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MTA goes for German-led team on railway car project.


Final decision approaches on $200 million contract

A partnership combining TRW TRW The Real World (TV reality show)
TRW The Right Way
TRW Tactical Reconnaissance Wing
TRW The Retriever Weekly (University of Maryland, Baltimore, MD)
TRW Thompson Ramo Wooldridge Inc
 Inc., AAI AAI American Association of Immunologists.  Corp. and Siemens Duewag Corp. received the nod last week from Metropolitan Transportation Authority staff on a $200-million contract to design and build 87 light-rail passenger cars.

The Siemens Duewag team is in competition with three other aerospace/railcar company partnerships for the "L.A. Standard Car" contract.

Siemens Duewag has committed to building its railcar "shells" in L.A. County, a process that would employ about 100 to 150 people in manufacturing.

But an award to Siemens Duewag also means that the railcars themselves would be assembled at the company's plant in Sacramento and in other states, possibly costing the Southland about 400 manufacturing jobs.

Two of the other three aerospace/railcar partnership teams bidding on the MTA (1) (Message Transfer Agent or Mail Transfer Agent) The store and forward part of a messaging system. See messaging system.

(2) See M Technology Association.

1. (messaging) MTA - Message Transfer Agent.
 contract had pledged to build the cars here in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, .

Bombardier Corp., which bid in partnership with Northrop Corp., earlier this month, announced plans to open a railcar factory in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850.  County. Gary Hall Gary Hall can refer to several people:
  • Gary Hall Sr. (born 1948) - Father of Gary Hall Jr.; represented the United States in the Olympics in Mexico City in 1968, Munich in 1972, and Montreal in 1976.
  • Gary Hall, Jr. (born 1974) - Son of Gary Hall Sr.
, Bombardier's marketing director, announced June 3 that the Montreal-based company would establish a factory in the Los Angeles area, possibly in Santa Fe Springs Santa Fe Springs, city (1990 pop. 15,520), Los Angeles co., SW Calif., inc. 1957. The city lies in an oil and natural gas region and has diversified manufacturing. , and hire as many as 400 people to build railcars.

And the partnership formed by Sumitomo Corp. and Rockwell Corp. has indicated it has been seeking a local site for assembly.

The fourth bidding team -- a partnership between Lockheed Corp., Hughes Aircraft Hughes Aircraft Company was a major aerospace and defense company founded by Howard Hughes. The group was based near Ballona Creek, in Culver City, California, USA, on the Pacific Coast.

Hughes Aircraft was acquired by General Motors in 1985.
 Co. and Morrison-Knudsen -- has said it would assemble the cars at a new facility in Pittsburg, Calif., near San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden .

The Rail Construction Corp. board is scheduled, at a meeting June 14, to consider the staff's recommendation to award the contract to Siemens Duewag. The Metropolitan Transportation Authority board would then vote June 23 or 30.

The MTA staff is not allowed to award any points for local assembly or local job creation, but some board members have indicated this will be a factor in their final choice.

The Siemens Duewag team was the low bidder when bids were first submitted in January, but "best and final offer" negotiations with MTA staff resulted in lower bids, and Siemens Duewag wound up as the second highest bidder HIGHEST BIDDER, contracts. He who, at an auction, offers the greatest price for the property sold.
     2. The highest bidder is entitled to have the article sold at his bid, provided there has been no unfairness on his part.
.

However, price accounted for only 35 of 100 possible points in the MTA ranking system, and the number of points awarded for price was based on the percentage by which each bid exceeded the low bid.

Using this system, the low bidder (Morrison-Knudsen) received 35 points for its bid of $187.5 million, and Siemens Duewag received almost 32 points for bidding $205.4 million, a difference of only 3 points.

Siemens Duewag beat Morrison Knudsen by one point overall -- 88 to 87.

The staff analysis included such criteria as technical ability (35 points), percentage of U.S.-made parts (4 points) and the use of minority-owned subcontractors (5 points).

Siemens Duewag received the highest number of points for U.S. parts and subcontracts. It is committed to 92 percent "domestic content" (U.S. parts and assembly) and to subcontracting 20 percent of the work to disadvantaged and minority-owned business.

Last year, the Los Angeles County Transportation Commission (a predecessor of the MTA) canceled a contract with Sumitomo for 41 cars because of a wave of buy-American sentiment.

The price tag of the contract breaks down to $2.7 million per vehicle, plus $10 million for research and development.

The MTA hopes to receive its first prototype vehicle in 1995, and the full fleet of 87 cars by the end of 1997.
COPYRIGHT 1993 CBJ, L.P.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Los Angeles County Metropolitan Transportation Authority; Siemens Duewag Corp.; TRW Inc.; AAI Corp.
Author:Rackham, Anne
Publication:Los Angeles Business Journal
Date:Jun 14, 1993
Words:582
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