San Jose, Calif.’s Santa Clara Valley Transportation Authority (VTA) is taking decisive steps to ensure the financial sustainability of the BART Silicon Valley Phase II Extension. It has announced plans to recommend the pursuit of a new tunnel contractor to its Oversight Committee.

The move follows an in-depth project review that identified significant cost-saving opportunities.

According to VTA officials, the agency has pinpointed approximately $400 million in potential savings through design refinements, optimized construction methods, and improvements in project delivery strategies.

“By taking a holistic approach, the team pinpointed opportunities to refine the design, streamline construction methods, and optimize project delivery,” said Sergio Lopez, chair of the VTA board. “This demonstrates VTA’s commitment to fiscal responsibility and efficient use of public funds.”

A Strategic Shift to Keep the Project on Track

The recommendation comes after Kiewit Shea Traylor (KST), the current contractor responsible for tunneling work, submitted a pricing proposal that exceeded the project’s cost parameters. VTA staff determined that pursuing a new procurement process offers the best chance to align tunnel construction costs with the project budget.

Multiple nationally recognized tunneling firms expressed strong interest in the project during confidential outreach. These companies affirmed their confidence in meeting engineering and safety standards while staying within VTA’s financial framework, bolstering the agency’s case for a competitive rebid.

Although transitioning to a new tunnel contractor may impact the project timeline, VTA emphasized its continued commitment to cost savings, transparency, and delivery excellence. 

The recommendation to seek a new contractor is the first of several cost control measures evaluated by staff for future board consideration.

Importantly, agency officials said, KST will continue to carry out the early construction work already underway, including the development of the tunnel portal, ensuring progress continues as VTA initiates a new procurement package designed to better align with current price expectations.

Preserving a Track Record of Success

VTA officials highlighted the agency’s history of delivering capital projects on time and budget over the past two decades. 

The decision to reassess the tunnel contracting approach reinforces that legacy while prioritizing the long-term viability of the BART Silicon Valley program.

“This recommendation is aimed at doing exactly that,” VTA stated, “ensuring that the BART to Silicon Valley Phase II extension delivers high-quality infrastructure while staying within available funding.”