MTA to major national suppliers: All contracts are in jeopardy without $12 billion in federal funding

Written by David C. Lester, Managing Editor
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MTA tells suppliers that contracts may be in jeopardy if the agency doesn’t receive more funding soon.
MTA

Metropolitan Transportation Authority (MTA) Chairman and CEO Patrick J. Foye today sent a series of letters to the Authority’s 11 largest suppliers, warning that without an immediate injection of $12 billion in federal aid all current and future contracts with companies from Kentucky to California are in jeopardy. Since 2011, the MTA has created as many as 100,000 out-of-state jobs in nearly all 50 states. MTA capital expenditures are among the nation’s largest drivers of economic activity, generating nearly $50 billion in infrastructure investment nationwide. Additionally, hundreds of medium and smaller-sized suppliers, including MWBE firms, will also be impacted if the MTA does not receive federal assistance.

“The COVID-19 pandemic has exacted a horrific toll in human, social and economic terms across the nation,” Chairman Foye said. “I am writing to alert you that because of this financial devastation, many current and all future contracts are in jeopardy without an injection of $12 billion in emergency federal aid. Let me be clear: federal funding for mass transit isn’t a red or blue issue – it’s a jobs issue. Our future – and the fate of approximately 100,000 MTA-created out-of-state jobs – rests squarely in the hands of the Senate and White House.”

With federal relief talks stalled, letters were sent to the following 11 suppliers demonstrating the devastating potential impact on local economies if the MTA does not receive additional robust federal assistance.


ALSTOM TRANSPORTATION, INC
Since 2011, prior MTA capital plans have resulted in more than $2.2 billion in direct spending and created nearly 28,000 jobs in the states where Alstom has U.S. locations – California, Illinois, Florida, Missouri, Kentucky, and Delaware.

BOMBARDIER TRANSPORTATION
Since 2011, prior MTA capital plans have resulted in more than $2.6 billion in direct spending and created over 33,000 jobs in California and Pennsylvania, where Bombardier manufactures vehicles and produce rail products.

CUBIC TRANSPORTATION SYSTEMS INC
Since 2011, prior MTA capital plans have resulted in more than $2.9 billion in direct spending and created over 37,000 jobs in the states where Cubic has U.S. locations – Alabama, California, Florida, Illinois, North Carolina, Tennessee, Texas, and Virginia.

HITACHI RAIL STS USA INC
Since 2011, prior MTA capital plans have resulted in more than $230 million in direct spending and created over 2,900 jobs in South Carolina, where Hitachi’s manufacturing facilities are located.

KAWASAKI RAIL CAR, INC
Since 2011, prior MTA capital plans have resulted in more than $15 billion in direct spending and created over 189,000 jobs in New York and Nebraska, where Kawasaki manufactures and tests rail cars.

NEW FLYER OF AMERICA INC
Since 2011, prior MTA capital plans have resulted in more than $5.1 billion in direct spending and created over 64,500 jobs in the states where New Flyer and NFI Parts have U.S. locations – Kentucky, Ohio, California, New Jersey, Minnesota, Alabama and Washington.

PREVOST CAR (US) INC
Since 2011, prior MTA capital plans have resulted in more than $4.75 billion in direct spending and created over 60,000 jobs in the states where Prevost has U.S. locations – Texas, Florida, Tennessee, California, Illinois, New Jersey and Washington D.C.

SIEMENS CORPORATION
Since 2011, prior MTA capital plans have resulted in more than $3.5 billion in direct spending and created over 45,500 jobs in the states where Siemens has U.S. locations – Kentucky, Pennsylvania, Oregon, California and Illinois.

THALES TRANSPORT & SECURITY, INC
Since 2011, prior MTA capital plans have resulted in more than $1.6 billion in direct spending and created over 21,000 jobs in Pennsylvania, where Thales’manufacturing facilities are located.

TRANSCORE 
Since 2011, prior MTA capital plans have resulted in more than $625 million in direct spending and created nearly 8,000 jobs in the states where Transcore has U.S. operations – Texas, Virginia, and Massachusetts. 

WABTEC PASSENGER TRANSIT
Since 2011, prior MTA capital plans have resulted in nearly $575 million in direct spending and created over 7,200 jobs in North and South Carolina, where Wabtec’smanufacturing facilities are located.

More information is available online.

A Metropolitan Transportation Authority news release.

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