Committee forwards sole‑source Muni contract to rebuild seven damaged LRVs

The Budget and Finance Committee recommended forwarding to the Board a sole‑source agreement with Ansaldo Breda to rebuild up to seven damaged San Francisco Municipal Transportation Agency (SFMTA) light rail vehicles, with a not‑to‑exceed amount of $32,854,622.

SFMTA senior engineer TJ Lansang told the committee the seven cars were damaged in collisions and would be rebuilt to return them to service, adding capacity for preventive‑maintenance cycles and special events. Lansang said the rebuilds were proposed on a sole‑source basis because Breda manufactured the original vehicles and has unique equipment and materials.

The Budget Analyst’s Office reported the SFMTA currently has about $13,000,000 of the needed funding in its operating budget; the remaining roughly $19,800,000 would be subject to future Board appropriation and comptroller certification. The analyst also said the SFMTA considered in‑house repairs and competitive bidding but concluded those approaches would interfere with scheduled maintenance and that Breda’s facilities are already rebuilding many of the fleet’s components.

Supervisors asked whether collision damage or accumulated mileage was the operative reason for the repairs; SFMTA and operations staff said collisions were the primary cause and that some vehicles had been stored and cannibalized for parts while out of service. Staff noted approximately $2,000,000 of anticipated insurance proceeds will cover two of the vehicles subject to a $2,500,000 deductible.

Public commenters, including union representatives, urged the Board to approve repairs and raised concerns about in‑house capacity and parts cannibalization. The committee took a motion to approve without objection and forwarded the contract approval to the full Board for appropriation of remaining funds as needed.