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B-164497(5) Administration of Metroliner and Turbo-Train Projects

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B-164497(5) Administration of Metroliner and Turbo-Train Projects T TO THE CONGRESS tion Of I B-16449715) FAderal Railroad Admuwstratlon Department of Transportation BY THE COMPTROLLER GENERAL OF THE UNITED STATES COMPTROLLER GENiiRAP, OF THE UNITED STATES WASHINGTON DC 20548 B- 164497(5) To the President of the Senate and the Speaker of the House of Representatives This 1s our report on our review of admmlstratlon of the Metrolmer and Turbo-Tram proJects by the Federal Rallroad Admmlstratlon, Department of Transportation Our review was made pursuant to the Budget and Ac- countmg Act, 1921 (31 U S C 53), and the Accountmg and Audltmg Act of 1950 (31 U S C 67) Copies of this report are bemg sent to the Dlrector, Office of Management and Budget, the Secretary of Txans- portatlon, and the Admlnlstrator, Federal Rallroad Ad- mimstratlon Comptroller General of the Umted States 1 r DIGtiST 1 CHAPTER 1 INTRODUCTION 4 Photograph of Metroliner train 7 Photograph of Turbo-Train 8 2 OBSERVATIONS ON THE ADMINISTRATION OF THE METROLINER AND TURBO-TRAIN PROJECTS 9 Metroliner demonstration 11 TechnIcal problems delayed the start of the demonstration 11 Status of the Metroliner demonstra- tion 14 Federal costs 15 Suburban stations 17 Turbo-Train demonstration 18 Technical problems delayed and curtailed the demonstration 20 3 GAO PROPOSALS AND AGENCY COMMENTS 22 4 SCOPE OF REVIEW 23 APFENDIX I Letter dated September 28, 1970, from the Assistant Secretary for Administration, Office of the Secretary, to the General Accounting Office 27 II Principal officials of the Department of Transportation and Department of Commerce responsible for the administration of the activities discussed in this report 29 ABBREVIATIONS GAO General Accounting Office NHRR New York, New Haven and Hartford Railroad b COMPTROLLERGENERAL'S ADi?INISTRATION OF METROLINER AND TURBO-TRAIN REl?ORTTO THE CONGRESS PROJECTS Federal RaIlroad Admtnlstratlon Department of Transportation B-164497(5) ------DIGEST WHY THE REVIEW WASMADE The Federal Railroad Admlnlstratlon (Agency) sponsors demonstrations to determine whether high-speed ground transportation can improve intercity transportation During fiscal years 1966-70 the Agency obligated over $25 million for demonstration programs (See footnote, p, 4,) The Agency 1s sponsoring two high-speed passenger-train demonstratlons-- the Metroliner between New York City and Washington, D C , and the Turbo- Train between New York City and Boston, Massachusetts The obJectives of the two demonstration proJects were to test the trains while in op- eration,and to determine the public's response to new equipment and ser- vice. To accomplish the ObJeCti Ves, the Agency planned that the Metroliners would make 18 round trips dally--nine between Washington and New York City and nine between Phlladelphla, Pennsylvania, and New York City ex- cept Saturdays, Sundays, and holidays when reduced service would be pro- vided The Turbo-Trains would make four round trips daily between New York City and Boston The estimated cost to the Government for both demonstrations is about $19 3 million Because significant delays were encountered in the start of these proJects and because equipment failures were experienced during the trains' operation, the General Accounting Office (GAO) reviewed the planning and administration of these proJects FINDINGS AND GONCLUSIOIIS The Penn Central Transportation Company (Railroad) began routine pas- senger servtce with six Metroliners In January 1969. The offlclal dem- onstration did not start until October 1, 1970--3 years late--and with seven round trips dally between Washington and New York City The Turbo- Train demonstration did not start until April 1969--over 2 years late-- and with only one round trip daily. (See pp 11 and 20.) GAO found that the Metroltner and Turbo-Train demonstration proJects had not accomplished their ObJectlves as originally planned, because tech- nical problems with the trains had delayed the start of the proJects and had prevented the contractors from maintaining operational enough cars to run the number of round trips necessary to fully accomplish the dem- onstrations obJectives. Since the trains wcfe an advancement of -the state of the art and never before had been constructed or used In the UnIted States, the Agency did not know whether the trains would operate as antlclpated Nevertheless, In 1966 the Agency authorized the Railroad to contract for constructton of 50 MetrolIners and agreed to lease two Turbo-Trains being developed by the United Aircraft Corporation. (See p 9.) GAO found that, although the contracts for the demonstrations provided that, In general, revenues from the operation of the trains In excess of cost be shared, the contracts did not provide that a reduction be made In the amounts of the contracts In the event the trains did not run as often as anticipated. Because It was not known whether the trains would work satisfactorily, the contracts should have provided for such a reduc- tlon The Department of Transportation dtd negotiate a $500,000 reduction ln the Metroliner contract because the tra-rns cannot be used to the extent planned The $500,000 does not appear significant when compared with the remaining contract cost of $10.7 million and the substantial reduc- tlon in the use of the Metroliners during the demonstration Because of the recent start of the demonstration, the amount of the Government's in- vestment that ~117 be recovered from revenues IS unknown (See pp 15 and 17 ) The Agency has made full lease and maintenance payments for the Turbo- Trains In accordance with contracts whlch,as of October 1, 1970, totaled about $1,085,000 and $924,000, respectively Because of the lImited operating schedule of the trains, no recovery of the Government's In- vestment through excess revenues 1s expected (See PP 18 and 19 ) The Metrol-rner demonstration IS planned to run for 2 years from Octo- ber 1, 1970 In April 1970 the RaIlroad informed the Secretary of Transportation that a research and development program using some of the Metroliners as prototypes was essential to overcome the Metroliners' technlcal deflclencles and to ensure success of the demonstration As of November 30, 1970, the Agency was negotlatlng contracts with Westlng- house Electric Corporation and General Electric Company--builders of the MetrolIner--for go-day studies of technical problems (See p 14 > The Turbo-Train demonstration was scheduled to end October 22, 1970 On October 12, 1970, the Secretary of Transportation announced that It would be extended on a month-to-month basis pendlng negotlatlons for ad- ditional use of the trains. As of November 30 the Agency was still ne- gotiating with United Aircraft Corporation. Because technical problems have not been resolved, it appears that any long-term extension of the demonstration would contribute little toward the improved service which the Agency antlclpated would be provided by the Turbo-Trains It 1s also questionable whether an extension would provide addltlonal beneflclal data on public reactlon to the Turbo- Trains. (See p 21 ) 2 RECOMMENDATIONSOR SUGGESTIONS When the Department sponsors future demonstration programs involving new or novel equipment, It should encourage the use of a prototype to ensure, to the extent possible, that the equipment ~111 perform as anticipated. Future contracts should provide for price adJustments if the equipment IS not used to the degree planned. (See p 22.) AGENCYACTIONS AND UNRESOLVEDISSUES The Department agreed with GAO's flndlngs and proposals and on Decem- ber 21, 1970, the Agency issued a policy statement (FRA 4400.9) which provided for adopting the GAO proposals In sponsoring future demonstra- tions (See p 22 ) MATTERSFOR CONSIDERATIONBY THE CONGRESS Members of the Congress have expressed Interest in the reasons for the delays in the start of the Metroliner and Turbo-Train demonstrations and in the current status of these proJects 3 CHAPTEX1 INTRODUCTION-- The General Accounting Offlce has revlewed selected as- pects of the two high-speed passenger-train demonstratxon proJects of the Federal Rallroad Admlnlstratlon (Agency), Department of Transportation The demonstration trains are operated by the Penn Central Transportation Company (Rail- road) between New York City and Boston and between Washlng- ton and New York City The Agency 1s responsible, however, for the management of the proJects This report contains our observatrons on the conduct and current status of the two proJects The scope of our review 1s described on page 23. The Agency was created wlthln the Department of Trans- portatlon when It was establlshed on April 1, 1967 The Agency comprises (1) the Bureau of Rallroad Safety, trans- ferred from the Interstate Commerce Commlsslon, which 1s re- sponslble for the safety of rallroad equipment and the hours of service of rallroad employees, (2) the Alaska RaIlroad, transferred from the Department of the Interior, which LS responsible for asslstlng In the development of the economy of Alaska, and (3) the Office of High-Speed Ground Transpor- tation, transferred from the Department of Commerce, which 1s responsible for carrying out the provlslons of the High- Speed Ground Transportation Act of 1965, as amended (49 U.S.C. 16311, as It relates to research and development on high-speed ground trans ortatlon systems and the conduct of demonstration programs H The High-Speed Ground Transportation Act of 1965 autho- rized the Agency to sponsor demonstration proJects to deter- mine the contrlbutlons that high-speed ground transportation modes could make to more efflclent and economical
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