The MTA approved the acquisition of over 200 new buses on Wednesday, committing a substantial $257 million and proceeding without inviting bids from other companies.
During its November meeting, the MTA Board of Directors unanimously backed a non-competitive agreement to buy 219 new buses from New Flyer of America.
Tim Mulligan, the MTA Vehicle Director, explained, “These buses will replace older ones that are beyond their 12-year lifespan and are essential for the network’s redesign, serving depots in Brooklyn, Queens, and Staten Island.”
Delivery of these new buses is expected to start in spring 2027, according to the MTA.
This approval adds to the more than $336 million already spent with New Flyer for 449 buses since 2019.
MTA records show that the contract has ballooned to three times its original value due to numerous amendments.
The new buses come at a price of about $1.26 million for hybrids and $905,000 for diesels, which MTA officials have deemed “fair and reasonable.” However, these figures are based on vendor-provided estimates, not competitive bids.
One procurement official stated plainly, “There is no alternative.”
The MTA’s approach of modifying existing contracts instead of seeking new bids reduces competition and, in some cases, drives up costs. For instance, the price for hybrid buses has risen to around $787,000.
Additionally, during the November meeting, MTA leaders approved a five-year, $40 million non-competitive agreement with Clever Devices for maintaining software and hardware for new bus radio systems and some fare payment technology.
This contract was negotiated to nearly $500,000 less than Clever Devices’ initial proposal but did not involve seeking proposals from other vendors.
Last month, the MTA authorized over $1 billion in noncompetitive expenditures.
In October, the board granted Kawasaki Rolling Stock a $1.5 billion non-competitive deal for 378 new R268 subway cars, bypassing the bidding process by claiming the necessity of Kawasaki’s specialized design and manufacturing expertise to avoid delivery delays.
At the recent board meeting, Marco Carrion, president of the Workers’ Education Consortium, expressed concerns about the lack of oversight regarding the contract approvals. He remarked, “This non-competitive award seems to have been made with minimal transparency, only noticed by select vendors and those paying close attention.”
