Army through the transfer of ownership of the former Defense Fuels site at the POA.

Following the approval of the project permit in 2007, sheet pile installation began in 2008. MARAD, via ICRC, awarded the construction contract to Quality Asphalt and Paving (QAP), based on a low bid requirement. In 2010, MARAD and ICRC changed the contract bid requirement to best value and a new contractor, West Construction, was awarded the construction contract. In 2009, MARAD and the POA became aware that problems existed with the sheet pile installation in two cells of the wet barge berth. It was not until additional dive inspections were performed in 2010 that the full extent of the face sheet damage was revealed. Although progress was significantly slowed by the damage discovery, West Construction was able to successfully install several cells in 2010. This year inspections are being performed on tail walls in order to complete a full assessment of the sheet pile installed in 2009.

Since July 2011, construction work has continued while project partners have been focusing on initiating long-term changes resulting in increased protection, improved project management structure, enhanced oversight, and an independent review of the work done to date.

Project Management

In 2003, recognizing that the POA facility was in a deteriorated condition and had surpassed its useful lifecycle, the Municipality of Anchorage signed a memorandum of understanding (MOU) with the U.S. Department of Transportation Maritime Administration (MARAD) to develop the (PIEP). Under this management structure, the POA remained responsible for securing project funding, and for communicating the project phasing needs. MARAD assumed contracting and procurement authority, project oversight, quality assurance, and the management and administration of funds. Furthermore, MARAD was named the lead federal agency for the project.

MARAD contracted with Integrated Concepts & Research Corp. (ICRC) and their contract responsibilities included planning, design, construction and permitting. ICRC relied on a variety of subcontractors to perform the work.

As the project progressed, it became clear that the original agreement did not sufficiently address or define each entities' roles and responsibilities. All parties recognized the need for a more extensive, detailed, and updated document which is reflected in the agreement approved by the Anchorage Assembly on September 27, 2011. (you could provide a link to this document)

Several major developments have occurred recently, each of which are further discussed in the October Quarterly Report to the Alaska State Legislature: (provide a link to the quarterly report)

• The Municipality of Anchorage recently concluded negotiations for a new Memorandum of Agreement with the U.S. Department of Transportation Maritime Administration (MARAD). This further clarifies the roles and responsibilities of each entity through May, 2012, at which time all contracting and construction management will be the responsibility of the POA, the Municipality, or their designee.
• The Port of Anchorage (POA), the Municipality and MARAD have engaged the U.S. Army Corps of Engineers to conduct an independent design review and an analysis of the project work to date.
• The U.S. DOT Office of the Inspector General is conducting an audit of MARAD and its contracting and procurement methods in its port development program using the Port of Anchorage Intermodal Expansion Project as a case study.

The past few months have produced significant changes to the project, best illustrated in the new Memorandum of Agreement. These changes are both necessary and substantial. This document creates a structure under which the project can transition from its previous form of contract management and oversight to a new team, one experienced in delivering marine infrastructure projects. As the transition process develops, our goal is that it will result in improved project delivery, cost effective design, and financial protection that will assure all parties involved that their investments are well managed and protected.