CA High-Speed Rail Contractor Gets 18% Raise After Missing Completion Date – IOTW Report

CA High-Speed Rail Contractor Gets 18% Raise After Missing Completion Date

CPR:

California High-Speed Rail agreed to increase payments to its construction manager by 18 percent after failing to complete its first 32-mile section within the seven-year deadline.

President Obama and his Democrat congressional majority voted in 2010 to fund the California High Speed Rail (Cal HSR) with $2.5 billion under the American Recovery and Reinvestment Act as the centerpiece of a national network of 10 intercity corridors in California, the Pacific Northwest, the Midwest, the Southeast, The Gulf Coast, Pennsylvania, Florida, New York, and New England.

Cal HSR contractually agreed to provide bullet train service with top speeds of 150 miles-per-hour over the 118-mile section between Madera and Bakersfield by September 30, 2017, or give the money back to the U.S. Treasury.

But after spending $3 billion of the fed’s money and $7.8 billion from California bond sales and revenue from the state’s infamous cap-and-trade taxes, Cal HSR has failed to lay a mile of track over the initial 32-mile section of flat San Joaquin Valley farmland.

Rather than demand the money back from Tutor-Perini/Zachry/Parsons, its project and construction manager (PCM), Cal HSR recently voted to extend the term of the contract by 6 months and to raise the price from $34.2 million to $40.2 million, an 18 percent bump.

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9 Comments on CA High-Speed Rail Contractor Gets 18% Raise After Missing Completion Date

  1. Wait a second, how the hell can the project manager simply overide a federal government contract? They aren’t going to make a contract stipulation and the federal money has to be returned. Cakifirnia can choose to make up the shortfall if they want.

  2. Brown-shirt’s idea of a “Welfare-to-work” plan…no doubt a good friend or family member is the contractor.
    Or maybe just someone who was willing to kick a few mil. back into a numbered Cayman Island bank account…..

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