I like to think that I know highway construction contracting--I mean, I do get paid to know this stuff. Specifically, I work for a firm that represents highway contractors in the Mid-Atlantic.
So it happens that when I saw the story about Gov. Palin's Road to Nowhere on Anderson Cooper 360 this evening, I muttered "bullshit" at the screen after a Palin aide claimed that the Road had to be built. Why? Well, unless prior Governor Frank Murkowski pulled a fast one and directed the Alaska Department of Transportation and Public Facilites ("DOT&PF") to enter into a non-standard contract for the Gravina Island Highway, Governor Sarah Palin had the ability on her first day in office - December 4, 2006 - to immediately pull the plug on the Road to Nowhere, saving taxpayers tens of millions of dollars. You know, like a real Maverick would do.
After the jump, I'll show you how her campaign's statement that she had no choice is a flat-out lie.
During the CNN piece, the reporter asks McCain/Palin Campaign Spokeswoman Meghan Stapleton why Gov. Palin spent $26 million of taxpayer money even though the Road went Nowhere after the Bridge was nixed. The response?
STAPLETON: The Governor could not change that earmark. That earmark was given, that earmark was dictated, that had to be spent on the Gravina Road and nothing else, and so the Governor had no option.
Q: Could she have stopped construction?
STAPLETON: My understanding is that, you know I'd have to look in to that for you, I don't know.
REPORTER: Stapleton did get back to us, and she says that under ordinary circumstances Gov. Palin would not have allowed the Gravina Road project to move forward. But given the Federal earmark, and because the contract for the road was already signed before she got into office, the Governor was left no viable alternative.
"No viable alternative?" Well, for most of us, that would seem to be the case if you've already signed a contract, right? But not if you're the Government. Federal and most State procurement law provides for the inclusion of what's known as a "Termination for Convenience" clause in construction contracts. This clause is essentially what it sounds like. From the Alaska Dept. of Transportation and Public Facilities' General Contract Provisions:
80-09 TERMINATION OF WORK FOR DEPARTMENT'S CONVENIENCE. The performance of work under the contract may be terminated by the Department in accordance with this section in whole or in part, whenever, for any reason the Contracting Officer determines that such termination is in the best interest of the Department.
...
When the Department orders termination of work under a contract effective on a certain date, all completed units of work within each pay item as of that date will be paid for at the contract unit price. Payment for partially completed work will be made at actual costs incurred plus a reasonable profit.
...
So, if the contract for the Road to Nowhere contained the standard contract provisions - and I'd be genuinely shocked to find out it didn't (to the point that an investigation would be called for) - then Gov. Palin had the option to immediately direct the Department to issue a Notice of Termination for Convenience. Per General Provision 80-09, this Notice would require the Contractor to "stop work under the Contract on the date and to the extent specified in the Notice of Termination." The State would not pay for any work not completed or materials not directed or authorized by the State.
In short, the McCain/Palin campaign has flat-out lied about the Governor having "no viable alternative" to wasting $26 million on the Road to Nowhere. Surprised? I'm not.
The question then becomes, how much of the project had already been completed by the time Sarah Palin took office on December 4, 2006? Well, according to this page on the Alaska DOT&PF website, construction began in 2006 and was "expected to be complete in Fall 2008." Sure enough, a quick search turned up a Notice of Request for Proposals which stated the following:
Ketchikan Gravina Island Access - Phase 1 - Gravina Island Highway Design Build
RFP Number 02573009
Description: The Project requires the design and construction of full width gravel roadway from the Lewis Reef Road near the Airport southerly to tidewater on the West Channel of Tongass Narrows, where succeeding projects will bridge across to Pennock and Revillagigedo (Revilla) Islands. The Project is about 3.2 miles long and includes two bridges (over Government and Gravina Creeks) and numerous other drainage crossings.
A complete description of services is contained in the RFP Package. Estimated period for performance of the Agreement is December 1, 2006 to October 31, 2008. Cost of these professional services is expected to be in the range of $20,000,000 to $30,000,000.
Wow, so proposals for the project weren't even submitted until November 20, 2006, and the project wasn't started until at least December 1, 2006? Assuming the McCain/Palin campaign is telling the truth (that's a big assumption) this means a contractor only had 4 days to rack up costs against the contract before Palin had the ability to terminate it. An exceedingly conservative estimate would be that less than $1 million in recoverable costs had been incurred by that point.
Also, GPO access has this Federal Highway Administration document stating that:
The DOT&PF moved forward in 2006 with the first phase of implementing Alternative F1: construction of the Gravina Island Highway segment, which extends from the Ketchikan International Airport south approximately 3 miles to the proposed bridge spanning the west channel of Tongass Narrows, and is expected to be completed in 2008. On September 21, 2007, due to rapidly escalating costs, Alaska Governor Sarah Palin directed the DOT&PF to look for a lower cost alternative for access to Gravina Island instead of proceeding further with Alternative F1.
Wait, what? In September 2007 - after nearly a year in office and construction on the Road to Nowhere - she decided to look for a "lower cost alternative?" Perhaps a road that led to an "alternative" non-existent bridge?
Bottom line: After retreating to headquarters to "look in to" the answer, the McCain/Palin campaign decided to lie about the Road to Nowhere.
"Asphalt-gate" anyone? =]
UPDATE: I just found the following story from Anchorage Daily News--
[T]he state is continuing to build a road on Gravina Island to an empty beach where the bridge would have gone -- because federal money for the access road, unlike the bridge money, would have otherwise been returned to the federal government.
...
Meanwhile, work is under way on a three-mile road on Gravina Island, originally meant to connect the airport and the new bridge. State officials said last year they were going ahead with the $25 million road because the money would otherwise have to be returned to the federal government.
[Palin spokesperson] Leighow said the road project was already under way last year when Palin stopped the bridge, and she noted that it would provide benefits of opening up new territory for development -- one of the original arguments made for the bridge spending.
"Opening up new territory for development." That's what my Federal tax dollars are going for. Wonderful.