construction
Infrastructure

Gateway Dev. Commission to Expand Use of Delivery Partner Model

The Gateway Development Commission (GDC) board of commissioners authorized the Commission to expand its successful use of the delivery partner model to support construction of the Hudson Tunnel Project.

As a special-purpose entity with the mandate to build the Hudson Tunnel Project, the Gateway Development Commission has a limited number of staff by design. GDC has oversight of the project. Its delivery partner acts as the ‘arms and legs’ of the agency. This has allowed GDC to significantly accelerate construction across five active sites.

Since onboarding MPA Delivery Partners 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 tunnel boring machines that will be used to 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.

The Board’s action will enable GDC to retain the team that achieved these milestones and build on this success by adding engineers, project managers, planners, safety experts, and other key personnel, bringing MPA’s support to 350 to 400 full-time equivalents over the next five years.

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 said, “The delivery partner model is an innovative approach to project delivery that has brought together the best of the industry to make sure the Hudson Tunnel Project stays 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 going forward.”

GDC CEO Tom Prendergast said, “Massive infrastructure projects like the Hudson Tunnel Project require huge teams of highly specialized 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 organization. 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.”

“This is a once-in-a-generation project and a true collaboration between the public and private sectors that will serve as a model for delivering future mega-infrastructure projects around the world,” said Joe Marie, senior vice president for MPA Delivery Partners. “We are united in our goal of successfully completing this critical project, which will transform the Northeast Corridor and deliver billions of dollars of economic growth to the U.S. economy. GDC and MPA function as a fully integrated partnership, working closely together to ensure the Hudson Tunnel Project is completed on time and within budget.”

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 United States, the Oregon Department of Transportation’s award-winning OTIA III State Bridge Delivery Program used a delivery partner model to replace or repair 271 bridges.

GDC awarded the delivery partner contract for the Hudson Tunnel Project to MPA Delivery Partners – a joint venture of Parsons Corporation (NYSE: PSN), Arcadis of New York, Inc., and Mace North America Limited – in March 2024 via a competitive procurement process. The initial contract term ends in 2030, with the option for three subsequent three-year renewals.

Since awarding the delivery partner contract, GDC has executed a series of task orders for its initial work with MPA. Today’s Board Action delegates authority to GDC to execute a package of task orders that will enable the delivery partner team to provide all services and staffing needed to support delivery of the Hudson Tunnel Project through the end of the initial contract term in 2030.

The resolution allocates up to $665 million over the next five years for this new scope of work. This funding will support the existing and growing team of employees and subcontractors MPA has hired to work on the Hudson Tunnel Project, which is estimated at 350 to 400 full-time equivalents.

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