Gateway Development Commission Awards Delivery Partner Contract

The Gateway Development Commission (GDC) significantly expanded its financial, compliance, and technical capacity to manage and deliver the Hudson Tunnel Project (HTP) as the GDC Board of Commissioners on Feb. 28 awarded a Delivery Partner (DP) contract to MPA Delivery Partners, a Joint Venture of Parsons Corp., Arcadis of New York, Inc., and Mace North America Ltd.

GDC will maintain oversight over all elements of the HTP. MPA Delivery Partners will provide project management support in key areas, including interface risk management, cost and schedule assurance, safety and quality management, and innovation and value engineering. MPA Delivery Partners will also provide construction management support in the form of field management and safety, quality and compliance support, and more.

By demonstrating its expanded organizational capacity to deliver the HTP, GDC is well-positioned to finalize a Full-Funding Grant Agreement for up to $6.88 billion with the Federal Transit Administration (FTA) this year.

In a joint statement, Alicia Glen, New York GDC Commissioner and Co-Chair, Balpreet Grewal-Virk, New Jersey GDC Commissioner and Co-Chair, and Tony Coscia, GDC Amtrak Commissioner and Vice Chair, said, “The Delivery Partner will be the arms and legs that enable GDC to continue to move this project in high gear as we prepare for heavy construction to start. With more major contract awards coming down the pike this year, getting the Delivery Partner on board ensures we have the strongest and most agile team possible at the ready.”

GDC CEO Kris Kolluri said, “From the beginning, GDC has had an open line of communication with the private sector. By joining forces with a Delivery Partner today, we are tapping into industry talent, resources, and expertise that will make the Hudson Tunnel Project a leader in effective megaproject delivery.”

“We are proud to support GDC’s use of this innovative Delivery Partner model to help us build the vital Hudson Tunnel Project,” said Amtrak CEO Stephen Gardner. “GDC’s partnership with MPA Delivery Partners will leverage the skills and experience of these seasoned private sector firms and will ensure GDC has the capabilities to successfully build this critical asset that will transform passenger rail in New Jersey, New York, and the Northeast Corridor.”

“HTP is a critical, once-in-a-generation project that will embody the excellence of our nation’s future infrastructure,” said Mark Fialkowski, president, North America Infrastructure for Parsons, on behalf of MPA Delivery Partners. “We look forward to leveraging the innovative delivery partner model together with GDC in order to unlock the full economic and societal potential of the HTP.”

Internationally, the DP model has a proven track record, enabling public agencies, such as Metrolinx in Ontario, to successfully deliver large-scale infrastructure projects. Notably, a DP strategy was used to deliver the 2012 London Olympics development and legacy works ahead of schedule and under budget.

As the procuring entity acting on GDC’s behalf, Amtrak initiated a publicly advertised bidding process in December 2022 to select a DP. Proposals submitted by three qualified teams were reviewed by representatives from GDC, the State of New York, NJ TRANSIT, the Port Authority of New York and New Jersey, and Amtrak, after which MPA Delivery Partners was selected through a competitive evaluation process.

The DP award includes the authorization of a Notice to Proceed for Phase A Task Orders for an amount not to exceed $26.8 million. The time period for Phase A is from March to September of 2024. In addition, MPA Delivery Partners has committed to exceeding GDC’s established Disadvantaged Business Enterprise (DBE) contract goal of 20.05%.

The GDC Board also authorized GDC to enter into agreements with the State of New York, the Port Authority of New York and New Jersey, and NJ TRANSIT. These agreements will provide the framework to support the loan agreements that GDC will enter into with the Build America Bureau under the Railroad Rehabilitation and Improvement Financing (RRIF) program, representing the local share of the HTP. With this recent action, GDC anticipates being able to close on the RRIF loans with the Build America Bureau in
the coming months.

GDC has made substantial strides in recent weeks. Earlier in February, the GDC Board awarded the HTP’s first heavy construction contract for Hudson River Ground Stabilization, clearing the way for work to begin in the river this year.

RELATED: Gateway Development Commission Awards Hudson River Ground Stabilization Project

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