Multi-State Partnership Intends to Award Contract for Next Generation of American Trains

The California Department of Transportation (Caltrans) on behalf of the departments of transportation from Illinois, Michigan, and Missouri issued a Notice of Intent to Award to Sumitomo Corporation of America to design, build, and deliver 130 bi-level passenger railcars for use in regional intercity rail corridors in California and the Midwest. The Notice of Intent to Award does not signify that a contract has been awarded but that a potential vendor has been identified.

Sumitomo Corporation of America submitted a bid of $352,276,000.

"By pooling our resources, all four states involved in this partnership can purchase the equipment at lower costs because it will be acquired in high volume under one contract," said Caltrans Director Malcolm Dougherty. "These new railcars will help us meet the growing ridership demand on California trains, which is up 53 percent since 2002."

Caltrans and the Illinois Department of Transportation will first conduct a federally required Buy America pre-award audit to verify assembly locations and manufacturing facilities for railcar components. Buy America rules require that all 130 new bi-level cars be assembled in the United States, and that all the major components must be manufactured domestically. The audit will be forwarded to the Federal Railroad Administration prior to the contract award. Sumitomo Corporation of America will also be required to submit insurance policies and performance bonds. A fully executed agreement is expected to be in place by mid-November.

"We are proud to partner with Caltrans and the Midwest Coalition to cost-effectively procure the state-of-the-art passenger railcar equipment needed to address the increasing demand for efficient and convenient passenger rail service throughout the state," said Illinois Transportation Secretary Ann L. Schneider. "With Amtrak ridership at record levels in Illinois and the official purchasing process of the railcars under way, this massive project will continue to boost America's manufacturing and assembling industry and provide improved travel options for the entire Midwest."

California will receive 42 railcars, while the Midwest Coalition, consisting of Illinois, Michigan, and Missouri will receive 88 railcars. 

Railcars delivered to California will be used on the three state-supported intercity routes, the Capitol Corridor (Sacramento area-Oakland-San Jose), the San Joaquin (San Francisco Bay Area/Sacramento-Bakersfield/Southern California), and the Pacific Surfliner (San Luis Obisbo-Los Angeles-San Diego).