[Congressional Record Volume 147, Number 167 (Wednesday, December 5, 2001)]
[Senate]
[Pages S12459-S12460]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              DEPARTMENT OF TRANSPORTATION APPROPRIATIONS


                       payment for work performed

  Mrs. HUTCHISON. Mr. President, regarding this week's Senate passage 
of the fiscal year 2002 Transportation appropriations conference 
report, Senator Durbin and I have recently become aware that several of 
the major contractors on the Tren Urbano project have substantial 
disputes outstanding with Puerto Rico concerning payment for work 
performed on the project. I find this troubling given the extent of 
oversight we have come to expect of major transit projects like this 
one.
  Mr. DURBIN. I certainly agree with Senator Hutchison. It is indeed 
important that these transit projects be managed efficiently, and 
preferably without dispute; otherwise, these projects are viewed by the 
contracting community as more risky, and thus they become more costly 
to deliver, to the detriment of the taxpayers who ultimately bear the 
financial burden of these projects.
  Mrs. HUTCHISON. I understand that the FTA is currently withholding 
approximately $165M of funding for the Tren Urbano Project, and has 
required a more accurate cost estimate and schedule for the Project 
than has been previously furnished.
  Mr. DURBIN. I want to encourage FTA to release only such funds as it 
considers appropriate in order to resolve outstanding disputes with 
respect to payment for work performed on the Tren Urbano project, and 
suspend all further Federal funding for the project.

[[Page S12460]]

  Mrs. HUTCHISON. I concur with the Senator and, if such disputes have 
not been resolved by March 1, 2002, would further request that the 
Inspector General promptly report back to the House and Senate 
Committees on Appropriations on FTA's assessment of (i) The reasons why 
such disputes remain unresolved, (ii) the cost impact of such disputes, 
and (iii) the IG's recommendation, if appropriate, for a more cost 
effective dispute resolution process.

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