(The following story by George Spohr appeared on the Times Herald-Record website on February 12, 2009.)
NEWARK, N.J. — NJ Transit is encouraging small businesses to bid on elements of the massive rail tunnel that will eventually give Orange County, N.Y., commuters a one-seat ride into Manhattan.
That encouragement is in the form of “innovation stipends.” The stipends offer an incentive for firms to participate in the process by helping to cover part of the cost of preparing bid proposals.
“We believe these innovation stipends will foster robust competition for the mass transit tunnel construction contracts, prompting firms to move quickly and put forth their very best ideas,” Stephen Dilts, NJ Transit’s chairman and transportation commissioner, said.
The project involves construction of a second rail tunnel underneath the Hudson River that would allow NJ Transit trains that operate out of Hoboken Terminal to connect to a new station adjacent to New York Penn.
Tunnel means one-seat ride
Metro-North’s Port Jervis Line is operated under contract with NJ Transit. Port Jervis Line trains would be able to use the tunnel, allowing commuters to avoid a transfer at Secaucus Junction.
The railroad said the stipend approach enables firms to devote the staffing and financial resources necessary to bid, resulting in greater competition in the procurement process.
In exchange, the stipend enables NJ Transit to retain the rights to all submissions and the agency can adapt or adopt design elements and other innovations contained within unsuccessful bids.
“The ability to incorporate innovations that might be found in unsuccessful bids is a very appealing feature … and will ensure that all good ideas are incorporated into the tunnel,” said Richard Sarles, NJ Transit’s executive director.
“Ultimately, this approach will promote small and minority business participation, save scarce funds and provide our talented team of experienced professionals with a greater range of design options to help us produce the best project possible.”
Tunnel construction will be divided into three contracts: one segment in New Jersey, a second under the Hudson River and a third in Manhattan.