62. It is undisputed that UMTA also contracted with Booz-Allen, prime contractor for the Transbus program, to provide additional technical expertise. To complete the team, UMTA contracted with three retired transit experts who had detailed practical knowledge of operations and maintenance problems associated with current transit buses.
63. It is undisputed that the second tier of the Evaluation Team was a Policy Overview Committee headed by the Deputy Administrator. Also on this Policy Overview Committee were four UMTA officials who held positions with policy-making authority and responsibility. The working level team reported to the Policy Overview Committee, which had final decision-making responsibility.
64. After the AM General appeal was forwarded to UMTA, the Consortium furnished each member of the Evaluation Team with a document detailing the reasons supporting the Consortium's resolution of AM General's requests for approvals. See Administrative Record (hereinafter, "Record"), attachment 27.
65. It is undisputed that the Evaluation Team decided that the key to the appeal was the identification of "major technical areas" where the Consortium's specification called for major systems not on the current model buses of any of the manufacturers. For AM General, nine major technical areas were identified: brakes, front suspension, power plant compartment, body general (air drag, materials, doors), electrical system, air conditioning and ventilation system, and passenger seats.
66. It is undisputed that the Evaluation Team specifically considered whether the Consortium's specification was exclusionary or discriminatory. This consideration was based on an analysis of the Consortium's "justification of need analysis," review of other documents submitted in support of the inclusion of a given feature, the expertise of the Evaluation Team, and review of appeal documentation supplied to UMTA by AM General. The added time and effort required of a manufacturer to meet the Consortium's specifications was taken into account in this determination.
67. It is undisputed that once the justification for the inclusion of a given feature in the specifications was established, the analysis shifted to a consideration of whether the item proffered by AM General was, in fact, equal to that requested by the Consortium. The Consortium's rationale for rejecting a manufacturer's request together with the descriptive criteria in the specification were weighed by the Evaluation Team against the contents of AM General's appeal to UMTA.
68. It is undisputed that the Evaluation Team met in daily sessions from August 2 through August 6, 1976, and from August 9 through August 13, 1976, filing interim reports to the Policy Overview Committee.
69. It is stipulated to and admitted that resolution of the "major technical areas" was quite important, because that resolution determined the outcome of many minor elements of the appeal. Five of the major technical areas were resolved in favor of AM General: brakes, power plant compartment, body general (air drag, doors), air conditioning and ventilation system. Booz-Allen's prime input was on the resolution of these major technical areas.
70. A sixth major technical area, dealing with independent front suspension, was resolved against AM General; however, in an effort to increase competition, the Policy Overview Committee required the Consortium to allow manufacturers to specify either independent front suspension or solid axle front suspension (featured on AM General's and Flxible's buses). See Record, attachments 37 and 39.
71. For each of the nine major technical areas of AM General's appeal, UMTA offered a summary of the rationale for the appeal decision. See Record, attachment 37. All of these decisions, and specifically the decisions in the three areas in which AM General's appeal was denied, are well-explained in the aforementioned summaries and are amply supported by the Consortium's "justification of need analysis," the specifications, and various other materials taken into consideration by the Evaluation Team which form a portion of the Administrative Record. See Record, especially attachments 1, 2, 4, 5, 6, 8, 9, 10, 12, 13, 17, 19, 21, 27, 37.
72. The appeal decisions and accompanying explanations for the 61 individual denials of AM General's appeals are also amply supported by the Consortium's "justification of need analysis," the specifications, and various other materials taken into consideration by the Evaluation Team which form a portion of the Administrative Record. See Record, especially attachments 1, 2, 4, 5, 6, 8, 9, 10, 12, 13, 17, 19, 21, 27, and 37.
73. It is stipulated to and admitted that the appeal decision was transmitted to the Consortium and the manufacturers on August 16, 1976, and was later issued by the Consortium as an amendment to the specifications.
74. It is stipulated to and admitted that the Consortium failed to notify the manufacturers that a solid front axle was acceptable. UMTA thereafter required the Consortium to notify all manufacturers that a solid front axle was acceptable. Bid opening was extended one week to September 8, 1976.
75. It is stipulated to and admitted that only one bid was received by the Consortium on September 8, 1976. That bid was submitted by GM, which offered in satisfaction of the Consortium's specifications its RTS-2 vehicle.
II. CONCLUSIONS OF LAW
1. The Court has subject-matter jurisdiction herein pursuant to 28 U.S.C. § 1331(a). Venue of this action properly lies in this district pursuant to 28 U.S.C. § 1391(e).
2. In providing federal financial assistance to state and local public transportation authorities for the development of mass transit systems, the federal defendants are required to comply with 49 U.S.C. § 1602(a)(1), which prohibits the use of federal mass transit grant funds "to support procurements utilizing exclusionary or discriminatory specifications."
3. While it is clear that 49 U.S.C. § 1602(a)(1) prohibits specifications adopted for the purpose of excluding a competitor from bidding without regard to the merits of the product involved, neither the language of the statute nor its legislative history indicates that the statute was intended to prohibit specification of a product improvement simply because not every competitor chooses to offer such an improved product. Indeed, the legislative history of the statute indicates otherwise. See 119 Cong. Rec. 32821 (1973) (remarks of Rep. Brademas). Application of a rule of reason would also preclude any such interpretation of the statute, for the result would be anticompetitive. Such an interpretation would also foster stagnation in the development of the product involved.
4. The UMT Act contains a Congressional finding, inter alia, that:
the welfare and vitality of urban areas, the satisfactory movement of people and goods within such areas, and the effectiveness of housing, urban renewal, highway, and other federally aided programs are being jeopardized by the deterioration or inadequate provision of urban transportation facilities and services, the intensification of traffic congestion, and the lack of coordinated transportation and other development planning on a comprehensive and continuing basis . . . .
49 U.S.C. § 1601(a)(2). The declared purposes of the Act, therefore, are:
(1) to assist in the development of improved mass transportation facilities, equipment, techniques, and methods, with the cooperation of mass transportation companies both public and private;