Tucson ― Contract Oversight Costs Rise

May 2013

Ambler, Pennsylvania-based LTK Engineering (Louis T. Klauder & Associates) is monitoring construction of modern streetcars for the city of Tucson under a contract that will cost at least $4 million, The Arizona Daily Star reported on May 5. The city's streetcar project manager Shellie Ginn says the first unit from United Streetcar LLC of Clackamas, Ore., now is expected to arrive in August 2013.

LTK holds the $3.9 million city monitoring contract, an agreement due to end by November. But the much-delayed final car from Oregon Ironworks now is expected to arrive in April 2014 at the soonest then will have to be tested before it being accepted.

How much more the city will have to spend on the LTK contract is unclear because of the continued uncertainty as to when Oregon Ironworks will deliver a streetcar to Tucson. The first car was to have been delivered in October 2012 but then was postponed to dates in January, then March, with other cars to follow in April, but as of now no car has been delivered.

Currently Oregon Iron Works is forecasting delivery of the first car in August, but no one knows if this date will be any more realistic than the prior dates.

In addition to the City's contract with LTK, the Regional Transportation Authority has also been paying a contractor to monitor construction costing more than $270,000 since mid-2010. That contract has already been extended due to the delays by another $121,000,

Portland, which is also awaiting much-delayed cars from the Oregon firm also uses the LTK for monitoring and estimated its monitoring costs will be double what was expected because of the delays.

Tucson has informed Oregon Ironworks of its plans to charge liquidated damages for missed deadlines at a rate of $750 per day for the three delayed cars. The amount will grow if more cars are delayed.

Ginn said that a recent trip to the supplier had shown they are making good progress with major systems all working well, but minor "fit and finish" issues leading to delays.