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The Consumer Price Index went up 175 per cent between 1975 and 1994.  The Producer Price Index, which is the government's oldest price index, would be a better indicator of the cost of railway equipment, but to get the 1975 to 1994 data, one has to submit a special request.  It is not readily available on-line.   Inflation would be part of the answer for the price change.  Other factors could include the value of the dollar, technical upgrades, willingness of manufactures to bid for the contract, etc. Politics also could have been a variable. If I remember correctly, Bombardier built the Superliner II cars.  It is a Canadian firm and, therefore, foreign exchange values could have impacted the outcome. Moreover, as is true for a lot of government contracts, the builder had to build them in the U.S. so that the work could be done by U.S. workers. To do so it had to refurbish a Vermont plant, which could have added greatly to the cost of the cars. If an overhaul is designed to keep a locomotive running throughout its expected useful life, the cost would not be capitalized.  If the locomotive was upgraded, and the upgrade meets these tests, the cost of the upgrade would be capitalized: 1) the useful live of the asset increases, 2) the number of units the asset produces increases, and 3) the quality of the units produced by the asset increases.  In any case, the initial price does not change, but the capitalized amount of the asset on the balance sheet increases, and the amount of depreciation flowing through the income statement increases.
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