Despite its record, the Metropolitan Transportation Authority's board voted to negotiate a new contract with Italian manufacturer AnsaldoBreda Inc. last month. The deadline for the contract was Friday night, and the two sides could not reach an agreement.

MTA spokesman Marc Littman said that AnsaldoBreda demanded new restrictions from the MTA on paying a penalty if rail cars were delivered late, as they were in the original contract.

The company has delivered only 27 out of 50 promised rail cars from its original contract, and some were delivered heavier than order, requiring the county to bolster some of its rail bridges to use them.

AnsaldoBreda had offered financial guarantees if it failed to live up to its next contract, but altered the terms of the deal at the last minute, said Littman.

The MTA will now re-start the bidding process and expects to have a new contract by May or June, said Littman.