Feds investigate Metro's purchase of rail cars

[editor]

Here's Metro's response to the federal investigation of its purchase of rail cars from Spain:

---------

METRO SUBMITS BUY AMERICA RESPONSE LETTER

TO THE FEDERAL TRANSIT ADMINISTRATION

METRO submitted its response today to the Federal Transit Administration (FTA) regarding the agency’s Buy America program for the purchase of light-rail cars.

The FTA is conducting a review of METRO’s adherence to Buy America provisions for the purchase of cars from Construcciones y Auxiliar de Ferrocarriles (CAF) of Spain – two test cars, funded locally, and 103 cars funded with federal money.

“We want to make very clear to the FTA that METRO and its Board of Directors firmly believe in the Buy America program,” said METRO’s Chairman Gilbert A. Garcia, CFA. “This program is critical to the economic vitality of this community; never more so than during this current economic recession.”

In its letter to the FTA, METRO reemphasized that the two cars to be built in Spain will be paid for with local funds. This decision was based on solid business decisions: To provide quality assurance and adherence to safety standards for the production of the 103 rail cars to be assembled in New York under a separate, federally funded contract.

METRO assured the FTA that it performs periodic audits of its major contractors on the rail project to ensure all federal requirements are being met.

Garcia said METRO wants to work closely with the FTA to address any remaining issues on the light-rail construction.

“We appreciate the FTA’s vigilance in ensuring compliance,” Garcia said. “We are anxious to get this project moving quickly. Jobs for America are needed now more than ever.”

[Highway6]

Sounds like we'll probably be in the clear here...

Voicemail key to Metro's 'Buy America' defense

The April 17, 2009, message from Scott Biehl, then the Federal Transit Administration's acting chief counsel, to Metro attorney Ed Gill responded to Gill's inquiry about whether “Buy America” rules would permit the assembly of two prototype rail cars in Spain if the cars were purchased with local, not federal, funds.

“Ed, you nailed it,” Biehl said in the message, which was included in Metro's formal response Friday to the FTA's Buy America investigation. “The answer is we don't care.”

Full Article..

[Talbot]

When I read this I breathe a great sigh of relief, I was thinking we were going to lose another big chunk of money that would further delay our light rail!