November 12, 2019
The City of Edmonton is launching a new procurement process for the Valley Line West LRT project.
The 14-kilometre extension from Downtown to Lewis Farms will be delivered using a design-build-finance (DBF) model. This type of contract requires the successful bidder to undertake the design and construction of the Valley Line West project and provide partial private financing. Once fully complete, the full 27-kilometre Valley Line will provide a reliable continuous light rail transit service connecting major destinations between southeast, downtown and west Edmonton.
The City chose the new procurement strategy after engaging with construction industry stakeholders to better understand changes in the market’s capacity to build the Valley Line West LRT. The City will procure light rail vehicles separately and is currently exploring options related to that approach.
“Our goal has always been to deliver the Valley Line West LRT project in a manner that provides Edmontonians with the best value for their money and we’re confident our new procurement strategy will achieve that,” said Bruce Ferguson, Branch Manager for LRT Expansion and Renewal.
Through competitive procurement, the City ensures fair and rigorous competition among experienced participants in the design and construction industry. The City expects to launch the new procurement process with a Request for Qualifications (RFQ) early in the new year. The successful proponent will be selected by the end of 2020 and the project is expected to be completed by 2027.
The new procurement strategy comes after two of the three shortlisted teams withdrew from the previous procurement process in July. The City temporarily paused procurement to fully understand the changing market conditions and evaluate its options before relaunching with a new approach.
The Valley Line West procurement strategy report will be presented to Executive Committee for information on November 18.
