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In July 2016, Caltrain's Board of Directors awarded contracts to [[Balfour Beatty Construction]] and [[Stadler Rail]] to construct infrastructure for the electric trains and the electric trains themselves, respectively.<ref>{{cite press release |url=http://www.caltrain.com/about/MediaRelations/News_Archive/Caltrain_s_Board_Approves_Electrification_Design-Build_and_EMU_Contracts.html |title=Caltrain's Board Approves Electrification Design-Build and EMU Contracts |author=<!--Staff writer(s); no by-line.--> |date=7 July 2016 |publisher=Peninsula Corridor Joint Powers Board |accessdate=2 April 2017 |archiveurl=http://www.webcitation.org/6pRDhEjHi |archivedate=2 April 2017 |deadurl=no}}</ref><ref>{{cite news |url=http://www.railwayage.com/index.php/passenger/intercity/caltrain-awards-electrification-emu-contracts.html |title=Caltrain awards electrtification, EMU contracts |author=Vantuono, William C. |date=8 July 2016 |newspaper=Railway Age |accessdate=2 April 2017}}</ref> Balfour Beatty was awarded a $697 million contract, its largest contract in the United States, to electrify the line at 25kV AC, replace signaling systems, construct two traction power substations, one switching substation, and seven paralleling substations.<ref name=ProgRail-16>{{cite news |url=http://www.progressiverailroading.com/passenger_rail/news/Caltrain-inks-contracts-with-Balfour-Beatty-Stadler-for-electrification-project--49177 |title=Caltrain inks contracts with Balfour Beatty, Stadler for electrification project |author=<!--Staff writer(s); no by-line.--> |date=17 August 2016 |newspaper=Progressive Railroading |accessdate=2 April 2017}}</ref> Stadler was awarded a $551 million contract to deliver 16 "[[Stadler KISS|KISS]]" trains of 6 [[bilevel rail car|bilevel]] [[electric multiple unit]]s each, with the option to increase the order with an additional 96 cars in the future.<ref name=ProgRail-16 /><ref>{{cite news|title=For Caltrain, 16 KISSes from Stadler (but no FLIRTs)|url=http://www.railwayage.com/index.php/passenger/commuter-regional/for-caltrain-16-kisses-from-stadler-but-no-flirts.html|publisher=''[[Railway Age]]''|date=August 16, 2016|accessdate=March 29, 2017|author=Vantuono, William C.}}</ref> The contract also marks the first American design win for the Stadler KISS.<ref name=ProgRail-16 />
p;mip===Federal funding withdrawal===
In April 2016, after missing the initial October 2015 deadline, Caltrain requested a third party review of the CBOSS project from the [[American Public Transportation Association]] (APTA).<ref name=APTA>{{cite report |url=http://www.caltrain.com/Assets/Caltrain+Modernization+Program/CBOSS+PTC/APTA+Peer+Review+Report.pdf |title=American Public Transportation Association Peer Review for Caltrain, San Carlos, California |author=North American Transit Services Association |date=4 July 2016 |publisher=Peninsula Corridor Joint Powers Board |accessdate=31 March 2017 |archiveurl=http://www.webcitation.org/6pOCBMZ3y |archivedate=31 March 2017 |deadurl=no}}</ref> APTA noted that Caltrain was not effectively managing the project schedule and cost because of generally poor communication between Caltrain's project management and PTG, and Caltrain's project manager did not have the technical experience or authority to resolve technical and contractual issues with PTG.<ref name=APTA /> In February 2017, Caltrain terminated its contract with PTG for failure to perform on time and budget and announced potential litigation.<ref>{{cite press release |url=http://www.caltrain.com/about/MediaRelations/news/Caltrain_Terminates_Contract_with_Parsons_Transportation_Group__PTG_.html |title=Caltrain Terminates Contract with Parsons Transportation Group (PTG) |author=<!--Staff writer(s); no by-line.--> |date=24 February 2017 |publisher=Peninsula Corridor Joint Powers Board |accessdate=25 March 2017 |archiveurl=http://www.webcitation.org/6pODay11G |archivedate=31 March 2017 |deadurl=no}}</ref> Parsons filed suit on February 22, saying delays were due to changing client requirements and circumstances beyond their control.<ref name=SJMN-170301>{{cite news |url=http://www.mercurynews.com/2017/03/01/caltrain-quietly-fires-contractor-before-testing-of-new-safety-system-is-completed/ |title=Caltrain fires contractor before testing of new safety system is completed |author=Baldassari, Erin |date=1 March 2017 |newspaper=San Jose Mercury News |accessdate=4 April 2017}}</ref> Caltrain filed suit a week later, seeking $98 million in damages; although the system has been mostly installed, testing is still incomplete.<ref name=CHNS-170306>{{cite news |url=https://www.courthousenews.com/caltrain-safety-contractor-trade-lawsuits/ |title=Caltrain, Safety Contractor Trade Lawsuits |author=Renda, Matthew |date=6 March 2017 |newspaper=Courthouse News Service |accessdate=6 April 2017}}</ref>
[[File:Elaine Chao large.jpg|thumb|upright|left|Secretary of Transportation [[Elaine Chao]] deferred expected federal funding for the electrification project just before construction was about to commence.]]
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