The Price Is Right?Planning Large Water Tunnel Contracts In New York

Tunnel contracts in New York have in recent years had few bidders with the bids received being much higher than anticipated. Since 9/11, security has become a key issue in planning key infrastructure projects in New York. This is especially true in the case of large water supply tunnels. Striking the right balance between cost and security was the major factor in determining the best configurationfor the Kensico-City Tunnel. This paper outlines the efforts made to determine realistic probable bid costs for the tunnel contracts, and the innovative approaches taken to deal with security issues.