Washington Metropolitan Area Transit Authority's Experience With Contractual Relationships In Tunneling Contracts

The Washington Metropolitan Area Transit Authority(WMATA) officially came into existence in February 1967 after the District of Columbia, Maryland, and Virginia joined in a com¬pact pursuant to Federal creative legislation signed the previous November to build a regional rapid rail transit system called METRO (1). The parent organization was the National Capital Transportation Agency (NCTA), a Federal agency, subject to Federal statutes and regulations. Soon after the completion of the transition from NCTA to the new "non-Federal" status of the Authority, the Board of Directors of the Authority formally adopted procurement policies and procedures (2). These are specific statements concerning competition by formal advertising for bids or by solicitation of proposals for negotiation, contracting authority, approval of awards, awards of contract modifications, and processing of claims and disputes. These policies and procedures are silent as to Federal procurement statutes and regulations. But because of the Authority's origin, the sensitive nature of the compact among the several sovereign jurisdictions, Federal financing of two-thirds of the costs, and the resultant surveillance by the General Accounting Office over staff operations, the Authority's procurement practices follow closely Federal regulations adapted to WMATA's needs. This is an important point and is the foundation of contractual relations between the Authority as the owner and its construction contractors. Various constraints and flexibilities of this arrangement with respect to excavation and tunneling contracts will be pointed out in the ensuing discussions.