page 1
page 2
page 3
page 4
page 5
page 6
page 7
page 8
page 9
page 10
page 11
page 12
page 13
page 14
page 15
page 16
page 17
page 18
page 19
page 20
page 21
page 22
page 23
page 24
page 25
page 26
page 27
page 28
page 29
page 30
page 31
page 32
page 33
page 34
page 35
page 36
page 37
page 38
page 39
page 40
page 41
page 42
page 43
page 44
page 45
page 46
page 47
page 48
page 49
page 50
page 51
page 52
page 53
page 54
page 55
page 56
page 57
page 58
page 59
page 60
page 61
page 62
page 63
page 64
page 65
page 66
page 67
page 68
page 69
page 70
page 71
page 72
page 73
page 74
page 75
page 76
page 77
page 78
page 79
page 80
page 81
page 82
page 83
page 84
page 85
page 86
page 87
page 88
page 89
page 90
page 91
page 92
page 93
page 94
page 95
page 96
page 97
page 98
page 99
page 100
page 101
page 102
page 103
page 104
page 105
page 106
page 107
page 108
page 109
page 110
page 111
page 112
page 113
page 114
page 115
page 116
page 117
page 118
page 119
page 120
page 121
page 122
page 123
page 124
page 125
page 126
page 127
page 128
page 129
page 130
page 131
page 132
page 133
page 134

May 08 www.bus-ex.com 31 projects in Texas, Mississippi, New Mexico, and Florida. But since the early 1990s it has stayed in Texas, where projects continue to materialize. While the Army Corps of Engineers is Abrams’ second-largest client, its largest is the Texas Department of Transportation (TxDOT), and the centerpiece of the El Paso development is the $268 million Spur 601 Inner Loop project, a new 7.5-mile freeway that will connect the Patriot Freeway, US Highway 54, and the Purple Heart Memorial Freeway (Loop 375). Abrams’ vicepresident of project development, Bill Burnett, has been working on it since 2005. “We turned our proposal in to TxDOT, unsolicited, in December 2005, and the department agreed it had merit. There was one other proposal competing against us, and after a long process of evaluating the two, TxDOT determined that ours provided the best value in December 2006, and we signed the J.D.Abrams A private construction company financing a public sector highway project? It’s happening out in the West Texas town of El Paso, and Gary Toushek has a closer look Forty-two years after being founded by James D. Abrams Sr. in El Paso, Texas, heavy civil construction firm J.D. Abrams, L.P. is deeply entrenched in the city, building infrastructure for an expansion of the area. This is partly to accommodate a coming influx of some 21,000 military personnel and their families to Fort Bliss, in support of the Base Realignment and Closure decision to move the 1st Armored Division there. As well as El Paso, Abrams has area offices in Dallas and Houston, with its headquarters in Austin. It has two subsidiaries, Transmountain Equipment and Austin Prestressed; the latter operates a concrete precasting operation. Owned and managed by members of the Abrams family, the company’s major focus is public sector highway and road projects, but it has also worked on flood-control dams, reservoirs, concrete waterways, railroad test tracks, airport taxiways, and other infrastructure Texasteamwork

32 May 08 www.bus-ex.com contract in August 2007.” The Spur 601 project is the fi rst transportation project of its kind in the US in which a private sector developer is fi nancing the up-front cost to build a public sector freeway via “pass-through fi nancing,” by which the transportation bond issuers will be reimbursed by the state as the freeway is used by motorists. Although drivers won’t have to pay a toll to use the freeway, traffi c will be monitored, and the transportation bond issuers will be repaid the amount they fi nanced, based on the volume of traffi c the freeway carries after it is built. This agreement between a private investor and El Paso makes it possible to build the needed transportation project faster than the state could by itself, according to a TxDOT press release. “Since we promoted the fi nancing of the project through transportation bond issuers,” says Burnett, “we got involved with the fi nancial aspects of raising bonds for it, which is a new business aspect for us. We went to New York City two times in 2007 for meetings and discovered we have very good fi nancial standing with the credit-rating agencies Standard & Poor’s and Moody’s. Our contract with TxDOT says that once the project is complete in 2011, the transportation bond issuers will be paid a fee per mile for every vehicle using it for the next ten years, which will be used to retire the bonds. And while we had the contract with TxDOT, we worked with the local El Paso Camino Real Regional Mobility Authority, which issued the transportation bonds for us, so that we could issue tax-exempt bonds.” The project is slated to be completed in 39 months. Meanwhile, in the desert around El Paso, adjacent to the freeway construction, other Abrams crews are building the infrastructure for the new army barracks and related structures at Fort Bliss, beginning with underground utilities— gas, water, sewer, communications, electrical— then the streets and pads for buildings. The fi rst phase of the 1,200-acre development, called Brigade Combat Team 1 (BCT 1), the fi rst 400 acres, is nearly complete. BCT 2 is in progress, and BCT 3 will begin in May 2008. Burnett says that normally on a highway project this size Abrams would have a construction partner, “but because our company started in El Paso in 1966, and most of us at Abrams have worked there, we didn’t see where a construction partner on the Spur would add any value. So we were willing to take on all the risk ourselves. We have more than 300 of our 900 employees there, led by a project manager, a design manager and a construction manager, and we’ve been able to bring other Abrams talent in as needed, to supplement our local El Paso workforce. Sierra Machinery has enjoyed a close and successful 28-year relationship with J.D. Abrams, Inc. We are proud of everything we have accomplished together professionally, and of our sincere friendship and mutual respect. J.D. Abrams’ earnest commitment to improving the quality of life for El Paso and West Texas residents is unmatched and truly deserving of the acclaim and honor bestowed by this publication. Sierra Machinery