Rail

Houston Metro, CAF reach settlement

Posted on December 17, 2010

The Houston Metropolitan Transit Authority (Metro) reached a settlement with CAF USA Inc. (CAF), a subsidiary of the Spanish Firm Construcciones y Auxiliar de Ferrocarriles, S.A., over two disputed contracts for the construction of light rail cars for its North and Southeast Corridor lines.

Under the agreement, the contracts are canceled and CAF will forego any additional payments for unpaid work and lost profits. In addition, the railcar manufacturer will refund $14 million to Metro. The agreement was ratified by Metro's board on Friday.

In September, the Federal Transportation Administration found that CAF and prior Metro management had violated federal procurement law and Buy America requirements regarding the contracts, putting $900 million of federal transportation grants for the rail lines in jeopardy. Metro's new management ordered CAF to stop work on the railcars and immediately swung into action to protect access to federal funds.

Metro initiated a mediation process with CAF that took place recently, leading to the settlement, which allows Metro to now move forward quickly to protect the $900 million in federal funding for the rail lines.

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

More News

Alstom to provide Amtrak with new generation, high-speed train

Will run on the Northeast Corridor. Amtrak and Alstom also signed a long-term contract under which Alstom will provide Amtrak with long-term technical support and supply spare components and parts for the maintenance of the new trainsets.

Metra receives final Electric Highliners

Completes 2010's 160-car purchase to outfit the line with a completely new and modern fleet.

Amtrak's microgrid to serve as backup during power outages

In the aftermath of the 2012 Superstorm Sandy, half of the Sunnyside Yard had to rely on portable backup generators for a month due to a damaged transmission line.

Detroit's M-1 begins testing streetcar line

The slow-moving "speeder" vehicle will travel the rail line as part of a testing regimen that ensures the route is free of obstructions.

Honolulu's rail executive director/CEO resigns

Dan Grabauskas will be paid the final year of contract as part of the separation agreement, a total of $282,250. The board appointed HART board member Mike Formby as acting CEO, effective immediately.

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