cplchanb
Senior Member
well they definitely learned their lesson
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Metrolinx: Bombardier Flexity Freedom & Alstom Citadis Spirit LRVs
- Thread starter W. K. Lis
- Start date
well they definitely learned their lesson
nfitz
Superstar
Learned their lesson? Such penalties don't come without a price. So now we are paying $12 million per car instead of $4.2 million.
There's a lesson here - but I don't think it's what you think it is!
cplchanb
Senior Member
please enlighten us ignorant peasants who know nothing of these metrics.
nfitz
Superstar
I thought it was pretty clear. The cars are now costing almost 3 times the price. This isn't saving any money.
cplchanb
Senior Member
well regardless of what the purchase price is the penalty is 35 times higher than bbr so if at all it will at least give alstom a further incentive to deliver on time.
nfitz
Superstar
Not necessarily, they've already built the penalty price into the build price. So they won't lose money if penalized; they'll just make less money.
Either way, this is scandalous - and why you don't have closed bids. They literally just thew away $0.5 billion.
TOareaFan
Superstar
you can't disregard the price.....the penalties that are larger are part of the price establishment process......they have fattened their margins knowing that if they miss by a day it costs a bit.
cplchanb
Senior Member
well at this rate, the costs have already sunken in and the risk of bbr missing the date and costing us millions as well more far outweighs the money spent on plan B. (provided that the 500,000/day loss projections are near what is actually lost).
Besides Alstom is losing potential profit as well which they would want to minimize.
Macro speaking this is a stark reminder that lowest bidder is not necessarily the best bidder especially on those who undercut the competition by significant amounts.
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crs1026
Superstar
I sure hope the quality/ performance penalties are equally significant and enforceabe. Otherwise GO will get junk, delivered precisely on time.
- Paul
- Paul
cplchanb
Senior Member
Hey at least its on time.... better than late and junk as well
EastYorkTTCFan
Senior Member
Why is it that people complained about Toronto sole sourcing the contract for the Toronto Rocket trains but yet poel are ok with Metrolinx wasting money and sole sourcing a second company to build something just in case a company that is trying to work with them fails because Metrolinx is acting like Kindergarten children in a sandbox.
nfitz
Superstar
I'm not okay with it. Metrolinx just burned half-a-billion $ unnecessarily. Heads should roll.
crs1026
Superstar
There is a ML Board meeting this week, the first since this deal was agreed to. I wonder what will be said about it (my bet is very little).
It speaks volumes that funding for this kind of deal can be inked in private. Did ML find the money in someone's desk drawer? One would think there would have to be a Board resolution seeking funding, and this would be voted on by the Board. At a Board meeting. In the public part of the meeting, and not in caucus. And maybe put to the Province. Does ML have the authority to execute a purchase agreement to this level of spending without Mgt Board of Cabinet approval?
This is the most unaccountable public entity in Ontario. Deals like this make me proud of our province's management of the Hydro sector.
- Paul
TOareaFan
Superstar
Maybe this is why the agenda has not been posted yet.
nfitz
Superstar
I'd be shocked if any of the board members even mention it. They haven't shown any interest in actually discussing anything - other than station names.