Hoffman will build $240M state hospital
Barring a protest, state will award a contract Thursday for the 620-bed facility
POSTED: 06:00 AM PDT Wednesday, October 24, 2007
BY LIBBY TUCKER
Daily Journal of Commerce
Hoffman Construction Co. is the top bidder to build the state’s new psychiatric hospital in Salem.
The Oregon Department of Health and Human Services will award the project to the Portland contractor Thursday barring a protest from New York-based runner-up Turner Construction Co.
The state says construction of the new 620-bed hospital will cost as much as $240 million.
“We’re excited. It’s a great project for Oregon,” Dan Harmon, a Hoffman vice president, said.
“Our plan is to demolish the existing hospital and build a new hospital, (but) it’s entirely possible some of the collateral buildings will be renovated.”
The new hospital will be built on the same site as the current hospital – an eight-building complex in Salem that was featured in the 1975 film “One Flew over the Cuckoo’s Nest.” The state will soon move patients from the century-old building to make way for construction, which the state says will begin in 2009.
The state also plans to replace its Junction City psychiatric hospital with a new 360-bed facility.
Combined, the state says, construction of the two new hospitals will cost $413 million, to be paid for with state bonds. The new Salem hospital is scheduled to open in 2011; Junction City’s hospital should open in 2013.
The Legislature this year called for the replacement of the two state psychiatric hospitals, which have drawn scrutiny for their poor conditions.
“There’s an extensive pre-construction period; we’re working with the owner to determine what we’re going to do with the remaining patients,” Harmon said. “There’s a whole effort that’s got to go on.”
To speed the process, the Department of Human Services won approval to bypass the traditional design-bid-build contracting method, which is based on the bidders’ lowest cost estimates, according to the agency. DHS instead will award a construction manager-general contractor contract for the project based on the bidders’ qualifications.
Only two contracting firms, Hoffman and Turner, responded to the DHS call for proposals.
“There was really no question of the qualifications of both firms,” Mike Hewitt, a senior contracts consultant for the state, said. “It was simply a matter of evaluating those proposals that ended up with Hoffman being higher-ranked.”
Turner has until Thursday to protest the award.
The state in August awarded Englewood, Colo.-based CH2M Hill a $10 million contract to oversee construction of the two new state hospitals, according to the Associated Press.
A joint venture between Portland-based SRG Partnership and San Francisco firm HOK will design the new hospital in Salem, according to Hoffman.