LA transit agency tentatively agrees to award $300 million to Italian light rail manufacturer
By APThursday, September 24, 2009
LA transit officials tentatively OK rail car deal
LOS ANGELES — The Los Angeles County Metropolitan Transportation Authority board has tentatively agreed to award a contract to an Italian firm to make 100 light-rail cars.
The members voted 8-3 on Thursday to enter into a $300 million deal with AnsaldoBreda (ahn-SAL’-doh-BREH’-dah) if the company meets several conditions in 30 days. MTA spokesman Marc Littman says they include agreeing to a $75 million letter of credit and a $2.9 million price tag for each car.
Otherwise, MTA chief executive Art Leahy can open the contract to bidding.
Labor unions support the deal after AnsaldoBreda promised to build a rail manufacturing plant in the city. But Leahy recommended against the contract, saying the firm is late on delivering the 50 cars it’s making for the MTA under a base contract, and the cars are 6,000 pounds too heavy.
Tags: Automobiles, Car Buying, Los Angeles, Mass Transit Systems, North America, Transportation, United States