METRO Board Approves Historic Light-Rail Contract

METRO keeps making tracks toward a more mobile Houston.

On Wednesday, March 4, METRO’s Board approved a $1.46 billion dollar contract with the Parsons Group – the largest construction contract in the agency’s history.

The Parsons Group will be responsible for designing, building, operating and maintaining the four new light-rail lines: North Line, East End Line, Southeast Line and the Uptown Line. 

“These light-rail lines, along with the highly successful Main Street Line, will serve as the backbone for a regional system that will serve commuters across the entire Metropolitan area, and across county lines, for generations to come,” said METRO Board Chairman David S. Wolff.

The contract is projected to create some 60,000 jobs before the four lines, totaling about 20 miles of light rail, are completed.

METRO will spend $632 million for the initial phase of the contract – a phase expected to create 25,000 jobs.

Here is a partial glance of what the initial work will include:

• $90 million in utility work for the North and Southeast Corridors
• $390 million in total costs for the East End Corridor, including an overpass at Harrisburg for light rail and construction of a Service and Inspection Facility
• 29 rail cars from CAF USA, Inc.
• $3 million for final alignment and station configuration for the Uptown Line

Small and minority business owners will have the opportunity to participate in extending light-rail service in Houston. Under the contract, Parsons is tasked to award 35 percent, or $335 million, in subcontracting work to local small businesses.

“Parsons has the market strength to get this project done on time and on budget,” said Frank J. Wilson, president and CEO of METRO. ‘By operating the lines for five years, Parsons is responsible for any latent defects and overall system performance.”