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The job of replacing Toronto's aging streetcar fleet with new low-floor versions just got harder, after the two companies bidding for the job were unable to meet the Toronto Transit Commission's exacting specifications.

Two companies - Bombardier Transportation and Tram Power Ltd. - submitted bids for the $1.25 billion project.

But both proposals fell short of the TTC's standards. TRAM Power failed early in the process, on commercial compliance. The Bombardier proposal - seen by many as the front-runner - did not produce a design that was able to negotiate the tight turns required by the TTC.

Now, the TTC will have to approach vendors individually to attempt to purchase the new streetcars.

In a news release, the TTC said that it would still be possible to stay on schedule, to both replace the existing fleet and purchase new streetcars for the TTC's TransitCity light rail expansion.