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Sepulveda Transit Corridor Project

Quantitative Risk Analysis to Support VfM Analysis

Sepulveda Transit Corridor Study Area Map
CLIENT

Los Angeles County Metropolitan Transportation Authority (LACMTA) 

LOCATION

Los Angeles, CA

SERVICES

P3 and Alternative Delivery Evaluation
Risk Assessment and Risk Management
Quantitative Risk Analysis

Sepulveda Transit Corridor Study Area. Source: LA Metro

SHA Analytics, LLC is part of the financial advisory team supporting LA Metro on the Sepulveda Transit Corridor Project, a major initiative to improve connectivity between the San Fernando Valley and Los Angeles Westside. The Project is exploring a range of high-capacity transit technologies – including heavy rail and monorail – with delivery options that include both traditional and public-private partnership (P3) models. Under Metro’s Pre-Development Agreement (PDA) structure, SHA Analytics, LLC provides technical advisory services focused on risk and financial analysis to inform procurement strategy and long-term delivery planning.

Key contributions include:

  • Developing and maintaining detailed risk registers for project alternatives, including risk allocation strategies under PDA structures.

  • Leading quantitative risk analysis of cost and schedule to support the Value-for-Money (VfM) analysis used to compare traditional and P3 delivery.

  • Coordinating with Metro’s legal and technical teams to align risk assumptions with contract terms.

  • Estimating risk-adjusted capital, operating, and lifecycle costs using Monte Carlo simulation.

  • Generating cash flow models with FTA SCC-based breakdowns to inform financial planning and owner/developer risk shares.

 

SHA Analytics, LLC completed the initial risk analysis for PDA alternatives in 2024. Once a Locally Preferred Alternative (LPA) is selected, anticipated in late 2025, SHA Analytics, LLC will lead a new round of quantitative risk analysis to support the public-sector comparative evaluation.

By aligning technical risk analysis with procurement strategy and contract planning, SHA Analytics, LLC helps Metro lay the groundwork for informed decision-making and successful long-term project delivery.

  (310) 916-9494 | info@shaanalytics.com
  10880 Wilshire Blvd, Suite 1101. Los Angeles, CA 90024

 SHA Analytics, LLC is a certified SBE/ DBE that provides decision support consulting services to clients in public infrastructure markets.

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