AUSTIN, Texas — As the Austin Transit Partnership board prepares to meet this upcoming Wednesday, questions are being raised about the cost of a proposed contract tied to the Austin Light Rail Project.
In just two days, members of the Austin Transit Partnership are scheduled to meet to discuss and vote on a $39 million contract approving Stadler US Inc. for design services, manufacturing, testing, and delivery of light rail vehicles for the Austin Light Rail Project.
Eric Goldwyn, head of the Transit and Land Use Program at NYU Marron, said the proposed spending stands out. “It strikes me as being extremely expensive for a light rail procurement,” Goldwyn said.
Goldwyn also questioned why the project would need additional design work. “It’s my understanding that there’s already a designer that works for the project. I think it’s Parsons,” he said.
Goldwyn said he would want more clarity on the scope and cost of the preliminary work. “I don’t know what’s going on there, and I would have, if I were on the board, I’d ask a lot of questions about that or if I were a concerned citizen,” he said.
Some residents said they see the spending as part of getting a major transportation project right. Asked whether it was fair to spend that amount of money, Austin resident Alex McKenzie said, “So I know that it costs money to do the research and to do the design. And to me, the $39 million…is a cost probably that I think would be worth it.”
Earlier this year, the ATP board approved $60 million for constructors to begin designing and building key parts of the system, which includes tracks and the stations. In total, previous reporting says the project has ballooned up to a little over $8 billion. Last year, the ATP’s reporting said the project was projected to be between $6.8 and $7.1 billion.
The $39 million contract is also tied to a larger potential award. If the contract is approved, Stadler US would be awarded the design and assembly of 21 light rail vehicles totaling $352.8 million.
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Goldwyn said that works out to a high per-vehicle cost. “It’s like $17 million per train,” he said, adding, “That might be the most expensive light rail car order I’ve ever seen.”
Compared to a similar project recently approved in Utah for Stadler US, Goldwyn said the Austin proposal raises basic questions about what is being purchased. “What is the light rail vehicle that we’re getting?” he said.
That project, he said, “from the same rolling stock manufacturer is buying 20 vehicles for $129 million. So, that’s a little over $6 million a vehicle.”
A spokesperson for the Austin Transit Partnership said none of the board members will be available for interviews before Wednesday’s meeting. In a statement to CBS Austin, the partnership said the award of the initial light rail vehicles contract will support the planned implementation of Austin Light Rail.
Austin Transit Partnership has worked diligently to execute the delivery plan for Austin Light Rail, resulting in the completion of three major procurements in less than 18 months. The award of the initial phase of the Light Rail Vehicles contract will support the planned implementation of Austin Light Rail. We look forward to bringing the item to the ATP Board for consideration on Wednesday.
The project has support from some longtime residents, including Alicia Carson. “If it’s needed and it’s going to help our Austin area, you know, being born and raised in this city, I’m all for the growth,” Carson said.
A spokesperson for the partnership said board members and the contractor will be available to speak more on Friday.