MassDOT
Green Line Extension Project
Where Are We Today?
November 30, 2015
The GLX Budget
• The project budget, as expressed in the Full Funding Grant
Agreement, is $1.992 billion.
• The construction budget for the project is approximately
$1.069 billion, including allocated contingency.
• There is an unallocated contingency amount of $252.7 million
for the entire project (construction, right-of-way, vehicles and
professional services).
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A Budget Problem – Awarded Contracts
• To-date, we have awarded four construction packages with a
budgeted value of $142.3 million.
• These contracts were awarded for a total cost of $206.5
million, a cost overrun of approximately 45%.
• In terms of the unallocated contingency, we have awarded
13% of the construction budget and used 25% of the
unallocated contingency and have yet to award a contract for
Green Line track work, viaducts and retaining walls, or
vertical construction (stations and the maintenance facility).
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A Budget Problem – Upcoming Work
•
The Next phase in the project, as currently envisioned, would be the award of
a contract for IGMP 4 – the relocation of Lechmere Station, the construction of
the Green Line mainline to a new Station at Washington Street and the
construction of the Green Line spur to Union Square including station
construction.
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The FFGA budget for this contract is $387.6 million. The project budget was
subsequently adjusted at the 100% design stage to $487.3 million (using $99.7
million of the remaining unallocated contingency).
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In May, the CM/GC bid the contract at a budget of $889.1 million, a difference
of over $500 million from the FFGA budget and an amount that is 166% above
the remaining unallocated contingency for the entire project.
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Ongoing Construction Work
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The total value of awarded construction projects to date is $206,512,960.
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IGMP 1: purchase of long lead items including traction power substations, signal equipment, and
superstructure steel.
•
IGMP 2: utility relocations, including the construction of temporary utility bridges adjacent to
existing structures at Medford Street, Broadway ,and School Street.
•
IGMP 3: Millers River drainage improvements and the relocation of the Fitchburg commuter rail
tracks.
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IGMP 4A: the purchase, fabrication and delivery of structural steel, girders, and tubs.
While these contracts are styled as “Guaranteed Maximum Price,” that is a
misnomer and contract claims have been submitted and processed. We
believe the total exposure for these contracts could be $15 million +/-, raising
the total cost estimate for already awarded work to approximately $222
million.
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IGMP 1: Long Lead Items
• IGMP 1 is for the purchase of long lead items including traction power
substations, signal equipment, and superstructure steel.
• The contract was awarded for $32.2 million. The FFGA budget was $22.5
million, a difference of $9.7 million (43%).
• To-date, we have spent $20.9 million on this contract.
• The contract was awarded in October 2014
• Work is expected to be completed by August 2016.
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IGMP 2: Utility Relocations
• IGMP 2 is for utility relocations, including the construction of temporary
utility bridges adjacent to existing structures at Medford Street, Broadway,
and School Street.
• The contract was awarded for $18 million. The FFGA budget was $12.5
million, a difference of $5.6 million (45%).
• To-date, we have spent $10.4 million on this contract.
• The contract was awarded in October 2014
• Work is expected to be completed by December 2016.
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IGMP 3: Millers River and FML
• IGMP 3 is for Millers River drainage improvements and the relocation of
the Fitchburg commuter rail tracks.
• The contract was awarded for $116.6 million. The FFGA budget was $62.7
million, a difference of $54 million (86%).
• To-date, we have spent $47.7 million on this contract.
• The contract was awarded in October 2014
• Work is expected to be completed by September 2016.
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IGMP 4A: Steel Fabrication
• IGMP 4A is for the purchase, fabrication and delivery of structural steel,
girders, and tubs.
• The contract was awarded for $39.6 million. The FFGA budget was $44.7
million, a difference of -$5.1 million (-11%).
• To-date, we have spent $10.9 million on this contract.
• The contract was awarded in November 2014
• Work is expected to be completed by March 2017.
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Professional Services
• The total budget for professional services in the FFGA is
approximately $392.7 million.
• Five construction-related professional service contracts have been
awarded. Their current contract value is $251.3 million.
• To-date, we have been invoiced $180 million under these contracts.
• The burn rate for these contracts has been running at just over $1
million per week.
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Program Manager/Construction Manager
• HDR/Gilbane serves as the Program Manager/Construction Manager
(PM/CM).
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Project Management
Advanced Conceptual Design
Construction Oversight
• 121 people (70.6 FTEs) on the project team
•
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Program Management – 71 people (31.9 FTEs)
Construction Management – 50 people (38.7 FTEs)
• Contract value is $89.2 million – end date of April 2016
•
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$74.2 million has been invoiced through September 2015
$15.0 million remaining on the contract (not including work since September)
• Since the Notice to Proceed in February 2011, the average burn rate has
been approximately $306,759 per week.
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Design/Construction Phase Services
• AECOM/HNTB is the designer of record for the project.
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Advanced Preliminary Engineering
Final Design
Construction Phase Services
• 170 people (90 FTEs) on the project team
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Design – 125 people (70 FTEs)
Construction Phase Services – 45 people (20 FTEs)
• Contract value is $128 million – end date of December 2020
•
•
$85.4 million has been invoiced through September 2015
$42.6 million remaining on the contract (not including work since September)
• Since the Notice to Proceed in September 2012, the average burn rate has
been approximately $540,668 per week.
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Owner’s Representative
• Hatch Mott MacDonald is the MBTA’s Owner’s Representative (OR).
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Independent oversight and reporting
Peer Reviews and Value Engineering
Cost Recovery
• 5 people (4.5 FTEs) on the project team
• Contract value is $18.0 million - end date of December 2020
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$5.9 million has been invoiced and through September 2015
$12.1 million remaining on the contract (not including work since September)
• Since the Notice to Proceed in December 2011, the average burn rate has
been approximately $29,814 per week.
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Independent Cost Estimator
• Stanton Constructability Services is the Independent Cost Estimator (ICE).
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Performed for each IGMP
Done at 60%/90% and 100% design
Used to determine whether the CM/GC proposed price is within an acceptable range
• 10 people (4 FTEs) on the project team
• Contract value is $2.4 million – end date of October 2019
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$2.3 million has been invoiced through October 2015
$0.1 million remaining on the contract (not including work since October)
• Since the Notice to Proceed in September 2013, the average burn rate has
been approximately $20,276 per week.
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Pre-Construction Services
•
White/Skanska/Kiewit (WSK) provides Pre-Construction Services for the
project.
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Design review (constructability)
Cost estimating and schedule development
Field investigation and work plan development
•
16 people (8.2 FTEs) on the project team
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Contract value is $13.7 million- end date of June 2016
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$12.1 million has been invoiced through September 2015
$1.5 million remaining on the contract (not including work since August)
Since the Notice to Proceed in July 2013, the average burn rate has been
approximately $106,249 per week.
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We Are Controlling Expenditures
• IGMPs 1, 2, and 3 are proceeding.
• Select portions of steel fabrication are underway for IGMP 4A.
Where portions of the viaduct are under VE evaluation, no work
beyond the shop drawing phase is progressing.
• IGMP 4 will not be awarded, in whole or in part, until both boards
have agreed on the go-forward strategy.
• The MBTA has taken action to limit professional service costs. Based
upon redefined tasks, the run rate for current work has been
reduced to approximately $540,000 per week.
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We Have Retained Expert Assistance
• We have engaged outside legal assistance from Nossaman LLP
and Foley Hoag LLP to provide analysis of our project delivery
method and our current professional services teams.
• We have engaged the Berkeley Research Group, a strategic
advisory firm, to perform the ‘look-back analysis’ and help us
to understand how we have gotten to where we are.
• We have engaged Arup to undertake a cost-reduction design
review process.
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