Agency to split construction contracts into individual, competitive bids to reduce costs

The Santa Clara Valley Transportation Authority (VTA) BART Silicon Valley Phase II (BSVII) Oversight Committee, after careful and deliberate public consideration, has recommended selecting a new tunnel contractor after receiving repeated proposals exceeding twice the project budget.  VTA’s strategy is to control costs across the project and ensure this critical piece of transit infrastructure stays on track and on budget.  

The recommendation goes to the VTA Board of Directors for approval at a special meeting on June 27. 

Following an extensive procurement analysis, VTA’s move aims to increase competition across the program, enhance cost efficiency, and drive long-term project benefits. Strong industry interest signals a robust bidding process that will support job creation, budget discipline, and technical innovation. 

“VTA is committed to delivering BART Silicon Valley Phase II in a way that is both transformative and financially responsible,” said Tom Maguire, VTA Chief Megaprojects Delivery Officer. “This approach ensures we get the best value for taxpayers while securing a sustainable future for the project.” 

VTA staff anticipate that the overall timeline will remain on track, as the rescheduling of construction package rebidding is expected to be balanced by design enhancements and more efficient construction methods. Kiewit Shea Traylor (KST) will complete ongoing early work, including tunnel portal construction, concurrently while the contract for major construction of the tunnel shifts to a new structure aligned with VTA’s budget. 

BSVII is a transformational investment that will extend BART service into downtown San Jose and Santa Clara, strengthening Bay Area connectivity and expanding access to frequent, reliable rail service for thousands of residents.