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
ƒ Short time frame to meet legislative
requirements for submission of 2008-13 Plan in
anticipation of Congestion Pricing
ƒ Input to proposed 2008-13 Plan
ƒ Budgets and schedules were revised
z SAS -- $ 4.347 billion; June 2015
z ESA -- $ 7.244 billion; February 2015

ƒ As a result of accelerated review, market

uncertainties were accounted for outside the
individual project budgets
 March 2008 Risk Reserve
ƒ $747 million Risk Reserve was established to
address project and market uncertainties

ƒ Funds would be allocated to projects pending

further comprehensive reviews
 July 2009 Comprehensive Review

ƒ Done in close consultation with Office of

Construction Oversight (OCO)/Independent
Engineering Consultant (IEC)

ƒ Risks examined in a more comprehensive

manner

ƒ Consensus reached on cost and schedule

ƒ Reserves reallocated to individual project

budgets
 Guiding Principles of July 2009 Review

ƒ Establish ranges of costs and schedules for

best and worst case scenarios for both
projects

ƒ Identify target budgets and schedules within

the ranges based on ability to mitigate risks

ƒ 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
ƒ Expand OCO/IE risk reviews to all major
contracts to identify mitigation strategies
ƒ Implement risk identification, rating and
project execution strategies recommended by
FTA
ƒ Monitor risk mitigation implementation and
results
ƒ Strengthen project controls processes
z Enhanced Governance Initiative (EGI)
ƒ Provide regular and comprehensive reporting
to Board on status of each project