The Santa Clara Valley Transportation Authority (VTA) is likely to replace Kiewit Shea Traylor JV as the tunnel contractor for BART Silicon Valley Phase II to contain costs.
The recommendation, which is part of a strategic effort to control costs and keep the project on a financially sustainable path, will be made to the Oversight Committee on June 12.
Kiewit Shea Traylor JV (KSTJV) was awarded the design-build contract for the tunnel and trackwork in 2022.
Sergio Lopez, mayor of Campbell and chair of the VTA board, said VTA staff undertaking a comprehensive review of the project had identified approximately US$400m in potential cost savings.
“By taking a holistic approach, the team pinpointed opportunities to refine the design, streamline construction methods, and optimise project delivery, demonstrating VTA’s commitment to fiscal responsibility and efficient use of public funds,” he said.
Current contractor KSTJV was unable to meet budget expectations and VTA staff believe a new procurement should be considered to find savings and avoid cost increases associated with KSTJV’s price proposal for the tunnel work.
Through confidential discussions, multiple nationally recognised tunnelling contractors have affirmed their interest in partnering with VTA to deliver a technically sound, efficient tunnel solution. These firms were confident in their ability to meet the project’s engineering requirements while aligning with VTA’s budget framework, reinforcing the agency’s strategy to control costs without compromising on quality or safety.
The change of contractor is the first in a series of cost savings measures being evaluated by the VTA for consideration of the board in the coming months.
“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 cheque for this project, and it’s important that everyone – from the agency to its contractors – is held accountable for staying within budget,” said San Jose mayor and VTA vice-chair Matt Mahan.
The change of contractor and new procurement may extend the timeline, but the VTA says it remains committed to exploring cost-saving opportunities to ensure the project stays within available funding.
KSTJV will complete the early BART to Silicon Valley construction activities that the company initiated, which includes building the portal for the future tunnel work. The construction phase was officially launched with a groundbreaking ceremony in June last year.
The VTA’s extension of the regional BART system is the largest transport infrastructure project in the history of Santa Clara County.
The BSVII will integrate Santa Clara County with the greater Bay Area BARTA system. It will take the service from Berryessa/North San José through downtown San José to the City of Santa Clara. It includes three stations with underground platforms (28th Street/Little Portugal, Downtown San José, and Diridon), one ground-level station (Santa Clara), a train maintenance and storage facility at Newhall Yard, and additional facilities.
