Silicon Valley's long-awaited BART expansion could be delayed for another year and a half while officials consider cutting one of the project's largest contracts to save costs.
VTA wants to look for a new contractor to bore the expansion's five-mile tunnel, after being unable to reach an agreement with the current contractor, Kiewit Shea Traylor. The public transit agency is looking to cut up to $1.2 billion from the expansion's total $12.75 billion cost, in order to receive a $5.1 billion grant from the Federal Transit Administration.
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WATCH HERETom Maguire, VTA chief megaprojects delivery officer, said looking for a new contractor would delay ground breaking on the tunnel by about 18 months, but could significantly help close the monetary gap.
"We are very serious about cost control," Maguire said at a Monday news conference. "This is the time to evaluate additional cost saving measures, bring them to our board of directors for consideration and get to the point where our project scope and budget and costs are in alignment."
Staff published the recommendation in the agenda for a BART oversight meeting on Thursday. Committee members will then pass the decision to the board of directors at its June 27 meeting.
VTA Board Chair and Campbell Mayor Sergio Lopez said he looks forward to the conversation with other board members. He said the project's budget is already better now than it was a year ago, as the agency has found other places to cut costs, such as thinning ongoing professional services.
"While these are not going to be easy discussions, we'll do the responsible thing and take a hard look at everything," Lopez told San Jose Spotlight. "At the end of the day, I think frankly we're going to get a better project that delivers and is more affordable."
Maguire said Kiewit Shea Traylor will continue handling early construction work, such as building the tunnel boring machine and preparing the Newhall Maintenance Facility in Santa Clara. He added the agency has been talking with 10 other potential contractors and there's strong interest in this project. More details about the tunneling will come once a new contractor is selected, as this could mean pivoting away from the planned single-bore tunneling.
The six-mile extension bringing BART to downtown San Jose and Santa Clara has already seen multiple cost increases and hit other obstacles, including negotiating with business owners to relocate in light of the project.
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SIGN UP VTA won a $5.1 billion federal grant in August 2024, which left the project with a roughly $700 million shortfall. VTA CEO and General Manager Carolyn Gonot said the agency has been working with Federal Transit Administration representatives, and these cost saving measures are necessary to secure the grant funding.
The public transit agency needs to submit another application for the full grant amount, and Gonot said VTA plans to apply by early 2027.
"The recommendation … is more than just a step forward," Gonot said. "It's a smart, strategic and determined approach to securing the resources needed to turn this vision into reality."
Editor's note: This story was originally published by San Jose Spotlight.
