Pursuant to Federal law, the annual performance audit of the National Rairoad Passenger Corp. (Amtrak) was conducted. Amtrak's policies for developing contracts with other railroads for services which Amtrak needs to operate passenger trains were examined.
Recommendations for Executive Action
|National Railroad Passenger Corporation||1. The President of Amtrak should, if actions to obtain improvements in passenger service contracts fail after reasonable time and effort, seek guidance from Congress.|
|National Railroad Passenger Corporation||2. The President of Amtrak should attempt to improve passenger service contracts with other railroads by adopting a policy of including provisions in the contracts for changing flat rates during the contract period under specified conditions. Such conditions would include situations where the rates were initially set too high and other situations where substantial differences between incremental costs and flat rates are caused by factors other than railroad mismanagement or cost-cutting efforts.|
|National Railroad Passenger Corporation||3. The President of Amtrak should try to obtain needed improvements in passenger service contracts with other railroads by taking additional cases to the Interstate Commerce Commission in which Amtrak is unable to obtain railroad agreement on incentives for meeting intermediate point schedules and penalties designed to encourage good performance and cost restraint.|