Better Management of Metro Subway Equipment Warranties Needed
PSAD-79-41: Published: Feb 27, 1979. Publicly Released: Feb 27, 1979.
- Full Report:
Weaknesses have been noted in the warranty administration by the Washington Metropolitan Area Transit Authority (METRO) of recently procured subway equipment. METRO has expended about $300 million for subway equipment thus far and plans to buy additional equipment which it estimates will cost another $600 million to service its 100-mile system.
The Authority has not efficiently administered and taken full advantage of warranty and reliability clauses in various equipment contracts. This is due to: (1) contract provisions that may be difficult to enforce in an operational environment which requires quick repairs to keep sufficient trains running; (2) lack of a clear and consistent interpretation of contract provisions; and (3) unclear lines of authority and responsibility for enforcing the provisions.
Recommendation for Executive Action
Comments: Please call 202/512-6100 for additional information.
Recommendation: The General Manager of METRO should: (1) investigate the feasibility of billback agreements in future contracts when operating conditions require quick in-house repairs; (2) establish clear and consistent interpretations of warranty clauses; and (3) establish clear lines of authority for enforcing warranty provisions.