Wednesday, September 08, 2010

HOUSTON'S METRO RAIL FACING SERIOUS PROBLEMS AND FEDERAL PROBE!

Major federal violations are coming down against METRO related to its Light Rail system -- putting two of its three expansion projects on hold.

The Federal Transit Administration on Wednesday said METRO violated federal laws when it came to purchasing rail cars from Spanish manufacturer Construcciones y Auxiliar de Ferrocarriles, or CAF.

In a letter delivered to METRO’s leaders, the FTA claimed METRO and CAF “made an effort to bypass numerous federal rules” during the procurement and awarding of contracts to purchase the cars.

“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,” wrote Federal Transit Administrator Peter Rogoff.

That means two of the three Light Rail projects in Houston are now on hold. Rogoff added that he believes Houston commuters should still have access to transit improvements, however.

The estimated cost of the North and Southeast Corridor projects is more than $1.5 billion total, with a projected federal investment of $900 million combined.

METRO will now have to rebid in order to quality for the federal grant. The FTA said 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.

More about this investigation will be learned at a 3 p.m. news conference on Wednesday.
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