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Construction bids for a major component of the New Haven Rail Yard came in far below estimates, according to Connecticut Gov. Jodi Rell.

The low bid of $124.8 million submitted by O&G Industries is less than half the $291.5 million estimate provided by Hill International, a consulting firm hired by the state last year to review the rail yard project.

The state plans to build a 293,000-square-foot facility to maintain trains that run from New Haven to New York City on MTA Metro-North Railroad lines. The facility will feature a maintenance shop with 13 car spots on three tracks; support shops to repair and maintain major car components; parts storage facilities; offices and training centers; a security suite with command center and MTA police offices; Connecticut Department of Transportation offices; and a communications hub.

Bids were let for the main shop and office complex. The low bid will be reviewed by Connecticut DOT engineers. The state expects to award the contract in the next several weeks and start construction in winter. Completion is slated for late 2012.
 
"This is one of the most ambitious transportation projects we’ve undertaken, and it’s critical that we manage it responsibly to keep it on track and on budget,” said Rell in a prepared statement.

The state also has ordered 300 new M-8 rail cars, which are scheduled for delivery in 2010. Prototypes will be tested later this year.