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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
SAS -- $ 4.347 billion; June 2015 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
* 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
* $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.
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
Enhanced Governance Initiative (EGI)
Provide regular and comprehensive reporting to Board on status of each project