Houston METRO Transit uses local money to bail out another "Buy America" problem

(Houston) -- On the same week that buying things built outside the United States put $900-million in light rail contracts in jeopardy, Houston METRO Transit Authority leaders admit they raided local funds to untangle another "Buy America" problem.

The Federal Transit Administration notified METRO this week that it must cancel and re-bid a contract it signed with a Spanish company to build 108 rail cars for the newest light rail lines being built on the east and north sides of Houston.  

METRO was apparently counting on a waiver of the "Buy America" provisions attached to the $900-million in grant money being anticipated for the newest light rail lines, but that waiver never came.

Now, hundreds of radios can be added to the "Buy America" controversy.

METRO leaders admitted on Friday that a large order of radios for more than 1200 buses and police cars were disqualified recently for federal grant funding that was being counted on to cover the purchase.

METRO Spokesman George Smalley said he did not know how many radios were involved and he did not provide a dollar amount, but he said, "We counted on Motorola to get a waiver of the Buy America provisions."

He said the company was unable to get that waiver, so Smalley admitted, "It put us in a bind."

He said FTA money that was expected to pay for the hundreds of radios was instead redirected to other projects that are eligible for that particular grant money.

Local METRO funds were then moved in to pay for the radios, he said.   Local funds include tax dollars and fare revenue.

Some METRO employees who were counting on those radios to be installed in their vehicles said they were told the radios sat in limbo at a Harris County radio repair shop as the confusion was sorted out. 

Smalley countered that any delay didn't last long, and he said the radios were only taken to the county radio shop to be programmed as a matter of routine.

On the larger "Buy America" issue that is hampering the newest light rail lines in Houston, METRO leaders acknowledged this week that it could delay by two-years the opening of the east end and north side rail lines.   Instead of 2012, the new light rail legs are now projected to open in 2014.

For more information:                 Newspaper article on other "Buy America" controversy