Mass Transit: Status of New Starts Transit Projects with Full Funding
Grant Agreements (Letter Report, 08/19/1999, GAO/RCED-99-240).

Pursuant to a congressional request, GAO assessed the Federal Transit
Administration's (FTA) new starts program, focusing on identifying those
projects that have experienced changes in their baseline cost estimates
and the reason for the changes.

GAO noted that: (1) of the 14 transit projects with full funding grant
agreements, 6 had experienced cost increases as of May 1999; (2) half of
these 6 projects have had cost increases ranging from 2 to 7 percent;
(3) of these, 2 are not expected to meet their projected opening dates;
(4) the other half have experienced costs that are significantly higher
than expected--more than 25 percent over the estimates approved by FTA
in the grant agreements; (5) the key reasons for the cost increases
include: (a) higher-than-anticipated contract costs; (b) schedule
delays; and (c) project scope changes and system enhancements; (6) these
three projects are not expected to meet their originally projected
opening dates; (7) of the 8 remaining projects, 3 could potentially
experience costs that are lower than expected, and the other 5 are
expected to be completed within their approved budgets; (8) only 1 of
these 8 projects is not expected to meet its projected opening date; (9)
the South Boston Piers transitway project, which has some joint
construction with the Central Artery/Tunnel project in Boston has
experienced a net cost increase of $115 million; (10) the construction
delays are due in part to coordination problems on the joint
construction contracts; (11) both FTA and the oversight contractor
estimate that the transitway's cost could increase by an additional $20
to $80 million because of pending issues such as potentially
higher-than-expected contract costs for the project's last major
segment; (12) the Bay Area Rapid Transit's (BART) project to construct
an extension of its existing system to the San Francisco International
Airport has experienced a net cost increase of +$316.2 million; (13) of
this amount, BART officials attributed more than half to
higher-than-expected construction costs that resulted primarily from a
very competitive Bay Area economy; (14) while the grant agreement calls
for a September 2001 opening date, BART officials now forecast that it
will open 3 months later; (15) the Tren Urbano rapid rail line in San
Juan, Puerto Rico, is one of FTA's turnkey demonstration projects that
incorporates contracts to design, build, operate, and maintain a system;
(16) this project has experienced a net increase of $426 million; (17)
among the primary factors contributing to the cost increase are changes
in the project's scope, including the addition of two stations, certain
station and system enhancements, and higher-than-estimated contract
costs; and (18) the rail line is expected to open in May 2002--10 months
later than the date in the grant agreement.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  RCED-99-240
     TITLE:  Mass Transit: Status of New Starts Transit Projects with
	     Full Funding Grant Agreements
      DATE:  08/19/1999
   SUBJECT:  Mass transit funding
	     Federal aid for transportation
	     Cost analysis
	     Federal grants
	     Schedule slippages
	     Construction costs
	     Grant monitoring
	     Cost overruns
IDENTIFIER:  South Boston Piers Transitway Project (Boston, MA)
	     Central Artery/Tunnel Project (Boston, MA)
	     San Francisco Bay Area Rapid Transit System (CA)
	     Tren Urbano Rapid Rail Line Project (San Juan, Puerto
	     Rico)

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Cover
================================================================ COVER

Report to Congressional Requesters

August 1999

MASS TRANSIT - STATUS OF NEW
STARTS TRANSIT PROJECTS WITH FULL
FUNDING GRANT AGREEMENTS

GAO/RCED-99-240

New Starts Transit Projects

(348168)

Abbreviations
=============================================================== ABBREV

  BART - Bay Area Rapid Transit
  Bi-State - Bi-State Development Agency
  FONSI - Finding of No Significant Impact
  FTA - Federal Transit Administration
  HOV - high-occupancy-vehicle
  HTA - Puerto Rico Highway and Transportation Authority
  MARC - Maryland Commuter Rail
  MARTA - Metropolitan Atlanta Rapid Transit Authority
  MBTA - Massachusetts Bay Transportation Authority
  MOS - "minimum operable segments"
  MTA - Metropolitan Transportation Authority of Los Angeles
  MTA - Mass Transit Administration of Maryland
  NJTransit - New Jersey Transit Corporation
  RT - Sacramento Regional Transit District
  RTD - Regional Transportation District
  SCCTD - Santa Clara County Transit District
  TEA-21 - Transportation Equity Act for the 21st Century
  Tri-Met - Tri-County Metropolitan Transportation District
  UTA - Utah Transit Authority

Letter
=============================================================== LETTER

B-282805

August 19, 1999

Congressional Requesters

Since the early 1970s, the federal government has provided a large
share of the nation's capital investment in urban mass
transportation.  Much of this investment has come through the Federal
Transit Administration's (FTA) ï¿½new startsï¿½ program, which funds up
to 80 percent of major new rail and bus transit systems that use
separate and exclusive rights-of-way, as well as extensions to
existing systems.  FTA has entered into full funding grant
agreements\1 totaling $5.1 billion for 14 new starts transit projects
that are currently under construction.  Approximately $3.2 billion of
this $5.1 billion has already been appropriated for these projects. 
Expected to cost a total of $8.7 billion when the grant agreements
were signed, these projects represent a substantial investment of
federal, state, and local transportation funds. 

Because of your interest in FTA's new starts transit investments, you
asked us to assess the progress and cost of these 14 projects in
terms of the schedule and cost estimates in the grant agreements.  As
agreed with your offices, this report, which includes the information
we provided your staff in May 1999, describes the status of each
project, identifies those projects that have experienced changes in
their baseline cost estimates, and provides information on the
reasons for the changes. 

--------------------
\1 A full funding grant agreement commits federal new starts funding,
subject to appropriations, to help design and construct transit
projects. 

   BACKGROUND
------------------------------------------------------------ Letter :1

Under the new starts program, FTA uses full funding grant agreements
to commit funding to transit projects.  Before entering into a grant
agreement, FTA assesses a project on the basis of specific financial
and project justification criteria required by law and the agency's
policy.\2 FTA considers a project for a grant agreement after it has
progressed from the initial planning and preliminary engineering
phases to the final design and construction phases. 

Through the grant agreement, FTA establishes the terms and conditions
of federal financial participation in a project as well as the
maximum level of federal financial assistance.  FTA pays up to 80
percent of a project's net cost, while state and local governments
pay at least 20 percent.  The federal funding commitments are subject
to the annual appropriations process.  The grant agreement also
defines a project's scope, including the length of the system and the
number of stations; its schedule, including the date when the system
is expected to open for service; and its cost.  To oversee each
project, FTA uses a project management oversight contractor to help
ensure that the project progresses on time, within budget, and in
conformance with approved plans.  Given that the full funding grant
agreement limits the maximum federal funding for a project, the
grantee is responsible for any project cost increases that may occur
after the agreement is signed, unless the agreement is amended. 

The 14 projects we reviewed have full funding grant agreements.  FTA
has proposed that these projects receive $668.2 million in fiscal
year 2000.  This is 68 percent of the total $980.4 million available
for new starts projects in fiscal year 2000.\3 If the Congress
appropriates the amounts proposed by FTA, the federal funding
commitments for five of these projects would be complete in fiscal
year 2000. 

--------------------
\2 The Transportation Equity Act for the 21\st Century (TEA-21),
enacted in 1998, requires FTA to evaluate and rate new starts
projects as either highly recommended, recommended, or not
recommended on the basis of specific financial and project
justification criteria and to include this information in its new
starts report due to the Congress each February.  At the same time,
TEA-21 specifically exempts, from the rating requirement, projects
that had full funding grant agreements in place prior to the act. 
These are the 14 projects we reviewed.  According to FTA, these
projects were assessed and found to be justified on the basis of
information required by the laws and policies in place at the time
the grant agreements were issued.  See our report entitled Mass
Transit:  FTA's Progress in Developing and Implementing a New Starts
Evaluation Process (GAO/RCED-99-113, Apr.  26, 1999) for a discussion
of FTA's progress in developing an evaluation and rating process that
reflects TEA-21's requirements. 

\3 The $980.4 million total is the amount of new starts funding
subject to the ï¿½guaranteeï¿½ in TEA-21, a procedural mechanism designed
to ensure that minimum amounts of funding are provided each year for
highway and mass transit programs.  Of the remaining 32 percent
($312.2 million) available for new starts projects, FTA recommended
about $248 million for 11 projects in the later stages of preliminary
engineering.  Seven of these projects are expected to enter final
design by the beginning of fiscal year 2000.  About $46 million
remains available for FTA to allocate among other projects currently
in or approved to enter preliminary engineering by the end of fiscal
year 2000.  The balance has been set aside for special projects and
project management oversight activities. 

   RESULTS IN BRIEF
------------------------------------------------------------ Letter :2

Of the 14 transit projects with full funding grant agreements, 6 had
experienced cost increases as of May 1999.  Half of these six
projects have had cost increases ranging from 2 to 7 percent;\4 of
these, two are not expected to meet their projected opening dates. 
The other half have experienced costs that are significantly higher
than expectedï¿½more than 25 percent over the estimates approved by FTA
in the grant agreements.  The key reasons for the cost increases
include (1) higher-than-anticipated contract costs, (2) schedule
delays, and (3) project scope changes and system enhancements.  These
three projects are not expected to meet their originally projected
opening dates.  Of the eight remaining projects, three could
potentially experience costs that are lower than expected, and the
other five are expected to be completed within their approved
budgets.  Only one of these eight projects is not expected to meet
its projected opening date. 

For those projects with significant cost increases, we found the
following: 

  -- The South Boston Piers transitway project, which has some joint
     construction with the Central Artery/Tunnel project in
     Bostonï¿½one of the most expensive and complex highway projects
     ever undertaken--has experienced a net cost increase of $115
     million, or 28 percent of the estimated cost of $413.4 million
     in the grant agreement.  FTA, its oversight contractor, and the
     grantee attribute the cost increase primarily to an estimate
     based on the project's early design, which has since required
     modification, and unanticipated delays in the construction
     schedule.  The construction delays were due in part to
     coordination problems on the joint construction contracts with
     the Central Artery/Tunnel project.  The transitway is expected
     to open for service on December 31, 2002, 2 years later than the
     date in the grant agreement.  Both FTA and the oversight
     contractor estimate that the transitway's cost could increase by
     an additional $20 million to $80 million because of pending
     issues such as potentially higher-than-expected contract costs
     for the project's last major segment and the grantee's decision
     to build a new vehicle maintenance facility or to expand an
     existing one.  However, FTA does not plan to amend the full
     funding grant agreement to commit additional new starts funds to
     cover the cost increases.  To pay for the cost increases, the
     grantee is proposing to use both federal formula funds\5

and state funds.  FTA is using a financial management oversight
contractor to review the grantee's proposal and its effect on the
existing transit system.

  -- The Bay Area Rapid Transit's (BART) project to construct an
     extension of its existing system to the San Francisco
     International Airport has experienced a net cost increase of
     $316.2 million, or 27 percent of the estimated cost of $1.2
     billion in the grant agreement.  Of this amount, BART officials
     attributed more than half, or $165.5 million, to
     higher-than-expected construction costs that resulted primarily
     from a very competitive Bay Area economy.  While the grant
     agreement calls for a September 2001 opening date, BART
     officials now forecast that the airport extension will open 3
     months later.  However, FTA's project management oversight
     contractor has estimated that the opening could be as late as
     June 2002 and that the cost of the project could grow by an
     additional $53 million for work on the airport station and added
     contingencies.  FTA is reviewing the project's revised cost
     estimates and BART's proposal to cover some of the additional
     costs with $30 million in new starts funds originally budgeted
     for acquiring rail cars that would become available if BART
     canceled its planned $100 million purchase of rail cars.  BART
     has proposed to spend the remaining $70 million on improving its
     vehicle maintenance facility rather than acquiring rail cars. 
     FTA has no plans to amend the full funding grant agreement to
     commit additional new starts funds to cover the project's cost
     increases.

  -- The Tren Urbano rapid rail line in San Juan, Puerto Rico, is one
     of FTA's ï¿½turnkeyï¿½ demonstration projects that incorporates
     contracts to design, build, operate, and maintain a system. 
     Currently under construction, this project has experienced a net
     cost increase of $426 million, or 34 percent of the $1.25
     billion estimated cost in the grant agreement.  Among the
     primary factors contributing to the cost increase are changes in
     the project's scope, including the addition of two stations,
     certain station and system enhancements, and
     higher-than-estimated contract costs.  The rail line is expected
     to open for service in May 2002--10 months later than the date
     in the grant agreement.  FTA is conducting a financial capacity
     review of the granteeï¿½the Puerto Rico Highway and Transportation
     Authorityï¿½to help ensure that adequate funding is available to
     build and maintain the project without adversely affecting the
     area's other transportation needs.  FTA has no plans to amend
     the full funding grant agreement to commit additional new starts
     funds to cover the project's cost increase. 

A summary of the status and cost of each project we reviewed appears
in appendix I.  Appendixes II through XV provide detailed information
on each project. 

--------------------
\4 As discussed in appendix II, one of the three grantees, the
Metropolitan Atlanta Rapid Transit Authority, is seeking additional
new starts funding to cover the cost increase experienced by the
North Line extension project in Atlanta. 

\5 TEA-21 also authorized capital funds for urbanized areas on a
formula rather than a project-specific basis. 

   AGENCY COMMENTS
------------------------------------------------------------ Letter :3

We provided the Department of Transportation with a draft of this
report for review and comment.  We met with FTA officials from the
Office of Associate Administrator for Program Management, including
officials from the Offices of Oversight and Engineering.  FTA agreed
with the report's contents and provided us with minor technical
comments, which we have incorporated where appropriate. 

   SCOPE AND METHODOLOGY
------------------------------------------------------------ Letter :4

To address the issues discussed in this report, we reviewed
project-specific documents, including the full funding grant
agreements and project management oversight reports.  To obtain
funding information, we reviewed FTA's new starts report for fiscal
year 2000.  We also interviewed appropriate FTA headquarters and
regional officials, FTA contractors responsible for overseeing the
projects, and the grantees.  We did not perform an independent
assessment of the reasons for the cost increases.  Rather, we relied
on the information provided by FTA officials, FTA's contractors, and
the grantees.  We performed our work in accordance with generally
accepted government auditing standards from April through July 1999. 

---------------------------------------------------------- Letter :4.1

We are sending copies of this report to the Honorable Rodney E. 
Slater, Secretary of Transportation; the Honorable Gordon J.  Linton,
Administrator, Federal Transit Administration; the Honorable Jacob J. 
Lew, Director, Office of Management and Budget; and other interested
parties.  We are making copies available to others on request. 

Key contributors to this report are listed in appendix XVI.  Please
call me at (202) 512-2834 if you have any questions about this
report. 

Phyllis F.  Scheinberg
Associate Director,
Transportation Issues

List of Requesters

The Honorable Phil Gramm
Chairman, Committee on Banking,
 Housing, and Urban Affairs
United States Senate

The Honorable Richard C.  Shelby
Chairman, Subcommittee on Transportation
 and Related Agencies
Committee on Appropriations
United States Senate

The Honorable Bud Shuster
Chairman, Committee on Transportation
 and Infrastructure
House of Representatives

The Honorable Frank R.  Wolf
Chairman, Subcommittee on Transportation
 and Related Agencies
Committee on Appropriations
House of Representatives

SUMMARY OF NEW STARTS TRANSIT
PROJECTS WITH FULL FUNDING GRANT
AGREEMENTS
=========================================================== Appendix I

Table I.1 shows the cost changes and opening dates projected for the
14 new starts projects with full funding grant agreements as of May
1999. 

                                        Table I.1
                         
                          Summary of New Starts Transit Projects
                         With Full Funding Grant Agreements as of
                                         May 1999

                                  (Dollars in millions)

                                                                          Total
                                                     Amount              amount
                      Date of             Revised        of                  of  Projecte
                        grant  Baseline   grantee  estimate               grant         d
                     agreemen      cost      cost         d   Percent  agreemen   opening
New Starts Project          t  estimate  estimate  increase  increase         t      date
-------------------  --------  --------  --------  --------  --------  --------  --------
Atlanta/North Line     12/20/   $ 381.3    $407.4     $26.1         7    $305.0    12/16/
 Extension                 94                                                          00
Boston/South Boston   11/5/94     413.4     528.4     115.0        28     330.7    12/31/
 Piers Transitway                                                                      02
Denver/Southwest       5/9/96     176.3                                   120.0   7/14/00
 Light Rail
 Extension
Houston/Regional       12/30/     726.6     780.1      53.5         7     500.0    12/31/
 Bus Plan                  94                                                          05
Los Angeles/North      6/9/97   1,310.8                                   681.0   5/31/00
 Hollywood
 Extension
Maryland/MARC         6/19/95     131.6     134.2       2.6         2     105.3   3/31/01
 Extension to
 Fredrick
Northern New           10/15/     992.1                                   604.1   7/31/01
 Jersey/Hudson-            96
 Bergen
Portland/Westside     9/29/92     963.5                                   630.1   9/12/98
 Light Rail
 Extension
Sacramento/South      6/20/97     222.0                                   111.2   9/30/03
 Corridor Light
 Rail Line
Salt Lake City/        8/2/95     312.5                                   237.4    3/3/00
 South Light Rail
 Line
San Francisco/BART    6/30/97   1,167.0   1,483.2     316.2        27     750.0   6/30/02
 Airport Extension
San Jose/Tasman        7/2/96     325.0                                   182.8    12/20/
 Light Rail West                                                                       99
 Extension
San Juan/Tren         3/13/96   1,250.0   1,676.0     426.0        34     307.4   5/31/02
 Urbano Rapid Rail
 Line
St. Louis/St. Clair    10/17/     339.2                                   243.9   9/30/01
 County Light Rail         96
 Extension
=========================================================================================
Total                          $8,711.3                                $5,108.9
-----------------------------------------------------------------------------------------

ATLANTA/NORTH LINE EXTENSION
========================================================== Appendix II

   PROJECT DESCRIPTION AND STATUS
-------------------------------------------------------- Appendix II:1

The Metropolitan Atlanta Rapid Transit Authority (MARTA) is
constructing a 2.3-mile, two-station extension of the North Line from
the Dunwoody Station to North Springs.  When completed, this
extension will serve the area north of Atlanta, which includes
Perimeter Center and north Fulton County, and will connect this area
with the rest of the region by providing transit service for both
commuters and inner-city residents traveling to expanding job
opportunities.  The full funding grant agreement was signed on
December 20, 1994.  Overall construction is progressing on schedule
with no major issues of schedule and quality.  As of May 1999, the
project was expected to open for service on December 16, 2000, the
date scheduled in the grant agreement.  However, as of May 1999, the
estimated cost of the project was revised upward to $407.4 million,
$26.1 million more than the original baseline estimate approved in
the grant agreement.  MARTA is seeking additional new starts funding
to cover this increase as well as the cost of additional vehicles. 

Table II.1 shows the change in the project's estimated cost, the
amount of federal funding provided in the past, the amount proposed
by the Federal Transit Administration (FTA) for fiscal year 2000, and
the project's estimated opening date. 

                                        Table II.1
                         
                         Atlanta/North Line Extension--Estimated
                           Cost and Status of Federal Financial
                                  Support as of May 1999

                                  (Dollars in millions)

                                                                         Amount
         Revise  Amount                                                  requir
              d      of            Amount             Funding     FTA's   ed to
Baselin  grante  estima             to be    Amount  shortfal  proposed  comple  Projecte
e cost        e     ted   Total    funded  provided         l   funding      te         d
estimat  estima  increa   grant   through   through   through    for FY  grant\   opening
e            te      se  amount   FY 1999   FY 1999   FY 1999      2000       a      date
-------  ------  ------  ------  --------  --------  --------  --------  ------  --------
$381.3   $407.4   $26.1  $305.0    $260.8    $249.9     $10.0     $45.1   $10.0    12/16/
                                                                                       00
-----------------------------------------------------------------------------------------
Legend

FY = fiscal year

\a Amount of funding required to complete the grant agreement if the
amount proposed for fiscal year 2000 is appropriated. 

Sources:  MARTA-FTA full funding grant agreement, project management
oversight data, and FTA's fiscal year 2000 annual new starts report. 

   REASONS FOR COST INCREASES
-------------------------------------------------------- Appendix II:2

According to FTA, the project management oversight contractor, and
the grantee, the estimated $26.1 million cost increase is due
primarily to station parking enhancements and the impacts on the
project's right-of-way from the proposed widening of an adjacent
freeway. 

   PENDING ISSUES
-------------------------------------------------------- Appendix II:3

MARTA is seeking new starts funding for the purchase of an additional
28 vehicles that are expected to add $55.8 million to the cost of the
project.  MARTA has initiated negotiations with FTA for an amendment
to the grant agreement to cover both the $26.1 million for the scope
changes and the $55.8 million for the additional vehicles.  The
Transportation Equity Act for the 21st Century authorized new starts
funding for the project's scope changes, including the purchase of
the 28 additional rapid rail cars, from amounts authorized by the
Intermodal Surface Transportation Efficiency Act of 1991.  FTA is
reviewing MARTA's revised fleet management plan that addresses the
need for these vehicles. 

BOSTON/SOUTH BOSTON PIERS
TRANSITWAY
========================================================= Appendix III

   PROJECT DESCRIPTION AND STATUS
------------------------------------------------------- Appendix III:1

Developed by the Massachusetts Bay Transportation Authority (MBTA),
this project, which is to be constructed in two phases, is a 1.5-mile
underground transitway with five stations that will connect three
existing transit systems in the South Boston Piers area.  The full
funding grant agreement, signed on November 5, 1994, is for phase 1,
which consists of a 1-mile, three-station tunnel between South
Station and the World Trade Center.  Phase 1 also includes the
procurement of 32 vehicles and the construction of a new vehicle
maintenance facility.  Part of the construction has been planned and
designed with the Central Artery/Tunnel highway project.  As of May
1999, the transitway project was expected to open for service on
December 31, 2002--2 years later than the projected date in the grant
agreement.  Additionally, the estimated cost of the project was
revised upward to $528.4 million--$115 million more than the original
baseline estimate approved in the grant agreement.  FTA is reviewing
the grantee's latest cost recovery plan dated January 1999.  A number
of pending issues could affect the total cost of the project. 

Table III.1 shows the change in the project's estimated cost, the
amount of federal funding provided in the past, the amount proposed
by FTA for fiscal year 2000, and the project's estimated opening
date. 

                                       Table III.1
                         
                          Boston/South Boston Piers Transitway--
                           Estimated Cost and Status of Federal
                             Financial Support as of May 1999

                                  (Dollars in millions)

                                                                         Amount
         Revise  Amount                                                  requir
              d      of            Amount             Funding     FTA's   ed to
Baselin  grante  estima             to be    Amount  shortfal  proposed  comple  Projecte
e cost        e     ted   Total    funded  provided         l   funding      te         d
estimat  estima  increa   grant   through   through   through    for FY  grant\   opening
e            te      se  amount   FY 1999   FY 1999   FY 1999      2000       a      date
-------  ------  ------  ------  --------  --------  --------  --------  ------  --------
$413.4   $528.4  $115.0  $330.7    $276.8    $241.9     $34.9     $54.0   $34.9    12/31/
                                                                                       02
-----------------------------------------------------------------------------------------
Legend

FY = fiscal year

\a Amount of funding required to complete the grant agreement if the
amount proposed for fiscal year 2000 is appropriated. 

Sources:  MBTA-FTA full funding grant agreement, project management
oversight report data, and FTA's fiscal year 2000 annual new starts
report. 

   REASONS FOR COST INCREASES
------------------------------------------------------- Appendix III:2

According to FTA, the project management oversight contractor, and
MBTA, the estimated net cost increase of $115 million is primarily
the result of schedule delays and the fact that the original baseline
cost estimate was based on the project's early design, which has
since required modification.  Factors contributing to these delays
included coordination problems on the joint construction contracts
with the Central Artery/Tunnel project, complications with the design
for relocating utilities, and differing site conditions.  Land
acquisition costs have also been higher than originally estimated. 
According to MBTA, not meeting the federal funding schedule in the
grant agreement did not contribute to the project's cost increase and
construction delays. 

   PENDING ISSUES
------------------------------------------------------- Appendix III:3

According to FTA and the project management oversight contractor,
issues that could increase the project's cost by an additional $20
million to $80 million include (1) potentially
higher-than-anticipated contract costs to construct the last major
segment of the transitway tunnel, (2) the decision of whether to
build a new vehicle maintenance facility or expand an existing one,
(3) a local agency's participation in raising capital for eight
vehicles, (4) a higher-than-anticipated unit cost for the vehicles,
and (5) potential additional land acquisition costs.  FTA expects the
first four issues to be resolved by the first quarter of fiscal year
2000.  FTA also expects MBTA to update its cost recovery plan once
these issues are resolved. 

To pay for the cost increases, MBTA is seeking to use both federal
formula funds and state funds.  Currently, FTA is using a financial
management oversight contractor to review MBTA's financial plan. 
This plan addresses the funding of all of the grantee's transit
projects and systems.  According to FTA, this review will enable the
agency to determine whether the grantee's proposal to use formula
funds to cover the cost increases would adversely affect the existing
transit system.  As an alternative, the grantee believes that it has
sufficient resources to use state bond funds to pay for any cost
increases.  FTA has no plans to amend the grant agreement to commit
additional new starts funds to the project. 

DENVER/SOUTHWEST LIGHT RAIL
EXTENSION
========================================================== Appendix IV

   PROJECT DESCRIPTION AND STATUS
-------------------------------------------------------- Appendix IV:1

The Regional Transportation District (RTD) in Denver is constructing
an 8.7-mile light rail extension between Denver and Littleton.  The
double-track line extends from the I-25/Broadway Station on the
existing Central Corridor line to Mineral Avenue in Littleton,
running parallel to Santa Fe Drive over an exclusive, grade-separated
right-of-way.  The full funding grant agreement was signed on May 9,
1996.  As of May 1999, the project was expected to open as scheduled
on July 14, 2000.  Recent discussions with FTA confirmed that the
project should open on or before that date. 

Table IV.1 shows the changes in the project's estimated cost, the
amount of federal funding provided in the past, the amount proposed
by FTA for fiscal year 2000, and the project's estimated opening
date. 

                                        Table IV.1
                         
                         Denver/Southwest Light Rail Extension--
                           Estimated Cost and Status of Federal
                             Financial Support as of May 1999

                                  (Dollars in millions)

                                                                         Amount
         Revise  Amount                                                  requir
              d      of            Amount             Funding     FTA's   ed to
Baselin  grante  estima             to be    Amount  shortfal  proposed  comple  Projecte
e cost        e     ted   Total    funded  provided         l   funding      te         d
estimat  estima  increa   grant   through   through   through    for FY  grant\   opening
e            te      se  amount   FY 1999   FY 1999   FY 1999      2000       a      date
-------  ------  ------  ------  --------  --------  --------  --------  ------  --------
$176.3                   $120.0     $73.0     $65.5      $7.5     $35.0   $19.5   7/14/00
-----------------------------------------------------------------------------------------
Legend

FY = fiscal year

\a Amount of funding required to complete the grant agreement if the
amount proposed for fiscal year 2000 is appropriated. 

Sources:  RTD-FTA full funding grant agreement, project management
oversight report data, and FTA's fiscal year 2000 annual new starts
report. 

   PENDING ISSUES
-------------------------------------------------------- Appendix IV:2

According to FTA and the project management oversight contractor, the
only outstanding issue concerns potential defects in some girders. 
According to one FTA official, only one installed girder has been
found to be defective so far.  The engineers involved on the project
do not believe that this will affect the projected opening date. 

HOUSTON/REGIONAL BUS PLAN
=========================================================== Appendix V

   PROJECT DESCRIPTION AND STATUS
--------------------------------------------------------- Appendix V:1

Houston Metro's $1 billion Regional Bus Plan consists of a package of
improvements to its existing bus system.  The package includes new
and extended high-occupancy-vehicle (HOV) facilities and ramps,
several transit centers and park-and-ride lots, bus acquisitions, bus
service expansion, and supporting facilities.  The Regional Bus Plan
has both a federal and local component.  The full funding grant
agreement, signed on December 30, 1994, covers only the federal
component of the project.  As of May 1999, the projected opening date
was December 31, 2005, or 3 years beyond the date specified in the
grant agreement. 

Table V.1 shows the change in the project's estimated costs, the
amount of federal funding provided in the past, the amount proposed
by FTA for fiscal year 2000, and the project's estimated opening
date. 

                                        Table V.1
                         
                           Houston/Regional Bus Plan--Estimated
                           Cost and Status of Federal Financial
                                  Support as of May 1999

                                  (Dollars in millions)

                                                                         Amount
         Revise  Amount                                                  requir
              d      of            Amount             Funding     FTA's   ed to
Baselin  grante  estima             to be    Amount  shortfal  proposed  comple  Projecte
e cost        e     ted   Total    funded  provided         l   funding      te         d
estimat  estima  increa   grant   through   through   through    for FY  grant\   opening
e            te      se  amount   FY 1999   FY 1999   FY 1999      2000       a      date
-------  ------  ------  ------  --------  --------  --------  --------  ------  --------
$726.6   $780.1   $53.5  $500.0    $447.2    $437.5      $9.7     $62.5  Comple    12/31/
                                                                             te        05
-----------------------------------------------------------------------------------------
Legend

FY = fiscal year

\a Amount of funding required to complete the grant agreement if the
amount proposed for fiscal year 2000 is appropriated. 

Sources:  Houston Metro-FTA full funding grant agreement, project
management oversight report data, and FTA's fiscal year 2000 annual
new starts report. 

   REASONS FOR COST INCREASES
--------------------------------------------------------- Appendix V:2

The $53.47 million dollar increase in the federal component of the
project is due primarily to a 2-year delay resulting from local
contractors' challenging the constitutionality of Houston Metro's
Disadvantaged Business Enterprise program.  In 1997, the program was
held unconstitutional, and Metro is currently appealing the decision. 
While the federal component of the project has increased, the cost of
the overall project has remained constant at $1 billion because the
cost of the local component has decreased.  According to Houston
Metro, not meeting the funding schedule in the grant agreement did
not affect the project or contribute to cost increases. 

FTA is reviewing Houston Metro's request to amend the grant
agreement.  The amendment would officially extend the opening date to
December 31, 2005, and adjust the budget to reflect the current cost
estimate.  The amount of federal participation--$500 million--would
not change. 

LOS ANGELES/NORTH HOLLYWOOD
EXTENSION
========================================================== Appendix VI

   PROJECT DESCRIPTION AND STATUS
-------------------------------------------------------- Appendix VI:1

The Metro Rail Red Line project in Los Angeles is being implemented
through a series of "minimum operable segments" (MOS).  A full
funding grant agreement was signed on June 9, 1997, for the MOS-3
North Hollywood extension.  This extension is currently under
construction and is about 1 year from completion.  The MOS-3 covers
two additional extensions--East Side and Mid-City.  Work on these two
extensions has been suspended indefinitely.  The Los Angeles
Metropolitan Transportation Authority (MTA) is currently conducting a
study on the corridors in which the segments were located.  FTA
officials are unsure of when, or if, work will resume on the two
suspended segments. 

Table VI.1 shows the change in the project's estimated cost, the
amount of federal funding provided in the past, the amount proposed
by FTA for fiscal year 2000, and the project's estimated opening
date. 

                                        Table VI.1
                         
                         Los Angeles/North Hollywood Extension--
                           Estimated Cost and Status of Federal
                             Financial Support as of May 1999

                                  (Dollars in millions)

                                                                         Amount
         Revise  Amount                                                  requir
              d      of            Amount             Funding     FTA's   ed to
Baselin  grante  estima             to be    Amount  shortfal  proposed  comple  Projecte
e cost        e     ted   Total    funded  provided         l   funding      te         d
estimat  estima  increa   grant   through   through   through    for FY  grant\   opening
e            te      se  amount        FY   FY 1999   FY 1999      2000       a      date
-------  ------  ------  ------  --------  --------  --------  --------  ------  --------
$1,310.                  $681.0    $571.7    $532.8     $38.9     $50.0   $98.3   5/31/00
 8
-----------------------------------------------------------------------------------------
Legend

FY = fiscal year

\a Amount of funding required to complete the grant agreement if the
amount proposed for fiscal year 2000 is appropriated. 

Sources:  MTA-FTA full funding grant agreement, project management
oversight report data, and FTA's fiscal year 2000 annual new starts
report. 

   PENDING ISSUES
-------------------------------------------------------- Appendix VI:2

FTA's financial management oversight contractor is studying all of
MTA's operations and related financing.  The grantee's current cost
estimate for North Hollywood does not include an additional $33.9
million in modifications that are beyond the scope approved in the
grant agreement.  According to FTA officials, the costs associated
with these changes must be borne by the grantee because the changes
are outside of the project's approved scope.  According to FTA, the
project is being completed within budget and is projected to open in
May 2000--7 months earlier than projected in the agreement. 

MARYLAND/MARC EXTENSION TO
FREDERICK AND SYSTEM IMPROVEMENTS
========================================================= Appendix VII

   PROJECT DESCRIPTION AND STATUS
------------------------------------------------------- Appendix VII:1

The Mass Transit Administration of Maryland (MTA) is extending the
Maryland Commuter Rail (MARC) system from Point of Rocks to
Frederick, Maryland.  The extension will operate on about 13 miles of
rail right-of-way owned by CSX Transportation.  The full funding
grant agreement provides for track, signal, and other improvements;
the construction of 2 new stations; the acquisition of real estate,
including 3.4 miles of right-of-way from CSX; and the procurement of
up to 59 new bi-level cars and up to 6 new locomotives.  The grant
agreement was signed on June 19, 1995, and projected an opening date
of December 1998.  However, as of May 1999, the project was more than
2 years behind schedule primarily because of prolonged negotiations
between MTA and CSX over the purchase of the 3.4 miles of
right-of-way. 

Table VII.1 shows the change in the project's estimated cost, the
amount of federal funding provided in the past, the amount proposed
by FTA for fiscal year 2000, and the project's estimated opening
date. 

                                       Table VII.1
                         
                         Maryland/MARC Extension to Frederick and
                         System Improvements--Estimated Cost and
                          Status of Federal Financial Support as
                                       of May 1999

                                  (Dollars in millions)

                                                                         Amount
         Revise  Amount                                                  requir
              d      of            Amount             Funding     FTA's   ed to
Baselin  grante  estima             to be    Amount  shortfal  proposed  comple  Projecte
e cost        e     ted   Total    funded  provided         l   funding      te         d
estimat  estima  increa   grant   through   through   through    for FY  grant\   opening
e            te      se  amount   FY 1999   FY 1999   FY 1999      2000       a      date
-------  ------  ------  ------  --------  --------  --------  --------  ------  --------
$131.6   $134.2    $2.6  $105.3    $105.3    $104.6     $0.70     $0.70  Comple   3/31/01
                                                                             te
-----------------------------------------------------------------------------------------
Legend

FY = fiscal year

\a Amount of funding required to complete the grant agreement if the
amount proposed for fiscal year 2000 is appropriated. 

Sources:  Maryland MTA-FTA full funding grant agreement, project
management oversight report data, and FTA's fiscal year 2000 annual
new starts report. 

   REASONS FOR COST INCREASES
------------------------------------------------------- Appendix VII:2

According to FTA and the project management oversight contractor, the
increase of $2.6 million in the cost of the project is primarily due
to the prolonged negotiations between MTA and CSX over the purchase
of the 3.4 miles of right-of-way. 

   PENDING ISSUES
------------------------------------------------------- Appendix VII:3

According to the project management oversight contractor, at the
current rate of progress, an opening date of late summer 2001 appears
to be more reasonable than the date currently projected. 
Construction bids for the project are expected to be opened in early
August 1999.  The awards will provide an indication of whether the
cost of the project could increase further. 

NORTHERN NEW JERSEY/HUDSON-BERGEN
WATERFRONT LIGHT RAIL LINE
======================================================== Appendix VIII

   PROJECT DESCRIPTION AND STATUS
------------------------------------------------------ Appendix VIII:1

The New Jersey Transit Corporation (NJ Transit) is constructing a
9.6-mile, 16-station light rail line along the Hudson River
Waterfront in Hudson County, from the Hoboken Terminal to 34th Street
in Bayonne and Westside Avenue in Jersey City.  This line is intended
as the "initial operating segment" of a larger 21-mile, 30-station
line extending from the Vince Lombardi park-and-ride lot in Bergen
County to Bayonne, passing through Port Imperial in Weehauken,
Hoboken, and Jersey City.  The full funding grant agreement was
signed on October 15, 1996.  The initial operating segment has been
broken down further into two segments because of a locally approved
alignment change.  As of May 1999, the first segment was expected to
open for service in March 2000.  However, the remaining segment where
the alignment change occurred is not expected to open until July
2001--1 year beyond the date projected in the grant agreement. 

Table VIII.1 shows the change in the project's estimated cost, the
amount of federal funding provided in the past, the amount proposed
by FTA for fiscal year 2000, and the project's estimated opening
date. 

                                       Table VIII.1
                         
                            Northern New Jersey/Hudson-Bergen
                          Waterfront Light Rail Line--Estimated
                           Cost and Status of Federal Financial
                                  Support as of May 1999

                                  (Dollars in millions)

                                                                         Amount
         Revise  Amount                                                  requir
              d      of            Amount             Funding     FTA's   ed to
Baselin  grante  estima             to be    Amount  shortfal  proposed  comple  Projecte
e cost        e     ted   Total    funded  provided         l   funding      te         d
estimat  estima  increa   grant   through   through   through    for FY  grant\   opening
e            te      se  amount   FY 1999   FY 1999   FY 1999      2000       a      date
-------  ------  ------  ------  --------  --------  --------  --------  ------  --------
$992.1                   $604.1    $233.0    $228.3      $4.7     $99.0  $276.8   7/31/01
-----------------------------------------------------------------------------------------
Legend

FY = fiscal year

\a Amount of funding required to complete the grant agreement if the
amount proposed for fiscal year 2000 is appropriated. 

Sources:  NJ Transit-FTA full funding grant agreement, project
management oversight report data, and FTA's fiscal year 2000 annual
new starts report. 

   PENDING ISSUES
------------------------------------------------------ Appendix VIII:2

This project could experience a cost decrease because of reduced
financing costs for the rail cars and locally approved alignment
changes that have reduced the number of stations.  The project
management oversight contractor has estimated that the project's cost
could be reduced by $44.3 million primarily because of reduced
financing costs.  The cost of the project could decrease further
because of the alignment changes.  However, the final design for
these changes is not complete, and a Finding of No Significant Impact
(FONSI) has not yet been issued.  If a FONSI is issued, FTA expects
to negotiate an amendment to the grant agreement to address the
potential changes to the project's overall scope and cost. 

PORTLAND/WESTSIDE LIGHT RAIL
EXTENSION TO HILLSBORO
========================================================== Appendix IX

   PROJECT DESCRIPTION AND STATUS
-------------------------------------------------------- Appendix IX:1

The Tri-County Metropolitan Transportation District (Tri-Met) in
Portland, Oregon, has constructed an extension of the existing
Banfield light rail line from its downtown Portland terminus to
downtown Hillsboro.  The project consists of a 17.7-mile,
double-track fixed guideway with 20 stations and 9 park-and-ride
lots.  The route includes a 3-mile twin-tube tunnel under the West
Hills, essentially paralleling the Sunset Highway.  Also included are
36 low-floor light rail vehicles, the first to be placed in service
in the United States.  The full funding grant agreement was signed on
September 29, 1992.  The Westside-Hillsboro light rail project opened
for service on September 12, 1998.  The contract's closeout has
continued into 1999, and most of the contracts are to be completed by
early 2000. 

Table IX.1 shows the change in the project's estimated cost, the
amount of federal funding provided in the past, the amount proposed
by FTA for fiscal year 2000, and the project's estimated opening
date. 

                                        Table IX.1
                         
                          Portland/Westside Light Rail Extension
                         to Hillsboro--Estimated Cost and Status
                          of Federal Financial Support as of May
                                           1999

                                  (Dollars in millions)

                                                                         Amount
         Revise  Amount                                                  requir
              d      of            Amount             Funding     FTA's   ed to
Baselin  grante  estima             to be    Amount  shortfal  proposed  comple  Projecte
e cost        e     ted   Total    funded  provided         l   funding      te         d
estimat  estima  increa   grant   through   through   through    for FY  grant\   opening
e            te      se  amount   FY 1999   FY 1999   FY 1999      2000       a      date
-------  ------  ------  ------  --------  --------  --------  --------  ------  --------
$963.5                   $630.1    $630.1    $619.0     $11.1     $11.1  Comple   9/12/98
                                                                             te
-----------------------------------------------------------------------------------------
Legend

FY = fiscal year

\a Amount of funding required to complete the grant agreement if the
amount proposed for fiscal year 2000 is appropriated. 

Sources:  Tri-Met-FTA full funding grant agreement, project
management oversight report data, and FTA's fiscal year 2000 annual
new starts report. 

   PENDING ISSUES
-------------------------------------------------------- Appendix IX:2

According to the grantee, this project could cost $9.72 million less
than the original baseline cost estimate.  An amendment to the grant
agreement that would allow the balance of funds to be used to
purchase up to four additional light rail vehicles is awaiting FTA's
approval. 

SACRAMENTO/SOUTH CORRIDOR LIGHT
RAIL LINE
=========================================================== Appendix X

   PROJECT DESCRIPTION AND STATUS
--------------------------------------------------------- Appendix X:1

The Sacramento Regional Transit District (RT) is developing an
11.3-mile light rail line in the South Sacramento Corridor.  The
system will follow existing Union Pacific right-of-way from downtown
Sacramento to Calvine/Auberry.  The project is being implemented in
several phases.  The full funding grant agreement, signed on June 20,
1997, represents the first phase and covers 6.3 miles, 6 stations, 3
park-and-ride lots, and 24 light rail vehicles.  The grantee
estimated that 15,000 riders will use the system each day.  The
project is in the later stages of final design (23 months into a
75-month schedule) and, as of May 1999, was on target to meet its
September 30, 2003, opening date. 

Table X.1 shows the change in the project's estimated cost, the
amount of federal funding provided in the past, the amount proposed
by FTA for fiscal year 2000, and the project's estimated opening
date. 

                                        Table X.1
                         
                           Sacramento/South Corridor Light Rail
                            Line--Estimated Cost and Status of
                         Federal Financial Support as of May 1999

                                  (Dollars in millions)

                                                                         Amount
         Revise  Amount                                                  requir
              d      of            Amount             Funding     FTA's   ed to
Baselin  grante  estima             to be    Amount  shortfal  proposed  comple  Projecte
e cost        e     ted   Total    funded  provided         l   funding      te         d
estimat  estima  increa   grant   through   through   through    for FY  grant\   opening
e            te      se  amount   FY 1999   FY 1999   FY 1999      2000       a      date
-------  ------  ------  ------  --------  --------  --------  --------  ------  --------
$222.0                   $111.2     $52.3     $51.5      $0.8     $25.0   $34.7   9/30/03
-----------------------------------------------------------------------------------------
Legend

FY = fiscal year

\a Amount of funding required to complete the grant agreement if the
amount proposed for fiscal year 2000 is appropriated. 

Sources:  RT-FTA full funding grant agreement, project management
oversight report data, and FTA's fiscal year 2000 annual new starts
report. 

   PENDING ISSUES
--------------------------------------------------------- Appendix X:2

This project is in the later stages of final design, and, as of May
1999, there were no outstanding issues that could adversely affect
the project's schedule or budget. 

SALT LAKE CITY/SOUTH LIGHT RAIL
LINE
========================================================== Appendix XI

   PROJECT DESCRIPTION AND STATUS
-------------------------------------------------------- Appendix XI:1

The Utah Transit Authority (UTA) is constructing a 15-mile light rail
line from downtown Salt Lake City to the southern suburbs.  The line
would operate on city streets downtown (2 miles) and then follow a
lightly used railroad alignment owned by UTA to the suburban
community of Sandy (13 miles).  This project is one component of the
Interstate 15 corridor improvement initiative, which includes
reconstruction of a parallel segment of I-15.  The full funding grant
agreement, signed on August 2, 1995, projected an opening date of
December 31, 2000.  As of May 1999, the project was expected to open
for service on March 3, 2000, nearly 10 months ahead of schedule. 

Table XI.1 shows the change in the project's estimated cost, the
amount of federal funding provided in the past, the amount proposed
by FTA for fiscal year 2000, and the project's estimated opening
date. 

                                        Table XI.1
                         
                          Salt Lake City/South Light Rail Line--
                           Estimated Cost and Status of Federal
                             Financial Support as of May 1999

                                  (Dollars in millions)

                                                                         Amount
         Revise  Amount                                                  requir
              d      of            Amount             Funding     FTA's   ed to
Baselin  grante  estima             to be    Amount  shortfal  proposed  comple  Projecte
e cost        e     ted   Total    funded  provided         l   funding      te         d
estimat  estima  increa   grant   through   through   through    for FY  grant\   opening
e            te      se  amount   FY 1999   FY 1999   FY 1999      2000       a      date
-------  ------  ------  ------  --------  --------  --------  --------  ------  --------
$312.5                   $237.4    $177.4    $199.5   ($22.1)     $37.9  Comple    3/3/00
                                                                             te
-----------------------------------------------------------------------------------------
Legend

FY = fiscal year

\a Amount of funding required to complete the grant agreement if the
amount proposed for fiscal year 2000 is appropriated. 

Sources:  UTA-FTA full funding grant agreement, project management
oversight report data, and FTA's fiscal year 2000 annual new starts
report. 

   PENDING ISSUES
-------------------------------------------------------- Appendix XI:2

According to UTA and FTA, this project could cost $23.53 million less
than the original baseline estimate.  A UTA official attributed
potential cost savings primarily to favorable construction bids at
the outset of the project, the early procurement of vehicles already
in production through another grantee, the reduction of the project
schedule by 1 year, and the fact that federal funds have been
provided in accordance with the funding schedule in the grant
agreement.  UTA and FTA officials are currently negotiating the
allocation of unspent funds to improvements to the project's existing
scope.  For example, UTA hopes to widen some single-track bridges to
double-track and purchase additional vehicles to handle the increased
traffic generated by special events. 

SAN FRANCISCO/BART AIRPORT
EXTENSION
========================================================= Appendix XII

   PROJECT DESCRIPTION AND STATUS
------------------------------------------------------- Appendix XII:1

The Bay Area Rapid Transit District (BART) is implementing an
8.2-mile, four-station extension of the BART system to provide
service to San Francisco International Airport.  The project consists
of a mainline extension from the existing BART station at Colma,
through Colma, South San Francisco, and San Bruno, terminating at the
Millbrae Avenue BART/CalTrain Station.  An additional track from the
main line north of Millbrae will take BART trains directly into an
airport station adjoining a new international terminal.  The grant
agreement, signed on June 30, 1997, called for a September 2001
opening date.  However, as of May 1999, the project was expected to
open in June 2002--9 months behind schedule. 

Table XII.1 shows the change in the project's estimated cost, the
amount of federal funding provided in the past, the amount proposed
by FTA for fiscal year 2000, and the project's estimated opening
date. 

                                       Table XII.1
                         
                          San Francisco/BART Airport Extension--
                           Estimated Cost and Status of Federal
                             Financial Support as of May 1999

                                  (Dollars in millions)

                                                                         Amount
         Revise  Amount                                                  requir
              d      of            Amount             Funding     FTA's   ed to
Baselin  grante  estima             to be    Amount  shortfal  proposed  comple  Projecte
e cost        e     ted   Total    funded  provided         l   funding      te         d
estimat  estima  increa   grant   through   through   through    for FY  grant\   opening
e            te      se  amount        FY   FY 1999   FY 1999      2000       a      date
-------  ------  ------  ------  --------  --------  --------  --------  ------  --------
$1,167.  $1,483  $316.2  $750.0    $214.3    $153.4     $60.9     $84.0  $512.6    06/30/
 0           .2                                                                        02
-----------------------------------------------------------------------------------------
Legend

FY = fiscal year

\a Amount of funding required to complete the grant agreement if the
amount proposed for fiscal year 2000 is appropriated. 

Sources:  BART-FTA full funding grant agreement, project management
oversight report data, and FTA's fiscal year 2000 annual new starts
report. 

   REASONS FOR COST INCREASES
------------------------------------------------------- Appendix XII:2

Of the $316 million cost increase, $165.5 million (52 percent) is
attributed to construction costs.  Of this amount, BART attributed
$109 million to (1) higher-than-expected bids on three contracts
caused by a very competitive Bay Area economy and (2) added
contingencies to address potentially high bids on other contracts. 
BART attributed the remaining construction cost increases to a
variety of additions to the project's scope, low initial estimates
for systems work (e.g., automatic fare collection system), and change
orders due to unexpected conditions.  The nonconstruction cost
increases are primarily due to higher-than-expected costs for
right-of-way and third-party contracts--engineering and construction
management.  In addition, about $16.5 million of the cost increase is
associated with additional financing costs that BART anticipates
incurring because of a slower-than-expected pace of federal funding. 

   PENDING ISSUES
------------------------------------------------------- Appendix XII:3

FTA is reviewing BART's cost estimate of $1.483 billion and the
project management oversight contractor's estimate of $1.536 billion. 
The project management oversight contractor's estimate reflects cost
increases associated with the station work at the airport and
additional contingency amounts.  It is unclear whether FTA will
require BART to revise its cost estimate to reflect the estimate of
the oversight contractor and, if so, where BART would obtain
additional funding.  Another issue under negotiation is BART's
proposal to cancel its planned $100 million purchase of 28 rail cars
and spend $70 million on improving 4 of its maintenance facilities. 
These improvements would enable BART to expand the capacity of its
maintenance shops and thus reduce the amount of time that cars are
out of service.  With these improvements, BART believes that it can
use its existing fleet to provide the vehicles needed to operate on
the new extension.  BART proposes to use the $30 million currently in
the revenue vehicles' budget to help cover the construction cost
increases.  FTA is reviewing this proposal and a new cost/finance
plan.  However, FTA has no plans to amend the grant agreement to
commit additional new starts funds to cover the project's cost
increases. 

SAN JOSE/TASMAN LIGHT RAIL WEST
EXTENSION
======================================================== Appendix XIII

   PROJECT DESCRIPTION AND STATUS
------------------------------------------------------ Appendix XIII:1

The Santa Clara County Transit District (SCCTD) is constructing a
7.6-mile light rail extension of the existing Guadalupe Corridor
light rail system.  The project consists of 12 new stations and 2
park-and-ride lots.  It has an estimated ridership of 5,800 per day
and will connect with the CalTrain commuter rail system at its new
western terminus.  Overall construction is progressing on schedule
with no major issues of schedule and quality.  The full funding grant
agreement, signed on July 2, 1996, projected an opening date of
December 2000.  As of May 1999, the projected opening date was
December 20, 1999. 

Table XIII.1 shows the change in the project's estimated cost, the
amount of federal funding provided in the past, the amount proposed
by FTA for fiscal year 2000, and the project's estimated opening
date. 

                                       Table XIII.1
                         
                             San Jose/Tasman Light Rail West
                         Extension--Estimated Cost and Status of
                         Federal Financial Support as of May 1999

                                  (Dollars in millions)

                                                                         Amount
         Revise  Amount                                                  requir
              d      of            Amount             Funding     FTA's   ed to
Baselin  grante  estima             to be    Amount  shortfal  proposed  comple  Projecte
e cost        e     ted   Total    funded  provided         l   funding      te         d
estimat  estima  increa   grant   through   through   through    for FY  grant\   opening
e            te      se  amount   FY 1999   FY 1999   FY 1999      2000       a      date
-------  ------  ------  ------  --------  --------  --------  --------  ------  --------
$325.0                   $182.8    $162.8    $150.9     $11.9     $31.9  Comple    12/20/
                                                                             te        99
-----------------------------------------------------------------------------------------
Legend

FY = fiscal year

\a Amount of funding required to complete the grant agreement if the
amount proposed for fiscal year 2000 is appropriated. 

Sources:  SCCTD-FTA full funding grant agreement, project management
oversight report data, and FTA's fiscal year 2000 annual new starts
report. 

   PENDING ISSUES
------------------------------------------------------ Appendix XIII:2

The grantee's current cost estimate does not include an additional
$2.8 million in modifications that are beyond the scope approved in
the grant agreement and therefore must be borne by the grantee. 

SAN JUAN/TREN URBANO RAPID RAIL
LINE
========================================================= Appendix XIV

   PROJECT DESCRIPTION AND STATUS
------------------------------------------------------- Appendix XIV:1

The Puerto Rico Highway and Transportation Authority (HTA) is
constructing a 10.7-mile, 16-station rapid rail line between Bayamon
Centro and the Sagrado Corazon area of Santurce in the San Juan
metropolitan area, which covers phase 1 of the project.  This project
has been selected as one of FTA's "turnkey" demonstration projects,
which incorporates contracts to design, build, operate, and maintain
the system.  The full funding grant agreement was signed on March 13,
1996.  During 1996 and 1997, seven design-build contracts were
awarded for different segments of the project.  The Systems Test
Track and Turnkey contract, awarded in August 1996, provided for the
purchase of rolling stock, design and installation of all systemwide
components, construction of one of the segments, and operation and
maintenance of the project for an initial period of 5 years.  The
Tren Urbano project is expected to carry 113,300 riders per day in
2010.  As of May 1999, the project was expected to open for service
in May 2002--10 months behind schedule.  According to the project
management oversight contractor, this delay is primarily due to the
limited availability of a skilled workforce. 

Table XIV.1 shows the change in the project's estimated cost, the
amount of federal funding provided in the past, the amount proposed
by FTA for fiscal year 2000, and the project's estimated opening
date. 

                                       Table XIV.1
                         
                          San Juan/Tren Urbano Rapid Rail Line--
                           Estimated Cost and Status of Federal
                             Financial Support as of May 1999

                                  (Dollars in millions)

                                                                         Amount
         Revise  Amount                                                  requir
              d      of            Amount             Funding     FTA's   ed to
Baselin  grante  estima             to be    Amount  shortfal  proposed  comple  Projecte
e cost        e     ted   Total    funded  provided         l   funding      te         d
estimat  estima  increa   grant   through   through   through    for FY  grant\   opening
e            te      se  amount   FY 1999   FY 1999   FY 1999      2000       a      date
-------  ------  ------  ------  --------  --------  --------  --------  ------  --------
$1,250.  $1,676  $426.0  $307.4    $107.4     $48.3     $59.1     $82.0  $177.1   5/31/02
 0           .0                                                               0
-----------------------------------------------------------------------------------------
Legend

FY = fiscal year

\a Amount of funding required to complete the grant agreement if the
amount proposed for fiscal year 2000 is appropriated. 

Sources:  Puerto Rico HTA-FTA full funding grant agreement, project
management oversight report data, and FTA's fiscal year 2000 annual
new starts report. 

   REASONS FOR COST INCREASES
------------------------------------------------------- Appendix XIV:2

As of May 1999, the cost estimate for the Tren Urbano project was
$1.676 billion.  This represents a $426 million dollar increase over
the original estimate of $1.25 billion in the full funding grant
agreement.  According to FTA, the project management oversight
contractor, and the grantee, the primary factors contributing to this
increase include the following:  the addition of two stations,
alignment changes, station enhancements, an enhanced fare collection
system, an expanded system integration and quality assurance program,
and engineer's low initial estimates. 

Approximately 2 years had elapsed between the time the engineer's
estimates used in the grant agreement were prepared and the fall of
1997, when all of the design-build contracts were awarded.  During
this period, two stations were added, and other station enhancements
were made.  The contract awards were $129 million higher than the
engineer's original estimates.  However, the engineer's estimates
prepared at the time the contracts went out for bid were quite close
to the bids received.  Since the contract awards, there has been an
additional $185.2 million in approved enhancements and scope changes,
including $85 million for additional construction management
services, $20.2 million for additional vehicles, and $22.7 million
for contract options related to the two added stations.  In addition,
there is currently another $81.5 million in potential and pending
increases for the project because of enhancements, differing site
conditions, and hurricane delays.  This includes $26.8 million for an
enhanced fare collection system. 

   PENDING ISSUES
------------------------------------------------------- Appendix XIV:3

FTA is conducting a financial capacity review of HTA for the Tren
Urbano project.  As part of this review, FTA is assessing the
project's financial plan to ensure that adequate funding is available
to build and maintain the project without adversely affecting the
area's other transportation needs.  FTA's initial concerns have
centered on the department-wide rather than project-specific nature
of the plan and the plan's lack of detail and explanation in some
areas.  HTA has hired a consultant to assist in revising the
financial plan.  FTA's financial capacity review contractor plans to
meet with the consultant to address FTA's concerns.  FTA is also
preparing to amend the full funding grant agreement to reflect the
revised cost estimate and projected opening date.  This amendment
would also explicitly reference the non-new starts federal funds that
would be dedicated to assist in financing the project's estimated
cost increase.  The amendment would not change the current new starts
commitment level of $307.4 million.  FTA expects all documentation
needed for FTA headquarters' final review to be completed by early
August 1999. 

ST.  LOUIS/ST.  CLAIR COUNTY LIGHT
RAIL EXTENSION
========================================================== Appendix XV

   PROJECT DESCRIPTION AND STATUS
-------------------------------------------------------- Appendix XV:1

The Bi-State Development Agency (Bi-State) is developing a 26-mile
extension of the Metrolink light rail line from downtown East St. 
Louis, Illinois, to the Mid America Airport in St.  Clair County,
Illinois.  The full funding grant agreement, signed on October 17,
1996, covers a 17.4-mile interim segment from the current Metrolink
terminal in downtown East St.  Louis to Belleville Area College. 
This segment consists of 8 stations, 7 park-and-ride lots, 20 new
light rail vehicles, and a new maintenance facility in East St. 
Louis.  The route makes extensive use of abandoned rights-of-way.  As
of May 1999, the project was on schedule and therefore expected to
meet the opening date of September 30, 2001, approved in the grant
agreement. 

Table XV.1 shows the change in the project's estimated cost, the
amount of federal funding provided in the past, the amount proposed
by FTA for fiscal year 2000, and the project's estimated opening
date. 

                                        Table XV.1
                         
                          St. Louis/St. Clair County Light Rail
                         Extension--Estimated Cost and Status of
                         Federal Financial Support as of May 1999

                                  (Dollars in millions)

                                                                         Amount
         Revise  Amount                                                  requir
              d      of            Amount             Funding     FTA's   ed to
Baselin  grante  estima             to be    Amount  shortfal  proposed  comple  Projecte
e cost        e     ted   Total    funded  provided         l   funding      te         d
estimat  estima  increa   grant   through   through   through    for FY  grant\   opening
e            te      se  amount   FY 1999   FY 1999   FY 1999      2000       a      date
-------  ------  ------  ------  --------  --------  --------  --------  ------  --------
$339.2                   $243.9    $109.8    $104.4      $5.4     $50.0   $89.5   9/30/01
-----------------------------------------------------------------------------------------
Legend

FY = fiscal year

\a Amount of funding required to complete the grant agreement if the
amount proposed for fiscal year 2000 is appropriated. 

Sources:  Bi-State-FTA full funding grant agreement, project
management oversight report data, and FTA's fiscal year 2000 annual
new starts report. 

   PENDING ISSUES
-------------------------------------------------------- Appendix XV:2

Several issues could affect the project's cost and schedule,
including contractors' potential claims relating to Illinois
Department of Natural Resources permit issues and real estate
acquisition.  The project management oversight contractor does not
believe that these issues are currently of sufficient significance to
change either the project's cost estimate or projected opening date. 

GAO CONTACTS AND STAFF
ACKNOWLEDGMENTS
========================================================= Appendix XVI

   GAO CONTACTS
------------------------------------------------------- Appendix XVI:1

Phyllis F.  Scheinberg, (202) 512-2834
Ron Stouffer, (202) 512-2834
Kirk Kiester, (404) 679-1900

   ACKNOWLEDGMENTS
------------------------------------------------------- Appendix XVI:2

In addition to those named above, Joe Christoff, Mike Ibay, Dave
Lehrer, Dave Lichtenfeld, and Carol Ruchala made key contributions to
this report. 

*** End of document. ***