Preliminary Engineering (PE) develops the design of the facilities and systems, and updates costs and schedule. Engineering details are identified by refining station, tunnel and other facilities’ design. A crucial part of this phase is Value Engineering, by which proposals to reduce capital and operating costs are evaluated for potential implementation. There are five PE design integration groups: line, tunnel, facilities, systems, and design integration. Status: As of March 2006, more than 40 value-engineering proposals have been evaluated and over $260 million in value engineering savings have been identified. As of December 2006, PE reached 100% completion. Final design will begin in early 2007 and continue through 2010. Upcoming Activities: Continue evaluating  value-engineering proposals. Continue agency and stakeholder coordination on design development.