Meeting_Body
CONSTRUCTION COMMITTEE
MARCH 16, 2023
Subject
SUBJECT: EARLY INTERVENTION TEAM STATUS REPORT
Action
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
RECEIVE AND FILE status report on the Early Intervention Team.
Issue
ISSUE
In response to the FY23 Annual Program Evaluation (APE) Follow-up Report presented in June 2022, the Board requested development of an Early Intervention Team (EIT) to: create a list of comprehensive checklist criteria on successful project delivery to address topics such as funding strategy and project delivery method for all Measure M Expenditure Plan Projects; and include metrics to help evaluate the success and progress of cost control efforts. Implementation of this directive has been advanced with a status report provided in October 2022. This report is the second progress update.
Background
BACKGROUND
Los Angeles Metro is delivering the largest transportation infrastructure program in the country. The Program Management FY24 Annual Program Evaluation (APE) reported a FY24 program size of up to $26.8 billion, a 13.1% increase from FY23, and a portfolio of more than 70 projects. The program has been experiencing construction market pressures from labor shortages, material costs, and market risks. Updated economic projections indicate that these challenges will continue throughout 2023 and will continue to drive construction inflation. Inflation has decreased to 6.5% but remains well above the Federal Reserve's 2% target.
The EIT is setup to draw on the collective wisdom of cross department collaboration to review and assess cost and schedule drivers, potential corresponding mitigation strategies currently in practice at Metro, as well as new mitigation strategies needed across the full life cycle of projects, from planning through construction and finally into operations and maintenance. Led by the Deputy Chief Executive Officer, the EIT kicked off their effort in July 2022.
The EIT was establi...
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