VTA Recommends New Tunnel Contractor for BART Silicon Valley Phase II
The move follows an in-depth project review that identified significant cost-saving opportunities.

The decision to reassess the tunnel contracting approach reinforces that legacy while prioritizing the long-term viability of the BART Silicon Valley program.
Photo: VTA
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.”
More Rail

OKC Streetcar Makes Zero-Fare Service Permanent
Ridership increased an average of 71% compared with the same period a year earlier during the fare-free pilot.
Read More →
DART Customer Satisfaction Reaches Six-Year High
Overall satisfaction rose to 74.9%, while the agency’s Net Promoter Score reached a record 33.7.
Read More →
How DART's GoPass Is Redefining Regional Mobility
Serving 14 transit agencies, GoPass simplifies multimodal travel by allowing riders to plan, pay for, and manage an entire trip through one app.
Read More →
Amtrak Board Advances Plan to Restructure Organization, Seeks Public Input
The proposal, developed by Amtrak management and approved by the board for further consideration, is intended to modernize the organization's structure while improving accountability, operational efficiency, and customer service.
Read More →
Biz Briefs: STV teams with Amtrak, Motorcoach Operators Boost Fleet and Land Contracts, and More
From manufacturers and suppliers to transit agencies and motorcoach operators, these updates offer a snapshot of the projects, partnerships and business moves driving the industry forward.
Read More →
Metra Celebrates 100 Years of Electric Rail, Looks to the Future
The event was also a celebration of recent reforms to public transportation in the Chicago area, changes that could be as transformative in the future as the major civic achievement a century ago, said officials.
Read More →
LA Metro Marks Banner Year, Sets Ambitious Goals for New Fiscal Year
Incoming LA Metro Board Chair and Los Angeles Mayor Karen Bass joined outgoing Board Chair Fernando Dutra and LA Metro CEO Stephanie Wiggins to review accomplishments from fiscal year 2026, which included the opening of new rail extensions, advancement of major transit projects, expanded safety programs, and new rider amenities.
Read More →
DART Taps Nathaniel P. Ford Sr. as Next President/CEO
Since 2012, Ford has served as the CEO of the Jacksonville Transportation Authority
Read More →
California High-Speed Rail Authority Signs MOU to Advance High Desert Corridor
The agreement deepens collaboration between the California High-Speed Rail Authority and the High Desert Corridor Joint Powers Agency, supporting design integration, cost savings, and faster delivery of a key Southern California rail link.
Read More →
Building the Next Generation of Transit Technology
In this edition of METROspectives, Luminator CEO Magnus Friberg discusses the company's transformation, the growing role of AI and software, and what's next for transit technology.
Read More →