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RCED-85-50 1 (1984-11-19)

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                    UNITED STATES GENERAL ACCOUNTING OFFICE
                              WASHINGTON, D.C. 20648
                                              November 19, 1984
                              RELEASED
AND ECONOIC DEVELOPMENT
     DIVISION

     B-217074                                  125777


     The Honorable Elliott H. Levitas, Chairman
     The Honorable Guy V. Molinari, Ranking
        Minority Member
      Subcommittee on Investigations and Oversight
      Committee on Public Works and Transportation
      House of Representatives

           Subject: New York City Transit Authority's Withdrawal
                     of Its Grumman Flxible Buses (GAO/RCED-85-50)

           In your March 15, 1984, letter you expressed concern about
      New York City Transit Authority's (TA's) withdrawal of its Grumman
      Flxible Model 870 buses from transit service. You requested that
      we determine (1) whether the TA complied with Grumman's suggested
      maintenance schedules, (2) whether other transit systems have had
      similar safety, breakdown, or other problems with their Model 870
      buses, (3) the reliability of the Model 870 bus as compared with
      other types of buses in the New York fleet, and (4) the conditions
      under which the buses are now stored. As agreed with your office,
      we did not analyze whether the Model 870 buses were considered to
    .be safe because at the time we were making our review, the Depart-
    ment of Transportation's Urban Mass Transportation Administration
      (UMTA) was planning to carry out a study of its own to evaluate
      the condition of the buses. Also, our undertaking a similar study
      may have been duplicative. Because of a subsequent agreement with
      the TA, however, UMTA no longer plans to perform the study.

         We found that (1) on the basis of the TA's records, the TA
     generally met or exceeded Grumman's suggested mileage inspection
     requirements for the Model 870 buses but did not always adhere to
     its own more stringent inspection schedules for these buses,
     (2) the TA's study showed that it had more problems with the
     Grumman buses than it did with other buses it was operating, and
     (3) about 60 percent of the other transit systems owning or leas-
     ing Model 870 buses that responded to our inquiry said that they
     generally were satisfied with the overall performance of their
     Model 870 buses. The TA is currently storing the Model 870 buses
     in a fenced lot under 24-hour guard at the Brooklyn Army Terminal.
     The TA has not decided on the ultimate disposition of the buses,
     but is considering awarding a contract to maintain the buses while
     they are stored at the Army Terminal.


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