Second Avenue Subway Review
Results of Comprehensive
Project Reviews
Second Avenue Subway
&
East Side Access
Presented to:
Presented to:
MTA Capital Construction, Planning and Real Estate Committee
MTA Capital Construction, Planning and Real Estate Committee
July 22, 2009
May 20, 2009
March 2008 30-Day Review
Short time frame to meet legislative
requirements for submission of 2008-13 Plan in
anticipation of Congestion Pricing
Input to proposed 2008-13 Plan
Budgets and schedules were revised
z SAS -- $ 4.347 billion; June 2015
z ESA -- $ 7.244 billion; February 2015
As a result of accelerated review, market
uncertainties were accounted for outside the
individual project budgets
March 2008 Risk Reserve
$747 million Risk Reserve was established to
address project and market uncertainties
Funds would be allocated to projects pending
further comprehensive reviews
July 2009 Comprehensive Review
Done in close consultation with Office of
Construction Oversight (OCO)/Independent
Engineering Consultant (IEC)
Risks examined in a more comprehensive
manner
Consensus reached on cost and schedule
Reserves reallocated to individual project
budgets
Guiding Principles of July 2009 Review
Establish ranges of costs and schedules for
best and worst case scenarios for both
projects
Identify target budgets and schedules within
the ranges based on ability to mitigate risks
Manage projects to the targeted budget and
schedule
Second Avenue Subway– Budget & Schedule
$ Billions
* MTA costs assume $222 million in immediate savings opportunities, including meeting rolling
stock needs through a small reduction to NYC Transit’s existing spare fleet. For consistency with
MTA estimates, deleted $222 million in mitigations from FTA estimates; these opportunities are
still under review by FTA.
East Side Access – Budget & Schedule
$ Billions
* $463 million for ESA rolling stock (above the $202 million included in the project budget) is now
included in a reserve pending completion of a simulation of opening day service and fleet need. For
consistency with MTA estimates, the FTA estimates assume these costs are carried in a reserve as
well; still under review by FTA.
Management Plan
Expand OCO/IE risk reviews to all major
contracts to identify mitigation strategies
Implement risk identification, rating and
project execution strategies recommended by
FTA
Monitor risk mitigation implementation and
results
Strengthen project controls processes
z Enhanced Governance Initiative (EGI)
Provide regular and comprehensive reporting
to Board on status of each project
