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NSIAD-83-26 1 (1983-08-10)

handle is hein.gao/gaobabedx0001 and id is 1 raw text is: BY THE US. GENERAL ACCOUNTING OFFICL Report To The Secretary Of Transportation Metro Needs To Better Manage Its Railcar Procurement TQ complete the planned Metrorail system, the Washington Metropolitan Area Transit Authority is acquiring 294 railcars at a total estimated cost of $275 million. The Department of Tansportation's Urban Mass Transportation Administration is funding almost 85 percent of the cost. The remainder is funded by local jurisdictions in the Metropolitan Washington, D.C., a la. GAO found that major acquisition decisions, such as an i crease in the railcar order from 94 to 294 cars, were based on limited testing and that contractual requirements for railcar quality assurance plans have not been enforced. Also, to improve the contractor's cash flow the Transit Authority agreed t a new progress payment schedule for the additional cars rdered. This schedule allows payment for limited work and will r suit in substantial payments to the contractor before railcar elivery. The first two cars arrived in April 1983, 22 months behind schedule, and the contractor's ability to meet the delivery schedule for the remaining cars is in doubt. $he Transit Authority could improve its management control ver this procurement through better enforcement of contract requirements and development of a master plan to test cars. $tronger procurement oversight by the Urban Mass Trans- portation Administration also is needed to ensure that federal funds are effectively used. NI G 122109 GAO/NSIAD-83-26 AUGUST 10, 1983 b Q q )

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