The California High-Speed Rail Authority board approved a staff request to pre-purchase long-lead rail materials for the authority's current 119-mile construction segment, authorizing a not-to-exceed budget of $507.1 million funded 100 percent by the state for Notice to Proceed 1. The contracts will cover rail (UIC 60), concrete ties, overhead contact system components and poles, fiber-optic cable and European-standard ballast, staff said.

Emily Morrison, the authority's chief of contracting, told the board the procurement is intended to reduce lead times and lower overall construction costs by buying certain commoditized items directly from manufacturers rather than through general contractors. Morrison said lead-time estimates range from about 6 to 12 months for rail and contact wire, 1 to 2 months for concrete ties, 12 weeks for OCS poles and about 6 months for fiber-optic cable; ballast vendors may be multiple-award to mitigate quarry supply shortages.

Why it matters: Staff said direct commodity purchasing can reduce construction schedules by roughly two years in aggregate and yield material-related savings by giving the authority leverage with manufacturers. Staff proposed a program of sequenced invitations for bids and a contract term of four years for awarded supply contracts.

Board members raised questions about Buy America compliance, tariffs, storage and site security for commodities, and small-business participation. Bassem Malem, statewide regional director, described plans to complete and secure a railhead at Vasco by October and prepare yard facilities and fences to store materials for contractor use.

The board approved the resolution to authorize Notice to Proceed 1 and related procurements. During debate, several directors protested broad language in the draft resolution that could allow staff to exempt specific solicitations from the authority's small-business goals; the board added an amendment requiring staff to report substantive changes to small-business program application back to the board. The roll call recorded affirmative votes and the motion carried.

Key procurement terms presented by staff included a four-year contract duration, awards to lowest responsible bidders, a sequencing plan to avoid flooding the market with solicitations, and a requirement that materials be manufactured to stated technical specifications. Staff said future NTPs (2 and 3) would be optional and returned to the board for authorization when appropriate.