Transportation securityNYC, Lockheed locked in bitter litigation

Published 29 December 2010

Lockheed Martin and New York’s Metropolitan Transportation Authority (MTA) are locked in a no-holds-barred legal battle over who is responsible for the problems in installing security CCTVs to monitor MTA’s tunnels, platforms, and stations; Lockheed stands to receive either $80 million or $138 million from the MTA should the judge rule in the company’s favor; in the event that the MTA wins the lawsuit, Lockheed would pay the city approximately $92 million

In October 2006 BroadWare Tech, a Cisco-owned provider of end-to-end browser-based solutions for collecting, recording, routing, and managing real-time and archived video, was selected by Lockheed Martin to supply video surveillance and media integration components to be deployed in New York’s Metropolitan Transportation Authority (MTA) Integrated Electronic Security System and Command, Communications and Control (IESS/C3).

The project, which was estimated to be completed by August 2008, has been hobbles by an ongoing lawsuit and countersuit that could postpone the revamped security system until 2012.

According to a January 2010 progress report on the MTA Capital Security Program issued by Thomas P. DiNapoli, N.Y. comptroller, Lockheed had filed a complaint in federal court “seeking to terminate its contract with the MTA.” Lockheed charged that the MTA breached the contract by delaying the company’s deployment efforts. After denying these allegations, MTA filed a counterclaim and terminated the Lockheed contract. The cancellation of the contract has news outlets asking “Who is to blame for delays in installing cameras in NYC?

Despite continuing with the litigation process, the MTA has asserted Lockheed’s failure to perform and its breach of contract. Aaron Donovan, media liaison for the MTA, said that the overseer of New York City Transit systems, the Long Island Railroad, Metro North Railroad, bridges, and tunnels is moving forward on completing the work to provide real-time alarms and situational awareness at key facilities. “To date, we have activated more than 500 IESS cameras at major transit hubs in Manhattan, and more are on the way. In addition, the MTA has activated another 3,200 security cameras in the subway system.” The 3,200 cameras Donovan mentioned have been purchased from various surveillance companies.

According to Lockheed’s legal filings, the company stands to receive either $80 million or $138 million from the MTA should the judge rule in the company’s favor. In the event that the MTA wins the lawsuit, Lockheed would pay approximately $92 million. Lockheed chose not to comment on the active litigation, but Kimberly Jaindl Brannigan, communications and public affairs, said that “Lockheed Martin doesn’t agree with MTA’s termination action and has taken legal action accordingly. Further discussion of this matter is best reserved for a court of law.”

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