Contracts were canceled and the Spanish railcar vendor relinquished claim to any additional payments for unpaid work and lost profits — this, in addition to the $14 million refund.
The contracts are canceled and CAF will forego any additional payments for unpaid work and lost profits. In addition, CAF will refund $14 million to Metro. The agreement was ratified by Metro's board on Friday.
Board Chairman Gilbert Garcia emphasized that Metro expects the $900 million grant to be restored. First, however, the agency must cancel the $331 million railcar contract with CAF USA.
The company said the FTA's decision was based on incomplete or erroneous information — starting with the name and nationality of the firm holding the contract.
The five-year, $298.1 million contract is being awarded to CAF USA, which is creating 575 jobs to perform manufacturing and final assembly work at its plant in Elmira, N.Y. The first car is scheduled to roll off the assembly line in October 2012.
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