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L.A. MTA to seek new car procurement bids after AnsaldoBreda declines option

AnsaldoBreda S.p.A. recently declined to sign a contract and exercise an option to build 100 additional light-rail cars, the Los Angeles County Metropolitan Transportation Authority (LACMTA) announced on Saturday. So, the agency plans to seek bids on a new car procurement to meet its operating needs for new rail lines.

“Good faith negotiations between the two parties have gone on for more than a year [and] the board had set a deadline of midnight Oct. 30 to reach agreement on exercising the rail-car options,” LACMTA officials said in a prepared statement. “But within hours of the deadline, AnsaldoBreda required changes to the agreement that were inconsistent with the board’s direction, including financial penalties for late deliveries.”

Because six rail projects are scheduled for completion during the next decade, the agency needs more than 100 cars in that timeframe. The agency expects to award a contract for new cars in spring 2010. AnsaldoBreda would be eligible to bid on the new contract, LACMTA officials said.

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More News from 11/3/2009