The promise by the New York Metropolitan Transportation Authority (MTA) that the purchase of 1,500 new New York City (NYC) Transit subway and 500 new Long Island Rail Road (LIRR) and Metro-North Railroad (Metro-North) commuter rail cars will be delivered and in revenue service under the proposed $68 billion 2025 - 2029 Five Year Capital Program by 2030 is wishful thinking.
Going back decades, in previous purchases, Federal Transit Administration (FTA) grant funding was used to finance these procurements. It will probably be the same here. Finding a vendor to construct these vehicles is difficult.
Alstom and Kawaski are the only two major experienced car manufactures in the U.S. This results in limited competition. Both have ongoing active contracts with many other transit agencies around the U.S., including the MTA. As a result, their respective production assembly lines are already booked for several years.
MTA in the past has taken advantage of FTA pre-award authority prior to grant approval. Use of pre-award authority affords the opportunity to incur costs using local funds for federal reimbursement at a later date after grant obligation of funding. This allows the MTA to initiate work including advertising, awarding of contracts and issuing notice to proceed for contractors to begin work prior to grant award.
Given the $33 billion shortfall in the proposed MTA $68 billion 2025 - 2029 Five Year Capital Program, there may not be any available local funding to take advantage in using FTA pre-award authority. This will delay the procurement process by several months and perhaps add to the overall project cost.
The MTA has to deal with the FTA Buy America (including made in America percentage rail car equipment component requirements), Davis Bacon Prevailing Wages, U.S. Cargo Preference, Disadvantaged Business Enterprise sub contractor goals, along with other federal rules and regulations. U.S. Cargo Preference usually prevents the MTA from using vendors from abroad.
Previous subway and commuter car procurements, like those proposed under the new capital plan, are destined to suffer from delays of several years. This frequently takes place during the procurement process and manufacturing plant assembly line production.
Just look at the history for the most recent ongoing NYC Transit R211 subway car and LIRR MU9 electric car procurements. Inspection, acceptance, testing of pilot cars on designated subway or commuter rail routes and delivery for vehicles suffered from delays prior to completion before riders could reap the full benefits.
The MTA has not made available any detailed project schedules for either new NYC Transit, LIRR or Metro-North car procurement to validate a 2030 completion date. There would also be the need to demonstrate technical capacity for management of the project. This would require submission of a Project Management Plan (PMP) and updated Fleet Management Plan. Both would be reviewed by FTA with input from the assigned FTA Independent Engineer Project Management Oversight (PMO) consultant, prior to FTA approval for each.
The project implementation schedule, which I would insist to see and review, with assistance from other Region 2 staff and our assigned PMO, would include most of the following proposed available interim project milestones. This was required when I was working at FTA prior to grant approval of funding. This would include interim project milestones for completion of design and engineering, submission to FTA, followed by approval of the FTA grant to finance purchases procurement process. This includes Request for Proposals (RFP); RFP Addendums In response to prospective bidders' questions; opening, reviewing and awarding of bids; contractor mobilization, including employees and materials and scheduling of production assembly line contractor submission; review by MTA and MTA acceptance of the contractors production schedule; monitoring of plant production; acceptance of first 10 test cars; MTA testing of pilot cars in service; and start of full production at an average of five to 10 cars per week. This could take from two to four years depending upon quantities ordered, any contract change orders due to last minute changes in scope, delivery and acceptance of new vehicles by week, month and years, vehicles going into revenue serviced by week, month and year, end of full production, completion of punch list for hundreds of equipment components for all car procurements, acceptance of all maintenance equipment manuals for vehicles and release of retainage or final payment to the manufacturer.
There would also be the need to develop a maintenance plan for new vehicles and identification of sufficient operating dollars to implement all maintenance activities.
FTA has useful life requirements for all new subway and commuter rail cars, which must be met decades later to preserve eligibility for replacement with federal dollars. After that, the contract(s) will be closed out and all new vehicles would have been placed into revenue service. This would be followed by initiation of grant(s) closeout by MTA completed by FTA.
Both the FTA and MTA will also have to hire independent PMOs to assist the handful of MTA Headquarters, NYC Transit, LIRR and Metro-North project managers, engineers, finance and other in-house staff to manage these contracts.
FTA Region 2 NY usually assigns just one regional engineer and/or transportation program specialist for oversight supplemented by a PMO. Both MTA and FTA consultants will issue monthly progress reports. These progress reports will make interesting reading for the MTA chairman; each MTA operating agency president; chief engineer; procurement director; project manager; project engineer; MTA Board members; other MTA in house employees; commuters; taxpayers; transit advocates; U.S. Department of Transportation; MTA Office of Inspector General; the state and city comptroller; other elected officials; transit reporters; and newspaper editorial boards.
