BOSTON (MyFoxBoston.com) – FOX25 Investigates has uncovered never-before-seen reports revealing the MBTA knew the cost of the Green Line expansion could skyrocket. The first warning came more than four years ago.
This summer, the MBTA announced there could be an estimated $1 billion in cost overruns.
"They ignored the warnings, " said Greg Sullivan of the Pioneer Institute.
There were warnings that the cost to expand the Green Line could balloon.
"One of the documents that I've read that you've uncovered that is the most amazing of all was just a straight out warning that the method they were using was going to result in one bidder," Sullivan said.
The Pioneer Institute has been studying the Green Line project. Sullivan says one bidder means no competition and no incentive to control costs.
The MBTA did not open the expansion project to bids, instead it chose the company that would design and construct it.
The light rail project is a four and a half mile extension of Green Line track that starts at the Lechmere Station in Cambridge. One extension heads up to Tufts University at College Ave.
The second goes to Union Square in Somerville, one of the most densely populated cities in the area.
"We're looking forward to the green line extension happening as soon as possible," said Caitlyn Jewell, co-owner of the Somerville Brewing Company.
Jewell says one reason they picked their location six months ago is the proximity to the new Union Square stop.
"The foot traffic will be tremendously helpful for our business if they can reach us from the green line extension," she said.
The project was approved last winter, and construction started in January. By August, it was in jeopardy.
Construction group White, Skanska, and Keiwit nearly doubled the estimated cost of the next phase of the project. The MBTA now estimates the total cost around $3 billion.
Through a Freedom of Information Act request, FOX25 investigates obtained this previously redacted risk assessment report, prepared for the Federal Transportation Administration in 2011. It raised red flags about the scope of the project. It called the project "fairly complex" and said certain elements "are out of the direct control of the contractor, as well as MBTA."
The final risk assessment report issued last fall, notes the lack of competition as a potential for "additional bid risk" "because there is only one bidder".
"I served as State Inspector General, I'll describe what one bidder means, no bidder," Sullivan said.
"Are there any incentives for this company to rein in costs?" FOX25 investigative reporter Kerry Kavanaugh asked.
"The problem is there is not a lot of incentive if any incentive," Sullivan said.
We also showed our documents to Rafael Mares from the Conservation Law Foundation, which pushed for the green line expansion.
"The good news is that there's a clear solution," Mares said. "A competitive bidding process should reduce the cost by hundreds of millions of dollars."
We contacted the construction group to ask about their cost overruns. They referred all questions to the MBTA. The MBTA declined to answer any questions about the process, citing an ongoing independent review process.
The MBTA fiscal control board is expected to discuss the findings of that process next week.