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MTA STAFF RECOMMENDS SIEMENS DUEWAG TO RECEIVE AWARD TO BUILD L.A. STANDARDIZED LIGHT RAIL VEHICLE

 92 Percent To Be Built In the United States
 LOS ANGELES, June 10 /PRNewswire/ -- A team of firms that has


committed to build 92 percent of the MTA's next light rail car order in the United States has been recommended for contract award. This rail car contract proposal includes 72 vehicles to be used on the Green Line, the Pasadena Line and other light rail lines to be constructed by the MTA in this decade.
 The prime contractor, Siemens Duewag Corp., offered to provide the highest level of domestic involvement among four competing bidders -- 11 percent higher than any of its competitors. The firm included in its bid a commitment to award more than 20 percent of its contract to disadvantaged and minority owned businesses.
 Siemens Duewag also promised to open a facility in Los Angeles County to manufacture light rail vehicle shells, marking the first time modern rail car shells would be built in the United States.
 If the firm receives approval of both the RCC Board and the Los Angeles County MTA Board, it also will be asked to construct two prototype vehicles that could revolutionize the light rail car industry.
 Siemens Duewag Corp. received a score of 88.26 points out of a possible 100 as part of an extensive review of bidder proposals.
 "The closeness of the scores indicates the quality of the work by the proposers toward meeting the MTA's goal of creating business development opportunities and defense industry conversion efforts," said MTA Chairman and Los Angeles City Councilman Richard Alatorre. "The efforts on the part of all the proposers to team with both local firms in the defense industry and to exceed our minority involvement requirements underscores the success of our efforts to spur local economic growth. We are very pleased with the proposals received by all four teams."
 Following several months of technical review, the highly competitive negotiated procurement contract was recommended to be awarded to Siemens Duewag and its high-tech partners AAI Corp., TRW, and Aerojet, at a cost of $205 million, or $2.7 million per vehicle, for 74 light rail cars, in addition to being awarded up to $10 million for research and development of at least three advanced transportation products.
 The MTA evaluated the proposals from the bidders on point scoring criteria established after months of extensive discussions with railcar builders, high-tech aerospace/defense industry, labor and business representatives by a special MTA L.A. Car Ad Hoc Committee. The board adopted scoring criteria is based on four major components:
 -- Technical portion (35 points);
 -- Cost (35 points);
 -- Advanced Transit Products Development Program (15 points); and
 -- Content Level (15 points).
 Because the contract will be issued under a negotiated procurement, cost was but one factor in determining the award of the contract. The MTA L.A. Car Ad Hoc Committee structured the RFP in order to encourage local and domestic business participation, create long-term meaningful employment, strong DBE/MBE participation, and provide the opportunity for the defense and aerospace industry to begin a transition into the emerging surface transportation industry to develop niche products that had been originally used for defense purposes but also had transportation applications.
 Siemens proposed that more than 20 percent of the total contract cost be awarded to Disadvantaged/Minority Business Enterprises (DBE/MBE). The proposal also included a commitment to build more than 92 percent of the total contract award in the United States, more than 11 percent higher than Siemens closest competitor. One-half, or 50 percent will be built in California.
 "The strengths of the Siemens Duewag proposal were evidenced in the technical, domestic business development, and content portions," said Gwendolyn Williams, MTA manager of contracts for the L.A. Car project. "Siemens Duewag has committed to a well-defined arrangement with AAI Corp. to transfer technology for the fabrication of light rail cars from its (Siemens) plant in Germany to AAI. That transfer will include locating a light rail car shell manufacturing facility in the Los Angeles area with the objective of developing a local nucleus of a car body manufacturing industry."
 Currently no company in the United States has the manufacturing capability to produce domestic light rail vehicle shells. All light rail vehicle shells currently must be imported into the United States from abroad.
 The staff report was prepared for the RCC's regularly scheduled meeting for June 14. Following the RCC meeting, the MTA board is expected to make a final decision at its meeting scheduled for June 30.
 The RFP -- which is for 72 standardized light rail vehicles, two prototype vehicles and an option for 13 additional light-rail cars -- was issued following cancellation of a contract with Sumitomo Corp. to build 41 Metro Green Line vehicles in January 1992. The rail vehicles to be built by Siemens will be used on the Metro Green Line, the Metro Blue Line extension to Pasadena and future light rail lines to be built this decade.
 -0- 6/10/93
 /CONTACT: Michael Bustamante, 213-244-6591, or Stephanie Brady, 213-244-6792 of MTA Transportation News Bureau/


CO: Metropolitan Transit Authority; Siemens Duewag Corp. ST: California IN: SU: CON

EH -- LA023 -- 0716 06/10/93 14:43 EST
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Date:Jun 10, 1993
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