ALBANY, N.Y. — In a follow-up to a 2022 report, the New York Office of the State Comptroller found the cost of a Long Island Rail Road order for M9 electric multiple-unit railcars manufactured by Kawasaki has continued to increase, while half of the recommendations made by the Comptroller’s office in the original report have not been implemented.
The original report found the initial 92-car order had fallen three years behind schedule, with 62 cars accepted, and was $8.9 million over budget. It found the LIRR contributed to the problem on a number of fronts, a conclusion the LIRR said it “fundamentally disagrees with” [see “Report finds Long Island Rail Road shares blame …,” Trains News Wire, March 29, 2022]. The LIRR had subsequently expanded that order by exercising an option for 110 additional cars.
The follow-up report indicates 172 cars had been accepted as of July of this year, with the rest expected to be accepted by the end of May 2024. It also indicates the budget for the M9 procurement has increased by more than $2.1 million, to $735.7 million, since the initial audit.
The initial report made 12 recommendations. Three have been implemented: one regarding positive train control testing; one regarding an administrative position to evaluate contractor performance, and one requiring the contractor to be notified of unsatisfactory evaluations. Three others have been partially implemented— two regarding software testing and hazards, and one concerning assessing damages for delivery issues. On the latter matter, the LIRR assessed $4.9 million in damages by withholding payment and will assess additional damages at the end of the contract, if appropriate.
Six other items have not been implemented, which largely reflects the LIRR’s disagreement with the original report. The commuter railroad says it will deal with several of the outstanding issues at the end of the contract, rather than while deliveries continue, per the report’s recommendations.
The full follow-up report is available here.