Caltrain Terminates Contract with Parsons Transportation Group (PTG)

Termination
was deemed necessary after lack of contractor’s progress threatened to delay
implementation of the federally-mandated safety improvements to the railway

Caltrain
announced today that it has terminated a contract with Parsons Transportation
Group (PTG), the firm responsible for designing and implementing a Positive
Control System or CBOSS.  This contract was designed to implement
federally mandated improvements to the train control system that will enhance
safety and reliability of the railway. 

The unusual
action was deemed necessary after continued delays in delivering the project
and an utter lack of progress in moving the project forward consistent with
PTG’s contractual obligations.  This termination action was taken after
repeated intervention, peer reviews and increased oversight of the Joint Powers
Board failed to improve performance of the contractor.  It was deemed
necessary to terminate this contract now to maintain schedule and to exercise
cost control of the project.

“The
Positive Train Control work being done is imperative to the safety and
reliability of rail service on our right of way,” said Caltrain Chief Operating
Officer Michelle Bouchard.  “Due to PTG’s continued failure to perform,
combined with their potential to cause program delay, the decision to terminate
was necessary to keep the program on schedule while also exercising cost
control over its delivery.”

Caltrain
has immediately begun the process of identifying a replacement party who has
the demonstrated ability to perform.  While this action will complicate
final delivery, it was done at this time to ensure that it does not impede
progress on the Peninsula Corridor Electrification Project (PCEP) and will not
jeopardize the significant progress being made by the Positive Train Control
project.  That progress includes the now complete installation of wayside
and onboard hardware, installation of a fiber optic backbone and the build out
of a new backup control center facility.

In addition to its termination,
Caltrain will be taking all actions necessary, including litigation, to secure
the benefit of the bargained for contract with Parsons and access to the
Performance Bond to pay for costs associated with procuring a new integrator
and completing the CBOSS project.  Due to the pending litigation, Caltrain
is unable to comment on the specifics of the conflict but is confident that it
will prevail in any independent legal review of the facts.

###

About Caltrain: Owned and operated by the Peninsula Corridor
Joint Powers Board, Caltrain provides commuter rail service from San Francisco
to San Jose, with limited commute service to Gilroy. Caltrain enjoyed five
years of consecutive monthly ridership increases, surpassing more than 60,000
average weekday riders. While the Joint Powers Board assumed operating
responsibilities for the service in 1992, the railroad celebrated 150 years of
continuous passenger service in 2014. Planning for the next 150 years of
Peninsula rail service, Caltrain is on pace to electrify the corridor, reduce
diesel emissions by 97 percent by 2040 and add more service to more stations.