RAIL CAR COST CONTAINMENT STUDY. FINAL REPORT

This report describes a study of rail car procurements over the past 15 years to analyze cost growth and to determine whether delection, reduction or modification of some procurement conditions (design, specifications, warranties, etc.) could be effective in the containment of future rail car costs. It was found that rail car cost has increased at an average annual rate of 9.4% per year and that, if unchecked, the average rail car will cost $2.4 million in 1995. Even with inflation removed, the average annual rate of growth has been over 5% per year. The analysis points to any areas that should be considered for potential cost savings when rail cars are to be purchased. There are many potential savings methods available. The greatest cost savings identified in this study are from the use of negotiated procurements, existing designs, smaller car sizes and large procurement order sizes. Significant initial cost savings have also been demonstrated from equitable escalation and monetary value clauses, but these add the risk of additional cost later in the contract.

• Corporate Authors:

  Dynatrend, Incorporated

  21 Cabot Road
  Woburn, MA  United States  01801

  Urban Mass Transportation Administration

  400 7th Street, SW
  Washington, DC  United States  20590
• Authors:
  • Peeke, C S
  • Lawson, R N
  • Polutchko, J A
  • Agnew, L T
• Publication Date: 1988

Media Info

• Features: Figures; References; Tables;
• Pagination: 109 p.

Subject/Index Terms

• TRT Terms: Benefit cost analysis; Costs; Procurement; Rapid transit cars
• Identifier Terms: Urban Mass Transportation Act
• Old TRIS Terms: Umta section 6
• Subject Areas: Finance; Planning and Forecasting; Public Transportation;

Filing Info

• Accession Number: 00480698
• Record Type: Publication
• Source Agency: Urban Mass Transportation Administration
• Report/Paper Numbers: UMTA-MA-06-0175-88-1
• Contract Numbers: UMTA-MA-06-0175
• Files: TRIS, USDOT
• Created Date: Mar 31 1989 12:00AM