Bombardier Accuses Emanuel Of Rigging $1.3 Billion CTA Rail Deal

The Chicago Transit Authority ("CTA") put out for bid a new generation of rail cars it wished to purchase for its light rail system. Bombardier Transit Corporation competed against a Chinese company, CSR Sifang America, to supply the new rail cars to CTA. The CTA awarded the $1.3 billion contract to CSR for 847 train cars, but Bombardier is crying foul according to the Chicago Sun-Times. It claims Mayor Rahm Emanuel had access to confidential bidding information and used it to leverage CSR to make a local investment in Chicago in exchange for ensuring it was awarded the bid.

As part of the deal, CSR agreed to open a plant in Hegewisch that will create new jobs. That happened Bombardier charges only because the CTA was improperly taking direction from Mayor Emanuel and sharing bid information that was supposed to remain confidential until a decision had been made. The CTA had not completed its evaluation of the bids when Mayor Emanuel announced the CTA board would approve the bid for CSR. That sent CTA officials rushing to complete the evaluation in time for the board's next meeting where the bid was approved according to Bombardier.

Bombardier complained that CSR's bid was "unreasonably low," which should have prompted further inquiry on the part of the CTA. It claims the information presented to the CTA on CSR was "incorrect" and "fraudulent." Emanuel made clear the winning bidder had to produce local jobs, but the purchase of the train cars is being funded by a federal grant, which does not permit trading federal dollars for local preferences. Bombardier is demanding payment of $2 million in says it expended bidding on the rigged project.