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The Badger Herald

Independent Student Newspaper Since 1969

The Badger Herald

Independent Student Newspaper Since 1969

The Badger Herald

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State legislator calls train manufacturing company selection method biased

As the Milwaukee Common Council approved the lease of a city-owned building to a train manufacturing company Wednesday, one state legislator accused the selection process of being rigged.

Rep. Robin Vos, R-Racine, released a letter written by France-based train manufacturer Alstom’s president, Roelof van Ark, that was sent to the Wisconsin Department of Transportation, complaining the company never received the opportunity to bid on the contract against the Spanish company Talgo.

Vos said he believes the governor and DOT “at best, rigged the bidding process.”

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Vos added the process started when Wisconsin agreed to purchase two trains from Talgo using a Request for Information process, not the Request for Proposal approach that is typically used.

When a new contract came forward about opening up a factory for train car production in Milwaukee, DOT decided to use the same approach. DOT said Talgo was the only company that responded to the RFI that could provide the tilting train car technology needed, Vos said in a statement.

In the letter, Ark said he was disappointed with the state’s award of the train-manufacturing contract to Talgo.

“Although the agreement with Talgo does not appear to violate the Wisconsin statute that permits state agencies to enter into contracts for passenger rail services and equipment without competitive bids…. Alstom is concerned that in this case, the procedures that the state employed to arrive at its decision appeared calculated to limit the pool of prospective suppliers,” Ark said in the letter.

According to the letter, Alstom received an RFI from the Wisconsin DOT on Feb. 6, 2009. The request said it was not necessary for interested companies to respond.

Alstom contacted DOT and was told the state was just trying to survey the market for prospective suppliers and an RFP would be sent out in the near future.

Before DOT ever filed any RFP, however, Talgo was awarded the contract, Ark said.

Vos said the bidding process would have let Talgo prove which company was the best bid, but now we will never know.

Super Steel, a Milwaukee based supplier has also cried foul. It is in financial turmoil, Vos added, and will be cutting 800 jobs in the near future. Super Steel believes if it would have had the opportunity to bid on this contract, it could have saved many jobs in Milwaukee.

Milwaukee Mayor Tom Barrett said in a statement that Milwaukee is moving in a positive direction with the Talgo contract.

Also approved at the meeting was a partnership with Ingeteam, a Spanish wind and solar energy supplier that will provide energy for wind turbines.

“We are enthusiastic about the future of both Ingeteam and Talgo, and we appreciate the investments both companies are making in Milwaukee,” Barrett said in the statement.

As of press time, Doyle’s office and the Wisconsin DOT were unavailable for comment.

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