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CPA Letter Calling For Investigation Into Chicago Rail Deal with China SOE

April 03, 2019

CPA Seeks Review of Chicago Transit Authority Railcar Purchase

Contract with Chinese firm may flout Buy America Act

For Immediate Release

Washington. The Coalition for a Prosperous America (CPA) has formally requested that the Federal Transit Administration (FTA) review the Chicago Transit Authority’s (CTA’s) $1.3 billion contract with CSR Sifang, a company owned by the Chinese government. CTA’s purchase of 846 commuter railcars from CSR Sifang may not comply with the Buy America Act of 1982, and thus may be ineligible for federal funding

“US manufacturers are already struggling to compete against heavily subsidized production from companies owned by the Chinese government,” said CPA Chair Dan DiMicco. “Despite this, the City of Chicago has chosen to move ahead with a project that may not contain enough American-made content to meet Buy America requirements necessary for federal funding. This is particularly unfortunate for many manufacturers in the supply chain in the Chicago area.”

CPA believes there is sufficient evidence to warrant a Buy America Act investigation. A February 17, 2016, audit concluded that the CTA project contained 69.47 percent domestic content. This estimate was based on a three-day audit in Qingdao, China. CPA is skeptical of the audit results. Further, the Fixing America’s Surface Transportation (FAST) Act specifies that projects receiving federal funds must contain at least 70 percent domestic content as of Fiscal Year 2020. 

“We don’t believe CTA’s estimate of domestic content is credible,” said Michael Stumo CEO of the CPA. “This project is likely not in compliance with the Buy America amendment signed by the Obama administration. There needs to be an investigation to ensure that this project is in compliance with federal law, and that domestic producers can participate in a project funded by US taxpayers.”

Click here to read CPA’s letter to the Federal Transit Administration.

Contact:
Melissa Tallman, Marketing and Communications Director
melissa@prosperousamerica.org
202.688.5145 ext 3

 

 CPA’s letter to the Federal Transit Administration

CPA Letter to FTA


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