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Rail News: Federal Legislation & Regulation

OIG to audit SEPTA's Buy America compliance under CRRC contract

A $138 million contract between SEPTA and the Chinese state-owned China Railway Rolling Stock Corp. is under scrutiny as federal investigators launch an audit to determine whether the contract meets the FTA's Buy America requirements for rolling stock..
Photo – Southeastern Pennsylvania Transportation Authority/Facebook


The U.S. Department of Transportation Office of Inspector General (OIG) last week announced it will audit the Federal Transit Administration's oversight process regarding the Southeast Pennsylvania Transportation Authority's procurement of new rail cars under a contract with Chinese state-owned enterprise China Railway Rolling Stock Corp. (CRRC).

The audit will determine whether SEPTA is meeting the FTA's Buy America requirements for rolling stock procurements.

Last year, some ranking members of the House Transportation and Infrastructure Committee raised concerns about SEPTA's $138 million contract with CRRC to deliver 45 new passenger cars with an option for 10 more cars, OIG officials said in a memorandum.

Specifically, the OIG will examine FTA's oversight of SEPTA's certification of CRRC's adherence to Buy America requirements, and SEPTA's calculation of the total value of foreign components. The audit is expected to begin in the coming weeks.