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Bombardier Loses Ottawa Transit Deal

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Bombardier loses Ottawa transit deal: City rail line
Nicolas Van Praet
8 April 2006
National Post

Bombardier Inc. and engineering partner SNC Lavalin Engineers and Constructors Inc. have lost one of the biggest transit contracts of the year on their home turf.

The City of Ottawa yesterday picked the group of Siemens Canada Ltd., contracting giant PCL Constructors Canada Inc., and Dufferin Construction Co. as the so-called preferred proponent to build a 30-kilometre light-rail transit line stretching from the city's downtown core over the Rideau River to South Nepean.

The rail line, to be built at a cost of between $625-million and $700-million, is the largest infrastructure project undertaken in Ottawa.

The deal was announced in a memo to Ottawa's mayor and council members late yesterday. It comes 16 months after SNC beat out then rival Bombardier to win a $1.76-billion contract for a high-capacity rail line in Vancouver.

The two companies teamed up to bid jointly for the Ottawa deal but came up short, which may raise questions about future partnership between them in the short term.

"It was a fairly easy recommendation to make," said Rejean Chartrand, Ottawa's director of economic development. "They came in as the lowest overall [price]."

The city now enters one-on-one negotiations with the Siemens group on its proposal. If both sides are satisfied by the outcome of those talks, a final contract is expected to be made public in mid-May. If the negotiations fail, the city can tap the other bidders. The other group that made a proposal was led by partnership Kiewit-EllisDon.

Bombardier workers in Thunder Bay had been gunning for the rail-car building work, claiming a 1992 agreement Bombardier struck with the former Ontario government gave the company preferred-supplier status. Ottawa's mayor has since said no bidder would get such status.

Pride aside, when considered in the context of their overall business, losing the transit deal is of little financial consequence for either SNC or Bombardier.

Bombardier enjoys 31% of the world's US$39.3 billion mass-transit market, Dundee Securities analyst Richard Stoneman noted. Last year, it did US$6.7. billion in mass transit business, winning 18 contracts over US$100 million.

"You never want to lose," Mr. Stoneman said. "[But remember] if you win everything, you're probably bidding too low."

SNC and Bombardier both declined to comment on the announcement yesterday.
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Hopefully they can get the Montreal Deal.......
Shouldn't be hard for them to win the Montreal one.
Wonder how Bombardier is going to fare under the new regime...
They certainly never had to work very hard to get the Liberal
party to sign cheques.
Didn't Bombardier success started off with Brian Mulroney?
when is mississauga gonna get a rail service!?!?! jeeeeeez so frustrating!
As someone in a related discussion on SSP pointed out, Bombardier supplied the trains currently being used in Ottawa's light rail pilot project (diesel, not electric). They were imported from Germany.
Our Bombadier plant is getting a good amount of it's business from Korea and New Mexico these days anyway. The deal with Ottawa would have been nice, but, whatever. It's nothing compared to everything else the federal government has done to us.

Even our own MP stabbed us in the back.
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