For Immediate Release | View this Press Release as a PDF file

Major International Contractor Makes Fixed-Price Offer
For Tyson’s Corner Tunnel
ACS-Dragados Proposal Beats Most Recent Elevated Rail Cost Estimate by $200 Million

TYSON'S CORNER, VA., February 5, 2007 – ACS Infrastructure Development and Dragados USA – a major international construction group – have made an offer to complete the final design and construction of a proposed 3.4-mile Metrorail segment underneath Tyson’s Corner for a fixed-price of $823 million, a price-tag significantly less than the estimated cost for a proposed elevated-rail option.

In a February 1 letter to Virginia Gov. Tim Kaine (D), ACS and Dragados noted (view letter) that the proposed fixed price includes a 3.4-mile, single-bore tunnel; the build-out of the four Tyson’s stations; dual pedestrian entrances; related facilities; soft costs and contingencies. By teaming with local contractors, ACS and Dragados intend to complete the Tyson’s work in 48 months or less, shortening the total Phase I project schedule by six to 12 months. Dragados has built more than 850 miles of tunnels and related facilities worldwide and is a construction subsidiary of ACS, which had $15 billion in revenues in 2005. 

“This fixed-price proposal is a significant new development that demonstrates the cost-effectiveness of the single-bore tunnel and shows the cost-savings that competitive forces bring to a public project of this magnitude,” said Scott Monett, president of TysonsTunnel.org. “This is fantastic news for Virginia taxpayers and commuters, particularly those in Northern Virginia.”

The Phase I Dulles Metrorail project involves an 11.6-mile, five-station Metrorail extension from West Falls Church through Tyson’s to Wiehle Avenue. The Tyson’s segment is 3.4 miles of the Phase I project. Phase II is an additional 11.5-mile, six-station extension from Wiehle Avenue under Dulles Airport into Loudoun County.

The February 1 ACS-Dragados letter points out that the single-bore tunnel approach for Tyson’s might save additional costs in the Phase II portion of the project, which already is planned to have an up to two-mile twin-bore tunnel underneath Dulles International Airport. The ACS-Dragados offer also notes that a new program offered by the Federal Transit Administration (FTA) – the Public-Private Partnership Pilot Program – could give the Tyson’s tunnel alternative special consideration and expedited review by the FTA.

“The ACS-Dragados offer should receive the most serious and thorough consideration by the Commonwealth of Virginia, Fairfax County, Metropolitan Washington Airports Authority (MWAA) and the Federal Transit Administration,” Mr. Monett said.  “This cost-savings proposal clearly serves the public’s interest.  Also, the innovative Private-Public Partnership Pilot Program approach might provide the FTA additional flexibility to protect the federal funds for the project while a tunnel receives the review that is deserved and required.  Wouldn’t this help create the opportunity with the FTA for which the governor is looking?”

Last month, TysonsTunnel.org released a $2.39 billion estimate prepared by a world-class team of engineers for the Phase I project. The estimate includes the 3.4-mile, single-bore tunnel underneath Tyson’s, all of the non-Tyson’s work from West Falls Church through Tyson’s to Wiehle Avenue, the five stations, related facilities, vehicles, contingencies, and soft costs, as well as the $67 million the Commonwealth has spent to date preparing preliminary engineering studies for the elevated rail option. 

The ACS-Dragados fixed-price offer demonstrates that competitive bidding could decrease the total Phase I cost further than the engineers projected – into the $1.95 billion range, and lower than a proposal submitted last summer by a contractor team, which included Dragados.

If additional value-engineering ideas were used – e.g. using the Tyson’s tunnel for train storage in lieu of the West Falls Church rail yard (up to $50 million in potential savings), early procurement of rail cars (up to $33 million in potential savings), and accounting for the present value of maintenance savings related to a tunnel (up to$100 million in savings), among others – the net cost of the project to taxpayers would decrease further to the estimated $1.77 billion range (another $183 million less). Project costs in that range are significantly less than any estimated cost presented for the elevated rail option in the last year.

TysonsTunnel.org represents an unprecedented coalition of community associations, small businesses, environmental groups, landowners, civic groups, homeowner associations, major corporations and private citizens who are calling for competitive bidding of the design-build work and side-by-side competitive bidding of tunnel and aerial options before a final decision is made.

# # #

Media Note: Copies of the ACS-Dragados and Tyson’s Tunnel Alternative Cost Estimate are available for review. For copies or media inquiries contact:
Alan Greilsamer, Communications Resources, LLC
703.760.7007 office/703.201.2508 mobile
agreilsamer@communications-resources.com