Santa Clara VTA BART Silicon Valley Phase II staff to recommend project needs new contractor
The Santa Clara Valley Transportation Authority (VTA) BART Silicon Valley Phase II staff will recommend to the oversight committee on June 12 that Santa Clara VTA pursue a new tunnel contractor to align costs with the project budget. The agency says the move is part of a strategic effort to control costs and keep the project on a financially sustainable path.
“[Santa Clara] VTA staff have identified approximately $400 million in potential cost savings through a comprehensive review of the project,” said Mayor of Cambell, Calif., and Santa Clara VTA Board Chair Sergio Lopez. “By taking a holistic approach, the team pinpointed opportunities to refine the design, streamline construction methods and optimize project delivery, demonstrating [Santa Clara] VTA’s commitment to fiscal responsibility and efficient use of public funds.”
The agency says current project contractor Kiewit Shea Traylor (KST) was unable to meet budget expectations, and project staff believe a new procurement should be considered to find savings and avoid cost increases associated with KST’s price proposal for the tunnel work.
According to Santa Clara VTA, through confidential discussions, multiple nationally recognized tunneling contractors affirmed their strong interest in partnering with the agency to deliver a technically sound, efficient tunnel solution. The recommendation by agency staff is the first in a series of cost savings measures being evaluated by agency staff for the board to consider in the coming months.
“While it is never easy to part ways with a contractor, I strongly support [Santa Clara] VTA’s effort to find efficiencies and control costs to move this once in a generation project forward,” said San Jose Mayor and Santa Clara VTA Board Vice Chair Matt Mahan. “We don’t have a blank check for this project, and it’s important that everyone—from the agency to its contractors—is held accountable for staying within budget.”
Santa Clara VTA says the off-ramping decision and new procurement may extend the timeline of the project, but through staff’s preliminary industry outreach, the agency believes a new tunnel contract package will align better with price estimates and maintain long-term viability of the program.
KST will complete the early BART to Silicon Valley construction activities that the company initiated, which includes building the portal for future tunnel work.
