L.A. Metro releases recommendation to contract with two private sector teams for pre-development work on Sepulveda Transit Corridor Project

Feb. 15, 2021
The agency has long sought to pursue the pre-development agreement partnership model to enable early contractor involvement in the project, allowing innovations in design, engineering, construction approach, financing and operations.

The Los Angeles County Metropolitan Transportation Authority (L.A. Metro) has released its recommendation for two private sector teams to conduct pre-development work to advance the Sepulveda Transit Corridor Project, a complex transportation project that seeks to directly connect the San Fernando Valley and the Westside via high-speed, high-capacity transit line.

In March, L.A. Metro will ask its Board of Directors to approve two multi-million-dollar contracts to perform these services.

Two different fixed guideway technologies will be further developed as possible transit solutions for the corridor. L.A. Metro is recommending LA SkyRail Express for its proposed monorail concept and Sepulveda Transit Corridor Partners – Bechtel for its proposed heavy rail concept. Both proposals present benefits and trade-offs and will be refined further, based in part on public feedback and the environmental process moving forward.

At its sole discretion, L.A. Metro retains the ability to move forward with one of the private sector teams, if any, if its transit concept is ultimately chosen as the project’s locally preferred alternative (LPA). One of the private sector teams may have an opportunity, after the LPA is selected and once project development is complete, to submit a proposal to build the line, potentially accelerating construction and improving project performance.

L.A. Metro has long sought to pursue an innovative partnership model known as a Pre-Development Agreement (PDA) to enable early contractor involvement in the project. It allows for innovations in design, engineering, construction approach, financing and operations. Under this unique project delivery approach, L.A. Metro aims to bring the expertise and creativity of the private sector to the table early, when critical design and engineering decisions can have the greatest impact on the project’s ultimate success.

After selection of the LPA by the L.A. Metro Board, the agency would have the opportunity to invite the successful partner team, if any, whose solution aligns with L.A. Metro’s LPA to submit a proposal to deliver the project, likely through a public-private partnership. L.A. Metro would also retain the right to pursue a different project development and delivery path.

After contracts are awarded, L.A. Metro will review both proposed concepts as part of its environmental review process starting this fall. Public input is a critical component and will be solicited and collected for all alternatives studied during the environmental review period.

L.A. Metro originally issued an RFP for Pre-Development work in October 2019.  Four prospective teams submitted proposals for L.A. Metro’s PDA contract opportunity, representing strong private sector interest in the project. The recommended firms have committed to meet L.A. Metro’s Disadvantaged Business Enterprise goals in its Request for Proposals.