Rail

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

Posted on September 8, 2010

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."

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.

 

 

View comments or post a comment on this story. (0 Comments)

More News

Keolis, MBTA to improve commuter rail ticket checking

Estimates suggest that up to $24 million in uncollected fare could be recovered through a ticket-checking modernization initiative and other tactics.

Metra to install suicide prevention signs

The signs will be developed and finalized as part of a Mental Health Awareness Symposium to be hosted by Metra in September to coincide with National Suicide Awareness Month.

Accident, no shows plague commute for LIRR, NJ Transit passengers

Some NJ TRANSIT trains have been canceled this week because engineers are choosing not to work under the terms of their contract amid the summer-long repair work at Penn Station.

Mayor says Miami-Dade can't afford to build more rail lines

Mayor Carlos Gimenez’s $534 million proposal for rapid-bus routes would indefinitely defer the Metrorail expansion promised voters in 2002 during a referendum for a half-percent transportation tax.

FTA, Maryland Transit Administration appeal judge's Purple Line decision

Ruling called for an additional environmental study of the light rail line, despite the fact the project had already been studied and signed-off on by the feds. 

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close