NY approves $27B MTA improvement plan; Skanska-Posillico awarded $60M track-building contract

Dive Brief:

New York Gov. Andrew Cuomo’s $27 billion 2015-19 Metropolitan Transit Authority Capital Program cleared its final hurdle this week with approval from the Capital Plan Review Board, the governor’s office announced in a press release Tuesday. Cuomo's plan, which involves an $8.3 billion investment from the state this year, represents the largest MTA infrastructure investment in New York's history.
In addition to notable improvements, such as expansion of existing rail lines into Grand Central and Pennsylvania stations and $3 billion of tunnel and bridge repairs, the capital program will utilize the design-build method to add 31 subway stations to the MTA system and 18 miles of a second track to a busy segment of the Long Island Railroad.
The design-build delivery method is being used at the behest of the governor. As part of the 18-mile Double Track portion of the program, the joint venture of Skanska-Posillico II is set to be awarded a $59.7 million contract for 7.4 miles of track, and Ansaldo STS USA is set for a $44.8 million contract for a new signaling system. The MTA board is expected to approve those contracts this week.

Dive Insight:

No contracts have been awarded yet for the rehab of the subway stations. The MTA board will issue a Request for Statement of Qualifications as a first step in identifying the design-build teams that will bid on the renovations. The bid process is expected to take place in July, with the first award given in the fall.

The governor has pushed for the design-build method to be used on capital projects around the state and in New York City because he said it is the best way to make sure projects are completed in an efficient, "seamless" manner and on an accelerated schedule. The design-build method has sped up the process on the Tappan Zee Bridge project in New York City, and supporters have said its use should be expanded to other types of projects.

However, Cuomo has met some resistance from New York officials, such as state Comptroller Thomas DiNapoli, who said that although design-build may offer savings and increased efficiency, "greater transparency and accountability should also be required to ensure that the use of these alternative procurement methods is justified."

Progress on the MTA expansion program was held up initially while Cuomo and New York City Mayor Bill de Blasio squabbled over how much the city should contribute to the plan. In the end, the city kicked in $700 million less than the governor wanted and agreed to pay a total $2.5 billion toward the program.

In January, Cuomo announced his plans for "the largest construction program in the modern history of the state," including his support of a Penn Station renovation project, a $22 billion investment in upstate roads and bridges, the addition of a third track to the Long Island Rail Road’s Main Line, and a $1 billion plan to expand the city's main convention center, the Javits Center.