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Hudson Tunnel Project – Extending delivery partner model

In order to delivering the Hudson Tunnel Project on scope, schedule, and budget, the delivery partner model employs private sector expertise, whereas with the aim of expanding its use of the delivery partner model to support construction of the Hudson Tunnel Project, the Gateway Development Commission (GDC) Board of Commissioners has authorised the Commission.

With a limited number of staff by design, the GDC is a special-purpose entity with the mandate to build the Hudson Tunnel Project. While the responsibility of oversighting the project is up to GDC, its delivery partner, MPA Delivery Partners, provides management and construction management support, which has allowed GDC to significantly accelerate construction across five active sites.

Since GDC awarded the contract to MPA Delivery Partners, a joint venture of Parsons Corporation, Arcadis of New York Inc, and Mace North America Ltd, in March 2024, GDC has:

  • secured full funding for the Hudson Tunnel Project
  • awarded contracts for three construction packages, including the first construction project that involves tunnel boring
  • advanced the first Hudson Tunnel Project construction package – the Tonnelle Avenue Bridge and Utility Relocation Project – toward on-time completion in the coming weeks;
  • procured and overseen manufacturing of the two TBMs that will build the section of the new tunnel in New Jersey
  • managed the procurement process for four additional construction packages, including two that will be awarded in the next six months

Considering expanding the use of the delivery partner model, theGDC is due to retain the team and build on the success so far by adding engineers, project managers, planners, safety experts, and other key personnel, bringing MPA’s support to 350-400 full-time equivalents over the next five years. The resolution allocates up to US$665m for this new scope of work.

The deadline of MPA Delivery Partners’ initial contract is 2030, and the option for three subsequent three-year renewals.

According to New York GDC commissioner and co-chair Alicia Glen, New Jersey GDC commissioner and co-chair Balpreet Grewal-Virk, and GDC Amtrak commissioner and vice-chair Tony Coscia: “The delivery partner model was an innovative approach to project delivery that had brought together the best of the industry to ensure the Hudson Tunnel Project stayed on track. This public-private partnership has made GDC nimble, flexible, and innovative while staying on scope, schedule, and budget. We’re proud that GDC is using this model to drive performance in service of the hundreds of thousands of riders who travel on the Northeast Corridor every day. GDC’s track record of success since onboarding MPA Delivery Partners is undeniable, and we are confident the team will continue to deliver.”

“Infrastructure projects like the Hudson Tunnel Project required large teams of highly specialised experts.The delivery partner model enables GDC to bring in the right experts and resources for each aspect of this huge, multifaceted project while remaining a lean, efficient organisation. As the past 18 months have shown, the model is working well. The MPA team has integrated seamlessly into our day-to-day operations, and the results speak for themselves. The GDC team looks forward to building on this successful partnership in the months and years to come,” said GDC CEO Tom Prendergast.

As a model for delivering mega-infrastructure projects around the world, this project was a public-private sector collaboration as MPA Delivery Partners senior vice-president Joe Marie said.

The delivery partner model has a proven track record of enabling public agencies to deliver large, complex infrastructure projects. The UK’s Olympic Delivery Authority used a delivery partner to build the infrastructure for the 2012 Olympics in London ahead of schedule and under budget. In the US, the Oregon Department of Transportation’s OTIA III State Bridge Delivery Program used a delivery partner model to replace or repair 271 bridges.

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