It looks like the Czechs have won again.

The Washington Business Journal’s Michael Neibauer reported yesterday that the District has cancelled a contract to buy two new streetcars from an Oregon-based manufacturer for $8.7 million.

The purchase of the streetcars was fraught with peril from the time of its initial announcement late last year. Inekon, the Czech firm that sold the District its first set of streetcars for the H Street NE line, complained that even though its product was more expensive, the technical specifications were superior to its Oregon-based competitor. It filed an appeal with the Contracts Appeal Board, and Councilmember Mary Cheh (D-Ward 3) put the purchase on hold pending a hearing on the matter.

Reported Neibauer yesterday:

“As a result of Inekon’s assertions,” DDOT has agreed to cancel the proposed contract award to United Streetcar, rescind the cost/price trade-off analysis it used to justify the deal and will “determine whether to proceed with or cancel” the request for proposals, according to the D.C. Office of the Attorney General.

The withdrawal was noted in a motion filed with the D.C. Contract Appeals Board.

“The selection has been rescinded,” said DDOT spokesman John Lisle. “The solicitation continues and we are determining our course of action.”

The H Street NE line is slated to open next year, provided this dispute is resolved quickly. The Oregon-based company, United Streetcar, said yesterday that he had not yet heard of the District’s decision and had not decided how to proceed.