Better Management of Metro Subway Equipment Warranties Needed

PSAD-79-41: Published: Feb 27, 1979. Publicly Released: Feb 27, 1979.

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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.

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