Toronto Transit Commission

Toronto Transit Commission

August 24, 2006 12:25 ET

Media Advisory-Toronto Transit Commission: Staff Recommend Bombardier as Subway Car Supplier

Independent Reviews Conclude Bombardier Price "Reasonable"

TORONTO, ONTARIO--(CCNMatthews - Aug. 24, 2006) - Following extensive negotiations with Bombardier and in response to two independent financial reviews of the negotiated price, TTC staff are recommending the purchase of 234 new subway cars from Bombardier.

The recommendation is subject to confirmation from the three levels of government (City/Provincial/Federal) that appropriate funding will be made available.

The two independent financial reviews were conducted by rail consultant Booz Allen Hamilton Inc., and international rail consultant Interfleet Technology Inc. The firms reviewed the negotiated price relative to the world-wide and specifically, North American market place. Both firms concluded that the Bombardier price was reasonable.

This process of sole source negotiations and independent price review was similar to the TTC's last subway order in 1992. That order was a sole source procurement from an Ontario manufacturer (Bombardier), and that price was independently reviewed in context of the market place.

The Bombardier price for 234 subway cars is $499M being an average base cost per car of $2.13M. Delivery is to begin in 2009.

The total contract cost, including Provincial and Federal taxes, escalation, bonding, and options is $674.8M.

Contact Information

  • Toronto Transit Commission
    Marilyn Bolton
    Media Relations
    (416) 393-3741