Lack of stability, volatility force Calif. high-speed rail authority to hit reset button

Written by RT&S Staff
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The California High Speed Rail Authority has decided to restructure the track and systems procurement.
California High Speed Rail Authority

After careful consideration and given the current economic climate, supply chain challenges, and 40-year high inflation, the California High-Speed Rail Authority has determined it is not in the state’s best interest to extend the time for the track and systems procurement in its current form.

In lieu of extending the procurement again, the Authority has opted to let it expire and restructure it to better respond to unstable and volatile supply and pricing in the current market.

The Authority is appreciative of the time, effort, and feedback from the proposer teams (California Rail Partners/Hitachi-Acciona-Copasa and California High-Speed System Partners/Siemens, Weitz, and FCC Construction). These teams have been professional and innovative as we all worked through the COVID-19 pandemic, record high inflation, supply chain uncertainty, and rail industry mergers and acquisitions.

The Authority will immediately begin work to restructure the delivery model for these critical elements (track, signaling, electrification, operations control center, etc.) necessary to bring passenger service into California for the nation’s first electrified high-speed rail project. The Authority expects to rebid the procurement(s) in 2023 with modifications to maximize global competition, improve pricing and mitigate any schedule impacts.

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