METRO Magazine Logo
MenuMENU
SearchSEARCH

FTA: Houston Metro violated 'Buy America' requirements, procurement laws

In a letter hand-delivered to Metro's newly appointed leadership, Board Chairman Gilbert Garcias and Acting President/CEO George Greanias, Rogoff wrote, "The results of the investigation are both alarming and disturbing."

September 8, 2010
2 min to read


Houston system "violated both federal procurement law and the Buy America requirements" during the procurement and subsequent award of two light rail vehicle (LRV) contracts to Spanish rail car manufacturer Construcciones y Auxiliar de Ferrocarriles (CAF), said Federal Transit Administrator Peter Rogoff. The findings come at the completion of a four-month FTA investigation into Metro's procurement practices.

In a letter hand-delivered to Metro's newly appointed leadership, Board Chairman Gilbert Garcias and Acting President/CEO George Greanias, Rogoff wrote, "The results of the investigation are both alarming and disturbing. They reveal a series of systematic efforts through which Metro and CAF sought to bypass numerous federal rules. These rules are designed to ensure the integrity of procurements involving taxpayer funds and the requirement to use taxpayer funds in a manner to maximize the creation and sustainment of well-paying jobs here at home. The Administration will vigorously enforce these requirements, both now and in the future."

Ad Loading...

The Rogoff letter said that while the violations are very serious, "the Administration believes that the commuters of Houston should not be denied needed transit improvements due to the actions of prior Metro management. The Administration still believes that the North and Southeast Corridor projects have merit and we stand behind our Fiscal Year 2011 budget request of $150 million for the two projects."

In order for the FTA to continue to direct federal funds to these projects, Metro will be required to submit a written affirmation of its intention to rebid the contract and detail its plan to achieve full compliance with all federal requirements.

The Rogoff letter concluded by stating that FTA looks forward to a continued involvement with Metro under the transit agency's new management, and hopes that relationship "will be characterized by trust, transparency, respect and full compliance with all pertinent federal laws."

A copy of the entire letter from Administrator Rogoff, as well as a letter from FTA Chief Counsel Dorval Carter to Metro's Chief Counsel and a full Report of the Investigation can be accessed here.

 

 

More Rail

MTA Advances Accessibility Improvements in Brooklyn
Paratransitby StaffJune 17, 2026

New York MTA Leverages Zoning Program to Advance Station Accessibility

Accessibility enhancements at Nevins St Station will be financed through a development agreement tied to the MTA's Zoning for Accessibility initiative.

Read More →
Six-Year Plan Boosts Virginia Transit, Rail Investments
Managementby StaffJune 17, 2026

Virginia's $28.5B Transportation Plan Targets Transit and Rail

Approved by the Commonwealth Transportation Board, the program supports ongoing infrastructure projects while providing new investments in transit, state of good repair and transportation alternatives.

Read More →
Security and Safetyby StaffJune 16, 2026

DOT: Brightline Corridor Incidents Fall 30% Following Federal Safety Upgrades

Safety improvements funded through a $25 million federal investment are credited with reducing trespassing and train-vehicle collisions along the Brightline Florida corridor.

Read More →
Ad Loading...
An LA Metro D Line train in Union Station
Managementby StaffJune 16, 2026

D Line Expansion Fuels Growth Across LA Metro's Rail System

Weekend rail ridership was especially strong, soaring 18% as riders embraced expanded access to jobs, entertainment, dining, and cultural destinations, said the agency. Total system ridership for May, including bus and rail, was 26,966,657.

Read More →
A user demonstrating Metrolink's contactless fare payment pilot.
Technologyby StaffJune 12, 2026

Southern California's Metrolink Debuts Contactless Fare Payment Pilot

Customers traveling between Redlands and Los Angeles can now tap their preferred payment method, including a credit or debit card, mobile wallet, or wearable device, at station validators before boarding and again while exiting.

Read More →
A BART train on the tracks.
Managementby StaffJune 12, 2026

California's BART Approves FY27 Budget While Maintaining Service Levels

The budget covers July 1, 2026, through June 30, 2027, a period when pandemic emergency funds run out, the District faces a structural deficit of $375 million, and a regional transit funding measure may appear on the November ballot.

Read More →
Ad Loading...
A rendering of the Amtrak New York Penn Station renovation
Railby StaffJune 9, 2026

Penn Station Transformation Advances with Design Unveiling

The historic redesign will transform the busiest transit hub in the Western Hemisphere from the tracks to the street level, creating a more efficient, cleaner, and functional experience for more than 600,000 daily commuters and millions of visitors.

Read More →
Groundbreaking event for Second Avenue Subway Phase 2 TBM construction.
Railby StaffJune 9, 2026

Second Avenue Subway Phase 2 Advances into Major Construction Stage

New York Governor Kathy Hochul joined leadership from the MTA, elected officials, and Harlem community leaders to break ground on the major construction stage of the transformative Second Avenue Subway Phase 2 project.

Read More →
A man sits in a passenger rail seat and looks at his phone.
Railby Elora HaynesJune 8, 2026

The Invisible Infrastructure of Passenger Flow

What a seat reservation system on Austria’s Railjet trains reveals about the future of rider experience, and why U.S. agencies should pay attention.

Read More →
Ad Loading...
Aerial view of Caltrain's electric service.
Railby StaffJune 5, 2026

Caltrain Board Approves FY27 Budget, Endorses Efficiency Measures

The move ensures Caltrain service will continue operating as usual in the near term, but long-term financial challenges remain for the rail agency absent a new revenue source.

Read More →