VTA Recommends Change in Contractor for BART Tunnel as Cost-Saving Measure

Panel Installation for the 24-ft Sound Wall (Phase1) 1

Courtesy of VTA

SAN FRANCISCO - The Santa Clara Valley Transportation Authority, or VTA, BART Silicon Valley Phase II staff have recommended that the VTA move forward with a different tunnel contractor to better meet the budgetary needs of the project.

According to the release, the VTA BART Silicon Valley Phase II staff made the recommendation on June 12th to the Oversight Committee. The recommendation comes as a way to “control costs” and ensure a “financially sustainable path.” It is the first step in a “series of cost savings measures” that are currently being assessed by VTA staff for consideration.

Mayor of Campbell and Chair, VTA Board of Directors, Sergio Lopez said, “VTA staff have identified approximately $400 million in potential cost savings through a comprehensive review of the project. By taking a holistic approach, the team pinpointed opportunities to refine the design, streamline construction methods, and optimize project delivery, demonstrating VTA’s commitment to fiscal responsibility and efficient use of public funds.”

The project’s current contract Kiewit Shea Traylor (KST) has reportedly been “unable to meet budget expectations,” leading VTA staff to recommend a new procurement to find savings and avoid increasing costs. VTA states that throughout confidential discussions, other tunneling contractors have “affirmed their strong interest in partnering with VTA to deliver a technically sound, efficient tunnel solution.” These firms have reportedly been able to meet the project’s requirements whilst remaining within VTA’s budget.

San Jose Mayor Matt Mahan, Vice Chair, VTA Board of Directors said, “While it is never easy to part ways with a contractor, I strongly support VTA’s effort to find efficiencies and control costs to move this once in a generation project forward. 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.”

VTA says it is remaining committed to finding more opportunities to save costs in the future and believes that a new tunnel contract package will “align better with price estimates and maintain long-term viability of the program.” However, KST will also complete the early construction activities that it started. This includes “building the portal for future tunnel work.”