Plans to decommission locomotives have been delayed. As the ACS‐64s arrive, Amtrak plans to remove its existing locomotives from service and dispose of them in order to free up space and resources to accommodate the maintenance of the new units. In October 2012, Amtrak established a group that included personnel from the Mechanical, Procurement, and Finance departments to develop a sequence for retiring equipment to maximize cost savings and contain the cost of maintenance, overhauls, and parts procurements during the transition from old to new equipment. Additionally, the group considered the historic and projected reliability of each locomotive, the costs to take each locomotive out of service, and the financial impact of existing leases. Amtraks locomotive lease contracts require the company to return units to the lessor in operating condition, and the group prioritized its retirement sequence based on the leased status of units.
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In the absence of decisions on the decommissioning sequence and disposal options, Amtrak has not finalized a schedule for retiring its current locomotives. Therefore, the company could spend more money than necessary maintaining its locomotive fleet. In particular, Amtrak:
Has spent or is planning to spend about $21 million for fiscal years 2013 - 2016 to overhaul 36 locomotives that will be decommissioned in this timeframe. Without a retirement schedule, Amtrak risks unnecessarily overhauling locomotives that could be removed from service shortly after the overhaul is completed.
Extended its spare parts supply agreement for its existing locomotives from June 2013 to June 2018 although it plans to retire all of these locomotives by February 2016. The agreement can be terminated before 2018, but Amtrak will have to pay the suppliers termination costs.
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