How Bechtel Drives Procurement in US Infrastructure Projects

Bechtel demonstrates the evolution of procurement from transactional purchasing to strategic value creation in two landmark US projects. These major initiatives include the Sepulveda rail transit in Los Angeles and a new primary aluminium smelter in Oklahoma.

The latter represents the first facility of its kind built in the US since 1980 and is set to double domestic output while bolstering supply chain resilience. Bechtel operates as a core member of the Sepulveda Transit Corridor Partners (STCP) consortium alongside Meridiam and American Triple I (ATI).

The company welcomes the Los Angeles County Metropolitan Transportation Authority (Metro) Board approval of its modified proposal for a high-capacity and fully underground rail line. This line links the San Fernando Valley to the Westside and represents one of the largest transit investments in America.

The project expands reliable transit along the busiest corridor in Los Angeles and boosts regional connectivity. This public-private partnership (PPP) exemplifies the core processes of procurement such as competitive selection via Requests for Proposals (RFPs).

It also involves consortium sourcing for specialised expertise and supply chain orchestration for megaprojects. The rigorous technical evaluation, environmental review and public engagement undertaken by Metro mirror Chief Procurement Officer (CPO)-led tendering as the process balances cost, risk and innovation.

The lead role taken by Bechtel highlights strategic sourcing by vetting partners like financiers Meridiam for risk transfer and optimising spend across engineering categories.

Expanding regional mobility networks

Jacob Mumm, General Manager of Bechtel's Public Infrastructure Business, says: "High-capacity transit is foundational to how growing metropolitan regions expand mobility, support economic growth and connect communities to opportunity."

"With deep roots in California and decades of experience delivering complex rail projects worldwide, Bechtel is proud to support Metro and our consortium partners as they advance this transformative investment for Los Angeles."

Jacob says that the subterranean line will serve more than 100,000 daily riders. It rivals Interstate 405 congestion relief with stations situated at Metro G Line, Ventura Boulevard, UCLA and Wilshire/Metro D Line. This infrastructure enhances access to jobs, education and healthcare for the region.

Managing high-value categories

Procurement teams will manage high-value categories within the project. These categories include automated signalling derived from Riyadh Metro experience, tunnelling equipment and sustainable materials. The teams apply spend analytics to control costs in a multi-billion-dollar build.

The track record held by Bechtel includes the largest driverless Riyadh Metro in the world and the Elizabeth Line in Europe.

In California the company delivered the original BART more than 50 years ago and now leads BART Silicon Valley Phase 2 along with ongoing Riverside County transit since 1987. This experience spans rail, roads, bridges and pipelines.

Reshoring aluminium production capacity

Bechtel has been selected by Emirates Global Aluminium (EGA) and Century Aluminium for preparatory engineering and early execution planning on a new primary aluminium smelter in Inola, Oklahoma.

This facility is expected to create 1,000 permanent jobs and up to 4,000 construction roles whilst strengthening US industrial supply chains. Procurement here drives strategic sourcing of energy-efficient tech, bauxite/alumina feedstocks and modular construction strategies to enhance efficiency.

The project aims to minimise logistics disruptions via road and river transport. The expertise demonstrated by Bechtel includes delivering one-third of global aluminium smelting capacity outside China over 25 years. This positions the company to optimise category spend for reshoring and sustainability.

Ailie MacAdam, President of Bechtel Mining & Metals, says: "Our team brings deep experience delivering complex U.S. megaprojects and aluminium facilities around the world."

"We are proud to support EGA and Century as they advance this important investment in America's industrial future."

Ailie says that these dual showcases demonstrates the pivot of procurement. This involves enabling GDP growth, job creation and resilient supply chains through expert partnership-building and category management.