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Bombardier says still interested in streetcar contract despite Toronto rejection |
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Written by Eric Shackleton, THE CANADIAN PRESS
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Friday, 18 July 2008 |
A TTC streetcar picks up passengers near the Rogers Centre in downtown Toronto, Sunday April 20, 2008. THE CANADIAN PRESS/J.P. Moczulski
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TORONTO - Bombardier Inc. (TSX:BBD.B) says it is still interested in pursuing the $1.25-billion contract to supply Toronto's transit system with new streetcars despite the city's rejection of the Montreal-based company's original proposal.
The Toronto Transit Commission has told the Montreal-based company that its proposed vehicle would literally derail if used on the city's streetcar tracks.
Bombardier had said its Flexity design, expected to be at least partially assembled in Thunder Bay, Ont., could handle the tight curves and hills on Toronto's streets.
David Slack, a spokesman for Bombardier's transportation division, said Friday the company is interested in the contract because "it's a major piece of business."
"It's a very important contract, and Bombardier is interested in pursuing it certainly," he said.
But TTC chairman Adam Giambrone said Friday that Bombardier's design would have derailed on Toronto streets, and the company should have known this.
Toronto has the tightest turns and some of the steepest hills of any light-rail system in the world, he said.
Slack said Bombardier "is not exactly sure what the problem is" with its design, whether it is too flexible or not flexible enough to go around sharp curves.
"Part of the issue is we really don't have a lot of information to go on at this point from the TTC," Slack said.
"We did have some of our engineers last night (Thursday) look at what they stated were their issues and as far as we're concerned, at least with the information that we have, we think we still have a compliant bid."
The next step for Bombardier, said Slack, is to meet with the TTC.
A fairness commissioner has been appointed to review the whole process and determine whether Bombardier has complied with the city's bid requirements, Giambrone said
The issue, said Giambrone, "is the structure of an RFP (request for proposals) which requires a very strict adherence to the rules. That's why its often times not used by the private sector, because it's very strict."
"If you do not fill it (the proposal) out exactly correctly, it's deemed to be invalid."
That is not the process that goes on during negotiations, "where if someone comes up and says look I made a mistake, you can correct and say OK fine and then you go forward."
An RFP, on the other hand, "doesn't allow that flexibility. You're forced to evaluate what has been submitted," said Giambrone.
"If in fact we determine that the Bombardier bid is not compliant, as we suspect it is, we will then go to a negotiated procurement.
"But that may involve discussions with Bombardier as well as the other major producers like Siemens and Altsom."
The TTC will begin negotiations over the next four weeks with Bombardier and other manufacturers to find a design that will work, he said.
German industrial giant Siemens has about 6,000 employees in Canada in various businesses, while Altsom, a French company, has operations in the Montreal area and elsewhere in Canada.
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Last Updated ( Sunday, 07 September 2008 )
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