CHSRA to Restructure Track and Systems Procurement Due to Economic Challenges

The California High-Speed Rail Authority has announced it will let the current track and systems procurement expire in its current form and restructure it.

It said that after careful consideration and in light of the current economic climate, supply-chain challenges and 40-year inflation, it believed it was not in the state’s best interest to extend the time for the procurement in its current form.

Instead, it would let it expire so it could restructure it “to better respond to unstable and volatile supply and pricing in the current market”.

The CHSRA said it was appreciative of the time, effort and feedback it had received from proposer teams (California Rail Partners/Hitachi-Acciona-Copasa and California High-Speed System Partners/Siemens, Weitz, and FCC Construction), praising their professional and innovative attitude as everyone involved worked through the pandemic with record high inflation, supply-chain uncertainty and rail industry mergers and acquisitions.

The Authority said it would immediately embark on the process to restructure the delivery model for the track, signalling, electrification, operational control centre, etc. elements that are necessary to bring the high-speed line into passenger service.

It said it expected to rebid the procurement(s) in 2023 with modifications to maximise global competition, improve pricing and mitigate any scheduling impacts.