Bombardier protests CTA rail car contract with Chinese firm

CHICAGO (AP) - The company that lost a bid to supply Chicago with hundreds of new rapid transit rail cars is complaining the competition for the contract was rigged.

Crain's Chicago Business reports (http://bit.ly/1S8UnKw) Bombardier Transit Corp. asserts the Chicago Transit Authority yielded to improper pressure from Mayor Rahm Emanuel to give the deal to a Chinese company, CSR Sifang America, which promised to create 169 jobs in Chicago.

Neither the mayor's office nor CSR had immediate reaction to Bombardier's contention. CTA spokesman Brian Steele said the contract was "handled the same way every competitive procurement is handled."

At issue is a $1.31 billion deal the CTA approved last month in which CSR will build up to 846 train cars at a new plant on Chicago's South Side.

Bombardier's bid for the contract was $226 million higher than CSR's.

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Information from: CRAIN'S CHICAGO BUSINESS.