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REGION: All bids for Highway 76 widening come in low

San Marcos company Flatiron has lowest bid

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In a statement about the strong competition for local road projects, all nine bids for the long-delayed widening of Highway 76 from Oceanside to Bonsall came in at least $1 million less than the project's estimated $75.8 million price tag.

Most bids came in $5 million to $10 million less, and the lowest bid ---- delivered by Flatiron West Inc. of San Marcos ---- was $15 million under cost, according to the California Department of Transportation.

All bids remain under review and a contract is expected to be awarded in the next month.

Construction on the 5.5-mile "middle section" project should start in January and last about two years, said Edward Cartagena, spokesman for Caltrans' San Diego office.

It will add one lane each way on the narrow, busy route from Melrose Drive in Oceanside to Mission Road in Bonsall.

It's expected to be complete by 2012. Future work will widen Highway 76 another 5.5 miles east to Interstate 15 by 2014.

The project bids reflect what transportation leaders said they've seen during the past year or more: fierce competition for road projects, and bids that have come in as much as 30 percent under cost.

"We've been getting some great prices," said Gary Gallegos, head of the San Diego Association of Governments, the region's transportation planning and financing agency.

"We're not surprised," Cartagena said of the Highway 76 bids, noting that a drop in construction material prices has helped companies bid low.

Marney Cox, the association's chief economist, said lower bids have not completely offset the loss of sales tax revenue to pay for projects.

But, he said, it's come close.

Matt Adams, deputy director of the Building Industry Association of San Diego County, said road construction has not turned around what he called the region's building "depression."

"I'm afraid not, because you can't get financing," he said. "That's why you're not seeing a lot of projects moving forward."

Cartagena, the Caltrans spokesman, said the review of the Highway 76 bids will determine whether the companies can complete the work at the price they quoted.

Transportation officials channeled $109 million in federal stimulus money to the Highway 76 project earlier this year.

With such low bids for the Oceanside to Bonsall widening, SANDAG expects to have some of that money left over.

It is now eyeing a project on Interstate 805 at Carroll Canyon Road for the rest, said Jose Nuncio, a senior transportation engineer for the agency.

The remainder cannot go toward the eastern widening of Highway 76, because environmental reports are not yet complete for that stretch, Gallegos said.

He said the stimulus money can be used only for shovel-ready projects, which include I-805.

Call staff writer Chris Nichols at 760-740-5426.

The nine bids and the companies that delivered them:

$61,023,992; Flatiron West Inc., San Marcos

$66,372,763; Granite/MCM A Joint Venture, Watsonville

$67,168,129; Sukut ---- Myers Joint Venture, Santa Ana

$67,562,285; Atkinson Contractors, Foothill Ranch

$67,614,572; Errecas Sim J Harris A Joint Venture

$68,028,009; Sema Construction Inc., Lake Forest

$69,913,140; Diablo Contractors Inc., San Ramon

$73,221,452; Skansa USA Civil West California District Inc., Riverside

$74,802,646; Steve P Rados Inc., Santa Ana

Source: California Department of Transportation

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