The Santa Clara Valley Transportation Authority’s (VTA) Board of Directors recently took a major step towards advancing VTA’s BART Silicon Valley Phase II Extension (BSVII) Project directing the Project team to advance major cost saving concepts to help reduce the overall Project cost.  This action supports the BSVII Project advancing through the federal funding process.

 These cost saving concepts involve five major BSVII Project areas including using less concrete and steel in the tunnel interior, concurrent tunneling from the east and west, reconfiguration of the Newhall Yard and Maintenance Facility, conversion of the 28thStreet/Little Portugal Station parking structure to surface parking and refinement of station designs in coordination with stakeholders and the community. A key consideration in refining the station designs is to ensure that the overall passenger experience, convenience and efficiency is not compromised.  

In addition to $6.949 billion state, regional and local funds committed to the $12.7 billion BSVII Project, VTA applied for funding through the federal government’s FTA New Starts funding Program. On August 1, 2024, VTA learned that they would advance to one of the last steps in the funding program to qualify for a federal contribution of $5.1 billon. While this will be the second largest funding commitment ever through the program, at that amount, the project cost estimate still exceeds the available funding at this time.

Since that announcement, staff initiated a comprehensive cost saving effort to align the project within the funding available along with pursuit of additional non-local funding sources. As a part of this effort, various cost saving ideas were developed, evaluated, and initial rough order of magnate savings prepared. 

At the September 20th, 2024, VTA Board of Directors Workshop, staff provided an initial presentation on these various cost saving opportunities under evaluation along with a preliminary timeline to receiving a Full Funding Grant Agreement. Staff will continue providing regular updates through 2025 including progress on these cost saving efforts.  

To date, the BSVII Project has achieved numerous milestones including breaking ground on early preparatory work at the future Newhall yard and tunnel boring machine (TBM) launching site, design and manufacturing of a customized TBM to bore the five-mile tunnel, and developing a Thriving Business Program to support small businesses during construction. Future near-term milestones include advancing overall design from a 60% level and securing the federal funding via a full funding grant agreement outlining the timing and amount of allocations.