Bombardier takes on Chicago’s CTA

April 13, 2016

Bombardier takes on Chicago over rail car contract

By BERTRAND MAROTTE, MONTREAL — The Globe and Mail

Bombardier Inc. is taking on the mayor of Chicago and the city’s transit commission in a harshly worded protest alleging that a $1.31-billion (U.S.) rail car contract awarded to a Chinese bidder was “rigged.”Website Insert State Supported Passenger Trains copy

Bombardier Transit Corp. is formally requesting that the Chicago Transit Authority cancel the contract, disqualify CSR Sifang America Joint Venture and award the contract for the construction of 847 cars to Bombardier instead.

In a 51-page protest memorandum filed with the CTA, Bombardier alleges that “interference” by Mayor Rahm Emanuel, former chief of staff to U.S. President Barack Obama, and local labour leaders “caused the Authority to award this federally-funded contract to CSR in return for a commitment to provide Chicago jobs and a new local factory.”

Federal law and CTA rules prohibit the use of federal funds for local job-creation at the expense of other communities, according to the Bombardier filing.

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