1

Lockheed Martin Sues The MTA

Posted by
on April 29th, 2009 at 1:12 am

Everyone remembers the horrific September 11th attacks which forever changed the world. The attacks put a huge spotlight on our nation’s security on many levels. One of the most vital levels was in the form of transportation. With that in mind, it was a given that protecting the MTA’s infrastructure would rank as being of the highest priority.

One of the projects agreed upon was for Lockheed Martin to install $300M worth of digital security cameras. However the project has been delayed for multiple reasons & now Lockheed Martin wants out of the deal. They are now suing the MTA with the hopes of an end result that would break off the deal. William Neuman of the New York Times has more in this report:

In a new sign of trouble in the Metropolitan Transportation Authority’s effort to install a $300 million network of digital security cameras to protect the transit system, the authority’s contractor has asked a federal judge to let it walk away from the project.

In a lawsuit filed Friday in Federal District Court in Manhattan, the contractor, Lockheed Martin Transportation Security Solutions, asked a judge to release it from its contract, claiming that the authority had caused numerous delays and failed to give it access to train tunnels to finish the work.

The lawsuit, reported Tuesday in The New York Post, is the latest and most public episode in an ugly spat between the authority and Lockheed over the security camera project, part of a group of projects begun after the Sept. 11 terror attack to protect the authority’s transportation system.

It also raised questions about how much progress has been made to increase the safety of the subway and commuter rail systems more than seven years after the attack.

Above all, the lawsuit said that much work remained to be done to add security features to under-river tunnels used by the subway and the Long Island Rail Road.

“Lockheed has not been able to pass the required software system tests,” the statement said. “We have been working with Lockheed to achieve a minimum level of acceptable functionality, but it has taken longer than expected because of Lockheed’s inability to resolve certain critical system issues, pass the needed tests and progress the work to the point where it can be put into operation.”

Authority officials have said before that the high-tech camera system was not living up to its promise. The cameras are linked to software that was supposed to be able to detect an unattended object, like a backpack or briefcase, left on a station platform, and then alert law enforcement.

But that ability, and others, failed during tests. In fact, according to a report by the state comptroller’s office last November, 400 of 1,400 software elements in the system failed tests conducted last spring.

Click here for the complete report.

Even if you hate the MTA, you have to feel sorry for them after awhile. When it rains, it really does pour for them. Actually you can say it is a outright flood of negativity. However the bigger concern is brought up in William’s report. How much has actually been accomplished in terms of security since 9/11? Also, is it true the MTA led to the delays due to restricting access? My main question is what would be the point of them doing that? I can’t imagine they would want to purposely prolong the work.

I would also love to read up on the alleged high failure rate of one of the key features. Regardless of the situation, failing 400 of 1400 is not good. I would be extremely pissed if I was spending hundreds of millions & achieved such piss poor results. This lawsuit is one I definitely look forward to following up on in the future.

You might enjoy reading these related entries:
Security
0

Latest Senate Proposal Has Been Amended

Posted by
on April 28th, 2009 at 8:53 pm

The confidence once exuded by State Senate Majority Leader Malcolm Smith has evaporated. The 32 votes he seemed so confident in getting clearly looked to be a figment of his imagination as the support was clearly not there. His latest proposal has been trashed by all sides. I happen to agree with the piece by Bill Hammond in today’s New York Daily News. He accurately notes how Malcolm’s latest plan has been “stinking up the place”. Here is more:

That smell at the state Capitol was Senate Majority Leader Malcolm Smith’s latest proposal for bailing out the Metropolitan Transportation Authority stinking up the place.

It was the latest in a series of rotten eggs laid by the Queens Democrat, whose rookie year in a high-stakes job has been a series of disappointments.

Yesterday, virtually nobody in Albany was willing to defend the key provision of Smith’s MTA plan – a $1 surcharge on cab rides, with half the money leaving New York City to pay for roads and bridges upstate and on Long Island.

And no wonder. City taxpayers already carry more than their share of the load in this state, sending Albany $11 billion more in taxes than they get back in benefits. Asking cabbies and their passengers to shell out even more would only make things worse.

On top of that, Smith’s plan would still leave the MTA well short of the cash it needs to avoid a painful 30% fare hike and devastating service cutbacks.

Smith doesn’t even seem to have the votes for passage. The taxi tax was supposed to buy him support outside the city, but so far nobody has bitten. Two Democrats from Long Island are still threatening to vote no because the plan includes a payroll tax on employers throughout the MTA service area.

Click here for the complete report.

Any logical person who understands the MTA’s financial situation knows that all of the Senate’s proposals fail to address the problems at hand. This is not stopping Albany from attempting to push forward with the latest proposal. Earlier today the bill was amended & effectively started the process to get it to the chamber for a vote. Jimmy Vielkind of Politicker NY, who has done a great job staying on top of this crisis, has more in this report:

Majority Leader Malcolm Smith’s M.T.A. bailout bill has now been amended—the changes are mainly technical—it most likely must “age” another three days before the chamber can vote on the it. That’s one hurdle, but the legislation has a much bigger obstacle ahead: Smith doesn’t appear to have 32 votes to actually pass the measure.

The bill was voted out of the Finance Committee along party lines, and not before Republicans were able to voice more criticism of the bailout package.

One, State Senator Bill Larkin, called it “bullshit.”

State Senator Carl Kruger, who chairs the Finance Committee, emphasized that the bill will likely be further amended. “This is the first step in a process, not the end of the road,” he said. “This is not the end, this is only the beginning.”

Click here for the complete report.

Thank you Senator Larking for using the most accurate word to describe this proposal. Honestly, the word could be use for every single proposal that has come from Albany during this entire process. Not one of the Senate’s proposals has correctly addressed the MTA’s problems by creating long term sustainable funding solutions. Everything that has come from Albany has been stop-gap measures which will lead the MTA right back to the collapsing cliff that they currently occupy.

How much bad news does Albany need to hear before they get it or show that really care about the riding public? There is no magical solution that will cure these problems. I can’t say enough on how vital it is for Albany to create viable & sustainable long term funding solutions. The best proposals will not please everyone but to any logical person, that was not possible to begin with & should not matter. The clear objective is to fairly spread the burden across everyone as a properly funded transit system benefits everyone even if you don’t use it personally. This is not an assumption but an actual fact.

Albany is on the clock, what will they do? The lives of millions are in the balance & it is up to Albany to get this right. There will be no do-overs here……..

xoxo Transit Blogger

You might enjoy reading these related entries:
MTA Finances
5

Albany Ready To Screw Up Again

Posted by
on April 28th, 2009 at 6:35 am

The news was hot & heavy concering the MTA over the last 24-36 hours. The process started when State Democrats blasted Gov. Patterson for not rallying the base to get the votes needed for a MTA financial package to be passed. Lets take a quick peak at that story courtesy of the New York Daily News’ Glenn Blain:

Senate Democrats blasted Gov. Paterson Sunday night for not doing enough to rally their own members behind an MTA bailout plan.

Paterson’s top aide abruptly canceled a meeting Monday with upstate Senate Democrats to discuss funding for upstate roads and bridges, a key plank of a compromise bailout plan that has been crafted by Senate Majority Leader Malcolm Smith (D-Queens), a Senate source said.

“The governor has been an absentee governor,” said the Democratic source.

A Paterson aide called the charge “desperation” and said the meeting was put off only until Tuesday.

Click here for the complete report.

This was followed up by the news that the MTA’s budget deficit continues to grow. However it does not end there as Albany once again delivers a huge blow to the hopes of creating long term sustainable solutions by selling out the riding public for passage of temporary fixes. Lets take a look at this angle via Politicker NY’s Jimmy Vielkind:

Gone is Senate Majority Leader Malcolm Smith’s confidence that his chamber can pass a bill to help the M.T.A. bridge a growing deficit.

He and others had planned to pass a bill this week. Now, after emerging from a closed meeting with David Paterson and Assembly Speaker Sheldon Silver, he said “we’re taking it one day at a time.”

“It’s not about merits,” Smith said. “It’s just about what gets us there with the votes that we need to get it passed. Because there are things in this plan that, somebody’s not going to like something. At some point, you just have to sort of toughen up a little bit and make the tough decisions.”

Click here for the complete report.

I can’t say any of these developments surprise me. I have long said that Albany was going to find a way to screw this up. They would either come up with typical temporary solutions which would do nothing but delay the inevitable or they would come up with nothing at all. Honestly at the rate they are going, one can argue that no real difference exists between the two.

The fact that Albany is willing to once again fail the MTA & the millions who depend on it is extremely frustrating. Transit advocates such as myself have been longing for the day when the MTA’s needs would be properly met by our elected officials on all levels. Yet, we are forced to watch Albany due just enough in their eyes instead of legitimately solving the problems. When will they wake up & understand that temporary fixes will not get the job done?

Instead of playing the blame game & pointing fingers like children, Albany should be working around the clock to get this right. Enough with the bickering & focus on the real issues at hand. The MTA needs legitimate & sustainable long term funding solutions. Anything less is completely unacceptable.

xoxo Transit Blogger

You might enjoy reading these related entries:
MTA Finances
1

MTA Deficit Continues To Grow

Posted by
on April 27th, 2009 at 2:32 pm

With the deadline for Albany to come up with a financial package for the MTA edging closer, the news about the agency’s finances worsen. The latest re-forecast projects a $621M dollar deficit for 2009 even after the implementation of fare hikes & service cuts. Here are the complete details just released by the MTA in the last 20-25 minutes:

The Metropolitan Transportation Authority (MTA) today re-forecast its annual revenues, projecting a $621 million deficit for 2009 even after approved fare/toll increases and service cuts are implemented. The growing deficit is due to the continuing decline in the real estate and dedicated taxes that support the MTA, all of which are economically sensitive. In addition, increasing unemployment and higher fares led the MTA to predict a 7.2% drop in usage of its facilities in 2009.

The re-forecast identified the following specific changes from the revenues assumed in the budget passed by the MTA Board in December 2008:

• Real estate taxes: Down $336 million
• Fare/toll revenue: Down $221 million
• State dedicated taxes: Down $113 million

The budget had assumed a $49 million surplus, which when subtracted from these deficits yields a $621 million gap for the current year. The picture is even bleaker for 2010, with a $1.022 billion deficit now projected, up from $290 million at the start of the year.

“The budget that was passed in December assumed large decreases in revenue, but we now know that the reality is even worse,” said Elliot G. Sander, MTA Executive Director and CEO. “With this re-forecast in hand we have begun identifying ways to fill the new gap, but there are no easy solutions.”

“Today’s re-forecast is further proof that the MTA desperately needs stable revenue sources that don’t plummet during economic downturns,” said H. Dale Hemmerdinger. “This is terrible news for the MTA, our customers and the regional economy, and the MTA Board will do everything in our power to protect the transit network. Without assistance from Albany, however, it will be extremely painful for everyone who relies on MTA services.”

This news does not come as a surprise to those of us who have been tracking the MTA. This is yet another indicator in a long line of such that showcase why it is vital for Albany to produce sustainable funding solutions. The time has come & gone for the MTA to depend on volatile sources of funding such as real estate taxes. Albany needs to hit this one out of the park or we are all in trouble.

xoxo Transit Blogger

You might enjoy reading these related entries:
MTA Finances
4

TWU Slams MTA Plan For No Raises

Posted by
on April 26th, 2009 at 9:08 pm

The issue of the MTA not offering raises to blue collar employees first became public four days ago due to an exclusive report by the New York Daily News’ Pete Donohue. He followed that up with a report which talked about the MTA’s intention to lay out this proposal at a meeting on Tuesday. Now Crain’s has picked up the story with a report of the TWU slamming the MTA for planning to put raises this year on ice. Daniel Massey has more in this report:

The Transport Workers Union fired back Friday at a Metropolitan Transportation Authority plan to shelve 1.5% raises this year by calling for a formal investigation into the agency’s finances.

“For sure the MTA is in deep financial trouble and the economic downturn has played a big role in this situation,” the statement read. “But we believe that the evidence is also clear that hundreds of millions of dollars has been wasted and misdirected at the discretion of the agency.”

The TWU called on the City Council and state legislature to conduct hearings on the MTA’s finances as soon as possible. The union cited $350 million in cost overruns at the Fulton Street Transit Center and the MTA’s handling of interest-rate-sensitive dealings, such as variable-rate debt. It also said the agency’s investment program and pension-fund allocations deserve scrutiny.

Click here for the complete report.

The TWU is taking the correct stance for the workforce they represent. While public sentiment will be hard to come by if at all, this does not change the fact that they make some excellent points about the MTA’s wasteful ways. The one point I will bring up is that they have improved in this area under the leadership of CEO/Executive Director Elliot Sander & MTA Board Chairman Dale Hemmerdinger. However when you are engaging in a P.R. war as part of your tactical process, you focus on the facts that support your side.

I will say that I disagree with the TWU boycotting the meeting as creating more tension between both sides does no one any good. Before both parties conclude on a solution, they should see what Albany will come up with in terms of a financial aid package. While I have my doubts of any long term sustainable solution coming from them anytime soon, they might as well take a short term wait & see approach.

xoxo Transit Blogger

You might enjoy reading these related entries:
TWU