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.

Status Legend:

Review Pending-GAO has not yet assessed implementation status.

Open-Actions to satisfy the intent of the recommendation have not been taken or are being planned, or actions that partially satisfy the intent of the recommendation have been taken.

Closed-implemented-Actions that satisfy the intent of the recommendation have been taken.

Closed-not implemented-While the intent of the recommendation has not been satisfied, time or circumstances have rendered the recommendation invalid.

• Review Pending
• Open
• Closed - implemented
• Closed - not implemented

Recommendation for Executive Action

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.

Agency Affected:

Status: Closed

Comments: Please call 202/512-6100 for additional information.