The Region of Waterloo has drawn up a $92.4 million contract to buy light rail vehicles (LRVs) from Bombardier.

If approved, the region will buy 14 LRV's from the manufacturer for a total cost of $92.4 million, which is $2.6 million under the region's LRV budget of $95 million.

"Very exciting day in terms of it being another major milestone that we've reached, and we've reached that milestone on time," said regional councillor Jim Wideman.

The deal is being brokered in partnership with provincial transportation agency Metrolinx, which has an existing contractual agreement with Bombardier.

Wideman says the region decided not to do its own tendering process with vehicle manufacturers because Metrolinx had already completed one.

"They had already gone through a competitive tendering process," said Wideman. "By us piggybacking on to that process saved us a lot of time, but more importantly it saved us a lot of money."

The cost breakdown for the new LRVs is as follows:

$65.4 million plus taxes for the 14 LRVs, which equals about $4.59 million per vehicle.

$13.5 million for spare parts allowance, special tools and equipment from Bombardier.

$11 million for a reserve fund for potential changes to the vehicles.

$2 million for a letter of credit, which would give the region protection of $60 million in the event that Bombardier cannot fulfill the contract.

The region also has the option to purchase another 14 LRVs in the future.

A full model of the LRV is expected to be showcased at the Region of Waterloo building on Frederick Street next Friday and Saturday, if regional councillors vote in favour of the deal next Wednesday at a special council meeting.