Contract Reductions Could Save $1 Million
As part of continued efforts to reduce operating costs, the Chicago Transit Authority has received commitments from vendors to reduce costs up to a total of $1 million on current contracts.
“We want to thank our vendors for their responsiveness and willingness to reduce prices to help us weather the current economic situation,” said CTA President Richard L. Rodriguez. “We’re doing all we can to carefully control our costs and the cooperation of our vendors is critical.”
In October, CTA sent a letter to vendors asking them to assist the agency in cutting operational costs by granting a price reduction of four percent. The letter asked vendors to respond by November 15.
To date, CTA vendors have agreed to price concessions that will save CTA up to $1 million. The agency continues talks with their vendors to determine if additional savings can be gained through contract concessions.
“I want to join Rich in thanking the vendors for their consideration in agreeing to these reductions,” said Chicago Transit Board Chairman Terry Peterson. “We understand that they also may be operating under some budget constraints as is everyone throughout the country. These concessions are a testament to the good working relationship CTA and its vendors share.”
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