Little has changed in the transit projects, but IO and Metrolinx are shifting away from their original, much-ballyhooed model where public contract risk was minimized by a transfer to the private sector. Instead there is more talk about collaboration and mechanisms to make contracts more palatable to would-be bidders. It is no secret that a few years ago a major firm refused to bid on Metrolinx work on the proposed terms.
Building on the experience of the collaborative Alliance model in use for the Union Station Enhancement Project, IO’s partnership with Metrolinx to expand the GTHA’s network of public transit continues to advance and evolve. Last month, Metrolinx and IO launched the RFQ for the Scarborough Subway Extension – Stations, Rail, and Systems project, introducing a Progressive Design-Build approach. Like the Progressive P3 procurement strategy being introduced on hospital projects, the subway extension procurement includes the benefits of working with a partner on design work, addressing and avoiding considerable contract risk prior to signing a final contract to deliver the project. Following considerable discussion and consultation with industry, this complex, multi-billion-dollar project will be contracted as a targeted price versus the fixed price of our P3 models.
Like our contract packaging strategy for both Scarborough Subway Extension and Eglinton Crosstown West Extension, we expect to take a multi-package staged approach of delivering the Yonge North Subway Extension. That work would begin with an advance tunnels package that we expect to be procured using a classic DBF contract. Pending government approval, our hope is to have the RFQ for that procurement in market early next year.Letter from Michael Lindsay, CEO of IO, October 14, 2021
The update contains projects from multiple ministries and agencies, and I have extracted the transit projects in the table linked below. This table shows the status of each project as it appears in the quarterly IO updates with the current changes highlighted in yellow.
Changes in this interation are:
- The structure of the Scarborough Subway Extension has been changed from “TBD” to “Progressive Design Build” where first a partner is chosen with a Development Phase Agreement, and then a Project Agreement once design reaches the point of locking in the construction phase. Note that “Design Build” does not include operation and maintenance as the SSE will be part of the TTC’s subway system.
- The Yonge North Subway Extension to Richmond Hill has slipped slightly for issuance of the Request for Qualifications and of the Request for Proposals, but this is offset by moving the contract award up from Fall to Summer 2023.
Several GO Transit projects are listed for award in 2021, but they have not yet been announced.
Beyond the works already in progress, no transit projects are up for award before Fall 2022. This means that if the Ford government is re-elected, they will have batch of ready-to-go announcements, but if not, there would be a last ditch chance to review some contracts either as to content (project details) or future operating principles (private vs public). Whether a Liberal or NDP government (or a coalition) would do this remains to be seen.