The Maryland Transportation Authority (MDTA) will not retain Kiewit Infrastructure Co. for the second phase of the Francis Scott Key Bridge reconstruction project in Baltimore, opting instead to seek bids from other contractors to complete the multimillion-dollar effort.
Selected for the initial phase of the design-build phase-in in late August 2024, Kiewit has been developing plans for the replacement of the collapsed Patapsco River crossing. Kiewit’s bid of $1.2 billion was at least $20 million more than the other two shortlisted teams.
By March 2026, Kiewit’s design development reached 70%, setting the stage for negotiations with MDTA on the second phase of full construction. In that time, the projected construction costs of the reconstruction had accelerated to more than $5 billion, nearly triple the MDTA’s initial estimate that the agency said it had needed to apply for federal emergency relief funding to launch the rapid removal of collapsed bridge debris from the main shipping channel serving Baltimore Harbor after the March 26/2020 Dali. The project schedule also began to stretch beyond the original fall 2028 target.
Although Congress had already fulfilled then-President Joe Biden’s promise of full funding for a replacement bridge, Trump administration officials have repeatedly criticized Maryland’s oversight of the project and its procurement practices. In November, Gov. Wes Moore (D) promised to work with federal officials to find ways to reduce costs, which he attributed to “federal design standards and resilience, not discretionary state choices.”
After weeks of engagement with Kiewit on the next steps of the rebuild, however, “it became clear that the contractor’s proposed price and schedule to move forward were excessively high and therefore unacceptable,” Moore said in an April 28 statement, leading to the decision to begin the process of excluding Kiewit from the project.
Instead, MDTA said in its own statement that it will “return to the market to negotiate the best deal to deliver this bridge as quickly and safely as possible.” The agency has scheduled an industry forum for May to share additional information about the next steps in the procurement process.
Kiewit spokeswoman Teresa Shada said in a statement that while the company was unable to reach an agreement to proceed with the project, “we are proud of the progress made and the strong working relationship developed during Phase 1.” Shada added that while the company is disappointed by MDTA’s decision, “we are committed to completing our current scope of work for Phase 1, in addition to the comprehensive initial construction packages.”
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According to MDTA, the remaining tasks authorized under the $73 million Kiewit Phase 1 contract include driving foundation piles and constructing a temporary trestle to support construction activity. That work is expected to last at least until the end of 2026, MDTA says.
Meanwhile, Maryland Attorney General Anthony G. Brown announced earlier this month that the state had reached a settlement in principle with the owner and operator of the M/V Dali, the vessel that struck the original Key Bridge, causing the structure to collapse and the deaths of six construction workers. Grace Ocean Private Limited and Synergy Marine Pte Ltd. they had fought the litigation, arguing that maritime law limited their liability to far less than the billions Maryland expected to recover from the incident.
The settlement, details of which have not been announced, resolves claims filed on behalf of the state, MDTA, the Maryland Port Authority (MPA) and the Maryland Department of the Environment. It does not resolve any pending claims the state may have against Hyundai Heavy Industries, which built the Dali and the electrical system that the National Transportation Safety Board determined was the source of the ship’s loss of power and subsequent uncontrolled drift toward the key bridge.
