UPDATE: Tutor Perini awarded $1.4B Los Angeles Purple Line contract

UPDATE: The Los Angeles County Metropolitan Transportation Authority voted 8-0 Thursday to award the joint venture of Tutor Perini and O&G Industries the $1.37 billion contract to build the second phase of the Purple Line extension rail project, according to the Los Angeles Times. The project, stretching 2.59 miles, is expected to open in 2025.

Dive Brief:

The Los Angeles County Metropolitan Transportation Authority announced on Jan. 17 that it will recommend a Tutor Perini-led joint venture be awarded the $1.37 billion contract to construct the $2.4 billion second phase of the Los Angeles Purple Line extension rail project.
Tutor Perini will partner with O&G Industries to build the 2.6-mile segment connecting commuters to the city's west side. Metro officials said they selected Tutor Perini-O&G's bid over two others.
Transportation officials made their recommendation to the agency's construction committee earlier this month, followed by a full Metro board vote on Jan. 26.

Dive Insight:

Although Metro officials endorsed the joint venture, they also noted that Tutor Perini had been the contractor on the city's 1990s-era Red Line project, a portion of which, officials said, ended up in litigation after experiencing cost overruns and delays. However, Metro Chief Executive Phillip Washington said in the same release that Tutor Perini's expertise necessitated a revisiting of that relationship so that Los Angeles could be assured of a "world-class transportation system."

Tutor Perini is also a principal contractor on the $64 billion California High Speed Rail Authority's bullet train project that will eventually connect Southern and Northern California via a three-hour trip. Tutor Perini won a $1 billion contract to construct the first 29 miles of the rail, but reportedly was unable to begin on schedule because of land-purchase delays. After negotiations, the CHSRA agreed to pay Tutor Perini $63.6 million in delay-related charges and extended its contract by 17 months.

Earlier this month, officials announced that the Los Angeles Purple Line had won a combination of a federal grant and a Department of Transportation loan, both totaling $1.58 billion. Local tax revenue will pay for the remaining costs.

While the long-term objective of the Purple Line is to reduce traffic congestion and commute times for residents, the rail project is also a critical element of the city's 2024 Olympic Games proposal. Los Angeles became the official U.S. entrant for the 2024 Games after Boston withdrew its bid, leaving it to compete with Paris and Rome. If the Olympic committee gives Los Angeles the nod, it will be the third time the city has hosted the Summer Games. Project officials said additional money would ensure that all phases of the Purple Line are complete in time for the Olympics, but they said that an expedited schedule would still benefit residents, regardless of whether the city wins the Olympic bid.