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Panels approve VRE deal
WOODBRIDGE, Va. - Two transportation commissions have approved a Virginia Railway Express recommendation to award commuter train maintenance and operations work to Keolis Rail Services America, the Freelance Star reports.

The affirmative vote, taken last night by boards of the Northern Virginia and Potomac and Rappahannock transportation commissions, clears the way for VRE to formally award the contract to Keolis, an international transit company headquartered in France.

Keolis operates 5,000 trains a day globally, but VRE will be its first U.S. operation. The company has hired U.S. administrators with passenger rail experience and has opened a Washington-area office.

The five-year contract, worth $85 million, can be renewed twice for five-year periods, if agreeable to both VRE and Keolis.

Keolis bested two other bidders in VRE's competitive process, which rated companies on a 100-point scale considering nine factors. Bombardier Mass Transit Corp. placed second, and Amtrak, VRE's operator and maintenance provider since 1992, placed third.

Elected officials from multiple Northern Virginia localities sit on each commission's board. Representatives from Stafford County and Fredericksburg sit on the Potomac and Rappahannock commission.

Before the vote, Fredericksburg councilman Matt Kelly said the competitive bidding process was fair and open to all. "Everybody got the same applications. Everybody got the same opportunities," Kelly said.

Keolis chose to go above and beyond in its proposal, Kelly said, demonstrating it wanted the contract. Kelly said the Keolis contract is a "good move" for VRE. "Frankly, I think Amtrak expected this contract."

Stafford supervisor Paul Milde, also a commission board member, said the bidding process was a level playing field. "Keolis distinguished themselves most clearly," Milde said.

In the past week, Amtrak has challenged the award to Keolis on several grounds.

On Oct. 29, Amtrak management filed a protest with VRE, alleging it improperly scored the proposals.

VRE's Operations Board announced its intent to award the contract to Keolis on Oct. 16.

Virginia Railway Express CEO Dale Zehner denied Amtrak's scoring protest on several grounds.

Zehner wrote to Amtrak in a Nov. 2 letter that it did not file a protest within the 10-day window outlined in the Virginia Public Procurement Act. Amtrak also did not ask for specific "relief" in its protest, another legal requirement, according to Zehner's letter.

Zehner also denied the protest on substance. "While Amtrak has mentioned other unknown bases for its protest that may be dependent on additional information, Amtrak did set forth one basis for its protest, specifically, improper scoring of proposals. I have reviewed this ground and find it to be without merit, and accordingly, deny the protest," Zehner wrote.

Amtrak counters that the 10-day window is not over.

According to Amtrak's analysis of the Virginia Public Procurement Act, an entity can file a protest up to 10 days after it receives documents that are relevant to the protest, said Steve Kulm, Amtrak spokesman.

VRE said it would release documents requested by Amtrak--the Keolis proposal and evaluation notes--after the two transportation commissions voted.

So the clock may not start until Amtrak has the requested documents.

"We're actually very interested in seeing what's in there," Kulm said.

Also, the Brotherhood of Locomotive Engineers and Trainmen, a union representing several dozen Amtrak employees who operate VRE trains, oppose the Keolis contract award.

Zehner and Kelly briefly made comments related to safety before the vote.

Eighty percent of the proposal score was based on safety, operations and management, Kelly said.

Zehner said the companies that own the railroad tracks used by VRE, CSX Corp. and Norfolk Southern, would not let Keolis operate trains if they thought the company was unsafe.

No job losses are anticipated with the switch to Keolis, which would be effective July 1, 2010.

If Amtrak workers take jobs with Keolis, they retain their salary, benefits, and accrued vacation and sick time. New employees will receive cash bonuses. Or workers can stay within the Amtrak system and seek new assignments, although that could require moving.

"One hundred percent of the American jobs that are in play are being protected," said Prince William supervisor and commission member Martin Nohe.

(This item appeared Nov. 6, 2009, in the Freelance Star.)

November 6, 2009
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