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."
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.
More Rail

Amtrak, CN Reach Agreements to Strengthen Passenger Rail Service, Safety
The agreement resolves a more than decade-long proceeding before the Surface Transportation Board concerning the terms and conditions for Amtrak services, such as the City of New Orleans, Illini/Saluki, and Wolverine.
Read More →
New York MTA Advances Final Contract for Second Avenue Subway Expansion
Contract Four is the largest in the Second Avenue Subway Phase 2 project and includes construction of station infrastructure, tracks, and signals for the subway expansion, MTA officials said. Work on Contract Four will begin in 2027.
Read More →
San Diego MTS Breaks Monthly Trolley Ridership Record
Agency officials said July’s ridership indicates MTS’s continued recovery from the pandemic.
Read More →
Report Examines NJ TRANSIT Reliability, Funding Challenges
The Garden State Initiative analysis examines the roles of Amtrak infrastructure, fleet management, and agency operations while recommending a more performance-based approach to improving reliability.
Read More →
Stadler, CapMetro Sign Long-Term Rail Fleet Support Agreement
Beginning in 2027, Stadler will provide on-site technical expertise, spare parts support, training, and obsolescence management to help extend the reliability and longevity of CapMetro’s GTW fleet.
Read More →
Biz Briefs: Alstom Lands Canadian Contract, LYT to Supply California TSP, and More
In METRO's latest installment, we take a look at recent news from Complete Coach Works, Beep, FlixBus, and more partnerships making headlines across the transportation sector.
Read More →
CATS Gold Line Marks 5 Years of Service, 2.8M Passenger Trips
With a six-mile expansion planned, the Charlotte streetcar is positioned to connect more neighborhoods and major transit hubs across the region.
Read More →
Why Simulating Pedestrian Movement Has Become Essential for Modern Rail Stations
Pedestrian microsimulation is helping rail planners identify bottlenecks, test station designs, and prepare complex transit hubs for growing passenger volumes.
Read More →
Amtrak Begins Major Construction at New York’s Sunnyside Yard
The new maintenance facility will support Amtrak’s Airo trainsets while improving maintenance efficiency and turnaround times in New York.
Read More →
Chicago Leaders Unveil Plans for O’Hare Airport Express Train
The privately developed project would offer a 15-minute trip between downtown and O’Hare’s Terminal 2, with trains operating every 15 minutes on a dedicated track. The service would use battery-electric trains and three existing freight rail rights-of-way.
Read More →