The city plans to solicit bids for about $1 billion in contracts this year as part of an ambitious plan to start construction of an elevated commuter train in December.

The first of those contracts is scheduled to be awarded next month and involves conducting a risk management feasibility study for the $5.3 billion, 20-mile train, according to a recently released bid solicitation. The value of that contract has not been decided. However, the biggest transit-related contract so far will come late this year and is expected to be a $550 million to $600 million deal to design and build an elevated six-mile guideway from East Kapolei to Leeward Community College. That excludes an unspecified amount to cover contingency costs.

Other major transit contracts scheduled to be put out for bid this year include a $250 million rail vehicle and systems contract and a $120 million contract to build a maintenance and storage facility. Both contracts won't be awarded until early 2010.

Those procurements are part of a plan to launch limited train service in phases starting in late 2013 and ending in late 2018. The success of that plan hinges in part on whether the Honolulu City Council fixes a glitch that's preventing the city from moving ahead with a construction contract. That could occur late this month.

SEARCH FOR BIDDERS

The first contract that will be awarded will be to conduct a risk assessment and implementation plan for the transit project, according to a request for proposals issued Dec. 31. Interested parties have until Feb. 3 to submit proposals and the city expects to award the contract on Feb. 27.

The chosen contractor will advise the city as it solicits bidders for bigger contracts later this year, said Wayne Yoshioka, director of the city's Department of Transportation Services.

"It's the normal thing you would need to set up for a project of this nature," he said. "If we do get to the point where we start construction, we want to make sure we've got this service on board."

How many companies seek the initial contract along with their identities remains to be seen. So far, the city has awarded three major transit deals valued at about $108 million. In each instance, only two qualified proposals were submitted. That has prompted criticism the city hasn't done enough to promote more competition.

Typically, the city posts procurement notices on the Internet then provides a one-month window for interested parties to submit proposals. That's the minimum posting requirement for contracts, according to the State Procurement Office. The city won't be varying from that practice with the new procurements.

"Those who are interested already know to be looking (on the Internet), so it's very common for them to know where to look," Yoshioka said.

REVISING ORDINANCE

Among the companies not expected to bid on the risk assessment contract is New York-based transportation engineering consultant Parsons Brinckerhoff. The company already has been awarded two deals valued at more than $96 million to provide engineering and environmental studies on the transit project.

Tadahiko Ono, a vice president for Parsons Brinckerhoff, said the company would not be bidding on the contract because that work should be done by a company not already directly involved in the project.

The biggest contract so far on Honolulu's largest public works project ever is expected to be awarded once the federal government approves the project's environmental impact statement. City officials hope that will happen this fall so that construction can begin in December.

The project's timetable also hinges on the City Council fixing a technical glitch that's preventing the solicitation of proposals to begin construction of the first phase. Legally, the city has been advised not to solicit bids for any construction contracts until the City Council alters the original ordinance authorizing the city to build the train.

That measure required the administration to seek council approval before soliciting proposals to build the train system. That was added as an attempt to keep the council and public informed about key project details. However, that provision also violates state procurement laws, according to the state Procurement Office.

ALTERNATIVE APPROACH

Bill 63 would eliminate that provision and allow the city administration to seek construction proposals without council approval, but that issue also isn't expected to be resolved until Jan. 28 at the earliest.

The City Council also has yet to resolve whether the train's route should traverse Salt Lake as planned or be diverted to pass by the industrial airport district.

Under current plans, the first construction deal — valued at up to $600 million excluding contingencies — will be a design and build contract, which means the team selected only will be responsible for designing and building the first six miles of elevated guideway. That deal will be followed by separate contracts for vehicles and systems and for a maintenance yard.

Currently, the city plans to operate the train system, though that can change between now and late 2013 when limited service is set to begin. Full service is scheduled to start by 2019.

At least one City Council member thinks the city is taking the wrong approach by soliciting several, individual transit contracts.

Councilman Donovan Dela Cruz last week introduced a resolution urging the city to enter into a design, build, operate and maintain contract for the rail project. One big contract could allow the city to fix the cost of construction early, while placing the risk of cost overruns and delays on the contractor.

"I'm not against the concept of rail," Dela Cruz said. "I'm against how it's being implemented.

"I believe in looking at all the different scenarios across the country that design, build, operate and maintain is the best thing."

The city's Wayne Yoshioka defended the city's approach of breaking up the transit contracts.

"We're doing that to boost competition and participation," he said. "If we do one humongous contract, there are only a few companies that have the wherewithal to go after something that huge. What it would do is reduce the number of firms that would be involved," Yoshioka said.