Bechtel Boosts Procurement in U.S. Infrastructure Projects
Bechtel, a prominent player in U.S. infrastructure, is enhancing procurement practices for significant projects. Two critical initiatives illustrate this shift: the Sepulveda rail transit project in Los Angeles and a new aluminum smelter in Oklahoma.
Transformative U.S. Infrastructure Projects
The aluminum smelter is groundbreaking as it marks the first facility of its kind built in the United States since 1980. This project aims to double the country’s production of aluminum, thereby strengthening supply chain resilience.
- Location: Oklahoma
- First built: Since 1980
Meanwhile, Bechtel is actively involved in the Sepulveda Transit Corridor project as a core member of the Sepulveda Transit Corridor Partners (STCP) consortium. This collaboration includes notable partners such as Meridiam and American Triple I (ATI).
Sepulveda Transit Corridor: A Major Investment
The Los Angeles County Metropolitan Transportation Authority (Metro) has approved Bechtel’s revised plans for a high-capacity, fully underground rail line. This rail system aims to connect the San Fernando Valley with the Westside of Los Angeles.
- Project Type: Fully underground rail line
- Investment Level: One of the largest transit investments in the U.S.
The project significantly enhances reliable transit options along one of the busiest corridors in Los Angeles. It also improves regional connectivity, showcasing the importance of robust infrastructure investment.
Procurement Strategies in Action
This public-private partnership (PPP) exemplifies advanced procurement processes. Competitive selections are made through Requests for Proposals (RFPs), while consortium sourcing brings in specialized expertise.
The rigorous evaluations conducted by Metro, including technical assessments and environmental reviews, mirror procurement best practices. A Chief Procurement Officer (CPO) leads the tendering process, effectively balancing cost, risk, and innovation.
Bechtel’s leadership role in these projects underlines its commitment to strategic sourcing. By carefully vetting partners like Meridiam, Bechtel optimizes spending across various engineering categories while effectively transferring risk.
