Bombardier has been shut out of a $4-billion contract to supply subway cars to New York City because of past delivery delays.
The bad news for the Quebec-based company comes a month after Metrolinx, the regional transportation agency for the Greater Toronto and Hamilton Area, blocked it from bidding on a lucrative contract to operate GO Transit.
According to the company, it learned last week that the bid it submitted in December to New York’s Metropolitan Transportation Authority (MTA) won’t make it to the final round.
In a letter sent to employees, president of Bombardier Transport’s Americas division Benoit Brossoit stated bluntly that the company’s mishandling of a previous order for New York cars was to blame.
“Our poor performance and the major delays … on the R179 vehicle project have sealed the fate of our bid,” wrote Brossoit, according to a copy of the memo obtained by Le Journal de Montréal.
“Our actions have exacerbated an already difficult mobility environment in New York City, and our client’s decision demonstrates that the market is no longer willing to accept delays in the performance and to withstand the impact of our shortcomings.”
In 2012, Bombardier won a $623-million contract from the MTA for 300 R179-series subway cars. But the company’s production delays forced the MTA to plan to keep its old fleet in service for four years longer than originally planned, according to the New York Daily News.
The New York transit authority declined to comment because the procurement has yet to be awarded.