CAF USA, Houston Metro still quarreling

CAF USA, the U.S. subsidiary of Beasain, Spain-based Construcciones y Auxiliar de Ferrocarriles, says it still believes it deserves a chance to supply Houston with light rail transit vehicles.

Metropolitan Transit Authority of Harris County (Metro) last month announced its intent to acquire 19 Siemens S-70 light rail vehicles for $83 million as part of an option held by Utah Transit Authority. Metro made the decision after canceling an order with CAF USA, following a decision by the Federal Transit Administration that an order placed with CAF USA did not meet Buy America requirements.

Metro last month received $14 million from CAF as part of its settlement with the company involving a contract dispute. But CAF USA Vice President of Sales Virginia Verdeja has filed a three-age letter to Metro saying her company still seeks the agency’s business, and she intends to follow up with a similar request to FTA.

"It’s not a done deal," Verdeja said. "The board approved the purchase and has given permission to enter into the deal. But it’s not finalized and that’s why we are trying to stop it. We are used to competition, but only if it’s fair."

Vedeja claimed Siemens cars, manufactured in Sacramento, Calif., will need $750,000 of re-work per car before they can be used in Houston. The changes to be made to the vehicles include coupler covers, additional air conditioning, and American with Disabilities Act (ADA) compliance. CAF USA was to supply Houston with 103 LRT vehicles manufactured at its Elmira Heights, N.Y., facility, before FTA said Metro had violated Buy America rules.

In an email to Railway Age, Metro Vice President and Senior Press Officer Jerome Grey, responding to CAF USA’s assertions, wrote in part:

“The New Metro is moving forward with plans to purchase light-rail vehicles despite criticism from a disgruntled vendor. CAF USA is calling into question Metro’s plan to provide much needed relief to its light rail system. That plan includes the purchase of 19 Siemens light-rail cars through an agreement with the Utah Transit Authority (UTA). The timing of this purchase also allows METRO to take advantage of $64 million in Stimulus Funds.”

Grey added the Metro “has worked closely with the Federal Transit Administration (FTA) to make sure it remains in line with all procurement requirements. The FTA has been informed and accepts our purchase plan for the 19 cars.”

Said Metro President & CEO George Greanias in a statement, “We are disappointed that CAF would criticize our attempt to accelerate the much needed service improvements that our customers desire. CAF is well aware that Metro lost valuable time last year in the dispute over ‘Buy America.’”

Responding to CAF charges of costs associated with the Siemens order, Grey said, “The cost is higher than a traditional purchase because a number of modifications must be made, most notably better air conditioning systems to handle the Houston heat.” Added Metro Board Chairman Gilbert Garcia in a statement, “This purchase allows us to make up for some lost time and get cars on the tracks nearly a year ahead of projections.”