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PSAD-81-11 1 (1980-11-10)

handle is hein.gao/gaobabbez0001 and id is 1 raw text is: 


                   UNITED STATES GENERAL ACCOUNTING OFFICE
                          WASHINGTON, D.C. 20548

PROCUREM NT AND 6YWSTMU                         NOVEMBER 10, 1980
  ACQUISITION DIVISION

     B-200786                                      Jil i 111



     The Honorable Neil E. Goldschmidt                113711
     The Secretary of Transportation

     Dear Mr. Secretary:

          Subject: (Massachusetts Bay Transportation Authority's
                    Termination of Contract for Light Rail
                    Vehicles ;PSAD-81-11)

          This is to inform you of certain events associated
     with the Massachusetts Bay Transportation Authority's
     (MBTA's) procurement of light rail vehicles (LRVs) under
     the Urban Mass Transportation Administration (UMTA) project
     MA-03-0022 and the subsequent termination of the pro-
     curement contract.

          MBTA awarded a contract on May 1, 1973, to the Boeing
     Vertol Company (Boeing) for 175 LRVs to be manufactured using
     the standard LRV specification developed by MBTA and funded
     and approved by UMTA. When terminated in November 1979,
     this project had been amended three times and its total
     cost amounted to $68.3 million, of which $48.1 million
     is the Federal share.

          Although the MBTA/Boeing settlement terms were not sub-
     mitted to UMTA for approval before final execution of
     the settlement agreement, UMTA has conditionally approved
     the settlement. Our primary concern is that the conditional
     approval was granted without UMTA knowing conclusively
     if the settlement funds would permit meeting the project's
     original objectives without additional Federal funding.

        L LRV, built to UMTA's approved standard LRV specifica-
     tions, began experiencing problems when placed into passenger





                                                     (951520)

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