HOUSTON – Metro "violated both federal procurement law and the Buy America requirements" when they awarded two light rail contracts to a Spanish rail car manufacturer, the Federal Transit Administration announced Wednesday.
The announcement came after a four-month FTA investigation into Metro’s procurement practices.
In a letter hand-delivered to Metro Board Chairman Gilbert Garcias and CEO George Greanias, FTA administrator Peter Rogoff characterized the findings of the investigation as both "alarming and disturbing."
"They reveal a series of systematic efforts through which METRO and [Spanish rail car manufacturer] CAF sought to bypass numerous federal rules. 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. The Administration will vigorously enforce these requirements, both now and in the future," the letter read.
Rogoff’s letter also said though the violations are serious, the FTA believes Houston’s commuters should not be denied the needed transit improvements, and that the FTA will stand behind its budget request of $150 million for Metro’s North and Southeast Corridor projects.
In order for the FTA to continue to direct federal funds to these projects, 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.
Rogoff’s letter said the FTA is prepared to help keep Metro’s expansion projects moving forward and keep workers on the job, once Metro makes its commitment to compliance clear.
Rogoff said the FTA looks forward to its continued involvement with Metro’s new management, and they hope the relationship will be "characterized by trust, transparency, respect, and full compliance with all pertinent federal laws."
