MTA Expands Hybrid Locomotive Order Amid Bidding Concerns

The MTA has signed a $386 million deal for hybrid locomotives, escalating a trend of avoiding public bidding while increasing costs for taxpayers.

This new agreement, announced recently, allows vendor Wabtec to produce an additional 45 R255 locomotives. These locomotives are essential for moving trains and maintenance equipment in the subway system.

Manufacturing will take place in Erie, Pennsylvania, with the first deliveries anticipated to begin in 2027.

A master agreement established in 2020 between the MTA and Motive Power, a Wabtec subsidiary, originally allocated $233 million for 25 diesel-battery hybrid locomotives, along with equipment and training.

This contract also provides the MTA with the option to add up to 45 more hybrid locomotives, allowing for a $153 million increase without the need to seek competitive bids or explore options from other vendors.

New York State law generally mandates competitive bidding for significant public projects. However, various exceptions and internal guidelines enable the MTA to adjust existing contracts without re-bidding.

Often, the MTA shapes contracts in a way that allows for base bids to be expanded into larger agreements through pre-set options, which they can activate later without reopening the bidding process.

For instance, the MTA Board can deem a bid “unrealistic” and opt for alternative routes, including noncompetitive adjustments.

Just last December, the MTA increased its original $132 million contract with bus manufacturer Nova to over $497 million by activating options from the existing agreement, effectively sidelining competing manufacturers.

Additionally, in November, the MTA modified its contract with New Flyer of America to include the purchase of 219 40-foot buses for around $257 million, tripling the initial contract’s value.

An MTA representative stated that amending the contract without a new public bid is necessary to address “immediate operational needs.”