The Economist reports on a California law that may make it hard for certain foreign companies to bid on high speed rail contracts:
LAWMAKERS in California voted unanimously on June 29th to approve a proposed law which would force any company bidding for contracts to build the state’s new $43 billion high-speed rail system to disclose whether they transported Jews, American soldiers or others to concentration camps during the Holocaust.
Note that these companies aren't excluded from the bidding (as long as they provide the required information). The impact is more subtle:
Although firms’ records cannot be used to bar them from bidding for contracts or winning them, they fear that the disclosures could create a stigma and prompt public lobbying against them.
Companies who might be affected include SNCF, which operates France’s TGV high-speed trains, and firms in Germany, Spain, Italy and Japan.
So what's the motivation?
High-speed rail advocates suspect that support for the law may be driven by a protectionist desire to keep foreign firms out of one of America’s most important infrastructure projects. US Railcar, a start-up passenger-railcar manufacturer, has warned Congress that America’s security could be compromised if foreign companies win a big share of the high-speed rail contracts.
I haven't checked the U.S. GPA Schedule to see whether these contracts would be covered. If anyone knows, feel free to mention it in the comments.
