Amtrak IG's finds big money hole with supplier

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NE933

Conductor
Joined
Aug 17, 2005
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Queens, New York
Per a posting on TrainOrders.com, a wasteful embarrassment has emerged with Amtrak's relationship with Alstom. Large markups and a failure to collect penalties for late delivery of parts, or for parts or equipment that was malfunctioning, were cited. This is very bad, especially at a time when Congress and other overseers learn of this in light of the pressure and arguments we make for funding new rolling stock, track and infrastructure upgrades, and operating support. Blame this on part of an over reliance on trust just because you outsource something to someone else, as there was poor oversight on recordkeeping and inventory.

The corporate side of our America's railroad has gotta start drinking more java and take the solemn roles they were hired into more seriously, or else, get the hell out. We can't afford, and I don't want to waste advocacy while the ones that manage and perform the roles of handling Amtrak's finances are not watching the folks they contract with, literally letting them get away with cheating. This hard hits credibility and destroys the case for asking for funding mechanisms, perhaps irrevocably altering the case for purchasing long distance railcars and keep operating them on overnight trains. There should be an uproar about this in the same vein as the uproar we make on Mica, Scott Thompson, and Norman Mineta.

Also at a time when break downs are legion and causing trains to be late, just as the Supreme Court hears pleas to grant protection of Amtrak's need of good dispatching, late trains caused by not having enough parts on hand to keep them working is simply pure suicide. Granted that this report centers on the business relationship with Alstom's ties with the Acela trains, but it likely is happening in other areas as well. Mr. Boardman: tear down that shroud and get to work in fixing this!!
 
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Could you please be more specific about what happened? Details of the business relationship, who skimmed money and how, and why it wasn't caught until now?

Does anyone have a link to a news article on this? Or a press release?
 
Amtrak has contracts with suppliers of train parts, and things like microwave ovens in the cafe cars. Amtrak is being charged, and they are paying, inflated and inaccurate markups, unchallenged, to the suppliers. It's like you own a store and try to sell me a four dollar container of milk for six dollars and I just stupidly pay it, never questioning.

Also, some components and parts delivered late or defective Amtrak did not exercise due penalties against the suppliers. The report says that this cost Amtrak millions.
 
Its just the price of doing business with Alstom. I don't want to say to much since it involves my company, but looking at their quotes they have about a 800% mark up on some things. They have their own justification for it, but I don't feel comfortable sharing it.
 
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