Transit service contracting

Transit service contracting

Material Information

Transit service contracting a handbook for Florida's transit systems
University of South Florida -- Center for Urban Transportation Research
Florida -- Office of Public Transportation
Place of Publication:
[Tampa, Fla.]
Center for Urban Transportation Research
Publication Date:
Physical Description:
vii, 192 p. : ; 29 cm.


Subjects / Keywords:
Local transit -- Contracting out -- Handbooks, manuals, etc -- Florida ( lcsh )
Privatization -- Handbooks, manuals, etc -- Florida ( lcsh )
government publication (state, provincial, terriorial, dependent) ( marcgt )
bibliography ( marcgt )
handbook ( marcgt )
non-fiction ( marcgt )


Includes bibliographical references (p. 183-192).
Additional Physical Form:
Also issued online.
General Note:
Prepared for Florida Department of Transportation, Office of Public Transportation.
General Note:
"December 1993."
Statement of Responsibility:
prepared by Center for Urban Transportation Research, College of Engineering, University of South Florida.

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Source Institution:
University of South Florida Library
Holding Location:
University of South Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
030238144 ( ALEPH )
86074580 ( OCLC )
C01-00260 ( USFLDC DOI )
c1.260 ( USFLDC Handle )

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Transit service contracting :
a handbook for Florida's transit systems /
prepared by Center for Urban Transportation Research, College of Engineering, University of South Florida.
[Tampa, Fla.] :
Center for Urban Transportation Research,
vii, 192 p. ;
29 cm.
Prepared for Florida Department of Transportation, Office of Public Transportation.
"December 1993."
Includes bibliographical references (p. 183-192).
Also issued online.
Local transit
x Contracting out
z Florida
v Handbooks, manuals, etc.
Handbooks, manuals, etc.
2 710
University of South Florida.
Center for Urban Transportation Research.
Office of Public Transportation.
t Center for Urban Transportation Research Publications [USF].
4 856


TRANSIT SERVICE CONTRACTING A Handbook for Florida's Transit Systems Prepared for: Florida Department of Transportation Office of Public Transportation Prepared by: CUTR Center for Urban Transportation Research College of Engineering University of South Florida December 1993


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CONTENTS Fori!"JJord 0 0 0 0 0 0 0 0 0 v 0 0 1 Chapter 1 C o D 0 0 ontractmg CCISIOn ooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo 3 Chapter2 Contracting Process ooooooooooooooooooooooooooooooooo oooooooooo oo.oooo 27 Chapter3 Contract M onito ring oooooO ooOooOoooooooooooooOOOoOoooooooooOooo o 45 Chapter4 Ve hicle Owners hi p Oooooo OOOoooooooooooooo.oo 5 7 C hapter 5 Vanpoo l Programs .......................... ..................................... 63 Cbapter6 C 0 0 p 0 ontracttng 1n erspecttve .. .. ... . ....... ..... .. .. ...... .............. .. 71 Sample Request for Proposa l. ooooooooooooooooo 73 Samp le Service Specifications o oooo o.oo ooooooooooooooOoooo oooo 97 C Sample Con t ract ... ..................... ..... ....... ....... ......... .. ... ......... 137 AppendixD Directory ......... .. ... .. ......... ......... .. .......... .. .............. .. .. ............ 1 63 Notes oooooooooooo oo, o. oooo o o o o ''" " o a o oo '"'"' ' "" 173 Glossary of Terms ............................................................................................. .. 175 Sel e cted R e{ere11ces ............................................... ................................................ 183 Table of Contents i j i


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FOREWORD The recent enactmem of three federallegislatiw initiatives-the fntermodal Surface Transportation Efficitmcy Act, the Cl e an Air Act Amendments of 1990, and the Americans with Disabilities Act has rest ansit indmtry in recognition of changes in demographics and mobility. As a result, many transit systems have realized the valt

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Florida Department of Transportation Office of Public Transportation 605 Suwannee Street, Mall Station 26 Tallahassee, Florida 32399 0450 (904) 488, SunCom 27!1-7774 George Brown, FOOT Project MMager CUTR Center for Urban Transportation Research College of Engineering Univet'$ity of Soufh Florida 4 202 E. Fowle r Avenue ENB 118 Tampa F l orida 33620-5350 (813) 974-3120, SunCom 574-3120, fn (813) 974-5168 Gary L. Brosch Director CUTR Project Team: WiiJiam L Ball, Project Manager Patricia Henderson Eric Hill Patty Turner Tony Rodriguez Review and comments from the following individuals sre gratefully acknowledged : Tara Bartee1 Dan Boyle, Gary Brosch, George Brown, Ed Colby, Sharon Dent, Steve Githe ns, Jay Goodwill, Dennis Hinebaugh, Rosemary Mathi as, Steve Polzin, Dan Rudge, Roger Sweeney, Wes Wat son, Phil Winters Acknowledgements vii


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SUMMARY Under the direction o f the Florida Department o f Transportation (FD01), the Center for Urba n Transportation Res earc h (CUTR) prepared this h andbo o k t o assist Florida's public transportation providers in the competi tiv e contracting of transi t services. In the contex t of this handbook, contracting r efers to the pur chase of services from the private sector. These se rvices include those rela t ed to any .vith!!! the transit system, ranging from the ope ra tio n o f transit services to v ehicle and non-v e hicl e mai ntenance f unctions to administrative functions. Maintenance and administrative functions are com : monly contracted by transit systems in the United States; however, the contracting of transit opera t ions is less common and somewh at contro vers ial. A conti nuous debate has emerged, with both advo cates and opponents working to deve lop sup porting arguments for and agains t the con tract in g o f service delivery. Although most transit managers believe that cost savings ma n ce o f activities ; however if usedstrategic3lly in appropr iate sit uations contracting may improve the overall effic i ency and effectiveness with which transit services Me del ivered This ha ndbook summarizes the contracting process, from the contracting de cision t o the contracting do cuments to contract monitoring and enforcement. Although the contracting process and contract moni to ring are addressed in separate chapters> they m ust be implemented once t he contracting decision has been made The informa tion is presented in separate chapters for ease of understanding Flow chansare provided in Chapt e rs 1, 2, and 3 to illustrate step-by-step processes for the impl eme ntation o f contracti ng efforts. In addi tio n other selected issues are dis cussed as they relate to involvement from the pnvate sector N umerous case Studies and anecdotes are pro vided t hroughout the handbook as a source can be achieved through contracting, the potential uncertainty associate d with de CUTR of a d ditional information. In some cases> examples are provi d ed with fictional information in order to e nh ance the un derstanding of particu lar concepts. pending on private contractors for the provision of quality transit services bas preve n ted many managers from p ursuing such arrangements. This handboo k is designed to assist transit systems tha t have made the decision t o seriously consider contract in g alternatives. PURPOSE OF HANDBOOK The purpose of thi s handbook is t o assis t in plan n ing and imp l ementing various contracting alter natives. The intent is not t o advocate the contract ing of transi t services, but t o provide guidelines for transit systems in terested in further deve lopin g public/private partnerships The con trac ting of these services is certain l y not a panacea for t h e optimal provision of transit services and per forIntroduction OVERVIEW OF HANDBOOK The handbook is com posed of six chapt e rs, eac h o f which is summarized below. Chapter 1 discusses the contracting decision. A seven-step process is outlined to assist F l ori da's transit systems in assessing the f ea sibility of con tracting All of t he major i ssues assoc i ated with the contracting of various transit services are identified and reviewed. Perhaps the most important iss ue rel ated t o the contracting decis io n is l abor consid erations, which is discussed in detail. T he contracting process is discussed in Chapter 2. This chapter provi des a seve n step process for the preparation of a Request for Proposal (RFP) or an 1


Invitation for Bids (IFB), as well as for the prepara tion of a contract once an award is made. The process shows the user how to generally design and struct ure RFPs/lFBs and contracts. The potential types of contracts are identified and discussed, as are standard clauses and requirements that should be included in a contrac t Potential problem areas are presented, along with recommendations for h ow t o deal with problems as they arise. Chapter 3 evalua tes the contract monitoring pro cess. A six-step process is illu strated and rev iewed, f rom the identification of contract monitoring issues to the implementation of a monitori ng sys te m. The monitoring l evel of effort var ies, depend lug upon die; ...:har

Chapter 1 CONTRACTING DECISION INTRODUCTION In order to ma ke decision s regarding the contra c t in g of transit system function s, managemen t m ust evaluate the contracting alternative$ and assess the feasibility for their implement ation. This c h apter illustrates an assessment process that can be used to make suc h determinations. A comp etit iv e con tracti n g assessment process (CCAP) was devised to assist transit systems in this decis ionmaking e ffon. The process begins with th e selection o f a rev iew t eam, followed by rc..-ic":l o f the bar .. gaining agreement and the Secti on 13(c)' agreement to identify specific clause s and isSUe$ related to contracting. All potential contraaingacrivi t ies are then inventoried and ranked based on a series of criteria. A risk assessment is then conducted for each activit y and, depending on the level of risk :assessed, translt system functlons are either 2 C cepted as feasibl e for contra c ting, rejected as i nf ea s i b l e or as being associ ated with excessive ris k, or recomme nded for funher assessment. CO M PETITIVE CON T RA CTI N G A SSESS MENT PROCESS (CCAP) The Comp etit iv e Contracting Assessment Process (CCAP) is a seven step process that can be used to assess the potential for contracting transit system func tions This s tep by ste p approach to the con tracting decisi on is presented in this chap ter and includes the follow in g steps. Step I: Assemble Review Team Step 2: Revie'v Colle ctive Bargaining Agreement Step 3: Re view Secti on 13(c) Agreement Step 4 : Inventory All Activities Step 5: Rank Activities For Contr c ting Step 6: Con duct Risk Assessment Step 7: Conduc t Funher Assessment of C riteria Chapter 1 : Contracting Decision STEP 1 : A ssemble Review Team The first Step in the CCAP is to assemble a review team that will e\aluate the feasi bility of con tracting a transit function. The team should consist of individuals with expenise in a variety of areas, including transit opentions and functions, pro curem ent, accou nting / finance, legol issues, con tract management, and quali ty control.' Expenise in these areas provides a so u nd decisio nmaking team forguidin gand paniciparingin the feasibility assessm ent process. T !':lnsit management must use judgment regardin g the availabilit y of suf f icient expertise from in-house emplo yees; if e xpertise is lack ing in some areas, it ma y be appropriate for the transit system to consider the use of an outside consultant or peer agenc y expen to assist in the process or to conduct the ent ire process. The review team is ult i mately responsible f or ranking t ransit sys t e m functions in t erms of co ntrac t in g feasibility nd then m a k in g fina l recommenda tions. The rMkin g process is discussed in detil in Step 5. STEP 2 : Review Collective Bargaining Agreement An issue that must be addressed is how competitive contracting imp acts the agency's relationship with organized transit l abor.' This relat io n s hip is de fined by the agency' s collective bargaining and Section 13( c ) agreements, bot h o f which can con tain cl a u se s that impact competitive contracting. Alth ough the agreements tend to overlap in mean ing and interpr et.ttion, eac h agreement shou ld be examined separately in an effon t.O clearly define the implications they ma y have on contncting. This sup stresses the imponance of a thorough review of the co llective bargain ing a greeme nt. Th e legal authority of the transit syStem to cont ract i s typ i c ally defined in i ts collective bargain ing greement. The agreement should be reviewed to 3


Chapter 1 THE CONTRACTING DECISION I Step 1: Aa .. mblt R t Y I-Team I 1,r 2: Rev l t w Colle ctlvt Barg a ini n g AOiftm e n t I I I Contttctlng P roh lblttd? y ,. L.. .. ' i N o Stop ' 1,-I S t.. p 3: R .... l_ U(c; l Aor .. m ent J H p rt-p u e tor n.goOUatiOn 1,of n e lrt hrg t l11lng 'IJ'"ment. I Ste p 4: lnW'tntory Al l Actl v ltltl I r Step 6: Rani( Atllv l tl t l F or Contrtctln g I -. It -. t I Ffr. t 4 Ch a p ter 1: Contracting Decision


Chapter 1 Relevant Collective Bargaining Clauses Key West Port & Transit Authority ARTICLE 3 MANAGEMENT RIGHTS 1 The Employee Orgsnizslion and its members recognize and agree that the City has the sole and e

Chapter 1 preparation should begin for the renegotiation of the existing agreement or for the negotiatio n of a new co lle ct i ve bargaining agreement upon expira tion of the c ur r ent agreement If the collectiv e bargaining agreement supports management's right to competitively contract or if the agreement does not contain any specific provi sions governingsubcontracting (sometimes referred to as "silent" collective bargaining agreemenu), managemen t must still be prepared should a con tracting arrangement be disputed by organiz.ed transi t labor. Contracting w m petitively is often viewed b y tran sit labor unions as a threat to the livelihood of the collective bargaining unit. Aso result disputes can arise between management and transit labor when attempts are made to subcontract. These disputes typically involve issues concerning whethenhe act of contracting competitively is a management right or whether it is a matter for negotiation.' The collectiv e barga ining agreement usua lly in cludes a dispute resolu tion mechanism called arbi tration. Arbitration is a "process by which th e parties to a dispute submit their differences to the judgment of an impartial person or group ap pointed by mutu"-' consent or sututory provi sion."' Collective bargaining agreements that in clude clauses regard ing management's right to contract are subject to an arbitrator's interpreta tion of that clause if the case were taken to arbi tr a tion.' In contrast if the co ll ective bargaining agreemen_t is silent on co ntracting and a dispute arises, the arbi trator will ev,.Juate the case u sing a set of general guidelines Although decisions may vary some what from arbitrato r to arbitrator, previous deci sions reve"-' sever"-' principles commonly referred to in arbitration cases related tO cont racting In cases where the agreement is ""silent" on contracting, the success a transit system achieves in con tracting and dealing with potential union disputes 6 Fibreboard Paper Products Corp. v NLRB (379 U.S. 203, 1964) The United Stales Supreme Court confron ted the Issue of whether the contracting of maintenenee services is a mandatory subject of bargaining. In this case the employer and the union were parties to a collective bargaining agreement and ware about to negotiate a successor agreemen t when the employer. without bargaining over the issue, notified the union of its decision to contract out bargaining-unit work, as a cost-savings me9 t (!f8 Tht) 9mp/()yer refused to engage in further negotiatio ns, and the union responded by filing unfair labor practice charges based upon th e employer's refusal to bargain, in v iolation of Section 8(A)(5) of the National Lebar Relations Act. The Court decided that the employer violated its bargaining obligation by unilaterally contracting its maintenance operations. thereby replacing its employ ees with the contractor' s workers w ithout affording its employees the opportunity to eppesl the de cision. In deciding that contracting had to be negotia ted, the Court f ound that the decision to contract work normally performed by memb ers of a bargaining unit and which results in th e termination of their employment comes within the meaning ofterms and conditions of employment. Sourc:.e: Robenw. Sauter, "Union View : Subeontruting the Work of Union Members In the Public Sector, UOQf t.w Jovrnl (August 1988 ) : 487-496: an d John Mar lin, ed Contractin g Munic;pal Setvicos : A Guide for Purcitaso from the Pr;vat & Sctor (New Yor k : John Wiley & Sont, In c . 1984). depends on how the tran sit system demonstrates compliance with five basic principles: (1) the contract does not violate any explicit provision of the co llective bargaining agree ment; (2) th e contract can be supported as a reasonable business decision and is not motivated by Chapter 1 : Contracting Decision


Chapter 1 anti-union bias and the decision is made in extent of risk associa ted w i th the proposed contrac on the basis o f objective economic tual arrangement. crnerta; STEP 3: Review 13(c) Agreement (3) the contract will not hav e aser lous impact on existing union employees (such as significant d i splacement or layoffs); {4) th e contrac t will not threaten the integrity of the bargainin g (5) the contract is n ot inconsistent with past practices of t he transit agency, and involves wor k not normally performed by existing baf!!:aining uni t e mploy ees.' As prev i o u sly mentioned, t h e relationshi p bet ween the transit agency and labor is defined by both the agency' s collective bargaining a n d Section 13(c) agreements. The Section 13(c) agreement s ho u l d also be reviewed to iden tify clauses specifically rel ated to contracting competi ti vely. Alt ho ugh it may n ot be necessary to demonstrate compliance w ith a ll f ive, r eviewing these p rinciples i n the context of potential c ompet i tive contracting arrangements will provide some insigh t as t o the Section 13(c) of the U rban Mass Transporta tion (UMT) Act of 1964 mandates that "it shall be a condi t ion of any assis tan ce ... o f Act fAir and equitab)e arra nge m e nts are made, .. to the i nterests of e mployees affected by such assi s tance." The Section includes provisions f or: Transit Authority of River City (TARC) and Amalgamated Transit Union Local 1447 This arbltralion case addressed th e issue o f whether contracting is prohibited by the collective bargaining agreeme n t or the Section 13(c} agreement Th e union filed a grievance challenging TARC s decision to contract with a private provid e r to operate a new roo t e, alleging that the action violated the colle ctive barga ining and the Section 13(c) agreements. Although the collective bargaining agreem ent coniained no exp res s cont r act ual provision against the contracting of bargaining-unit work the Section 13(c) agreement did contain a parag r ap h that the union claimed prohibited TARC from using other employees to do th e work 7he arbitrator found tha t T ARCs decision did not viola t e the terms of e ithe r agreement. The a rbitrator addressed four issues in his decision : impact on the unit. unable t o conclude tha t contracting would und ermine the bargaining unit. impact on employees. found that no T ARC employees had been laid off or suffered adverse consequeflces as a result of contracting decision in swarr:Jing contract to pnvate operator. past practices -found that past ptactjcc and bargai ning histol)' of parties favomd the n'ght of TARC to enter into this kind of contract Source : P u b l ic Private T ransporta t ion Network An Analysis o f labor Issues. Raised by the S u bconlrac ting of Publi c Transi t O p eralio ns ( S ilv e r Spring, MO; COM$1$ Corpor ation. 1987): 2 0 22 Chapter 1: Contracting Decision 7


(1) (2) (3) (4) (5) Chapter 1 rights, privileges, and benefits under existing collective bargaining agr e ements; continuation of collective bargaining rights; protec tion of individual employees against a worsening of their positions with respect to employment; assurances of employment to employees of acquired mass transportation sys t ems and pri ority reemploymentofemployeesterminated or laid off; and paid t r ai n ing or retraining prog r ams.' ing competitively. Certification of the agency's Section 13(c) agreement is a precondit io n to the receipt of federal financial assistance. In most cases, the 13(c) agreemen t is similar to the collective barga i ning agreement in that it specifies the r elat ion ship between transit labor and manage ment However, in addi t ion to confirming the rights unde r existing collective bargaining agree ments, 13(c) also guarantees the contin ua tio n of these rights and provides protection to trans i t emp loyees against the worsening of their position as a result of contracring: or of any other decision mad e by managem ent As a r esult of the legislatio n transit labor and management must negotiate a Section 13(c) agree ment that must be certified by t he Secretary of Labor tO show compliance w ith the legis lation. This protects transit system employees from ad verse effects resulting from changes made by a tran sit system, including those related t o contract -The rev iew tea m is responsible for assessing the implications of the Section 13(c) agreement on transit system activities that are being considered for contraCting. The guide lines presented here shoul d be rev iewed closely in conj unc tion with Steps 5, 6, and 7. 8 Amalgamated Transit Union, Local 639 v. Transit Authority of Lexington-Fayette County (LexTran) (June 3, 1987) (Krislov, Arb.) LexTran determined that three existing routes were appropriate candidates for contracting dve to poor performance records. The union alleged that the transit agency's contracting out viola ted both the Section 13(c) and the collective bargaining agreements. However, the arbitrato r ruled that the original union grievance alleged only a collective bargaining agreement violation and, therefore, only that agreement issue was addressed. The arbitrator determined that LexTran's action of contracting existing services did not violate the collective bargaining agreement. Because the agreement was silent on the issue of contracting, the arbitrator focused on three key issues upon which to make the decision: nature of the worl< found that two of the mutes were proven to be unsuccessful. and a third route had a substantial deficit which in an extension of the bargaining

Chapte r 1 S T EP 4 : Inventory All Activities All transit s yste m a c ti v i ties s hou l d b e id entified and categor ize d into the fun ct ional areas o f ope ratio ns, maint enan c e, and administr a t i on. Once the inv entory i s c o m pl eted a check l ist shou l d be pre pared indicating the ent ity that is currently per forming eac h activity. This may include aCtivities performed by in-house staff contraCted to the private secto r or other p ublic age. ncies, provided by a parent governm ental entit y (i.e city/county government), o r a combination thereof. S a mple inventory wor ksheet s for ea c h funct i o na l a r ea are prov i ded a t the concl u s ion of this c h apt er. Since eac h transit sys t em i s di f fere n t, the c atego rization of activities may vary; however the i n ve ntory worksheets provide a useful starting point for the developmen t of a complete inventory of transit system actlVJU es. STE P 5 : Rank Activities f o r Con t r a ctin g O nce t h e in vento ry of transit system a ctivit ies is com p l eted i t is t he r espons ibil ity o f the review team to eval u a te t he activiti es 3nd to asse ss t h e con tracting f ea si bility i n terms of a set o f criter ia. The review team shoul d agree on these c rite r ia ear l y in the process in order to dfectivtly assess the feasibility of contraCting each activity. Rec om mended criteria include: serv ice cha r a cteristics/ quality poten tia l c os t s avings le g al cons t r a i n ts co n trac t enf o r ceabi1ity availability of private s upplier s political considerations degree of sat isfaCtion with existing public servtce Service Characterislics!Qua/lty A rev iew o f t he serv ice c hara c ter i stics o f ea c h potent i a l con trac t i n g activity s hould be con d uc t ed Chap ter 1: Contr acting Decision Massa chusetts Bay T ranspo r ta tion Authority ( MBTA) and Amalgamated Tra n s i t Di v isio n Local 5 8 9 This arbit ration cas e involved a dispute over whether MBTA violated /he collective barpaining agree m ent by contracting w ith private provider to operate paratrensit service. The arbitrator susta i ned the grievance f iled by the union relying on a specific provision of the collective bargaining agreement that protected barg a i ning unit w ork end gave the u n ion certai n r ig hts r egar ding ne w w ork. I n add/lion 1 M arb itrator f ou n d that M B T A violated the Sec t ion 13(c) agreement since the contracting (1) c a used an adv erse Impac t on union em ployees by pre v e nting the natural e xpansion of the unir and the incroaso In job opportunities agreed upon in the collective berpeining agre e ment, a nd (2) infringed upon the seniority right s of present un ion bus operators who wer e not permitted lo select ha n d icapped service ass;gnment s which they migh t prefer to oth e r available assignmen ts. Source : Pu b l i c P r ivat e T r a n s p ort a tio n Ne t wo r k, 4A o Anelyl' of Lab o r lnues R ai s ed b y the S uboon l rac l i n g of P ublic T ra nsi t Opera ions ( Silver Spring, M O : COMSI S Corporat i on, 1987) : 18. 37. in the process of ranking the activities in terms of contraCting feasibility. This analysis is appropriate since some characteristics histori call y lend them se l ves to more s uc c essf u l con tracting efforts. It s houl d be a cknowl e d g e d that existing contrac ted ac ti vities can diffuse the sensitivity to contra cti ng This compre h ensive r e v ie w assumes that all tra n s i t fun c ti ons receive eq ua l consideration in the assess ment process. Operations Cenain types of service operations more appropriate and easier to contract than othe rs. A survey cond u cted by Seat tl e Metro identified the transit op eration s that seem most appropriate for c ontract i n g : '0 9


10 Chapter1 Metro-Dade Transit Agency (MOTA), Express Bus Service MOTA contracts with private systems to operat e a "limited express bus service" known as Kendall A r ea Transit (KAT) in Dade County. The term "limited express bus service" is specific to the MOTA service area and is described as a cross between local and express service. The KAT service i ncludes one route and 15 minibuses and had an average weekday ridership in fiscal year 1991 of approximately 1100. An FOOT study found that the use of a privately-operated express bus service was prac tical and cost effective As an incentive to use private operators. FOOT made U rban Corridor Funds available to fund the total cos t to operate this service. In 1988, a four year contract was awarded to Red Top Limousine Inc.; however, the con t ractor defaulted on the s e rv ice contra ct citing a low profit margin as the reason for terminating the service In 1989, this c ontract was awarded to Mayflower Contracting Service. MOTA maintains a listing of privatr. .coystems able to meet the service specifications in the event o f contractor default. This a/so allows MDTA to circumven t much of the bidding process since service reques ts can be sent directly to qualified private systems. Evaluatio n of the KAT service reveals that perlo r mance scores have been below the system average. One reason Is tha t most of these measures are ridership-based, whic h are typically not used to monitor contractor perlormance Further the below average ratin g is directly related to its ope r ating environment--a low density area wi t h a high ra t e of automobile use In spite ofits low perlormance record, MDTA officials feel that the KAT service has been successful in meeting travel needs and alleviating traffic c ongestion. Source: Centerfor U rb an T ra n s p orta t ion ResearCh. Privatizal i on i n Mass T r ans i t Tech n i cal Mem orandum f2: Descr i plion ofP rivatizalion Efforts an d ldentlf icarlon of I ssues" (Tampa FL: Center fol Urban T rMsportation ReseiHch. February 19 93). Ann Arbor, Michigan, Late Night Service The Ann Arbor Transportation Authority (AA TA) implemented an all-night service after citizens' groups asked for the service for the purpose of improving public safety AATA assessed this request and determined that the cost to dire ctly-operate an all-night, dial-a-ride service would be too high As a resu/t1 they dec ided to contrac t with a private taxi operator to provide thi s service. This combination was benefi c ial to both parties since taxi companies have to provide service in Ann Arbor and their flee t s are underutiUzed during the /ate night hours. The service is a dial-a-ride door .. to .. door service, which satisfies citizens' safety cqncerns. Users pay a standard $1.50 fare per ride The taxi company keeps the fares and receives an additiona l subsidy of $ 7 50 per hour. The service start e d wit h FTA demonstration funds; ho wever, after 22 months, it was aole to continue with lo cal funding. So u rce : ITE T echnical C ou n c il Commlnee 6A, Priva l izationofP ubli c T ransit Set v ices: ITE Joumai{Seplem ber 1992): 29 33 Chapter 1: Contracting Decision


Chapter 1 express sernce ail-day suburban servic e para transit services rural senrice late night service feeder services Typically, discr ete types of services such as these can be easily separated fr om th e core system and th erefo re, are the best candidates for co n tr acting. In add ition, these specialized serv ices can be more e:.:.!.:il;-; nonltored to ensure adequate perfonnd.w .:c. Perhaps more important is whether the o perati on being consider ed for contracting is a new or exist ing service Given the labor issues associated with contracting, there is a distinct difference between contracting a transit service and contracting an existing transi t service. Contracting new service has linle direct i mpact (if any) on the bargai ning unit, but contracting existin g transit s ervice c a n have significant i mpacts since it is c urrently pro vided by bargaining unit employees. Given this sensitivity, consid era tion shou l d be given particu larly to new an d s pecialized services, the contract ing of which does not direcdy affect existing bar gaining unit employees. Synem size also has a significant impact on the contracting of operations. A 1985 survey of public transportation provider s in the Uni ted S tates re vealed that small transit sy s tems (defined as fewer than SO vehicles) are less lik e l y to contr a ct lor operations tha n larger systems. However, when smaller transit systems do contract, they tend t o contract the entire operation. As a result, separa tion of service from the core system is usually not a problem. This makes sense if theserviceissosmall that dividing th e operation between public and private entities would not be feasible. There f ore, for s maller systems th e decision is usually to oper ate the entire service in-house or to co ntract for th e entire operatlon.U Chapter 1: Contracting Deci sion Palm Beach County Transit (PBCT), Paratranslt Service PBCT' s para transit service, Spectran DialA Ride, is contracted to Pa lm Beach County Paratrans/1, tnc a non -profit secto r of the Yellow Cab Company. The fleet is compr i sed of 1 S veh icl es. eight of which are tift-equipped vans Several factors led to the dec ision l o contract the paratransil service : service uniqueness, cost offecliveness, capital lnve s r mont, and UmelinnM PBCT officials fell th at peratrenslt serv ice was best provided through a con t ractual arrangem ent because the service is unique Cost savings were realized In terms of labor costs since w ages for nonunlonized drivers were lower. In addition, capital costs were lower since the contract stipulated that the private provider supply the vehicles Flexibility and respon siveness to service ex pension were cit ed as additional edvan t sges of contracting the service In one inst ance. the priva t e contractor was able t o sxpand serv;ce In as little as two weeks. PBCT attributes the success of/his controct ual arrangement to retaining total control over the op11roUon. PBCT is responsible for contract monitor ing, client registration. scheduling and dispatch ing service. Sourct : Cenler for Urban Transpo rtation Rucarch, p r iv"iutlon i n Mass Trans.i1, Technicel Memorndum 2: Oucriplion of Ptivalization Efforts a.nef ICfentUicallon of luvot ( Tam pa, F l : Center for Urban Ttanaportation Rest arch, Febru ary 1993) Maint enanceTransit systems typically contrac t vehicle and nonvehicle mintenance activities for a numbu of reasons, including potential cost savings, cyclical workloads, lack of or inadequate facilities, and warranties." With the exception of potential cost savings> the m otivations for con trac ting maintenance activitie s are summ a ri zed below Pot e ntial cost savings associoted with con tra c t i ng acti vities is discussed as a separate cri terion 11


Chapter 1 Space Coast Area T ransit (SCAT), Contracted Flee t Maintenance SCAT provides transit services throughou t Brevard County, Florida Prior to contracting fleet maintenance, SCAT had its own maintenance facility and workforce. SCAT was also spending approximately $500,000 annually for in-house maintenance. The agency solicited proposals from several contr actors; however, ATE/Ryder was the sole respondent. The bid c ame in at an estimated $400,000, resulting in a 20 percent cost savings. The contractor leases SCAT's facility and provides all maintenance services and daily vehicle inspections. Pricing of the services is based on a flat fee per bus per month and a fee per mile of travel, which varies depending on t he type, condition, and age of vehicle. The flat fee provides an Incentive for the contractor to mai n tain the vehicl e s In the best possib le condition and to use s killed mechanics, effectiv e preventive mainten ance and high quali t y parts. Besides cost savings, several other benefits were realized as a r esult of the maintenance contract: higherwages for mechanics discounts resuJting from volume parts purchases greaterefficiency increased vehicle u tiiJ'z ation Source: J o i n l Cent e r for Urban Mobi lity Research, '"Contracted F le-et Ma i ntenance. B r evard Coun ty, Privaltt S e c tor Briefs, Volume 2, Number 12 (Hous ton : Rice Center, Apr il1989); an d T. H. Maze a n d Kathleen Waggoner "Manval on Cont ra c ting fo r Vehicle M a intenance Servi c e s (Ames.IW: I owa Transpo rtallon Center. Octobe r 1992): 16 6 -190. Specialized Expertise -When specialized skills a r e required,seld o m are t h ose skills needed through out the yea r As a result, i t i s not cost effect iv e for a transit syste m to maintain a staff that i ncludes employees with this specia lized expertise It may be more effici ent to contract for t hes e ski lls when ne eded. Examples of specialized skills ma y include those associated with majo r vehicle r epa ir s and office equ i p ment repair. t h e average work l oad a .nd then contrac t for main tenance needs exceeding that average. Lack of or Inadequate Facilities It i s important to hav e a complete understanding o f the fac ili t ies avai lable and the capacity for t he use o f these f acili ties. If existing mainte nance f acilities are in a d equate, then p er ha ps contracting should be consid ered. In some cases, the decision may be whethe r to construct a new facility or to contract maintenance that cannot be sa t isfactor il y completed in the ex i st ing main tenance f acili ty. Cyclical Workload -M a inten an ce f acil iti e s a t transit systems often have cyclical workloads throughout t he course o f a year or over severa l years as the fleet goes through rebu il d cycles. This can result in the need for additional maintenance s t aff when the workload rea c hes p e ak s o ver t ime Transit systems may d e cide it is more effic ient to ke e p a maintenance staff that i s sufficient to handle 12 Warranties -A major advantage o f contracting maintenance is that private compa nies typically provide warranties for parts and labor provid ed by them For example i f an engine is rebuilt in-house and has to be r epaired within a short period of tim e, the t r ansit system m ust pay fonhe additional la bor Chapter 1: Contracting Decision


Chapter 1 on the second repair. If the engine rebuil d is contracted, parts and labor both may be covered under a warranty. Administration Candidates for contrac ting within this function are typically the easiest to determine. l n most cases, management can usually determine whether in-h ouse staff have the expertise and/or time avail ab le t o conduct various admin i strat ive tasks. lf in-house staff do not have the appropriate expertise or they do not have the time available to devote to speci fic administrative tasks, t hen these tasks shou l d be considered as candidates for con trac ting. In many cases across the country, decision makers hav e contr acted wi th management companies to provide system manage m ent O the r commonly contrac ted administrative fun ctions include auditing, legal services, securi ty and vari ous planning activi ties. Potential for Cost Savings A telephon e interview of F lorida transit officials revealed that the pr imary reason for contracting fixed-r o u te servic es dema nd responsese rvices, and maintenance activities was the potential for cost savings." There are two primary met ho dologies for assessing the potential for cost sav ings, includ ing fully a llocate d cost analysis and incrementa l cost ana lysis. Detaile d consideration o f these meth odologies i s beyond the scope of this handbook. Most transi t systems already have a policy estab lished f or comparing the cost s of directly-operated and contracted service For add itional infor mation on cost allocation, ref er to the following documents. For f i xed route service, see COM$!$ Corporation, "CAll' 'C '" ost ocauon a n .. 1 .cstJmo.t;.on vr .uetter Management" (Silver Spring MD: Public Private Tra nsportation Nerwork, nd). Forparatra nsit se.rvice, see Center for Urban Trans portation Research, "W hat Fare is Fair? Cost/ Reven u e Allocation and Fare Structure Develop ment: A Manual for Communit y T ranspo rtation Coordinators in Florida" (Tampa, FL: Florida Transportation D i sadvantaged Commission 1993). Niagara Frontier Transportation Authority (NFTA), Buffalo Maintenance Facilities A 1990 NFTA study determined the potential cost sa vings from contracting ma i ntenance services for its bus operations. NFT Metro At the lime, NFT Me tro operated 335 vehicles on 48 fixed routes and conducted maintenance services at four separate garages T he study offered the agency the opportunity to examine the potential cost savings by contra cting maintenance functions and to dete rm ine the appropr iate size for a replacement maintenance facility. The agency anticipated that contract in g some or all of the maintenance functions at the garage would result in signmcant cost savings in addition to reducing the amount of s pace required lor a new replacement facility. In fact, several of the garage's maintenance functions appeared to offer cost savings when compa rin g NFT Metro's fully-allocated costs to perform these functions with private bids to perform the same functi ons. However, the study concluded that the net annual savings from contracting were o/fset by the costs associated with contract administration. Therefore. NFT Metro could not reduce the size of tho replacement maintenance facility. Source: N i aga ra Front i er Transportatio n AuthOrity, transit Contr act i ng Servi c-es SIUdy -Phase II Final B uffal o, NY: N i agara frontier Transportation Authori ty. 198 9} Chapter 1: Contracting Decision 13


Chapter1 Legal Constraints Legal constraints should be identified as they relate to cont racting, primarily those associated with the collec tive bargaini n g and 13(c) agreements As discussed previously, these agreements often con or a transit system from co ntra cting cenatn actiVIties. The ma gnitud e of these con should be reflected in the ranking of this cnte non. grounds, negative contractin g experiences in the past, and a per ce ived loss of control. As a result the political environment should be realisticall; as sessed as pan of the rankin g process for each activity C ontract Enforceability The abi_lity to specifr outputs and monito r performtncc !! tmportant in order to enforce co n tracts properly. If se rvic e provision cannot be measured r elatively easi l y, then con tract managers have no for determin ing whether a contracto r I S pe rfor ming as required in the con tr a ct. There fore, performance req u ireme nts must be measurable, and they m ust permit evaluation in a cost .. effe cti ve mann er in o rder to make th e contracting effort worthwhile. Availability of Qualified Private Suppliers The importance of identifying an adequate number of actual or potenti a l suppl iers cannot be overemphasized. Not only must there be an a dequate number of suppliers but a significant number of suppliers must be willing to respond if the servic e tS put out for bid. Qualified suppliers may be local or n atio na l private companies. Political Considerations The management of every pub li c transit system must report to an oversight board, such as a Board o_f Directors, City Council, or County Commis Sion. Re:gardless of the orga ni zati onal stru ctu re, the overs1ght board is comprised of decision makers representing the service area in whi ch the tran si t system operates. If politi cal opposition exists, it can be extremely difficult to proc eed with contract ing eff orts Politica l oppositio n can st e m from a number of reasons, includingstricdy philosophical 1 4 D egree of Satisfaction with Existing Public Service with t h e current quali t y of service 1S an 1mponant f2ctor in the contt:t cting decision If transit riders are dissatisfied with a service cur r entl y perfo rm ed in-house by the tran sit sy ste m, the r eas ons for their dissatisfaction should be ex plored. Determining why riders are dissatisfied may help to identify potential act i vit ies t hat arc candidates fo_r contracting. If the a ctiv ity is mternaland there 1S no explicit public satisfaction or dissatisfaction, then thi s criterion has m uch less meaning However, many internal 41etivities can play a role in the performance of other activities perform e d in the public eye. The review team must use iu beS1 j udgment in interpreting thi s c riterion for e ach individual activity. Ran king Process The is responsible for assessing contraC1 feas1b1hty through the establishmen t of crite ria ratings for each of the acti v ities Ea ch c rit eria rating can range from a low o f one (lowest contra ct feasibility) to a high of five (highest contract fea si bi li ty). There i s no form ula assoc iat ed w ith the application of these criteria ratings. They are stric tly subjective in n ature and should result from deta il ed d i sc u ssions among rev iew team member s -who base their opinions on diverse backgroun ds and experie n ces. A rating of 5 indica tes the highest possible feasibil ity ratin g in terms of the panicular criterion being applied to the activity bei ng considered for con tracting Likewise, a rating of 1 refers to the lowest possible feasibi lity rating. A rating of 3 indicates that a criterion has little or n o impaC1 (posi tive or Chapter 1: Contracting Decision


C hapter 1 negative) on the d e cision t o contract a partic u l a r activity or tha t the positive and negative a rgum ents f o r contrac t i n s b alance out. A s an example, assume that XYZ Trans i t i s consideri n g the possibility of contracting its express bus service. The service is currently operated b y bar gaining unit employees and the quality of service has been good by a ll measures. Due to a recen t change in rhe composition of the Board of Direc tors, the political e nvir onment has swayed in favor of public/privat e p artnerships; however, the r e a r e few potential pri vate con tracto r s in the area. Based on thi s simple exa m ple, a review team mi g ht rat e the cr iteria as follows: Pot ential Cost Savings -3 Although it is believed that cost sav i ngs might be achieved, some uncerta i nt y exists since th e a m o unt o f competition may be limited du e tO f e w poten tiill private contrac tors in the area. Legal Constraints 1 Because the service is currently provided by bargaining unit employees, there are likely to be significant legal b2rri ers associated with the Section 13(c) agreement, resulting in low contracting feasibility; how ever, the collective bargaining and Secti o n 13(c) agreemen ts woul d st i ll need to be r eviewed t hor oughly. Service CharacteristiC> 4 With respect to this criteriol), contracting feasibility is relatively high since express bus service is a discrete type of service that can easily be separated from the core syst em. Contract Enforceability4-Sin ceit is relatively easy to specify outputs for f ixed-route, express bus service, performance monitoring is pos sible and the contract could be enforced. As a result, a relatively high feasibility rating might be glven for this cr i ter ion. Contracti ng for B u s Ti res Bus tires are good ca ndida t es for contracting (teasing) for three major reasons : (1) The capital cost of contracting policy permits FTA grent recipients the option to use FTA capital assistance rathtu than op6rating to fund lhe cost of priv atefy..awned capita l components of transil seJVices obtained thf009h competitive procurement aclion. Under this policy, 80 ptl(CBnt of the cost of teasing lites could be covered by capit;J I assistanc e; (2) Tire tease agreeme nts usually include a seNice agreem ent, whic h elimin ates /he burden of maintaining the Ures and covers all lim problems und e r wafT8nly; ( 3) A signif i can t portion oft h e liability assoc;atedwith accident s resulting from t ire f ailure can be transferred t o the pri v a te con tr ac tor. In addition, a 1 991 American Public Transit Assodation (APTA) survey of bus tire procurement methods showed that 14 of 15 respondents indicated that leasing was their only procurement method tor bus tires The other responln T ransp ort atio n Resea r c h, F e b ruary 199l } Chapter 1 : Contracting Decision 15


Chapter 1 Availability of Private Supplier$ -I Identifica tion o f few potential private contractors results in low contracting feasibility fo r this criter io n. Political Conside-rations = 5 Since r ecen tly appointed board members are strong support ers of public/ private partnerships, contracting feasibility is g i ven the highest possible feasibil Ity ratmg. Problems With Public Service 1 Few, if any, problems have occurred in the provision of the existing service. In fact, based on all measures, the quality of service has been very good, result ing in a low feasibiJity rettiug for this criterion. Blank wor ksheets are provided at the conclusion of this chapter for rat ing the criteria and ranking the activities in terms of contract feasibilit y. A worksheet is provided for eac h of the functional areas, including operations, maintenance, and ad ministration. The maintenance activiti es are di vided into two categories: vehicle and non-vehicle maintenance. Administrative activities are distributed among five categories: planning, marketing, human resources finance/accounting, and other administrative activities After all criteria have been rated for each activity, total scores are calculated by summing the criteria ratings for each activity. Ranging from a low total score of 7 to a high of 35, these scores provide an initial indic ation of overall contracting feasibility for each activity relative to all other act i vities. In the example above the t otal score for express bus service (XYZ Transit) is 19 (4+3 +I +4+ 1 + 5+ I 19). The total sco res for the activities are then ranked from high to low with in each category; the higher the score the more feasible an activity is for contracting. Alt h oug h this prouss is simplified because it assumes that all criteria are of equal importance for each activity, it does provide a starting point for prioritizing activities that could potentially be contracted. This simplified assump tion is addressed in Step 6 as pan of the risk assessment process. 16 ln situations where a specific request is made con cerning the feasibility for contracting a part icu lar function, thi s sa m e process should be followed to determine the implications that contracting wou l d have. Although there would be no ranking o f potential contracting activities, the process still provides a mechanism for assessing the impacts o f contracti ng. on a review of the cr iteria, a review tea m con the n make an educated d e cis ion with respect t o the f easibility of contracting the propos e d activity. STEP 6: Risk Assessment The risk assessment follows the ranking process and is conducted to address shortcomings that may result from the assumption that all criteria are weighted equally and to begin reaching consensus on which activities may be appropriate to recom mend for contracting. This step is not intended t o be necessarily q ua ntitative in nature; the p rimary purpose of the risk assessment is to make educated judgments i n de termi ning the risk associated with the contracting of a given activity. Risk assessment is extremely important, particu la rly since the criteria u sed in the ranking process are weighted equally. It is possible thata particular service ranks very hi gh i n overall contracting feasi bility, yet it may rank low in a single criterion that is extremely important to the transit system. For example, in assessing the risk associated with con tracting existing bus service, the contracting feasi bility may be ranked extremely high in all criteria, with the exception of legal constraints If the Section 13(c) and collective bargaining agreements represent significant legal barriers, the review may dete rmi ne that the risk associated with potential legal problems results in rejecting that service as a can d idate for contracting. I n this situation, the transit system may place greater weight on the legal constra.ints criterion, resuhingjn a significant change in contracting feasibility. Chapter 1: Contracting Decision


Chapter 1 In contrast, an activ ity m ay ra n k relatively low in te rms of overall contracting feasibility, but may still be con side red on the strengt h of argumen t s b3sed on one: criteri on, such as significant cost savings. Beeause of these unique situations, each a ctiv ity should un dergo thi s ri s k assessment cess to det ermin e if sit uat i on s s uch as these ell recommendations s h ou l d be pr e pared u n der the direction of the general manager for presentation to the oversight b oard for approval. 17


Chapter 1 I NVENTORY W O R KSHE ET S OPERATIO N S ACTIVITIES Category Name Acti vity Provided By : (trans i t agency, other pub lic entity, private contractor) Scheduling P a r atransi t Dispatching Provision of Service Regular Serv ice Feeder Service F i xed-Route Bus Express Se rv ice Park-n-Ride Service Vanpool Service P r ovisio n of Service Heavy Rail Provision of S e rvice People mover Provision o f Service Commute r Rail Provision of Service MAI NTENANCE ACT I V I T IES Category Name Acti vity Prov i ded By: (transit ag e ncy, other public entity, private contractor) Vehicle Clea n ing Body/Pa int Work Vehicle Repai rs/Overhau l s Maintenance Routine Maintenance Bus T i res Office Equipment Radios Non-Veh i cle Buildings M aintenance Grounds Data Process i ng 18 Chapter 1: Contracting Decision


Chapter 1 ADMINISTRATION ACTIVITIES Category Name Activity Provided By: (transit agency, other public entity, private contractor} Section 15 Report Transit Development Plan Man agement Audit Planning Special Studies Rou te Evaluation Market Analysis Planning Facilities Planning Service Marketing Analysis Marketing Campaigns Advertising Labor Relations Employee Training Human Resources Employee Benefits Recruiting Employee Evaluation Section 15 Report Budgeting F inance/Accounting Financial Planning Mon thly Accounting Audits Payroll Grant Administration Computer Processing Procurement Other Legal Services Security Managem ent S ervices Chapter 1: Contracting Decision 19


... 0 0 ;:r .. .., -.. .... 0 0 -.. n ::: "' 0 .. n -.. 0 Servl'' Ust of SorvleH: ChtfiCletlsUCI Provision of New Strvlet Provision of E)l;l$tlng Service S<:hectu ttng Obpatchlng Provision of New S.rvkt ProvtsJon of E.xlsdng Servtee Feed e r B u"S Expass Bus Paf'k.n Ride Vanpool Service Keavy Rail Commuter Rail -----------RANKI NG WORKSHEETS Ad.JviU.s for Contracting: A CheddJst for Operations Potential for Lf9 Contract A.vaUabllity ot Private Cott Savings Constraints Enrorceablllty Suppllert Paratranslt Sorvleo Bus Serv tee Other TraMII M odos Political Sa Osfac:tlon W ilh Public Conside rations Service T ota l Seo .. .., lt ....


0 :r .. 0 0 .. 0 "' 0 0 "' 0 "' Sorvico list of SGrvlcos C har a c teristics Vehicle C leaning B odytPa lnt Work Repairs/Overhauls R outlne Maintenance Bus T i res All Vohiclo Mainte nance Office Equipment Radios Build ings Grounds Data Process i n g Activities for Contracting: A Checklist for Maintenance Poton t la l for legal Contrac t Availability of Private Cost Savings Conslr

.., .., 0 ::T .. <0 ... 0 0 .. n 10 0 .. n (I> 0 Servleo List of Service s Section 1S Report TrJnslt Development Plan Management Audit Special Studlu Route Evaluat ion Market Analysis Planning Facilities Planning Service Marke-ting Analysi"S Campalgm. Advertising labor Relations Employee Training Employu Benefits Recruiting Employee EYaluaUon Actlvl tios for Contracting: A Chocklist for Admlnl:slt1tlon, Part 1 Potential for Le-gal Contract Availability of Private cost Savings Constraint$ EntoreoJblllty Suppllon Pl anning Marketing Human Rttsources Political Satisfaction Wrth Public S.rvlu Total Score (') ::r .. -.. ... ...


0 ::r .. "0 -"' 0 0 -ii.l -" "' c "' n Ill 0 "' "' Service Ust of S erv i ces Characteristics Section 1 S Re port F inancial Planning Monthl y Accounting Audl'ts GICint Compute r Proce$$ln g Procurement Lega l Services Securi ty M anagemtn t Sorvicos Acti vities f o r Contracting: A Checklist for Admi n i stration. Pt'lrt 2 Potontl;o.l for t.og<'l Contract Availa bility of P rivato Cost Savings Cons tr a i nts Enfo rceability F i nane&/ Accoun ting Othe r P o l itical Satisfaction With P ubli c Consider at ions Servlee Total Score (') ::r ., -o lO


Chapter 1 RISK ASSESSMENT WORKSHEETS Risk Ass&ssment for Contracting Operations List of Services Total Score Risk Assenment Paratransit Service Provision of New Service Provision of EJCisting SGrvlcc Scheduling D ispatching FixedRoute Bus Service Provision of New Servi c e Provision of Existing Servi ce Feeder Bus Express BU$ Pa rk .n-Ride Other Transit Modes V anpool Service Heavy Rail Peoplemover Commuter Rail Risk Assessment for Contracting Mai ntenance Services List of Services Total Score Risk Assessment Vehic l e Maintenance Vehicle Cleaning Body/Paint Wor1< Repairs/Overhauls Routine Maintenance Bus T ires Non-Vehicle Maintenance Office Equipment Radios Buildings Ground-s Data P r oce-ssing 24 Chapter 1: Contracting Decision


Chapter 1 Risk AS$essment for Contracting Administrative Services List of Services Tota l Score Risk Assessment Planning Scctlon 1 S Report Transit Development Plan Management Audit Special Studies Route Eval u ation Market Analysis P lanning Facilities Planning Serv ice Mark e ting Market ing Analysis Campa i gns Advertising Human Resources Labor Relations Emp l oyee T r a ining Em p loyee Benefits Recruiting Employee Evaluation F i nance/Account i ng Section 15 Report Budgeting Financial Planning Monthly Accounting Audits Payro ll O the r Grant Administration Computer Processing Procurement Le g a l ServiC(IS Security Management Services Chapter 1: Contracting Decision 25


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Chapter2 CONTRACTING PROCESS INTRODUC TION One< the contracting decisions have been mdeand opportunities for c ontracting have been ident if ied, documents must be prepared to contract for the selected activities. Preparation of these documents is the most important part of the contracting pro cess, since these are the documents that attract qualified bidders or proposers, specify the goods and/or services to be provided, identify required performa nce le ve ls, and explain how dis putes be t :he trans!t S)'$tem and the contractor are to be resolved. This chapter reviews the entire con tracting pro cess, beginning with the preparation and review of the necessary contract elemenu the selection of a contract type, and the preparation of a solicitation A discussion of how to attract bidders is also provided. The process continues with the evalua t ion of proposals/bids, the selection o f a contrac tor, and the fina li za tio n of the contract. A seven-step process was developed to assist transit systems in the imp lementation of the contracting process summarized above This approach t o the contracting process includes the following steps. Step 1: Prepare Contract Elements Step 2: Make Recommendati ons on Contract Type Step 3: Prepa r e S o l icitation Step 4: Evaluat e Proposals/Open Bids Step 5: Priorit iz e Top Candidates/Determine Bidder Responsiveness Step 6: Negotiate Scope &. Price/Select Lowest Cost Respons ive/Responsible Bidder Step 7: Finalize Contract Chapter 2 : Contracting Process S TEP 1: Prepa r e Contract Eleme nts' A number of standard elements should be included in any contract for the provision of goods and/or services It is the responsib ility of the transit ystem to cu>tomiz e these standard elements to comply with the specific requirementS of each individual transit system. All elements of the contract should be w ri tten in clear, concise !an guage; ambiguous langu a ge can l ead to misunde r standing betwee n parties and possible nonperfor mance of co ntractual oblig a ti ons. Sund;;d ele ments in a contract incl u de: terms of the con tract federal, state, and local regulations service specifications contracto r recordkeeping requirements provisions for contra ct changes, arbitra tion, a nd disputes non-per formance measures provisions for subcontracting general protection clauses and requirements termlnarion procedures Terms of the Contract Thi s refer s to the administrativ e details found i n m ost contra.cts. s uch as panies involved. contract d uration, co mpensation, an d a table of contents listing the elements within the contract. Federal, State, and Local Regulations These provisions include all guidelines necessary to do business with government entities. Compli ance by the contracto r in s uch diverse areas as energy efficiency, the Americans with Disabilities Act, 27


Chapter2 THE CONTRACTING PROCESS r Step 1 : Pttp..ltt Contract Ekmtnta I r Clertfy Spedflutlon1, Sta ndard CII-UIH, OthH Con.t ldoraUortt J v I Stt>p 2: M.IU on J v I Sttp 3: Att r aetlng Blddu J ' [; t r RequHt for (Rf:P) I I InvitAtion for Bid {IFB I -} .} I Of RFP I Olltt'lbuOo n o f IF8 J -+-t J Step 4: Ev luet. Propoul J I Step 4: Optil'l Bldl I -} -} r St t p 6 : Prioritiu To p Ct.ndicJttH I St e p 5: O.tonn!no Bl dcltr R"porttlv.,_,,_, I t ..... I Stop 6: Seope a. Price I Step 6: S41.ct Lowut.Co1t I RHpont ftiiRt tPQMibl.t I Sttp 7: FlnaUu Comta ct J dean air and water, equal employment opportu nity, minority business enterpr ise, an d Buy America provis ions for certain products are re q uired for the agreement to be executed. Most of these require ments are imposed on the transit system by the government entity prov id ing f inan c i al assistance and are passed on to the contractor who is now an agent of the transit system. 28 Service Specifications Specifications comprise the ma in body of the con tract and describe the spec if ic goods and/ or services to be p r ovided b y the private contrac tor. Perfor mance standards also are specified and defin ed within t he specification Types of vehicles to b e use d, driver trai ning and appearanc e, operating procedures, safety requirements, service descrip -Chapter 2: Contracting Process


Chapter 2 Federal Contract Provision Requirements Provision Title Applicability Remedies for .Brea ch o f Conlract All contracts other than small purchase agreements. Termination All contracls greater than $10,000 E qua l E mployme n t Opportun i ty All contract s greater than $10,000. Cope lan d Anti-Kick back All cons tructi o n or facilit y rep air cont r acts. DavisBocon Act A ll construction cont r acts greater than $2.000. Constructi o n contracts grea te r than $2 000 All o ther contracts Contract Wor k Hours a n d Sa f ety Standards Act grea t e r t han $2, 000 whe re mecha n ics or lab orers are emp l oyed. Discovery and I n ve n tion /Paten t Rig hts All contracts involving research. deve lopment, experimental, or demonstration efforts. Access to Records All negotiated contracts (except those made with small purchase p r ocedu r es ) Clea n air a n d Water Acts All co n tracts greater tha n $100,000 E n ergy Effic i e ncy All cont r acts M inority Business Enterprise All contract s Cargo Prefe rence All contracts i nvolving ocean transportation. Bonding All construction contracts over $100 0 0 0. Buy America All projects involving the use of s t ee l, cement, and manufactur ed products. Rolling Stock All contracts i nvolving the purchase of rolling stock. Inte rest i n Members of Cong(ess All contracts Americans with D isabilities Act All conuacts. Soi.H'ce: T. H. Mate and t\alh l een Waggoner. "Manu

Chapter 2 t ion fare collectio n, vehicle maintenance sched u l es, and cleaning requirements are all examples of specifications and performance standards. Contractor Recordkeeping Requirements This section specifies the documentation t o be requiredofthe contractor. Performance indicators compiled for Section 15 reporting requirements, maintenance reports on the fleet, and cost break downs for operations and maintenance are ex amples of information that may be required from private contractors. The reporti n g requirements must be established such that sufficient informa tion is provided to review the status and perfor mance of the contract without burdening the con tractor with excessive paperwork. It is important to note that the monitoring effort increases as contractor reporting requirements increase. Con trac t monitoring is discussed in detail in Chapter 3. Provisions for Contract Changes, Arbitration, and Disputes This section of the contract describes the process for dealing with problems that may arise through the duration of the contract. No contract is perfect, especially if the contract duration is over a period of years. It is very important to ha ve procedures established to mitigate differences between the transit system and the con trac tor and to revise the contract if clarification o f contract lan guage is needed Non-Performance Measures This e lement details the recourse that a transit system has if a contractor does not perform accord ing to the contract specifications. The primary mechanism for combatting nonperformance is the use of financial penal ties. A financial penalty may range from a small fine for failing to meeta specified performance s tandard to extensive liquidated dam ages assessed for non-performance These penalties can be l evied for poor performance as well as non-30 performance for the duration of the contract. In contrast, incentive payments can be used to reward excellent performance. Each tra nsit system should estab lish a polic y regarding the use of incen tive s and disincentives. The most common methods for e nsuring that non performance is not a problem is t he use of perfor mance and bid bonds, two preventive measures that a transit system can impose prior to initiating a final contract. A performance bond is an instrument that guarantees the transit system that the project will be complete-d, while a bid bond is a guarantee that, if awarded the contract, the contractor will perform in acc orda n ce with the transit system>s specifications and conditions of the proposaL' Both bonds require the contractor to invest money u p front to serve as a guarantee for their commitment to the contract. Since bond requirements require an investmen t up front> it can provide an important incentive to full y comply with contract spe cifica tions. While bonding has been quite effective in the construction industry, its use in the transit indus try has not been as productive. Some service contracts have required a 100 percent perform ance bond requiremen t on the price of the contract. Thi s sort of requirement can be cost prohibitive to many potential bidders and inhibits competition. This, com bined wit h the fact tbat a bonding com pany will give a transit system only enough money to bring another contractor on-line t o restore the service clearly makes the 100 percent requirement excessive. A significantly lower percent req u ire ment on the performance bond is more in line with the amount needed to bring in another contractor to finish the contra ct Provisions for Subcontracting The trans i t system should place limitations on the contractor as to the level of subcontracting that is permitted t o avoid a situation where the contractor is subcontracting a signification portion of the work to other private entities However, subcon-Chapter 2: Contracting Process


C h apter2 Survey of Com petitive Contracting Provisions Use d by Selected Tra nsit Systems in the U nited States Prov i s ion H ouston S a n Denver Dallas Los New Jersey Westchest er Suffo lk D ie g o A ngel es County, NY C ounty NY Sets route/service levels Sets fares Specifies maintenanc-e procedures Sets criteri a for driver training M andates operatin91revenue mports Awards incentives Assesses penatties Establishes insurance requirements Has broad power s t o change contract Convaetor provides buses Agency provides buses Agency provides other capita l equi pmen t Contractor ret a ins fare s Agency r e t a ins fare s . Source: Metro politan Tra n s portation Authonty, P oicy and Plannng. "Eie m c nls o r SV'"...c.essru l CompetitiVe Contracting of B us Servcc" (May 1 992) : T ab! 1 t r aetingshould not be com plete l y p r ohib i ted since i t m ay r estrict com pe t i t io n if the contractor needs assistanc e from o t her priv ate entities to s u ccess f ully compete fo r a c ontr a c t. It is up to t h e transit system to dete r mine what percentage of subc o n tracting is a ccept ab)e for a g i ven contract in g acci v n y. Chapter 2: Con t racting P rocess Ge neral P rotection Clauses and Requirements This element protects t he transit system or the contractor from ha r m if e i ther of the con t racting parties fails to perf o rm or injures a t hird party. T his element a l so specifies insur a nce req ui r emen t s A contractor is usually req uired t o carry the s a me 3 1


Chapter 2 level of insurance coverage as the transit system with which it has contracted, with liability limits running into .the millions of dollars. Both the cost and availability of this type of coverag e can make a contract less attractive to a bidder A transit system must desig n guidelines that will provid e an a d equate amount o f coverage for the needs of the contract while at the same time keeping the insur costs down to ma in tain a competitive bidding environment. An indemnification clau se is sometimes used t o limit the liabi lity of a transit system. This clause ensures that the contractor will ind em nify defe nd, hold h arml ess an d protect the transit system from all liability associated with any act of the contract ing parties. While any trans i t system would prefer this protection, not many contractors would be w illin g to bid if this clause we re incl uded in i ts entirety. To encourage competition in bidd ing, the transi t system should require rhat contracto r s onl y be indemnified agains t negligent acts and omissions wi thin the contractor's scope o f responsibility; the trans it system shou ld give this same protection to the contractor. Termination Procedures This element de t ails how a contract wo u ld be terminated if d eemed necessary. There are three ways the relations hi p between a contractor and transi t system can end: 32 upon satisfac tory completion of the con tract b y all parties involv e d; upon non-performance of contractual obli gations by eit he r party; termination fo r convenience, a right which a transit system can reserve for itse lf if it feel s that continuing a contract serves no useful purpose even though the contracto r is performing adequately. STEP 2: Make Recommendations on Contract Type Four major contract types can be considered in the process o f contracting transit system acti vities) including fixed price, cost plus fixed fee, fixed unit cost and direct user-side subsidy.> Fixed Price Contract A fixed price contract is characterized by one set price with no allowances for incentive payments or variable costs. The contractor is expec ted to per form according to the contract sp ec ifi cations for this fixed price. The a dvantages and d is advantages of a fixe d pri ce contract are s ummar i zed below. A dva ntages r educed level of monitoring for some as pects of a contract; transit system is obligated t o pay no more than the fixed amount, regardless of the contractor's final cost of performance. D i sadvantages high risk to the contractor if excessive costs are incurred; no extra incentives for efficiency. Cost Plus Fixed Fee Contract A variation on the fixed price contract is a cost plus fixed fee contract, which covers the cost of s ervice provision and a set fee to cover overhead and profit. Pending authorization, a contractor is reimbursed for any additional costs incurred for provid in g the service. While thes e cont r acts frequently include a ceiling on the amount that can be reimbursed, as well as som e negotia tio n of the fee, any savings obtained through contracting the function could be subs t antially reduced or eliminated in order t o pay for additional expenses relat ed to performing this function. This characteristic adds an element Chapter 2: Contracting Process


Chapter 2 of uncertainty to this type o f contract. In addition, these contracts may be structured so the contractor is reimburs ed for all costs a nd then paid an addi tiona l percentage of costs in place of the fixed fee. Cost-plus contracts require the most level of effort to monitor. Cost reimbursement requests must be authenticated, and requests for additional payment due to extraordinary cost increases (off-budget items and negotiat ion o f extrao r dinary increases) must be certified' As a result, the burden of contract monitoring for the tra nsit system is m u ch greater for demand based contracts. The advantages and disadvantages o f this t ype of contract are summa rized below. Advantages offers the t ransit system th e option to trade off cost and se rvice quality as needed; setsacostceilingwhic h a contractor cannot exceed without pri o r approval or subse quent ratification by the t r ansit system; the f ixed fee can be adjusted to reflect nego tiated revisions to the work s cope; may result in a l arger group o f bidders as risk is reduced for private sector. Disadvantages tra n sit system assumes t h e cost risk and greater administrative burden; offers li ttle risk to the contrac to r f or poor performance; the contractor has little iocen t ive to contro l COStS. Fixed Unit Cost Contract The fixed unit cost contract compensates the con tractor for units of service provided. Units can be classified as cost units (such as dollars per revenue hour and dollars per vehicle mile) or service units (such as passenger trips). Cost units are the easiest Chapter 2: Contracting Process fora contractor to estimate in depende n t of produc t ivity. As such, cost units encourage quality aod discourage quantity Service u nit s measure outputs of service rather than service inputs as with cost units A problem w i th service units is tha t they are d e pendent on demand density rather than the operationa l efficiency of the contractor. This could lead to compromising quali t y in order to gain quantity The advantages and disadvantages of this type o f contract are summarized below. Advantages contractor is encouraged t o keep vehicles in revenue servtce; trans i t agency only pays for service pro vided, not vehicle downtime. Disadvantages with service un i ts, contractor has the bur den of attaini n g productivity to meet cos ts with cost units, transit agency jmposes and monitors productivity crite ria; transit agency imposes penalties or c orrec tive action for failures in meeting criteria b y th e contrac t or. Direct User-Side Subsidy Contract In the case of a direct user-side subsidy co ntra c t a passenger is given a reduced fare discount pass for the use of a specified transit service. The contractor turns in the passes to the transit system for compen sation beyond the fixed amount specified in t he service contrac t. The contrac t o r absorbs a small administrative burden f o r the additional business generate d The advantages and disadvantages o f this t ype of contract are summarized below. Advantages can be imp lemen ted withou t dis rupting the existing transporta tion pncmg structure; 33


Chapter 2 more efficient subsidy sin ce payment is made only for trips taken; strong incentive for the contractor to a t tract add i tional demand and increase pro ductivity. Disadvantages need to qualify passengers for the use of servtce; need to distribute passes to qualified passen-gers. In areas where there are multiple contractors pro viding service to the same market a dir ect user-side subs i dy encourages con t ractors to provide prompt high quality service since passengers can choose which contra c tor they use for transit service. Incentives and Disincentives As discussed in the non-performance provisio n, performance incent ives and disin cent ives can be used to augment the compensation package in each of the contract types. If a contractor has done an excellent job of fulfilling the performance objec tives of a contract, additional compensation can be provided. If the contractor fails to meet certain minimum performance objectives, a disincentive in the form of a f ines or liq uidated damages may be assessed. Some consideratio n s in the use of incen tives and disincentives are: 34 should be provided only for those areas in which the contractor has control; transit system must use realistic and achiev able performance s tandards; contractor 's attentio n should not be di verted from oth e r critical performance ar eas in order to gain incentive payments; requires easy to understand performance indicat ors, details on payment methods, and minimal new data collection and con tract administrat i on efforts. Types of Service Depen ding on the type of service, the selection of the proper type of contract may be the key to a successful relationship between the co ntra ctor and the transit system. As i nd icated in Chapter 1 the following transit system functions were considered for contracting as pan of the contracting decision: fixed-route paratranstt other speciali zed services (express, all-day suburban, rural, l ate-night, feeder) main te nance functions adminis t rative funct i ons Each of these functions is discussed below in the context of which contract type may be most appro prme. Fixed Route Fixed-route service is the most predictab l e in terms of service estimation. Tran sit planners can estimate projected ridership and oper ating demands for a partic u lar route. With these projec tions, a trans i t system can specify required levels of service with a reasona ble degree of accu racy. These conditions suggest tha t a fixed price or fixed unit cost contract i s the best contract type. The fixed un i t cost would be beneficial if the transi t system wants to ret ain flexibility in routing and schedu lin g since it would be paying for units of service provided such as revenue miles or revenu e h ours. Paratransit This type of service typic a lly serves the transportation disadvantaged population, which includes senior citizens persons w ith disabilities, or persons with l ow incomes. This type of service can be very cuscomer,oriented in terms of how a vehicle is dispatched and how it p icks up the passengers and tra nsports t hem to their destina tions. The fixed-unit cost approach (usually based on a per trip) is typ icall y the best typ e o f contract to use for paratransit especially when combined Chapter 2 : Contracting Process


C h a p ter 2 with measurable performan ce standards. The di rcct u se r-side su bs idy is sometimes used in a r eas whe r e t h ere a re m u l tiple p ote ntial providers, a l lowin g the pass enge r t o c h oose which opera t o r to use. Other Specia l ized Services-S evera l othe r types of services are also discuss ed, including express, a ll day suburban, rural, late night and feeder services. Express Services This type of service is characteriud by significant dea dheadsinccn express bus typically m u st be driven to a pick-up point while not in reve nu e s erv ice (usually out t o the sub u rbs). A fixed un it cost c n,rrort is typ ic.nlly u

Chapter 2 contract would not be beneficial to the transi t system or the contractor. Maintenance Functions Contracting for mainte nance may be best accomp lished with a fixed unit cost contract based on cost units for each vehicle operated in the fleet. Put simply, if a vehicle is out of use for maintenance reasons, the contractor loses money since it is not on the road generating rev enue for the transit system. This type of structure encourages cont ractors to adhere to preven t lve mainte nance schedules so unnecessary breakdowns are avoided. In the case of contracting for indi vidual component repairs, such as engine over hauls, a f ixed price contract would be best since it wo uld be difficult to link the repair of a single component to revenue performance of a transit system. Administrative Functions Administration in eludes contracting f o r the provision of commodi ties and professional services. Commodities Most commodities, such as com puters, tires, and bus schedulos can have a com pre hensive scope of work writte n for them, so a fixed price contract may be the most effective way of purchasing these items. Professional Services The us ual pricing struc ture for professional services l e nds itself to a fixed uni t cost s t ructure, but this could easily lead to cost overruns beyond what was estimated. A fixed price contract may be better for professional services to impose f inan ci al discipline on a contractor to keep wi thin this budget estimation. STEP 3: Prepare Solicitation There are two primary met hods forsolicitinginter est from the private sector in the provision of transit goods and/ or services, including a Request for Proposal (RFP) and an Invitation for Bids (IFB). While both packages are structurally similar, some of the specific langu age used makes them distinctly different in the selection process. Each solicitation 36 method is desc ribed below, along with the similari ties/ differences and advantages/ d isadvantages. Request for Proposal (RFP}: An RFP is a method for so licit ing contractor interest on a particular activity by requesting that potential contractors submit a proposa l for the services. By means of the proposal, the transit syscem lea rns what the con tractor believes it is qualified to provide and a t what pric e it can be provided. The proposal format details the experience of the contractor for provid ing this type of service as well as the financial resources i t would be w illing t o commit to the fulfillment of the contract. Transit systems should establish evaluation criteria and assign weights to these criteria tha t meet the needs of their specific evaluation process. Criteria are typically established to assess the qualifications of the proposer (relevant experience, reputa tio n personnel qualifications), the technical approach (agreement to mee t or ex ceed performance specifications, communications skills), and the proposa l cost. Each o f the criteria can then be assigned a score and adjusted to account for the weights assigned to each criterion. A sample proposal evaluation sheet is provided later in the chapter. The major disadvantage is the lengthy evaluation and selection process. Due to the detail of the proposal and the fact that each contractor will have differences in their proposals, the task of reviewing and evaluating the proposals is time-consuming and labor-intensive. A transit system must deter mine if it is in its best interest to commi t this kind o f effort to awarding a contract. However, with complex and hig h dollar value contracts, an RFP is usually well worth the additional effort to find the mos t qualified contractor for the best price. Invitation for Bids (JFB}: An IFB is a method of so licit ing contractor interest on a particular activity by requesting that potential contractors submit a cost bid for the provision of specific goods/ services it f eels it is q ualif ied to render. The advantage of this method is a transit system can Chapter 2: Contracting Process


Chapter 2 Invitation for Bids (IFB) vs. Request for Proposal (RFP) Characteristics IFB RFP S eale d bids (IFB) o r offers (RFP) always opened at a publ i c m eeting; response becomes a b i n ding contract; usually made Yes No after b ids o r offers a r e agree d upon without furthe r dialogue Candi d ates m ay b e e limi nated o n quality grounds. Yes Yes Among q u alified ca n d i d a t es. p r efe r ence given lo mor e qualified No Poss i b ly" ca n d idat e eve n thoug h price is h i g he r Pricing is the main basis of the award. Yes No Commonly a followup conference for negotiation after bids or No Yes offers a r e r ece i ve d and befo r e a ward is made. Most commonly used for purchas e of commodities. Yes No Most common l y used for purchase of profess i o nal services. No Yes Competition a factor; f e dera l antitrust laws ap p l y Yes Yes p,cfcre ncc g iven to a more expensiv e bidder only if the candidate i$ s.ufficienUy s uperior. Award should a._.,ays be m ade to the qualified offeror whose propo s ed services arc most advanlageoV$ lO the eon!rac:!ing S}Ovemment ageney. Source: John Tepper M afiin .. "Contraeling Services.: A Guide for P urchase F rom Private Sedor'" (New Yoft( : J ohn V\liley & Sons. I n c ,, 19&4}: 72. solicit bids on a de t ailed speci fication prepared by The major disadva n t ag e of an IFB is the l ack o f t he transit system. The result is a sim pl ified con informatio n provided abou t the experience and tract award process to the low bidder. This speeds financial stability of a potential c o ntractor When up the p u rchase o f such things ascommodi tiess ince c ontracting for t ransit system functions, it is im a performanc e speci f ication can be dearly written ponam to know a c ont ractor's hi story in fo r a product. A contractor eith e r meets the ing this kind of good/ service as w ell as its financia l specification or does not mee t the spec ificatio n viabi lity so the tran sit system is confident the The only item critical for the eva luation process is contractor is abl e to fulfill the obligations of the cos t. contra ct. Chapter 2: Contracting Process 37


Chapter2 In general an IFB is b est suited for the purchase of commodities, while the RFP i s best for t h e pur chase of serv i ces This is due to t he fact t hat an IFB must have a v ery strong work scope or specifica t io n. .With products, it is easier to prepare a spec i fication on how that prod uc t is expected to perfo r m and to request bids from vendors for prices on the spe c i f ied p r oduct. I t is straightforward in its approac h and li ttle or no negotiation is required. In some instances, theiFB becomes the contract when the bid is accepted b y the transit system, and the lowest-cost, respo nsi ble bidder is the criterion for awa rd. The prov i sion of services to the publi c, however, that issues of q uali t y as well a s cost be addr e ssed The RFP is written with more general language to determi n e what each potential contractor can offer in the way of perform ance Because o f this the work scope as well as the price c a n be n egotiated with the contractor. The RFP also provides a more com pre h ensive look at the pot ential contracto r. Fin anc ial stability, resources of the contractor, and r esources that t he concracto r is willing t o commit to the transit system are all items w hich can be u sed t o evaluate proposals. In the past the IFB has been used by some transi t systems to solicit bids fro m contractors for the provisi o n of transi t and mainten anc e services. Al though reasons forthis v ary from system to system, a logical reason fort he use of an IFB is the bel i ef that transit systems can clearly define a scope o f work for the contracted service. This is extremely diffi cult, given a constantly-changing operating en v i ronment Other reasons include the fact that fewer resources are required to evaluate an IFB and the r e is often a philosophy that the "low bid is the bes t bid." In many ins t ances, thet r a deoffbetwee n usi n g an IFB and an RFP is cos t versus q uality. The IFB does not address issues of quality in t he bid p acka ge since the scope of work is already cle a rly specified by the trans it syste m As a result, i t discourages contractors from offer ing innovation and flexibil ity, two o f the greatest benefits of contracti n g transitsys t e m functions. The RFP is r e comme nded 38 when cont racti ng for t r ansit operations since it allows for an analysis of the contractor's r esources as well as for any ide a s the c ontrac tor may have for providi ng the service more efficiently. As an example, m any transit contractors already have safety and anti-drug programs in place. It would be more efficien t to examine the contractor's program to see if it meets the r equirements of the transi t system r a ther t han im posing an entire l y new pro gram on the contractor. Attracting Bidders As the transit sys t e m prepares a solicitation pack age, it is important to be aware of areas that e ncour age and dis co urage bidders and proposers from r esponding What fo ll ows is a summary of cons i d erations and possib l e re co mmendations for attract ing bidders to you r sol i citation package. Bonding Avoid ex cessiv e bondin g require ments. Ideally, no bid bond should be incl uded Length of contract The contractor shou l d be able t o amortize t he required investment a t a leve l tha t results in an accept a ble re sid ual le vel a t the end of the contract. A genera lly accepted stand ard is a three-year contr act with the transi t system havin g the opt ion to renew in years four and five. Market share limitation -It may be desirable to avo id a single co ntractor from having a monopo ly on service pro v i s ion. If a large number o f routes or a large amo un t of service is to be contracted, the t r ansit sys tern may benefi t by s olici t ing severa l contractors, with no contractor receiving mor e than 40 or 5 0 l?ercent of the total service contracte d. VehideownershipThe availabilit y of qua li fied private con t ractors increases substan t i ally with public ownership of ve hicl es. Ch apter 2: Contracting Process


Chapter 2 Attracting Bidders The Eastmore T ransit Sys t em, a rural. multi county paratransil system, is managed by an aggressive but relatively inexperienced manager While at a conference on transit management, he heard a manager of a peer system speak on savings it was receiving through contracting for maintenance service. Because East more's board contained several proponents of privatization, the manager decided to attempt to please the board by contracting for maintenance services When the idea was presented to the board it endorsed the maintenance contracting idea. The manager pro c eeded by contacting the peer manager he met at the conference The other system s manager sent Eastmore s manager a two page IFB and a one-page contract. Eastmore s manager modifisd the documents to fit his system and felt prepared to solicit bids He found out/he normal duration of advertising was one month and placed an adverlisement in the local newspaper' s public notice column announcing the availability of IFBs, a brief description of the wor!, tile date end location of a pre-bid conference, and the due date for the bids After about one week, the manager had not rece i ved even one request for an IFB. Recognizing he had been overly optimistic to expect potential contractors to inquire with so little notice and with a fear that his plan to win the respect of the board would backfire. Eas t more's manager developed a list of all potential contractors in the area of the system's headquarters Each was contacted by mail In fact he contacted the most likely contractors by telephone He met with and offered to explain the bid documents to potential contrac t o r s expressing interest in bidding on the services. Most of the prospective bidders admitted to having never before responded to an IFB and w e re unfamiliar with th e bidding process The manager also scheduled a prebid conference where bidding documents and procedures were reviewed All potential contractors could then review pest vehicle maintenance records inspect the veh icles and ask questions with respect to expected services and bidding procedures Thr e e bids were received for the maintenance services and the contract was awarded The contractor thai won the business would not have bid on the service had the manager not been so pe r sistent Source: T H Mate and Kath leen Waggoner. Manual o n Con t r act i n g tor Veh i e t e Mai nte nance Setv ices {Ames. l A : Iowa State Univers i ty I owa T r a nsportatio n Cente r Oct ober 1992): 6& Vehicle a gePermi tting con tractors to pro vide and operate u sed ve h icles m ay attrac t more bidders as well as lower bids InsuranceCon sider allowing the contraC tor to obtain an ins urance policy that is specific to the trans i t syste m contract so long as the contrac tor uses the vehicles solely for t hat con t ract. hel d harmless on negligent acts or omis sions that the contractor is responsib l e for and the transit system s hould be willing to give reciprocal protection to the contractor. Indemnification and hold harmless The transit system shou l d be indemnified and Chapter 2: Contracting Process Termination-Transit systems should use object i ve measurements of performance a n d third party arbitra t ion provisions to reso l ve difficulties with terminations Fi,.es, liquidated damages, and performance incentives Performance requireme nts 39


Chapter 2 should be objective, dearly understood, and, to the extent possible, within the con trol of the contractor. Reporting requirements Reponing require ments should be limi t ed to informatio n absolutely necessary to monitor the perfor mance of a contractor. Exc essive reporting requirements will discourage potential con tractors from bidding. Distribution of RFPIIFB Information Regardless of the method used to solicit co0 trac tors the transi t system will not benefit from a competit ive environment unless the solicitation is sufficien tly advenised There are indirect and direct ways of doing this. The usual method for accomplishing this is through media advertisement which is required by state law in .most areas, includ ing Florida, if state funds are to be used. Advenis ing to follow the letter o f the law is one thing, but advenising to be effective requires some thought on the pan of the transit sy stem The advenise ment should be placed in a pub l ication where a maximum number of contractors w ill be m ade aware of the solicitation. If the transit system is in a small town with few potential contractors in the area, advertisi ng in the local newspaper would likely not be sufficient. Perhaps a better choice would be the closest metropolitan area in which several potential contractors are located. A more focused audience can be found in transit industry journals, such as Passenge-r Transport, which is pub lished weekly by the American Pub lic Transit Association (APT A). These publications usually inclu de a section ded icated to the advertisement of proposals and bids and provide national exposure. Another more direct way of publiciz ing proposals is for transi t systems to directly contact potentia l contractors. This method works parti cularly well in areas where there are few contractors. If this method is used, significant effort should be made not to exclude any potential contractors from 40 being contacted so the tran sit system will not be perceived as displaying f avoritism If used, the direct call method should be implemented in con j unction with advenisement. This could turn a "no bid! no proposal" situation into a situation with a competitive environment and ultimately the best type of contracting arrangement for the transit system. Pre-Proposal/Bid Conference Many tra nsit systems hold a pre-proposal/bid con f erence w ith proposers interested in responding to the proposal/bid. A conference su ch as thi s may resul t in changes and or corrections t o ihe pro posal/bid package. A pre-proposal/bid conference can be beneficial to both t h e transit sys t em and the potent ial private con tracto rs b y enhancing the un derstanding of the proposal/bid document STEP 4: Evaluate Proposals/Open Bids Once all proposa ls or bids are submitted, the evalu ation and select ion process begins. In either an RFP or IFB, the eva l uation process should be identified i n the so licita tion package. In the case of the IFB, i t can be as simple as selecting the lowest-cost responsive/ res ponsible bid. The evaluatio n crite ria will be more detailed for an RFP since the proposal will allow for the evaluation o f a con trac tor based on the quality of the proposed service as well as the cost. A weighted criteria or points system that is objec ti ve aod defendab le must be developed by t he transit system so the eva l uation can be understood b y all parries The evaluation system shou ld be included in the proposal/bid package for the benefit o f potentia l proposers / bidders Key items in the evaluation inclu d e the contractors proposed scope of work, training and experience of the contractor's employ ees, how the lines of communication will be maintained be tween the contractor and transit system, fin ancial stability of the contractor, resources a c o ntractor is willing to commit to meeting the needs of the Chapter 2: Contracting Process


Chapter2 Sample P r oposa l Evaluation Sh ee t Factor Score Weight Weighted Score QUAL IF I CAT I ONS O F F IRM Re l evant experie n ce of the firm 3 10% 0 .30 Reputation of t h e firm (based on references) 3 10% 0.30 Qualificatio n s of personn e l to be assigned 4 25% 1.00 (experience. training, communicati o n s s1<.ills) Total Score Qualifications of Firm 1 0 45% 1.6 0 TECH N ICAL A PP ROACH Agreeme n t t o mee t o r exceed perfo rmance 4 25% 1 .00 specifications Abi l i t y t o communicate plans i n a n organ ized, 4 10 % 0.40 clear, a n d convi ncin g mann e r T olal Score Technical Approach 8 35% 1 .40 ESTIMATED COST COMPARED WITH 2 20% 0 .4 0 OTHER B I OS TOTAL 20 10 0% 3.4014.00 o=unaere;>13ble, 1 poor, 2 fair. 3=good, 4 =excelfent NOTE: Allema t ivel'y, a two--step ptOteU can be used: (1) evalua le firm qualifications and technical approaCh. and (2) review the tee btds only f or the highe st scorCt'$ from t h(': f'ir$1 s tep. For this alternative, fee bids <'r generlllly $ealed al'\d n o t opened until the conclusion of the first $lep. . . Source: Adapted from Joh n Tepper MariLn. ed., Contracting Mvn1clpal S et\IJICes: A Guide for Purchase From the Pnvate SedOf"' (NewYorl<.: John Wiley & Sons. l oc 19 8-'): 8 contract types and age of veh icles, the c o ntractor's serv ices in Flo r i da is outlin ed in Chapter 287 of the safety and drug testing policy flexibility in changes F l orida S tatutes and is a good e xam ple that can be t o the work scope an d how t h e contractor plans to adapte d to all trans i t services. meet any technic al specifications in the contrac t STEP 5: Prioritize Top Candidates/ Determine Bidder Responsi veness RFP Once all proposals have been evaluate d, the top candidates (usually the top three) are p r iori ti zed for the f inal n egotiation o f the scope of wor k and p r ice. The procedure used for con t racting professional Chapter 2: Contracting Process IFB When an IFB is use d, it is important to ensure tha t the low bidder is c a pable of meeting the terms of con t r act adequ a t e ly. The transit system must es tab lish a process to det ermine t h e financial respon sibiliry of the cont ractor e ither through pre-q uali f ication be f ore bids are ope ned or an inves ti gat ion of the low bidder after the openi n g 41


Chapter 2 STEP 6 : Negotiate Scope & Price/S elect Lowest-Cost Responsive/Responsible Bidder RFP The transit system will negotiate the work scope and price w ith the number one contractor se l ected in the evaluation process. If an agreement cannot be reached, the transit system can end negotiations with number one and proceed to number two. Once a contractor bas been e lim inated, t h e transit system canno t go back t o that contractor later. If an agreement cannot be reached with number two, p roc eed to contractor number three. S ince these are the three top cand idates, it is in the transit system's best inter est to come to a fina l agree ment on price and scope with one of these three ca ndi d ates, or the scope o f wor k should be reconsidered. Once the negotiati _on proc ess is compl e ted, the top cand i date is determined and co ntract finalization can take place. The review team's se lectio n as we ll as a copy of the draft contract should be submitted to the authorized contracting office r and the legal advisor for fina l approval. 42 /FB W h e n usi n g a n IFB, a r ev iew of the opened bids w ill establish t h e "apparent low bidder." Eac h juris d i c tio n has parti c ular criteri a fo r bid award that shou ld be reviewed for legality a nd how they should be applied in practice. Once the low bidder has be e n deemed responsible, the t ransit system can then move on to contrac t f inaliza t ion. STEP 7: Finalize Contract Once all details have been worked out on scope and price, a rev iew o f the final contrac t documen t s should be conducte.-1 for clarity and le gality. The final contract s h ould have the prev iously described elements and should be reviewed by l ega l cou ns e l fam il iar with tran sit issues to ve r ify it as a l ega l documen t All changes in the contract must be agreed upon by both parties Fin;. ll y the contract mus t be signed by legally r esponsible persons r ep resenting both parties. Chapter 2: Contracting Process


Chapter 2 Checklist: What Should Be in a Contract 1. Responsibilities of the contractor Worlc tasks and performance specifications; e quipment and facilities to be provided by the contractor; provisions for handling complaints ; performance and financial reports. schedule of such tasks and reports. Personnel : contractor's responsibilities to the current agency employees and to its own staff; minimum wage, equal opportuni t y, and ethics provisions F;nancial : posti ng of petformance bond; purchase of liability insurance coverage {equal t o or exceeding locality's coverage). 2. Responsibilities of /he municipality Designation of the c ontract manager Procedures for reviewing performance : management system and personnel assigned, inspections, and othe r monitoring procedures. Payment procedures : specific price. or procedvre to determine accurately a future year price (e. g., based o n wage settlement or cost of fuel or othe r materials) ; how and when payment w111 be made; invoice proc essing procedures ; provis i on for liquidated damages for nonperformance or poor performance, or fines for user complaints. 3 Provisions for contrac t clarification or change. Requirement for a contrac t management conference. Procedures for settling disputes between the locality and the contractor. Contract chenges such as change in quantity unanticipated w ort<, specia l projects Contrn c t amendment: drafting, eva luation pricing, negotiations. and issuance ofchangeordersprior to the c ontract's expiration date. 4 Provisions lor contract termination. Conditions for contract default; stop work on::ler and contract cancellation procedures Proce du res for closing out contract and settlement of. cla i ms. 5. Authorized signature s of Oolh parties to the contracl So u r ce : John Tepper M a tl i n, e d Conttact i ng Mun l cipiJI Servi ces: A Guid e forPurchiJse the Private Sector(NewY<>rk.: John Wil ey & Sons. I n c 196'): 63. Ch a pter 2: Contracting Process 43


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Chapte r 3 CONTRACT MONITORING INTROD U C TION This chapter presents a six -step process for the impl emen tation of a prog ram for contr act moni to ring. Once the contracting process is completed and the private contractor begins performin g the specified functions, it is extremely imponant to monitor a contractor's performance to ensure t.bat an acceptable lev el and quality of service are pro vided. While the use of a privat e operato r pote nt ially creates an opponunity fora publ ic agency to reduce its cos t 2nd prov ide quality transit s ervices, these benefits will result only if the co ntract procure ment proc ess is effect iv ely designed and perfor me d and the performance of the contractor is properly monitored. This req uires that the transit sy stem take s t eps to ensure that the octivi ties of the con tractor meet the specificati o n s of the contract and tht any repons provided by th e co ntractor accu rately describe the status of the function con tracted. A good monitorin g program maximizes the potentia l for a su ccessful contrac t ua l relation ship. The step-by-step ap proach for implementing a con tract monitoring process is summariud in t his chapter and i ncludes the following steps. Step 1: Identify /Review contract monitoringfac tors. Step 2: Estbl i s h perform ance s tandards. Step 3: Develop monitorin g syste m Step 4 : Discuss m onitoring system with contrac tor. Step 5: Implement monitoring and enforc ement system. Step 6: Conduct f ormal periodi c meetings. Chapte r 3: Contract Monitor i ng STEP 1 : Ident ify/ Rev ie w Con tract M onitoring Facto r s Once a transit sys tem determines that contract ing is the appropriat e option for the provision of a transit system function (Chapter 1), and an RFP/ IFB is being developed (Chapter 2), the transit system should establish a monitoring process to be included in the RFP /IFB. Establi shme nt of a process begins by reviewing all imponant factors and characteristics associ a ted with monitoring a parti cular service a ctivi ty. Six primary factors should be reviewe d as pan of this initial step. It should be noted that not all factors necessarily ap ply to the consid eration of contracting every function. Ea ch of these factors is di scussed in the context of how it affects the contract monitoring process. In review ing these factors, it is panicula rly imponam to assess th e leve l of effon required of tran s it s ystem staff to success fully monitor func tions contrac ted by the t ra nsit system A brief discussion of the factors is provided below. Type of Service The characttristics of a good comract monitoring process vary according to the function being con tra cted. As identified in Chapter !,the thr

I C hapte r 3 THE CONTRACT MONITORING PROCESS ( SWp 1: lcStniJfyfA:tvi-Conttact Monitori n g I If f S t p 2: Euabl&r.h SU.ndlrdt ' It ( Sttp 3: J.b!Horing S y ( ( Cc>tl ec U on J -.!-" ( 4 Lt w l of E ffort I -.!-1 Aeuptabt 1 S tep 4: Dlc u .. M o n itoring S y.-ttm With C<>ntraetor f -" Sttp 1 : M

Chapter 3 Factors to Consider as Part of Contract Monitoring Factor Operations Maintenance Administration Type of Service Type of Contract capital Equipme n t Number of Contracters Fare Collection n/a" nla Fare n/2 nla "may apply to 1he maintenan ce of fare collection e quipment The transit system c an then focus i t s monitoring ef f ortS on assuring t hat the contracted functions are performed acco rdin g to the specif ications o f the co ntract. This can be accomplished using var i ous a uditing methods, suc h as passenger counts> on time performance, passenger complaints, and trips comp leted/ missed. The c ontract monitoring process for paratransit serv ice is significant l y differentthan forfixedroute service s i nc e it is extre mel y dif fic ult to estimate the extent of service that will be provided. The cost of providing paratransit services varies significan tl y with customer demand. As a result, a fixed-unit cos t contract is typi cally the best contract for this type of service. This is usually true f o r all-day s uburb an, rural, and late-nigh t services as well since they are typically characterized by paratransit t ype service. As indicated i n C h apter 2, a fixed -uni t cost c ontract requires that the private contractor sub mit a r eimbursement claim based on the amount of service provided during a specified period of time. Since reimbursement is based on claims provided by the contractor these claims mus t be scrutinized carefully t o ensure that the reimburse ment claims match actual service provided.' As a result, the level of monitoring effort may increa se s u bstantially. Chapter 3: Contract Monitoring In add i tion, paratransit service is generally restric ted to certain passenger groups, resulting in the n eed for re im bursement claims to be authenticated for q ualified r ide rs. The rider qualif ication proced u re ma y be hand l ed by the contractor or the transit system. When the contractor is responsible for the q uali ficatio n pro ced ure, the transit system m ust develop a mechanism for auditing the procedure. Trip ver if icatio n by the transit system can be conducted by a random telephone survey o f5to 10 percent of daily passengers to determine whether trips were actua lly taken, to con firm passen ge r qualif ica tion, and to assess service quality Al though verification o f qualified trips can be costly to conduct, experience in the in dustry in dicates a need for some auditing method. When the trans i t system handles the qualification proced ure i t is responsib le for taking requests for service verify ing rider q ua li f ication and then d ispatching the private contractor to provide the service. Maintenance-As indi cate d in Chap te r 1, there are two major ca tego r ies o f maintena nce func tions ve h icle and non vehicle maintenance. The most commonly contracte d vehicle mainte na nce func tions incl u d e m ajo r r epairs, overhauls, and body/ paint work Commonly contracted non-vehicle 47


Chapter 3 maintenance functions include the maintenance of buildings, grounds, and office equipment. Mainte nance monitoring involves two primary activities:1 Reporting function Itemized reports of laborand materials used to perform mainte nance activities may be necessary for con tracts that determine compensation based on time and materials. Reponing may not be necessary for fixed unit cost contracts. InspectionsInspections of work conducted by contractors as well as the maintenance facilities should be performed on a rou tine or random basis. Insp

Chapter 3 services. In instances where a transit system uses several contractors to operate similar tr ansit services in t h e same service are .a, the service choice is market driven and the burden of monitoring ser vice quality and on-time performance is signifi cantly r ed uced since qua lity of service may be judged in part b y patronage.' This type of contracting arnngement can p rovide several ancillary benefits to the tran sit system. (1) (2) (3) It provides an opportunity for the transit system to cultivate and preserve many com peti tive providers that serve the transit s ys tem a nd prjvate sector. Delivery effectiveness can be improved since the demand for the service is marke t driven, promoting greater efficiency in the use of the transit system,s resources. Using multiple contractors prevents the tran sit system from becoming dep e nd ent on a single contractor and provides more flexibi l ity to both the contractor and t he transit system. Fare Collection Several different procedures can b e used to handle fare collec tion io a contractua l arrangem ent. The trans i t system and contractor must agr ee on which party is resp o n sible for the sel ect ion, procurement, installa tio n and maintenance of the fare colle ction equipment. In addition, it is p articu larly impo rtant to identify who is respons ib l e for the actual han dling of the money, from the counting process to bank deposits. It is clear that the l evel of monitor ing effort increases as more responsibility is given to the contractor. Less monitor ing is required if the transit system assumes re sponsib ility for the money handling involved with the fare collection process. Fare Retention In contracting service operations, a decision must be made regarding which party keeps the fare Chapter 3: Contract Monitoring revenues Shou l d the fare revenues go back to the transit system or should they be retained by the private contractor? The easiest procedure and one that requ ir esche least monitoring effort is when the private contractor retains all fares. Howeve r rh e amount of fares collected must still be reported accura t e l y to the t r ans it system and this reporting must be monitored for accuracy. STEP 2: Establish Performance Standards Per ha ps the most crucial step in developing a con tract monitoring process is the establishment of performance standards. Performance standards enable t he transit system t o quantify the quality of expected by the transit system; the measure ment and reporting of these performance standards serve as indicators of the contractor's level o f performance and det ermine whether this perfo r mance l evel is consistent with the contract specifi cauons. To be effective, performance standar d s should: be measurable units o f service coin cide wit h overall objectives o f the tran Sit system be controllab l e by t he contractor and independent of outside influences Some industry reports show that the performance standards ser for contracted functions routine l y exceed those of the transit system for the same type of function.' The standards should be equivalen t for simi l ar functions that are either performed in house or con tracted. Proper application of performance standards is important to the success of a monitoring process. Perfo rmance standards tha t are too stringen t ex ceed t hose of the industry, o r are inappropriate for the type of service contracted may incre ase the cost of co ntract ing for the transit system. This may b e counterproductive and d issuade potential contractors from submitting proposals or may resul t in a 49


Chapter3 Commonly Used Perfonn anee Standard s f o r Tra nsit Operations Standard Description Exampto This is usually defined as a trip thai Is The contractor shall maintain a not and is not late by more than minimum sta n dard of "on-time bus On-time performance a specified amount of time (rango trips" of at least 90 percent. "On-time" typically on-time or within 5 minutes shaU be deflllt!d as between zero and late). frve minutes late leaving scheduled time points. This may be total ridership or ridership The contractor shall maintain a Ridership per some measure of service supplied. measur e of ridership per vehicl e mite, vehicle hour. or vehicle trip. This i s the percentage. o r number. o f The contractor s h all, at a minimum, Trip Completion scheduled trips during a specif10d time complete 99 percen t of all scheduled period that were completed, whether or trips on a da i l y basis not on time. This can incorporate a great many The contractor shall clean the vehicle elements, some of which cannot be interior daily, clean vehicle exterior Service quality easily mea sured. such as cleanl iness twice weeldy and provide major of the vehicle and be h avior of the interior eteaning every thirty days contractor's employees Most contracts require the contractor The contractor is required to record Reporting t o main tain a n d provide reports o n a n d report m i l eage for any trip t o be I n formation related t o the contract ed paid for by the t r ansit system service. M ost contracts include safety The contractor shall achieve a Safety standards related to both operation satisfactory r ating in any category of and maintenance. the annua l Sta t e Highway Patrol Safety Compliance Report. e xamples are representative of perfonmance standards used by publi c transit systems. higher proposa l cost to offset the e ffect of inappro priate or excessiv e perf orman ce st andards In addi tion, the c ost a n d l evel of effort to monitor contncted serv i ce ma y be higher than necessary. In contrast, performance standards that are too lenient may cause service quality to suffer and ridership to decline. The challenge for the transit system is to determine the optimal balance between stringe n cy and lenien cy when applying perfor mance sta ndards to contncted functions 50 Whil e perform ance s tandar dsserv e as indicato rs of how a contracto r is compl y ing w ith co ntroct spec i fications, they are not a lways need ed f o r con tract monitoring As indicated previously, some con tracted paratransit services rely on the muket to indicate performance levels based on cu .nomer demand and satisfaCtion. The contractor then has an incentive to provid e qual ity service since pay men t is typically based on customer demand. Durin g the procure m ent process, but before the cont ract is s igned, it is reco mmend ed t h a t the two Chapter 3: Contract Monitoring


Chapter 3 p a rtie s d i scu ss/negotiate the v a r ious performance s t a ndards with the contra c t o r. The incorporat ion o f perfor m a n ce standa rds in the overall reporting p rocess is reviewed more clos el y i n Step 4. STEP 3: Develop Moni toring System Based on reviewofthe majorfactors {Step 1) nd th e establishment of p erformance mndards {Step 2), the transit system must now develop a monitorin g system. A good mon it oring sys te m provides the mecha nism for good communi ca tion and coordi n atio n, as well as for the assessm ent o f a contractor's p e rformance. T h e c haracteristics of a good monitor ing system vary based o n the type o f information t hat n e eds t o be collected, r equ i red accuracyof tha t info rmat i o n, reason for its collection, sources of inform a tion utiliud, and r e l a tionship between the tran sit sys tem and the contr a c t or. T he leve l of effort devoted t O co ntro c t mon itoring b y a transit system may be expe nsive and time inten s iv e for ce rtain contracts, but may be justified base d o n the contrac t size, req u i rem e nts, and the resou rces and capabilities o f t h e t ran s it s y stem. Other con t rac t s ca n be manage d with a minimum amount of ove r s i ght f r o m the transit syst e m. N o n e theless, ny pprooch t o contract monitorin g r e quir e s a monitoring system and depends on the div e rsity of needs the mark e t p l ce, and the stra tegy s e l ecte d for performin g the con t rotted func tion T he most common m ethod s for monitoring are: reports on perf o rm ance s tand ards d irect observa tio n passen ger complints 2nd surveys M A INTENANCE CONTRACTING Examples of Reliability, Maintainability and Availability I n dicators Common Measures of Reliability M iles per roadcall Roadc ells per v eh icle per month Roadcalls for the flee t per mo nth Common M easf.lre s of Maintsinablllty cos/ per vohlcla mile M ain tenance cost per v e h icle Minle n ance l abor cost per vehicle mHe M a in tenanc e m a t e rials cost per mile Fuel and oil cost p e r vehicle mile Common Measures of Availability N u mbe rofveMc les unavoil e ble due to maintenance Ho u r s veh i cles are unev ella bl e due to mainten a n ce div i ded b y the total ho urs of servic e op e r ation Number of spares required to meet service requirements Sovree : T H Mne 1 nd K a thleen Waggoner, M1nu1-1 on Conlrat11ng for V e h i ele Mai ntena nce Servicea (Ames, l A : Iow a State Univ ersity,lowa Tran&pOI"lll ion C e n ter, O c lobe r 1992): 23. the n at u re o f the con tract. T he s e three mo nitoring m ethods are s ummarized below. Reports on Performance Standards The tra nsit syst e m may h2ve success by using only Tbe transit system should r equire the contractorto one of these app roach es. This will substantially provide periodic r eports Reponing requirements re duce t he cos t of mon ito r ing. However,a combi vaty signi f icantly v.ith different functions The na tion o f two or allt hreeap proac hes may be nee d ed inform2tion in these reports c an be com pare d w ith f o r asu ccessful monitorin g sySte m, depe n di n g on th e p e rf o rmancesta ndards estab l i s hed in S t ep 2 and Chapter 3: Contract M on itoring 51


Chapter 3 can alert the transit system of any problems that may arise with contracted transit system functions. By requiring the contractor to be responsible for reporting and recordinginformation on contracted services, the transit system can focus on monitor ing the accuracy of the repons it receives from the contractor. The reports should provide a clear understanding of the informat ion assembl e d by the contractor. For this to occur, the transit system and contractor shou ld agree on a format to use in reporting this information. In addition to the data co llected for comparison against the perfor mance standa rds described in Step 2, other relevant da ta may be incl uded in the reports provided by the con trac tor, such as: fare category fare revenue passenger miles maintena n ce data acc id ent/inciden t briefs survey data Monthly reportS are generally sufficient and cost effective to meet a transit system's needs. More frequent reporting, wh il e perhaps desirable, w ill increase cos t s to both parties However, certain informa t ion, such as accidents and missed trips, should be reported immediately so the transit sys tem is aware of the situation. All reporting require ments should be outlined in the solicitation docu mentand incorporated into the final contract.' The major benefit of reports is to assist in the identifi cation of problems wit h performan ce. It is the responsibili t y of the transit system to resolve these problems as they are identified. Direct Observation Another approach to developing a monitoring system is direct observa t ion of the contractor by employees of the transi t system. Direct observa -52 tion of the contracted function being performed is also referred to as field checks, site visits, or on-site inspections. The extent and type of observations vary dependi n g on several considerations, includ ing the function contract ed, the interest o f the transit system in seriously moni toring the service. and the requirements of the contract. The objective of this approach is to directly assess contracto r performance. Three types of d ir ect observations can be used: continuo u s observation intermittent observation with the knowl edge of the c ontractor intermittentobservation without the knowl-edge of the contractor Continuous observation r equires an employee of the transit syste m to work in a capacity where they can observe the contractor's performance daily. For example, the transi t system may emplo y a ticket collector at a major transfer center to observe the con tractor's operatio n This employee c an monitor ridership, on-time performance, trip com pl etio n, and passenger complaints. Continu ous observations can be very costly for a trans i t system; however t as in the examp l e, it may b e possible if the observation responsibilities are c oor dinated with other responsibil ities. Intermittent observation with the knowledge of the con tractor involves occasiona l observations of the contractor's operation. The transit system can place an emplo yee at stops along certain routes to check the contractor's performance. Occasional ridechecks are also useful in observing contracted service, especially when deficiencies are suspected. Since the contractor knows when i t is be ing ob served, the transit syste m will need to schedul e enough observations to account for variations in the contractor's reported performance and ob served performance Chapter 3: Contract Monitoring


Chapter 3 Example of Intermittent Observation Without the Kno wledge of the Contractor A team of two recently hired women started as managers of a transit agency that served a very farge rural area. Very quickly they recognized the need to devel o p a written an d competitively awarded contract for v e hicle maintenance. They developed a wrillen specification for maintenance service and competitively awarded the contract to a local garage The garage own e r suspect e d thai the t r a n sit a gency' s new inanagers knew very little about maintenance He began returning vehicles scheduled for preventive maintenance without performing any preventive maintenance (primarily no/lubricating the chassis and not changing the oil filter and oil) After a while, the transit manage r s suspected they were being duped, so one afternoon they bought a creeper (to roll under the vehicle), a pair of coveralls end a lumber crayon The next day one of them rolled under one of the vehicles wit h the creeper, marked the oil filter with the lumber crayon, ancl se-nt the v ehicle to the contrac tor for preventive maintenance When tM vehicle came back from the garage, the oil filter with the lumber crayon mark was still on the engine The agency managers quickly asked the c ontrac tor to explain the unusual circumstance. Unable to explain the contractor repeate d the work at no cost The transit agency managers continued monitoring the work of th e contractor in a similar fashion and remained quite satisfied with the contracto r s work during the remainder of their tenure with the tra ns it age ncy Sour ce: T. H Maze an d K athleen Waggo n e r. "Manua l on Con tracting fo r Veh i c l e Maintenance Servi c es"( Ames, f A : I ow a Sta t e Uni vetsity I owa Transportation Center, Octo b e r 1992): 6 Intermittent observ ation that i s u n known to the con trac t o r involves u n a nn ounced rideehecks or site visits at a contractor's dispatching off i ce. I n most situations, this is the most effective me t hod of observatio n because ir is possible to co m pare the contractor's r eports on pe r formance d ir e c t ly with the agen cy's own o bservations, wi t ho u t any cha n ce o f im p roved perfo r mance due to the contractor being aware of the observation. Regard l ess of the n u mber or t ypes of observations con ducted, t h e tra n sit sys t em should ide n t ify t h e mon itoring mechanisms in the solicitation docu ment a n d i n corpornte them in the contra ct. The f requency of cond u cting observations and w h ether i t should be on a regular or "as needed" basis may be determined as t h e contract proce e ds and the trans i t syste m b ecomes more fami l iar with the contractor's performance Passenger Complaint s and Surveys Recording passenger comp laints is useful in moni tor i n g cont r acted func t ions tha t dea l directly w ith the p ublic. T h i s can provide valuab le info r mation abo u t performance s ta ndards, such as o ntime per formance and trip comp letion. Compla in ts must be docu m ented and t h e t ransit syste m or c ontractor shou l d respond to the compl a in t An e f ficient system must be set u p t o reco r d complaints and respo n d to them in a t imely manner Reviewing complaints provides a simple cost effect i ve method fora tran sitsystem to monitor con tracts Passenger comp la ints may be submi tted to t h e contractor for an immediate response or recorded by the t ransit system and forwarded t o t h e contractor If all complain t s are sent to the c o ntractor, ther e is no incentive for t he contractor to report them to the trans i t system. In either situatio n once the com pla int has been documen t ed, it is the responsibility Ch apter 3: Contract Mo n itoring 53


Chapter 3 o f the transit system to investigate the compla i n t. Depending on the legitimacy of the complaint, the transit system should require that the contractor respond and make n ecessary adjustments. Complaints can be supplemented by surveys. Sur veys are useful because they also measure passenger satisfaction with the service, while complaints measure only dissa t isfa ction.' Passenger surveys can be administered by telephone, mail or t hrou gh an on-board survey. The objective of a survey is to find out what passengers think of the contracted service. A significant amount of information can be collected !hrough the use of surveys, includ ing but not lim ited to the following: passenger demographics travel behavior characteristics passenger sa tisfaction trip origin and destination trip purpose Before a survey is administered, the major service components to be assessed must be selected. A survey questionnaire must then be developed to colle c t the needed information. Attention must be paid to the nature of the sample to be drawn and the selection of the sample of users.10 In some situa tions, a pretest may be useful to ensure that ques t ions are understood by users and that the desired information is captured. A pretest is a small survey conduc ted prior to the major effort to determine the effective ness and understanding of the survey mstrument. Each of the surveys referenced above has advan tages and d is advan t ages: Telephone surveys enable the surveyor to con trol the sample size by repeating calls until the desired number of r e sponde nts are questioned. The turnaround time is m uch faster. There is usually a high r esponse rate and questions are less likely to be misunderstood by the respon-54 dents since a surveyor is available to answer questions." Notal! res ide n ts may be reached by telephone, however. Segments of the popula tion that have no phone or have unlisted num bers may be missed." This could potentially result in some sample bias, depe nding on the population size of these segments. In addition, telephone surveyscan b e expe nsive, especially if toll calls are required. A mail-back survey is the least cos tly to admin ister. R espondents are more honest when f illing out a survey i n privacy; howcvert it may result in a lower response rate and r equire follow-up mailings. This can lengthen the time the su rvey takes to be completed. In addition, respond ents do not receive assistance in under standing the questions beyond that provided with the written q ues tionnaire. On-board surveys generally have a high re sponse rate. Since the surveyor is available for questions, it redu ces the possibility of a respon dent misinterpreting the survey instructions o r questions." The major disadvantage of an on board survey is the expense associated with the cost of coordination and administration. Cost of Monitoring Reasonable contract administration and monito r ing costs are estimated at 3 to 7 percent of the contract valu e." Any effort below 3 percent may not be suffici ent to detect an unacceptable quality of service, while effort exceeding 7 percent reducts the potential fo r cost savings and is an indication of problems with the contractual arrangement. Prior to contracting a function a t ransit system sho uld feel reasonably sure that the monitoring cost will fa ll within this range. STEP 4: Discuss Monitoring System Wi t h Contractor Steps 1 through 3 must be conducted b efore reach ing the point of finalizing the contract. Once these Chapter 3: Contract Monitoring


Chapte r 3 three st ep s have been completed, the transit system has a proposed monitoring system with which they can dtscuss and n egotiate w ith the se lect ed co ntrac tor pri or to. finalizing the contract. In Step 4 a conference ts held between lhe transit system and the se.lec ted contra Ctor to ensu re complete under stand mg of the contract doc u men t At this time the monitoring system should be discussed in d; tail. Revisions to the monitoring system may be appropnate based on thes e discussions. asse ssm ent of financial penalties o r liquidated dam ages. STEP 5 : Implement Monitoring Sy stem Once fun c tio n is bei"g performed, the trans1t system 1mplements the monitoring sys tem. that one aspect of the monitoring syste m I S to as ses s the performa n ce of t he contracto r's se rvice. The contractor's leve l of performance is measured against standards !hat have been selected by the tran sit syst em After doc umen ting the performance o f lhe contractor, the transit system can accept or rejeet lhe contractor' s perfo rman ce. An acceptable performance toting given by th e transit system indicates that the contractor is meet ing the specific at ions of the contract. The transit system should e ncourage this l evel of performa n ce and continue its monitoring efforts. If the contrac tor fails to meet the required performance stan dards! im medi ate action shoul d be t aken by the tranSit system. The agency should inquir< into the reason for the deficiencies in the contractor s per for mance an d requ ire that the contractor make the neces sary adj ustme nts T he most effe ctive way to deal with nonperformance is to inform and work with lhe to rem ed y the problems thro ugh tram m g or revsed procedures." Communication and coordination are the keys to a successful con tractual relationship. In addition to the abov e m ethod of dea lin g with ?onperformancc, the transit system may decide to mcludeother means of enforcingp e rformance stan dar ds, such as a dispu te r esolut ion clause, or an Chapter 3: Contract Monitoring A reso lu ti on clause describes the proce ss by wbtch d1Sputes are resolved should disagre e ments or a rise that cannot be handled through negouauon. The co ntractor is normally given 30 days to protes t a decision made by the transit If apr:"! is filed in this period, the tra n sit systems dec tsion becomes final. The transit system may elect to assess a financial penalty againstthecontractor for nonperformance o!substandar d perfo rman ce. Whe n applied finan C lpenalues can inc rease the prub.l>ility that the contractor will meo< the performance standards. Too many penaltie s or pen alties that reflec t unrea so nab le and inappropr iate stand ards ca n dimini s h the realized from c ontraeting service Po tential contract.ors decide not to bid or may mcreas e thm bt d pnce to reflec t the poten ti al cost burden. If applied incorreCtly, pen alties also can financially incapable of com p lettn g the c o ntract. Theref o re, the transit system must be prudent in ev a luating the reasonableness and potential cost for each suggested penalty There are two kind s o f financial penal ties : fines and non paymen t. Fines are most commonly used for violation of specific contract provisions. Non paymem is most often used when the con t ractor's records ore incomp l ete or inaccurate. For exam ple, the transit system may decline to pay the contrac tor for all services tha t t he contractor cannot prove were properly provi ded to q ual ified passen gers because o f irregula r ities in the contractor's recordkeeping. Fines may be paid ei tberdireetly by the contractor or as a ded u ction fro m a payment to the contractor during the regular billing peri od. Liqu idated damage clauses are defined by law as agre eme n ts by the parties to a contract as to the harm suffe red by one of the parties when the other party violates a specific provision of the contract 16 A liqu id ated damage clause is appro priate only 55


Chapter 3 when the harm cannot be easily quantified. For example, i t is difficult to quantify t he harm suffered by the transit system if reponing proced ures are not properly followed by the contractor. STEP 6: Conduct Formal Periodic Meetings The transit system should conduct periodic meet ings with the contractor, as specified in the con tract. These meetings p r ovide an opportunity for the transit system to discuss or review any issue s that are relevant to the contracted funct ions For examp le, the recent legislation concerning the Americans with Disabilities Act and Clean Air Act may have a significan t impact on how contra c tors provide s e rvice. The contra cto r may use this meeting to discuss with the transit system its plans to comply wit h the new legisla tio n Additionally any discrepancies in the contractor's repons can be resolved at these meetings. These meetings shou l d be viewed as expanded staff meetings and contrac tor employees should be viewed as an extension o f i n-house staff Constan t communication and coor d ina tion of effons are essen tial to the success of the contractua l rel a ti onship At a minimum these meetings should provide the transit system with a sense of how well the contract monitoring system is achieving its objectives. If refinements are needed, the transit system should be able to ascenain ways to improve the system based on discussions with the contfllctor. In addi ti on, these meetings provide an opponunityforthe t ransit system to discuss performance deficiencies w ich the contractor. 56 Elements of a Good Monitoring System 1. Require the contractor to present period i c reports. 2. Review reports carefully for adherence to the wrillen contract 3. Compare wage rates and equipment charges for materials or rentals with the contract 4. Ver;ry that all services, materibi, J6bor, and equipment were actually received, used, or consumed 5. Initiate all change orders that affect the contract. 6. Whenever possil>le, make on-site inspections. Report the results of those inspections comparing accomplishments to the prescribed specifications 7. If sile inspeclions are not feasible, keep a record of user satisfaction. 8 Follow up on every complaint. 9. Survey user satisfaction whenever possible. Source: Jo hn Rehfun. Designing sn Effocr vo Bidding snd Monlloring System to Minimize Problorns in Compet itive Contracting: How# To Gu,'do 113 (los A ngeles CA: Feb ruary 1993): 13. Chapter 3 : Contract Monitoring


Chapter4 VEHICLE OWNERSHIP INTRODUCTION An important fac tor associated wi t h the decision to contra ct the provision of transit services r elates to vehicle ownership. Shou l d the transit syst em pro vide the vehicles being used in the provision of the service, or should the priva t e comuctor p ro vide vehicles as part of the c ontractual arrangement? This particular decisio n can h ave significant impli cations regarding the quality and cost o f the transit serv ice s provided. The final dec ision ult imate ly is based on a tradeoff greater control associ ated with public ownership and reduced costs associ ated with private ownership. This chapter reviews the facto r s influen c ing the ownership decision and presents a ser ies of a d d i tiona l con s ide rations t hat shou ld be explored prior to making that decis ion. The chapter conclud e s wit h recommended guide lines to follow u nder both public and private ownership scenarios The content in thi s chapter is based larg ely o n a 1993 publication, Vehicle Ownership, A Competitive Ser vices Board Report; additional contribut i ons are provide d by CUTR. T he Compe t itive Services Board was established in 1986 "to p r ovide a mecha ni s m f o r individuals in the p u blic and pri vate t ransit ind ustry to discuss the p r actical issues relat ing to the compet i tive pro vision of public transpor tat ion. "1 M e m bers hip i ncl udes rep r esentatives from a var iety of organizations in the transit industry, in clu dingpubl i cand private organizations, federal, state and loc a l public transit o fficials and private transjt professional organizations and businesses. FACTORS INFLUENCING THE OWNERSH IP DEC IS ION T he vehicle ownership decision should b e made based on review of a series o f s ix fact ors t hat characteriz-e the transit service c ontract. T hi s chap t er identif ies conditions that f av o r eithe r public or Chapter 4: Vehicle Ownership Fairfax County, Virginia Fairfax Connector System (County Ownership) The FAIRFAX CONNECTOR feeder and express bus service provides approximately 2 2 m illion miles of servic e per yea r on 17 routes. The 72-bus fleet, compr i sed of 62 35 foot and 10 30a foot standard transit buses, is owned by the County and provided to the private operator at no charge Severa l factors entered into the County's decisio n to own the vehicles forth is op eration. Vehi cle (and facili ty) ownership can provide better leverage in the event of poor performance by the private operator. If service performance prob le ms occur. the County can quickly change private operators This flexibility can also lead to better contract prices, part i cularly when negotiating out-year pr;ces Increased competition ( i e. number of pole.,tial firms availab l e) resulting f rom private o p erators avoidin g capital ris k was considered a major advantage of vehicle ownersh ip Additionally lower contract price s were anticipated because the r isk associated with capital acquisit ion by the priva te operator would be removed Source: The Competi live Setv ice$ S oard. V ehicle Ownership : A Co m pez mv e Services Board Reporl (Washi ng1on. D.C.: The Urba n Institute, 1993): 28, 29. private ownership of vehicles in the context of these f acto rs. Size of Transit System L arge transit s yst e ms clearly ha ve more staff an d resources a vail able t han small transit s ystems As a res u lt, large systems are more lik ely t o hav e the specia lized expertise to prepare specifications and procure ve hicles In cont r ast, small transi t systems often do not have this expertise, so it may be 57


Chap ter4 Condi tions Favoring Public and Priva te Vehicle Owne"'h l p Factor Favors Public Ownership Wrth: F a vors Private Chmersh i p With: larger agencies with administrative and technical abi tities. small agencies1hal d o not have Size of Transit System st aff to write specifications and -small agencies that can purchase procure vehicles. through state proawemen t short-term trial 01' demon s tration projects if contractors can purchase -contracts wher e vehicles may amortize. a n d rel y on exi s t i n g used Contract Length ouuast the contrnct, a llowing for a flee ts s mooth transition between contracts. long-term lar ge contrncts that may be mor e d es irabi e to i arge companies. -small ve-hide flee t requirem e nts large contracts that requ ire which allow for rnoan lnslitUie, 1993): 9 bene f icia l to exercise t h e private own ership opt10n. Length of Contract-Lon ger contracts increase the willing ness o f priva t e contractors to make major capital inves t ments sinc e the y are better ab l e to amorti ze the capi tal investment over the life of the contract Gene rally, if the expected lif e of the vehicles exceeds tha t of the contract p u blic own ershi p tends to be favo r ed; howe v er, cl auses can be includ e d in the contract t o favor private owners hip, s u c h as a s u ccessor clause (a provision for the assu mptio n of a vehicle l ease by a new operator). 58 Chapter 4: Vehicl e O wnership


Chapter4 Size of Contract-The amount of capital invest ment is d irectly proportio nal to the value of the contract. As a result since large contracts tend to require significant capital investments, pub lic ownership is likely to be favored since all but the largest private contractors would be unab l e to make such an investm ent. Even the largest private contractors would req u ire long-ter m co ntra cts in order to amo rtize the cost of the significant capital investment. The willingness o f private con tractors to bid increases as the capital investment requirement declines. Type of ServiceIf the contracted service is to be provided at specialized times (peak-hour supplement, nigh t etc.), privateownership may be favored since private contractors may have the opportunity tO use the vehicles for other purposes when they are not being used for the contracted service. Under a public ownership scenario, these vehicles might be unused through out mO>"t o f the day. Likewise, if the service is intende d to be seasona l or temporary, private ownership is favored to prevent the transit system from investing in capital equipment that is not fully u tilized Public ownership of vehicles is generally belie ved to be more c ost effective when the contract period is shorter than the expected life of t he vehicles and when there is lit tle potential for reselling the type of vehicle used for the service. Specialized ve hicles, such as trolleys and certain shuttles, have a limited resale market. Type of Vehicles -The preferred ownership option tends to b e the one where the public or private ent ity alr eady owns the vehicles needed for the proposed service If the transit system already owns the vehicles needed fo r the provi sion of the service, public ownership is likely to be the best option. If potential private contrac tors already own the necessary vehicles, then private ownership may be t he optimal choice. In particular, private ownership might facili Chapter 4: Vehicle Ownership Reston Internal Bus System (RIBS)! Tysons Shuttle (Contractor Ownership) The County's RIBS/Tysons Shu tile system i s a seven-bus operation providing local and express services on five routes. All vehicles for the provision of this service are owned by the private operator. Several factors contributed to the decision to require the private operator to provide the v ehic les and other capital First, given the s:rs:em's small s i ze, there was a desi;e tc minimize County staff resources associated with contract monitoring activiUes. Second, since the service required small vehicles. it was possible to offer a contract length comparable to the useful life of the veMcle. The result was minimized capital risk for the private operator. Further the County felt that given the smell contract size and type of vehicle used, it would be possible to quickly obtain replacement service in th e event of poor operator' performance. Source : The Competi tive Services Boar d. Vehicfe Owmus/lip : A Compet itiv e Services Board Rcpolt (Washi n gton D .C.: T h e Urba n lnst i lUt e, 1993): 29. tate the use of spe c ilized equipment, such as trolleys, over the r o a d coaches for express, etc. Availability of ContractorsThe availability of qualified private contractors increases sub stant ially with public ownership of vehicles. With no significant capital investment, many smaller private companies could be considered as potentia l contractor s, which could contribute to i ncr eased competition. Public owner ship of vehicles tends to "level the playing fie l d" for private competitors. The potentia l for recei ving fewer bids must be we ighed aga inst the potential for even greater cost savings that may be associated with private owners h ip. 59


Chapter4 Monmouth County, New Jersey Transportation Services The Monmouth County (NJ) Divisio n of Transportation (MCDOT) directly operates end contracts for public and spec i aliz ed transport ation serv i ces in e suburban county w ith a popula tion of over 550 ,000. M CDO T has had experience with public and priva te ownership of vehicles in contrectlng The passage of the American s with D is abilities A c t (ADA) created the need for wheelchair accessible vans absent fr om most taxi and livery fleets The County purc hased equipped vehicles and required contractors to enter into a vehicle lease agreement. The egreemenl required the contractor to be ruponsible for all routine maintenance while the County rema ined responsible for m ajor repairs exceeding $500 In order to provi de a more efficient use of public dollars, MCDO T elec t ed to have its private bus contractors provide 24-pass enger minibuses for its FTA Section 18 funded bus rou tes. The small farebox revenue that the con t r actors keep (about S6 per hour) plus low retes charged (less t han S16 per vehicl e hour in 1992), i s the basisforMCDOT'sdecision to have private contractors provide the vehicles. M CDOT conclude d that public purchases and leaseback of vehicles can lead to more econom;cal contracting services However. the County also found tha t th e use of private contractor fleet vehicles resulted in safe, reliable provision of services Source: The Competitivt Services Board. Vehicle OwnrsiJip : A Compe titive SI'Yl'c BOI.fd Report (Wuhington, D C. : The Utban lnsll t u t e, 1 993): 30. 3 1. ADDITIONAL CONSIDERATIONS A numb er of addition a l co nsid erations s hould be reviewed in the comext of the fac tors identified T hese consi deration s include the following: 6 0 Control and continuity In general, gr<.>ter control and co n t inuity are associated wit h pub lie owners hip of major capital equipment A tran s ition from one contractor tO anot her is much smoo ther wit h public ownership, par ticularly when a c ur r e nt contra ctor is n o t per forrrung according to standa rds specified in the contract. However, in a private ow nership scenario, there is a tendency to have a greater commit.mentrotheservicesince there is a much greater investm ent Trans it system manage ment must determine the degree of control and continuity with which it is comfortable. Potential for reduced costs. M a n y private own ership scenarios offer mechanisms for reduc ti ons in contract costs. Pen ding approval from th e traruit system, a private contractor may offer coSt savings by purchasing used vehicles or by using vehicles t hat are part of an existing flee t In addition, if a private contractor c.1n find uses for the vehicles when not in contract service, th e allocation of costs could be spread amon g the transit system and these ot her uses. Expansio11 of secondary market for used v e bi c l ts A new fede r a l policy was recently issued by the Federal T ransi t (FT A) as part of the Presidential Order on Privati:ution. This policy permits the early sale of vehicles that were a cqu i r ed with financial assistance f rom FT A. This is expected to r"sult in an expan sion in secondary m arkets for used ve hicles. Publi c finance issues If a trn nsit system has sufficien t copital funds, it may choose to pro cure the ne eded vehicles and reduce the opent ing costs associated with a contract; howeve r many transit systems do not have sufficient local funds to procur e v e hicles, resultin g in the need for private ownership, which eliminates the need for significant capital fundin g u p front. The FTA Capital Cost of Co ntracting Po licy s tates that "80 percent of the c apitalized Chapter 4 : Vehicle Ownership


Chapter4 costs of privately-owned equipment used in contracted services can be funded with federal money in lieu o f using fe deral money to cover only operat in g costs for whi c h the federal matching sh are is j ust 50 percent."' In order to use this policy a transit system must require in the request for proposals that bidders separ ate capital costs from the operating budget Orher Considerarions private ownership may facili tate quick imple me ntation of expand edservioe, panicularly when compared to the signific ant time i t often takes to procure ve hicles in the public sector. private ownership reduces the risk o f poor maintenance praetjce.s, since the private con tractor has a vested interest in properly maintaining the vehicles. public ownuship ensures the availability of vehicles sho uld a priva te co ntractor def a ult on an agreement. publi c ownership redu ces the com plexity of evaluoting bids where d ifferent equip ment might be proposed by diffe rent bid ders. public ownership ensures compatibility of equipment and services provided, i ncluding radios, fare colle c tion equipment, physical appearance of vehicles, advenising panels destinatio n signs, et c. publi c ownership require s sp ecific ation o f maintenance stand ards and proce du r es as wdl as monitoring o f vehicle condition and . ma.tntena nce practJCtS. public ownership facilitates the equitable alloc ation of equipment throughout t h e service area and help s ensure compli ance with the Federa l Tide Vl program. Chapter 4 : Vehicle O wnershi p Houston Metro (Harris County) Park-and-Ride Commuter Service M ETRO's 22 park-and-ride lots provide approx ima tely 24, 000parking spaces end are served by 23 commuter bus routes eight of wh ich ere currently operated by a private contrector Until recently, contract service was operated u s in g contractor-provided buses Under METRO s new commuter st rategy, M ETRO owns all buses con tra cting out routes with service demand requiring 40 foot buses Under a recently approved cont ract, M ETRO w ill provide 94 buses to ATE Mana gemen t & Serv;ce Company who w ill be respon$lble for labor, preventiv e m a int enan c e and overall operation of th e e i ght routes Heavy maintenance will be provided by M ETRO By eliminatin g anticipated repair costs from the contrac tor' s price, METRO hope s t o reduce operating costs. The t o t a l cost of the contracted s11rvice is approximately $1S million over a th ree year period. The cost per revenue hou r is $83 .91 es compare d with METRO s fully ellocated cost of $ 110.28 for park-and-r ide commut e r servicDs. By prov i ding tho vehicles, METRO anticipetes a tota l annual savings of approx imately $ 1.6 million annually Source : U rba n Mobi tit y Corponllon, "Houston : Competi tive C o ntracting UPCflilte. Prlvtlt Sector Btiols. Volume Number 10, March 1993 (Wn h i nglon. D C.: Urbe.n Mobility CorpoTation). DO'S AND DON'TS FOR CONSIDERATION With Publicly-Owned Vehicles 1. Provide new vehicles with new vehicles, tbe private con tractor assumes less risk and should b e willing to provide the service at a lower cost. W he n ol der vehicles are used confli cts will 61


Chapter4 2. 3. 4 l ikely emerge regarding who is responsible for m ai nten a nce problems. If used vehi cle s are provided: identify in RFP the specific vehicles to be provided; provide s ufficient time for reoten t ial con-tr act ors to inspect the veh.ic es; m a k e available the main tenance records for t h e se vehi cles; warr ant major dr i ve train sys tems; do not includ e used vehicles that are at or near thei r expeccl u,.efullife; if the vehicles have been maintained by anothe r fuarty, consider withholding a part of their mal payment until an inspection is complete Require comractors to anach detailed maintenance plans to proposals. Require m ai ntenance recordkeeping sys tems with easy acc ess for the public transi t system Maintenance performance must be monito r ed and records must be inspect ed periodically 5. Use performance contra c t s to encour a ge in n o vation where possible. Est a blish perfor m ance sta n dards, such as miles betwe en roadcalls, ve hicle av a i la bility, and cleanl i nes s (see Chapter 3 for more d etai ls). 6 Provide rewards for meeting, and penalties for f ail ing t o meet, est a blished performance stan dards. Incentives are preferred as they tend to r einforce a posi ti ve relations hi p with the pri vate contractor (see Chapter2 for m ore d etails). 2 3. 4. s recog ni ze that, although age is important, it does not always coi ncide with t he actual condi tion of the vehicles. Specify, within ranges, the type of equipment acceptable, such as as10ndard 40-foot transit b u s with air condi t ioning and w hee lchair l ift. It is important that the spec i fic a tio ns be cl early written in order to rece ive comparable bids Other ve h icle r equire m ents that might be speci f i ed include seating capacity appear anc e and performance re q ui r emen t s (i.e. abili t y t o cli m b the needed grades, extra A / C power). Consider u sing perfor mance con tracts with rewa r ds and penal ties to e n cour a ge innova tive proposals and provide the best service at the lowest cost. Mak e the length of the con trac t reasonable to warra n t private sector in vestment The FT A allows up to five-year contracts including ex tensio ns be f o re requir ing reb i dding. Prov i de for b u y-out or public ownership at the end of the contract. Include provisions r egard in g reasonab le c ondition of:vehicles which will permit changing contractors if necessary. A p r edete r mined price based on condit ion and value is preferab l e This providessomesecurity for p r ivate contractors. 6 Have a mechanism in place to acquir e vehicles atthe opt ion of the public ag ency if the contra c tor defaults. The agency needs to have vehicles if the contractor def aul ts w i t h little or no notice. One way to do this i s to uti lize t h e contractor vehicles with the public agency con tinuing the payments. This m a y be a substitute for bonding. 7. S olicit ideas and suggest i ons fro m priv ate con tractors during thedevelopment of v ehicle specifications and the determination of flee t m i x. 7 Morutor provisions. Even thoug h the vehicles are owned by theprivatesector, the monitoring of service is still very im portant. With Privately-Owned Vehicles 1. If used vehicles are permit ted, mak e clear t o the contractorwhat is ac cepta ble It is important ro 62 Chapter 4: Vehicle Ownership


Chapter 5 VANPOOL PROGRAMS INTRODUCTION In many transit s ervice areas, longer work com mute trips (greater than 10 miles) exist that arc extremely di f ficu l t and expensive to serve with existing, c o nve ntional bus transit services. If a market exists a significant n umber of com muters are traveJJing long distances to work, a transi t system should considenhe estab l ishment of a publ icly -sp onsored vanpool program. A pub licly sponsored privately operated vanpool pro gr.ii>i z.nother type of public/privace partnership tha t transit systems may consi der This chapter reviews the issues associated with the establ ishment of such a program, along with a process f o r implementation. A general d i scussion of rid esharing is provided, followe d by a detailed discussion of vanpool pro grams A vanpool program can be sponsored by owne. r/operators, employers, or public agencies. Various funding options are iden tified for b oth cap ital and operating c osts of a p u blicly-sponsore d program. The program a dm inis tr ation. guidelines, and requirement s are then hi ghlighted. Other specialized considerations are then discussed, eluding ADA requirements, Section l3(c) require ments, an d the use of alternative fuels. The chapter concludes with a six step pro cess for implementing a publicly-sponsored vanpool program. RIDESHARING Ridesharing is define d as the shared use o f a ve h icle by two or more people fo r the purpose of getting to work, school, or other destinations. Ridesharing arrangemen ts range from the use of private auto mobiles and privately owned vans and buses to publicly-owned and operated vans and buses. The orig ins and destinations of riders generally vary, as do the means by which participants arrive at a pick up/ drop-off point. The goa l is to share some segment of the t rip with other people, either through Chapter 5: Vanpool Programs meeting at par k and r ide lots o r by being picked up and dropped off at the home and/ or work s ite. The most comm on form of r i des haring is carpo ols, which are ge nera lly developed from informal ar rangements among neighbors or coworkers and usually remain informa l since participants may not carpoo l every day Carpooling does not require a forma l program, although it can be encou r aged with the establishment of a rides h aring promotion program. VANPOOLING Unlike carpoo l ing, vanpooling usually requires a more formal arrangement in order t o c oord in ate rides bei ng shared by 6 to 1 4 passengers plus a driver. Vanpool progr ams ca n assist in facil i tat ing t h e formation of vanpools and comm u nicatio n among the vanpoolers. In most cases, one of the pool members is a regular drive r who picks up r iders a t specific poin t s, drops the m off at co mmon sites> returns them to pick-u p points at th e end of the day, and collects a fare f rom each passenger.' In exchange the driver may receive free or lim ited persona l use of the van. The f ormation of vanpoo ls can be sponsored by owner/ operators, private emp loyers or public agencie s Owner/Operator Vanpools Vanpools init iated by individuals typically begin when an ind ivid ua l purchases a passenger van for reasons other than commuting. The o wner/ operator realizes that so m e of the van opera ti ng costs could be rec overed from others if the van were use d for ridesharing to work. Passengers usually share the opera t ing costs and, in some cases, the capital costs. Costs to the vanpool riders are determined by the van owner/operato r and vary widely, de pending on the extent of coststhe owner/operator wants to recover. 63


Chapter 5 Employer-Sponsored Vanpoo/ Program USAA, Tampa When p arking became a problem for t he 1200 employees at USAA's Corpora t e Oakes location in Tampa the company implemented several programs. Vanpools were organized and carpooling was encouraged. Match list s of work e rs who wanted to participate in vehicle pooling were develo p ed, and preferential parking spaces were designated for ridesharers Currently, the corporation has over 27 v anpool s and over 70 carpools. Car and vanpooling have a/so been co mbined with a four-day, 38-hour work week Days off fluctuate on a weekly basis further reducing the total number of employees d r iving to work each day. Source: Cen ter fo r U rban T ra n sportation R esearc h. Commute Alt6rnatives Syslems Handbook ( Tampa FL: Center for Urban T ransportation Research. 1992): 26. In the Wash ingt o n D.C. a r ea, several hundred owner -o perator vanpools f ill t h e m arket need for long d istance commutes and take advantage o f the si gnif icant t im e savings d u e to t h e use of hig h occupancy v e hicle lanes S o m e Virginia locali ties offer low o r no-interes t loans to q ual ified owner operators. Employer-Sponsored Vanpool Program Becau se of the potenti al fo r moving a la rge num ber of empl oyees to work sites, l arge emp loyer s were the first organizat i ons to sponsor v anpool pro grnms. Emp l oyers we r e motivated to esta bli sh vanpo ol programs in response to the energy crisis or because their large work for ces required recruit ment and re tention of worke rs from a l arge geo ; graphi c area many of whom may not have indi vidual trans porta ti o n available. Recently, espe cially in C al ifornia (because o f clean air regula tions),. em ployers have been required t o i n crease the average ve hicl e occu pancy of commuting to 64 work. Employer-sponsored van pool program s can help meet goals for the reduc tion of single o ccupant vehicles commutin g to a work site. Employer sponsors hi p can range from promotin g vanpools throu gh ridem a tching systems a n d an nouncements in employee publica ti ons to the pro v ision of financial support. Financial support usually includes provid in g vans at or below cos t t o vanpool groups. Some employer s a l so provide gasoline, vehic1e maintenance, o r insurance at com pany cost, which c an resu l t in substantial operating cos t savings forv anp ool groups. Other support c an incl ud e p referential parki n g flexible work hours, and gua ranteed rides hom e for poole r s who ha ve t o work overtime or who need to leave work early for emergenc t es. One of the first emp l oyer-sponsor e d vanpool pro grams was init i ated at 3M in t h e Minne apol is area T h e prog ramwas established to reduce the need t o construct additional parking facili ties saving the company mill ions of dollars. Publicly-Sponsored Vanpool Program Publ ic agencies als o can spo nsor v anpool programs that a re open to all residents o f their service areas. Public agencies ca n prov ide low interes t loans to purchase vans, purchase and lease vans to vanpool ers at below market l e a se rnt e s, or provide subsid ies for v a npoo l start-ups All publicly-sponsored vanpool programs hav e ru les and regulations to ensure tha t the publ ic in t erest is served in the u s e of these va n s The rem ain der of this chapter revi ews the issues an d consid ernt ions associated with t h e e s tablishment of publicly-spo n so r ed van pool programs INI T I ATING A PUBLICLY -SPONSORED VANPOOLPROGRAM Severa l areas must be addressed in the process o f ini tiat in g a publicl y-sponso red vanpool progra m, including a market assessme n t source o f f unding Chapter 5: Vanpool Programs


Chapter 5 for stan-up costs, program administratio n program guidelines, and reporti ng r eq uirements Market Assessment Deta iled market assessment is not recommen d ed for est a blishin g the need for a publ icly sponso r ed vanpool program; however, if regional travel sur veys recentl y have been conducted, it would be extremely useful to determine the elrlent of com muting that exceeds 10 miles one way. The in vest ment in the program is relativ e l y sma ll and does not warrant significant investm ent to dearly est ablish marke t need s Start-Up Costs For Publicly-Sponsored Vanpoo/ Program If a transit system's Board of Directors approves a vanpool program in concept, it is recommended that a small number of vans be purchased to ini tia te the progra m i.e five. o r six One of the vans may need to be lift-equippe d t o meet ADA require ments. A more compl e t e discuss ion of ADA requ irements appears in a l ater sect i on. The u nit cost s h ould be no m ore than $22,000 for the stan dord 15-possenger van and $30,000 fora lift-e quipped van. Sou rces of fund ing for stan-up and opera ting costs are briefly discussed, including federal, state and locl financial assistance Feder! Financial Assistance The firSt step in estab lis hing a sponsored vanpool progra m is to acq uir e passenger vans V anpoo l program s have been recog ni ze d by the Fed era l Transi t Adminis tratio n as p u b lic transitserv icesond thus are eli gible for f ede ral financial supp ort. Funding for the purchase or lease of vans is avail able under Sections 3 and 9 of the Federal Transit Act as amended. Since most stan-up programs begin with a small number of vans, it is recom mended tha t the vans be acquired underthe ann uol Section 9 capital grant ; however, before vans can b eco me pan of a Section 9 g rant application, the Transpomtio n Improvemen t Programs (fiPs) of Chapter 5 : Vanpool Programs all counties in the s ervice area must be amen ded to designat e the acquisition of passenger vans. If the vanpool program grows substantially in the future, th e tnnsit sys tem may the n want t O conside r using a Section 3 d iscretionary capital gront rathertha n a Section 9 formula capita l grant. Federal regulations allow for either the outright purchase of the vans or lease purchase. Because a new program would require only a small number of vans, outright purchase is recommended. I n the fu ture, if a larger number of vans are to be pur chased eac h year the transit system may wam to consid er l eas in g to amo rtize the capital o utlay for the vans ove r a number of years State Financial Assistance Stote funds perhaps could be used to fin ance the purchase of an initia l vanpool fleet. Again, the purchase of six vans at $22 ,000each would require Sl }2,000of state capital funds. ]( existing state cap ital funds were used, a van pool program could be eStabl ished much mor e quickly than if a federal capital grant were pursued, Employer-Sponsored Vanpoo/ Program -The Prudential Insurance Co., Jacksonville In Jacksonville. The Prudential Insurance Company sponsor s a vanpool program for its employees using a flee/ of 15 vans. Ap proxima t e ly 150 employees participate in I he Prude ntial program Prefer entle l perking for van s end flexible work hours for employe es sre two mechanisms used t o enco urage vanpoollng. The cost of vsnpoo/lng for employees varies w ith d lst D nce from work and drivers are v anpoo l members As an added incentive. vans are loaned lo employttes for use to deliver food to the needy and for travel to holiday luncheons and other activities. Source: Center for Urban Tra nsportatio n Resea r ch, Commvtt A/Jtrnative s Systems Handb ook (Ttmpa Fl: Conl c r lor U tban lransporlation Re see r ch. 1992 ) : 29 65


ChapterS since the grant application process is likely to be more expedient. Local Financial Assistance-The loca l share for the start-up of a vanpoo l program will need to come from the transit system s regular allocation of match ing funds. Once the program is up and running for a period of time, the need for local share to match capi tal grants should d iminish as t he demand for vans reduces over time. Federal regulations specify a usef ul lif e fora passen ger van of 100,000 miles or fou r years of service whichever comes first. After a van has attained either o f thes e limits, the n the federal i nterest exp ires as l ong as the f air market va lue of the van is less than $5,000. The funds fro m the sale of vans 66 Publicly-Sponsored V,mpoo/ Program Space Coast Area Transit Space Coast Area Transit, in Brevard County, Florida, provides a unique blend of fixed-route, paratransil, and vanpool services to meet the diverse needs of its market. The unique geography of/he county and its low population density are not conducive to extensive fixed-route service, but several large employment centers including the Kennedy Space Center, make vanpools a viable Funding is achieved through federal and stale grants with a local match of 10 percent to purchase the vans. Space Coast then leases the vans to Van Pool Serv ices, Incorporated, who maintains and insu res the vans and t hen leases them to commuters and soci al service agencies. In 1992 Space Coast operated 67 vanpools and c o mpleted nearly 2 18.000 van pool pa ssenger trips. Even with some vanpools used for social services, vanpools report a fare box recovery of over 96 percent. So urce: Judy Rapp, "A Regiona l Public Vanpool P rog r am and A Regi onal Non P rofil Owner-Ope r ator Incentive Program ( Tucson, AZ : April16, 1990}. retired from the p rogram can be used as local share sinc e there is no federal in teres t left in the vans Program Administration Because of the a ddit i o nal costs associated w it h providing a vehicle with larger seating capacity, van pools are more likely to be sponsored by third parties than carpoo l s Vanpool programs are cur rently sponsored by bot h private companies and public agencies. In both cases, the goal of a van pool program is to make rideshar ingarrangements avail able to more peop le than are available f rom more tra d itional modes of public transportation. Both priv ate and public programs usu ally provide the vans used in the vanpoo l program at costs below t hat w h i c h an ind ividual could either purchase and/or operate a van. There are two o ption s for the administration of a vanpool pro gra m e ither inhouse or through a van pool services company. Because van pool pro gram administration is a fairly complex undertak ing, it is not recommende d that a transit system adminis t e r a start-up vanpool program in-house. At some poi n t it may become feasible to adminis t er the pro gram inhouse as the program grows and the transit system becom es more familiar w ith the process. At the prese n t, VPSI is the only company that provides van pool services on a nationw ide basis. A subsidiary of the Chrysler Corporation, VPSI was established in 1974 in resp onse to the first energy crisis as a means of providing a mechanism for its own employees t o commute to work. In realizing the pot e n tial for the w i despread use of vanpoo lin g, Chrysler be gan marketing the leasing of vans for this purpose ac ross the country. The lease includes insurance and vehicle maint enance. Othervanpool service companies emerged during the 1970's; how eve r VPSI i s the onl y firm operating natio nally, with over 2,000 vans in service. Currently, VPSI charges $750 per month to lease a 15-passeng er van (including the dri ver) in most Chapter 5: Vanpool Programs


ChapterS market areas. I n a ddicion, there is a five cent pe r charg e fo r v e hi cl e maint enance. T hese charges pay for all c o s ts associat e d wi t h the ope ratio n o f the v a n i nclud ing t h e van' s capita l cost insurance vehicle m a intenan ce and t h e fleet admini strat i o n costs, pl u s a profi t Assuming a typical commute of 100 miles round trip per day and 20 working days per month, the average monthly vehicle lease is $850. A 15-passen ger van with air c onditioning running all of the time gets abou t 10 miles p e r gallon of gaso l in e. A t 100 miles p e r day, t h e v a n pool woul d travel 2,000 miles per month. At a cost of $1.20 per gallon for regular unl e aded fue l the cost of gaso line is $240 per month. Therefore, the typical cost for acquiring and operating VPSI van is approximately S1,090permonth for a vanpool group. lf 14 passengers ride in the van pool plus a driver who rides for free, the cos t to each passenger is a p proximately $78 per mon th. If there a r e fewe r membe rs in the vanpool th e n costs to eoc h r ider ris e pro p ortionately Alt hough VPS l is th e onl y nationa l company cur rent l y specializin g in vanpool serv i ces, the re i s potential for othe r l ocal firms in related transpor tation fields to enter the vonpool business. For instance, there are a number of companies that provide turnkey transit and paratransit services that could respond t o a request for proposal s f o r a vanpool p r ogra m T hese transportat i o n m anage ment com p anies prov ide v ehicles and ma nagem e n t on a nationwide basis A request f o r p roposals for a vanpool service s company shoul d require a complete turnkey opera tion, including t h e provision of vans, insurance* TheRFPshould be structured so that two responses required. The first response should be fortheovertll van pool administrati o n. The second response sh o u ld b e bids for t h e purchase of vans for th e vanp o ol progra m. C hapte r 5 : Van pool Programs Publicly-Sponsored Vanpool Program, Seattle Metro Seell/e M etro spon sors the larges t publicly owned and oper a ted v a n p ool program In the nation Approximately 3,000 commuters take advantage of this program and log 1 S million passenger trips per year The flettl includes IS-passenger and 12 passengervsns as well as 8-pssenger mini-vans. There are now over 300 vans i n t h e fleet Drivers are volun ttHUS who are c ommuting to wo r k th omsal v es They receive a f ree com mute P n d 8 limited amoun t o f free p e r sonol u s e of th e vehicle. Maintenance i s co n trac ted ou l t o six prlvete vendors sca ttered t hroughou t the servjce area conve nj enl to the drivers home or workplace The fare is based on the distance traveled to and from work with the avttrage being 59 mil e s each dey although some Seattle commuters travel as much as 1 4 0 miles each day. In some cases, vans are used until 9 a .m. for c ommuters, from 9 a.m t o 3 p m by s ocia l service agencies, and th ereafte r b y commu t ers for the retu rn t rip home. Prog ram G u i delines It is essential to the success of a publicly-sponsored vanpool program that the public interest in the vans be identified and p rotected by agre e ments between the publi c sponsor, the va n pool services compa n y and the vanp oolers. A p u blicly sponsored va n pool program pr o vid es vans (or spe cifi c allowa bl e u s e s onl y. F e d eral, sta t e, a n d local r equirements mus t b e r eview ed prior to esta b lish ing a vanpool progr am. Contracts must inc l u d e provisions to ensure that vans are used solely for public transportation purposes. Reporting Requirements Van pools a r e r eco g ni z e d as a separate non-r a il mode, along with bus, pa ratran s i t, and j i tne ys. A s a result von pool p rogram s are s ub jec t t o the s ame 67


Chapter 5 requirements id e ntified in the federally required Section 15 reponing system Reponed reven ue mile s and passenger mile s are used in the for m ula allocation o f Federal Transit Administration Sec tion 9 funds to the urbanized areas across the Unite d States. A reven ue m il e is the distance that a vehicle travels with passenge rs on board. A passenger mile is the distance one passenger tra veu. If there are 15 pa.!$engers on a vehicle and it moves one mil e t he result is one r evenue mi le and 15 passenger miles During fiscal ye.r 1991 a s ingle reven ue mi le gener ated 39 cents in Section 9 formu l a funds The passenge r miie compon ent of the iormu la u ses a more complic ated factor: passenger miles m ulti plied by passenge r mi les multiplied by $.0021066192 and divided by operating expenses. Each vanpool in a publicly-sponsored p r ogram is required to keep a detailed log of the number of passengers carri e d and vehicle/revenue miles trav e led. The l og must be s u bmitted wit h month ly l ease payments Ea ch yea r the vonpool serv ic e company i s required to submit a repon to the publ ic transi t sy ste m consistent with Section I S reponing guideli ne s O THER CONS IDERATIO N S Other consid erat ions that should be addressed prior to imple menting publicly-sponsored vanpool pro gram includ e ADA requirem ents, Sectio n 13(c) co nsideratio n s, and alt ernative fuels. Americans with Disabilities Act (ADA) Requirements The ADA requir ement s issued by the U S Depan ment of Transponation under 49 Code of Federal Regulations Pan 37, specifi cally Section 37 .31, establishes specific guidelines for van pool syst ems. A vanpool progr a m is deemed to be providing eq u i valent service to indi viduals with disabilities a s long as a vehi cle that a d isab l ed individ ua l can use is made available if t hat individual cho os e s to 68 panacop>te. Public vanpool system s ore not re qui red t O purchase a cenain percentag e of accessi b le 'vehicles; they are required t o me e t access ibility need s as they occur. As a r esu lt t h e tran sit system may want t o purchas e a l i ft-equipp ed van at the beg inning should the need arise. This would assure the availability o f a van for a disa bled individ u a l in the event that such an individual would want to panicipate in a spon sored vanpool. The transit system should consi dersubs idi z ing the cost of a lift equip ped van, since this equipment results in the loss of five se ats. Other pa ssengers will not likely b e willing tO pay the highe r cost o f shor ing a lift equipp ed v an. Section 13(c) Considerations Every federal transit grant inust have the U.S. Secretary of labor cenify that labor protections provided under the Federal Transit A c t have been ogreed to by both the grantee ond any transit employee collect ive bargainin g uni ts that coul d be affe cted (for more information, see C hapter 1). A 13(c) agreement is ne eded with i ts o w n c ollective bar gaining u nits, as we ll as t hose uni ts t hat repre sent transit e mployees in the servi ce area In most cases, no services would be d isp la ced by the intro duction of a vanpool program. As a result, obtain ing 13(c) approval by the Depanment of labor should not p0$e a problem. Alternative Fuels Sin ce the vo.npool program will Start with a small number of vans, i t is not re commend ed that alter natively fueled vehicles be consid ered at first. In the long run, the transit system may w ant to consider purchasing vans that use alternative fuels. Chrysler Corporation does manufacture vans with compressed natural gas fuel systems ; however, the major obstacle to the use of alternative fueling systems isthe availab ility of fueling stat ions I n the future, com pressed nat ura l gas fueling stat ions may becom e avoi lobl e as large p riva t e and public vehicle fleets ar e convened to compresse d natura l gas. Chapter 5 : Vanpool Programs


Chapter 5 IMPLEMENTATION For transit systems interested in vanpool pro grams, a six-step process for implement a tion is recommended: 1. The governing board of th e transi t system approves a vanpool program in concept and authorizes staff to pre pa r e amend e d grant appli cations and a r eque st f o r proposa l to retain a van pool s ervic e s company. transit s y st em 'sservicea re a shou l d amend their Transportation Improveme nt Programs (fiPs) t o i nclude the vans for th e progr am. 5 T he RFP for van poo l services is p ub l ished and proposals are solicited and e valua t e d F o llow in g the evaluation process, an award is made. A m ini m u m o f 9 0days i s requ ire d for this process, which can occur concurrently with FT A's grant review pro cess. No aw a r d can be m ade for th e procuremen t of the passe n ger v an s unti l FT A approves the g r ant a nd an obligation date i s an nounc ed. 2. The t ransit system governing bo ard app roves a capi tal g r ant application or amendment to a n existing grant to purchase up t o five vans and approves an RFP w hich includes a iinal set of 6 guidelines under w hich van pool program will operate. After FTA grant apprC'.':l1, !he t governing b o ard the n awards the bid for passen g er vans to the l ow-cost r espo nsiv e vanpool service s company. D eliv ery sho u ld be a c com p lishe d within 30 days fro m a ward. 3: The comple t e grant applicat i on or amendm ent is su bm itted to the Fed eral Transit Admini stra tion by th e end of September of the curren t 7 year. Gran t approval can be expecte d os port of Care sho u l d be take n t o ensure that the van poo l program is in accordance with requirements of the Amer icans with Disa bilities Act (ADA). F T A's g r ant r elease cycle by the end of Decem ber o f that same year F T A grant s received in good order are released by the end of each cal e ndar quarter. 4 Prior to rece iving an F T A gr ant, each metro politan planning organization (MPO} in th e Chapter 5: Vanpool Programs For additio nal inf o rmation o n vanpooling, p lease con tact th e T ranspo ttation Management Associa tio n Clearingho use, Center for U rban Tran spo rta tio n Research, 4202 E. Fow ler Avenue, E N B 118, Tampa, Florida 33620, (813) 974-9813 69


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Chapter 6 CONTRACTING IN PERSPECTIVE It is important to put tr a nsit service contra cting in perspectiv e a n d to r ecognize t hat the implementa t ion of a contracting effort is not necessarily a simp l e task This handbook is intended to provide a step -bystep process to assist in the successful imp1ementation o f contr acting efforts. It attempts to make the user aware of the vast majority of issues that sho u ld be co n s i dered prio r to undertaking such efforts However, every transit sys t em is different and there is no guarantee that any contrac t ual arrangement will be successful. Many s uccess ful as well as unsuccess ful contracting efforts have occurred in the transit industry and Florida's t ran sit contract ing experience is n o exception Four examp les o f co n t r acting experiences in Florida are provided below. Metro -Dade Transit Age n cy (MDTA) con d uc ted a Private Enterprise Particip a tion (PEP } demo n strat i o n p roject beginn ing in 1988. One of seven PEP demonstrations sponsored by the Federal Transit Administration, the project was designed to compare service costs and qual ity of directly-operated services and contract e d services w ith simi1ar characteristics. Perfor mance co mp a riso n s througho u t the project ind icated that contracted service was signifi cantly less costly bu t was characterized by a lower qualit y of se rv ice reduced re l iability, and reduced ridership. Initially intended to last three years, the projecc was ended early as a result of poor contracto r performance. MDT A also contraccs for the provision o f l imited express bus service" Qocal term for a mix of loca l and express service) in the K endall Drive Corridor of southern Dade County. A private contractor provides the veh icle s and dri vers for ope r a tion of the serv i ce. Altho ugh Chapter 6: Contracting in Perspective t he service has consistently per for m ed be low average in terms of ridership based meas u res, MDT A officials cons i der the service a success f u l endeavor for the agency and attrib u t e the below-average performance to the operating environme n t Oow dens i ty, hig h r ate of auto use) and not to the priva t e con trac t or's mance. In 1989, the Pa l m Beach County Transport tio n Authori t y (Co Tran) con t r a cted for the provision of f eeder bus service to the T r i-County Commuter Rai l sys t em in sou t heast Flori da. D ue to problems w i t h performance and a sig n i f ic ant number of compl aints from pat r o n s regarding the poor q uality of service, Co Tra n was for c ed co take ove r the service from th e pri vate contractor in 1990 CoT ran has contracte d paratransitservicesince 1987 T he p rivate contractor is respons i ble for providing t he door-to-door service whi le CoT ran co ntinues to be responsible for the r e gis tra t ion of clien ts, the amoun t of trips re q u ired, and the scheduling and d isp atching of service. CoTran management co n siders the contrac t ing effort a success and attributes the success t o i ts tota l control over the ope r ation. In the examples cited above one succe ssf u l and one unsuccessful contracting effort were p res ented for both MDT A and CoT ran, indi cating that e a ch contracting situatjon is u niq ue, even wjchin the s ame transit system. I n t h e u n success f u l co n tract ing efforts, the queSti o n t hat interested partie.s would lik e answered is, W hat went wrong? There is no cos y explanation for any contra c ting f ail ure since seldom can a single reason be id ent ified In nearly every uns ucc essfu l effort, it is l ikely t h at 71


ChapterS numerous factors contri bute d to t he unsuccessf u l effort. These factors might include shortcomings of both the contractor and the transit system. With thi s in mind, i t is important to f ocus on the initial contracti ng decisio n to ensure that the decision making process will maximize the poten tial for a successful contractual relations hi p. The decisionmakingprocess should distinguish bet wee n the objective and subjective eva lu ations of pro posed contracting ef fons. This handbook prima rily focuses on the objective evaluation of transit contracting, basing decisions on a serie-s o f criteria that should hol d true for nearly all transit systems. However ,subjective evaluat lo n is necessary i n many contracting decisions and the process for making these types of decisions cannot be prescribed in a handbook. The manage ment of each transit system must make these decisions based on their experi ence and knowl edge o f their local situation. Some of the more important issues that req u ires ubjec tive judgment include : 72 Labor Considerations -The most imp ortant issue that must be addressed in maki n g a contracting decision is the impact of the contract ing effort on labo r Contracting o f service that was previously performed by t r ansit system employees is a viola tion of Section 13(c). When new services are contracted, the potential for hiring new system employees is reduced which may be interpreted asworsening the posit ion of the bargaining uni t. In addition to direct labor implications, contracting efforts also could re sult in reduced productivity and cooperation of union e mplo yee s who are not supportive of the contract ing effort. Transit system managemen t must subjectively determine t he f ull imp lica tions of a contracting effort. Full Support from Management If the decisio n is made to undert ake a c o ntracting effort, it i s im portant for all parties involved to "buy in" to the effort. The potential for a successfu l con tracting experience is enhanced greatly if man agement fully sup ports the effort a nd does everyth ing it can to ensure a successful contrac tual relationship. Importance of a Quality Contract Transi t sys terns must understand the importance of pre paring a clear ly-written and comprehensive (bu t concise) contract. Once a contracting decisio n is made this is the most important element in the developmen t o f a successful contract in g e ffo rt. The additional level o f effort at the beg i nning of the contracting process will be o f great bene f it once the con t ract is in place. Cost-Effective Contract Monitoring As in di cated in the contracting examples, t here is a possibility tha t a private contrac tor may pro vide transit services at a lower cost while at the same time sacrificing qu ality, safety, and r eli ability. It is the responsibility of the transit system to ensure that this does not happen. A cost-effective m onito rin g syste m m ust be estab lishe d in order to identify such situat i ons early should t hey occur. If the transit system believes that effective monitoring would b e too costly an d would negate cost sav in gs, the contracting effort should not be undertaken The objective o f this final chapter i s to stress that this handbook is intended as a guide only. Every transi t system is d iffer ent, with u niq ue internal and external operating envir o nments De cisio nmakers are encouraged to consider the full implications of contracting effons, both direct and indirect prior to making t h e cont r acting deci sion The leve l of knowled ge and experience with transit service contract ing has advanced significantly over the past several years. L essons learned from past experien ce s have resulted in a greater unders tand ing of contrac ting in genera l and will be helpful i n evalua ti ng an d impleme nting contracted services in the future Chapter 6: Contracting in Perspective


Appendix A SAMPLE REQUEST FOR PROPOSAL Appendi x A : Sample Request for Proposal 73


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Appendix A A Generic REQUEST FOR PROPOSAL for Transit Operations This sample request for proposal (RFP) i s reprinted with permission from the Public Private Transportation Network (PPTN} Section II {Existin g Service and Projected Costs) and Section l1l (ScopeofWork)areomitted sirJCe sampl e SL'rllice tpeafications are pro'Vided in Appendix C A to PP7J'.l, the following document is intended tO be used solely as a guide in the preparation of arJ indi1,;'idual procurement document. It is not intended to be a comprehensive review of all procwrt:ment issues, nor a model that u i/1 suit every locality's needs. This document is intended co raise numerous issues chat should be considered but not necessary mctuded in a procurement L0C11-l req:1iYementJ must be ca r efully considt:red Local legal Ye"'.Jiew is recommended. Although this $1ttnple RFPis oriented to paratramitservice. it may be used for che procurement of many t:)'pes oftramit $er'l.t7.te:s, including maintenance functions. Some alteration of $pedfic wording would be necessary to accomplish tbi s 7bis docummt iJ designed as an RFP, implying a balanced comidt:ration of cost and technical merit. It may be m od ified for use as a basis for an InvitAtion fo r Bid {low bid methodoloty}. Appendix A: Sample Request for Proposal 75


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A p p en d i x A REQUEST FOR PROPOSAL Operation and M a nagement o f the -------County Tra nsportation Services ( transportation p rogram) ___________ ,19 __ Appendi x A : Samp l e Request for Proposal 77


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Appendix A Tab le of Contents Subject Page Notice to Transportation P r o viders .... .. ...... ..... .......... ..... ......................... ......... ...... ............. .. ........ ........ I. Introduction . .... .. .. .. . .. .. .... . .. .. .. ...... .. ..... .. .. .. .. .. .. .. .. ...... ............ .............. .. ........... .. ...... .. .. Pre Bid Conference .. ... ........ .... ........... .......... ............. ....... .... ........ ........ ................. ... .... ... .... ... .. DefJnJtJons ... ... ..... .. ... .. .. .. .. .. ... .. .. ... . .. ... ....... ..... . ........... ........ ...................... . . .. .... .... .... . .. II. Existing Service and Projected Costs .. . .. .. .... .. .. ..... . ... ................... ............ .. .... ............. ......... ....... 111. Scope of 'iX1ork ............ ........... .................... ........................................ ....... ......... ....... ... ........ .... . ....... IV. Submission of RFP ..... : .................. ............. ............................................................. .......... ................ Questions Ch.oges, and Clrificat i ons .. ..... ................. ..... .. .... .. ....................... .. .. ... .. ....... ..... .. .. Selecrlon Process ............. ................. ..... ..................... ............ ......................... ......... ... ..... .......... P roje cte d Schedule ...... .......... .. ......... ...... .. ....... .................. .... .. .... .. ..... .... .. .' ...... ... .......... : .. .......... .. Condi t i ons f o r Resp ond i n g ... .................. ... ................................................................ ........ ..... ... .. V. Submi t lal Package ...... .. ......... ............. ......... ... ......... .... ..... .... .. .............. ..... ................ .. ..... ... .. .... . . . S u b mitta l Chec kliSt ............... .. ......... .............. .... ............ ..... .................. .......... ....... ........... .. ...... Submiu.J Forms ......... ........................... .... ...... ............. .. ....... ... ............. .. ........... .. .. .................... Cost P ropo sal Forms .......... .... . .......... .............. ............................. ........ .. ..... ...... .. .. . .. ... ... .. . Anchrnenu: NOTICE TO TRANSPORTATION PROVIDERS Appendix A: Sample Request for Proposal 79


Appendix A REQUEST FOR PROPOSALS FOR TRANSIT SERVlCES ThiJ section is daigned to provide the p<>tenti41 bidder introductory information regarding the service{s) being solicited. NOTE: This section mmt be tailored to describe the unique characteristics of each solicitation. Unless otherwise noted, references to specific approaches to service procurement or provision should be considered ilb color, creed or national origin in consideration o f an award. for Proposal packages are available by contacting (name) at (phone number). This project is funded in part by Fe deral funds thr ough the Federal Transit Administration (FT A). Agency retains the right to reject any or all proposals, and to with dr aw this solicitation at anytime. Agenryi san equal opportun it y employer. I. INTRODUCTION This section is designed to provide the p<>tenrial bidderoverv i ewiriformat .ion regarding the typeofscr-vice co he provided as well as a brief description of how the service is currently provided and wiry the agency issolicicing bid$. NOTE: This section must be tailored t o describe the unique characteristics of each solicitation. UTlless otherwise noted, references to specific approaches t o service procurement or prtr"ision should becoTliidered illustrative rather thau suggested or recommended. _ County Transportation Services (Agency), a private non prof i t corporation, is seeking at1 i nteres ted, qualified vendor to provide demand response social service transportat io n (non-fixed-route non fixed schedule) to clients of (number) public and private agencies in County,_. The service is curr ently pro v ided by the individualgencies using, i n most cases, vehicles acquir ed with Federal"!6{b)2" funds a.nd little coordination of services takes place between the agencies. Agency was formed in August 1 987 t o direct the coordination of such service under a single contractor who will undertake the set-up, management, day to-day operation, and vehi cle 80 Appendix A: Sample Request for Proposal


Appendix A maintenance ac t ivities of the system. In an eff ort to p r o vide more service at a lower average cost, Agency will contr>ct with a successful Respondent an d oversee the program. This is part of a statewide effort to coordinate social service t.ransport:ation. The suc<::cssful Bidder wil1 provide management and sche duling of cur bto --curb t r anspo r t a t i on service> as well as operation and maintenance of the aforementioned vchicle.s. Service includes standing order (subscription) trips as well as t hose o( a ... demand-response" nature {24 hour s advance notice) Individual agencies wjlJ take requests for serv ice and notify the Contr>c tor of all reserva t ions. Riders include the physically and men tally handicap p e d elder l y, low-income and p r eschoo lers. The s elected Contr3CtOr will b e responsib l e f or meeting all r equirements as specified in the contrac t i nclu d i ng, but not limited to, employee standards and training vehicle maintenance safety on t ime perf ormanc e, repor1.U1g, bill ing, and insuranc e coverage, as well any l icens ing and other legal requirem ents. Sectio n Il p rovldes a more thorough and quantitative description of t he service as it c;urrcntly e>Usts, as well as pro j ected program costs. Section III detai l s the op e rat in g r e qu irements the B :dde r will b< expected t o meet upon award of cont ract. In many cues. these are minimum requirements and r esponden ts should feel fr ee to 5Uggcstmore stringent o r alternative standards whe r ever they feel nece-stary. Section IV describes : the pro c e dure for answeri n g questio n s abou t this RFP; the selection process; and conditions for responding. Section V contains the RFP submi ttal pac kage and is foll owe d by appendices. Pre Bid Conference A pre bid conference will be he l d o n {dat< and time) at Qocation). All respon dents are requ ested and urged to mend. This con fer ence i s intended to provide respondentS the oppor tu nity to ask questions and/ or r eceive clarification of any requirement of the RFP. The Agmcy wi11 also rev i ew the selection process at th i s t im e Note: For guidance on holding a pre-bid conference, see the PPTN publication "Organi zing and Conducting an Effective PreBid C o nferm c e Definitions: as used herein: The term "request for proposal" (RFP) means a solicitation o f a formal seale d proposal. b. The term s .. proposa1and off er .. the price and services offered b y the Respo ndent in response to this RFP c The terms R e spon dent" and "Bidder mean the offeror or v endor responding to this RFP. d The term "Contractor r efers t o the Respondent(s) s e l ected by Agen<) to perform service under this contract e. The term "Agency" mean s ___ County Tronsit Services, Inc. f The term .. __ .. rneans ------Department ofT ransport-at i on. g The te rrn "contract" means the: lcga11ybinding -agreement between Agency and the successful Bidder (Contractor) t o perform the services described in this RFP. II. EXISTIN G SERVICE AND PROJECTED COS T S (See Appen d ix C : Sam ple Service Speci fications) Appendi x A: Sample Request for Proposal 81


Appendix A III. SCOPE OF WORK (See Appendix C: Sample Service Specifications) IV. SUBMISSION OF RFP 7his section includes technical submi ttal Yequirements ttnd clauses t o be i n clud ed in che contract derived through ehe procurement Much of this section can be included in the sample contract (suggested to be incl11dtd as part of the proturement package) rather than in the body of the RFP. NOTE: Tbissection must be tailored to include all clauses required or deemed necessary by th e contracting agency, local or stbil i ty to the l imits stated in t h e RFP from a reputable insurance agent; a brief cover lette r signed b y an officer of the respond ing organization, stating that the information comained in the robmission is accurate and complete as o f the d a t e of s ubm.ission a11d indicates how much time Respondent would require from ootificotioo of a ward to startup. Noce: should tbe agency require respondents to secure a bond for tbis service then 1} a bid bond should be included in the submi,.ion package and/o r 2)proo f of ability t o a performance bond should also be included. If respondents areallou;ed t o p roposealternativecomractsec:tritypackages, the a gencysho,ld add another page to the submi ttal form section titled "10 Contract Security. Questions. changes. and s:larificatiom : T o facilitate the dat ification of requirements, Respondents a r e requested to submit questions in writjng > at least (number) days priOr to the preproposal con fe r ence, to: Name Agency Address Proceedings of the preproposal c onf erence will be distributed to all RFP recipien ts as will answers to questions clarificati ons, correcti ons and changes. Any such addenda will be sent no later than (nymbt) days prio r to th e proposal due date Note: It is s11ggested that the agency send any addenda via certified ma il or by a s i milar method "'hereby the sender is notified of receipt. W ms) i s the c o n t act p<:rson at Agency f o r questions r egarding this pr o curement. Agency shall not be responsib l e in any manner' f or verbal answers or instructions regarding this RFP. All requests for exempt ions and amendments shall b e in writ ing. Replies will be p romptly forwarded. No request for exemptions shall be conside red after (date}. Sdc:cti oo process: A select i on committee will review and analyze each response Initia l selection may be made of (nomber) Bidders deemed to be fully qualified and beSt suited among th os e su b mitt in g p on the basis of 82 Appendix A: Sample Request for Proposal


Appendix A the {actors involved in this RFP. Evaluation criteria include, but are. not limited to the following {Note: the public agency should consider providing respondents with a ranking of the e-..wluation criteria}: Pass/F:Ulitems Preclu sions from biddin g (federa l, State, loco!) Proper documents s u bmitt e d and executed/signed/notarized Meet proposal deadline Disad vantaged Business Enterprise (DBE} effons Meet governmenta l regulations Technical Criteria (Note: each Bidder will be rated; criterion are not weighted equally) Firm and p ers onnel experience F irm's f i nancial resources/ capacity Opera t ions app r oach and organization Main tenance approach Prov ision of vehicles and other moveable assets Prov ision and adequacy of fixed f>cilities Overall organizational Structure Overall technical approach and maoageme111 In s urance and con,ract security requircments/a1 t ern3tives Safety and training Support/ consu l ting services inc1uded Use o f subcontractors Other (e.g., references etc ) Cost Unit cost Toul cost Value for cost I nterviews and/ or negotiations may be conducted w i t h each or ony o f the Bidders sele c t ed Cost sh.J.l be co nsidered, but will not be the sole determin ing f actor. After the int erviews/ negotiations h:we been conducted. t he Agency shall select the Respondent which, in i t s opinion has made t he best proposal, ond shall av. ard the contract to t hat Respondent Agency may r equire th:n the Respcmdent' s candidate residell t manager attel)d any oral . mtervJews. Projected Schedule RFP releose Pre-proposal Proposals due In terv ie ws Award Startup dote Appendix A : Sample Request for Proposal 83


Appendix A Note: PPTN suggests the following minimum timeline: 3 weeks from RFP rele,zse unti l pre-proposal meeting 3 weeks from pre-propasal muting until propasal due date 2 week$ c o evaluate prior to interviews 1 week w i n terview finaluts 2 weeks 10 negotiatt contract{s} 4 weeks t o auard contract and issue notice to p roceed 8 to 16 weeks t o commence service {depending largely on vehicle requirements} Conditions For Responding I. T h e following terms and conditions shal l prevail unless otherwise modified by Agency within thi s proposal document. Agency reserves the right t o reject any proposal which takes exception to these te!"mS and c onditions. 2 Completing pr<>poal : A ll informatio n must b e l egible. Any and all corrections and/or erosures muSt be initialed. The proposal cover Jetter must b e signed b y an :authorized respondent and a11 required inf o rmation must be provided A neatly typed document of rea sona b le length and using the form s provid ed is preferred. Ex pens es incurred jo d evdopin g :md submit ting a proposal are b orne entirely by the Bidder. 3. Confideot i alio: of proposalloform: H ion : E ach proposal and supponing d ocuments must be submitced i n a sealed envelope to provide confid entiality of the proposal informat io n pri o r to the proposal opening All proposals and supporting pr oposal doc uments become public information after contract award and are available for inspection b y the general public. 4 Atouracy of prow,. I : Each pro p osal is publicly opened and t he B id der's name is made part of the public record. Therefore, i t i s necessary that any a:nd all i n f o rmation presente d is accurate and/ or will be that by which t he R espondent w i H complete the con tract. I n case of numerical discrepancy> unit costs shal l prevail. S Submissi o n of propoul: Proposals :are to b e scaled and rubrnined to the follow i ng address pr i or t o the date and time indicated on t he cover sheet: Name Agency Addr ess The Bidder's Service Proposal shou l d be submiued and labeled Service Proposal for Agency T ransp ortat ion Services. The Bid de r's CoSt Propos al should be submitted under separate cover from the Servic e Proposal and shall be labele d "Cost Proposal for A g ency T nnsportatio n Serv i ces." 6. Addend<"t: All changes iJ\ c onne ct i on w i th this prop o sal w ill be issued in the form of :a written addendum and sent to all known Respond e n ts not less than (num ber} day spriono the b i d due date Signed cknowledgemem o f rece ipt of each addendum must be s\abm.itted with each propos3l Oral instructlons, clarific ations and addit ional i n formation s up p lied b y Agency representatives 3te not binding. 84 Appendix A: Sample Request for Proposal


Appendix A 7. }.etc proposall and mqdificatioo or wirhdrawals: Proposals received after the deadline designated in this proposal document shall not be considered and shall be returned unopened. Propos:Us may be withdrawn or modified prior to the proposal opening. All such transactions m.ust be submitted in \'l.ritiog and received prior to the proposal opening. 8. Pronosa l s binding: AU proposals submitted in accordance with the t erms and conditions of this RFP sh:Ul be binding upon t he Bidder for (num ber) colend>r days after the proposa l opening . 9. Safetv : All p r actices, materials, supplies, and equipment shall comply with the Federal Occupational Safety and Health Act, as w ell any pertinent F ederal, State and/or local safe ty or environmental codes 1 0 Disclaimer of liabiliry: The Agency will not hold harmless or indemnify any Contractor for any l iability whatsoever. 11. Hold Harmkss; The Contractor agrees to protect, defend, i n demnify and hold the AgenC)', its officers, employees and agents free and harmiess from and against any and all l osses, penalt ies, damages> settlements> costs, charges, professional fees or o the r expenses or l iabil i ties of every kind and character arisin g out of or relating to any and all claims, liens, suites. cause-s of action, and ju dgements of every kind and character in connection with or ar-ising dire-ctly or indirectly out of this agreement and/or th e performance hereof. Without l imiting the generolity of the foregoing, any and all such claims etc., relating to p ersonal injury, infringement of any p atent, trademark, copyright (or application for or o f any other tangible or inwtgible personal or property right, or actuol or olleged violation of any other tangible or intangible persona) or propeny right> or actual or alleged violation of any 01pplicabJe Sta[ute) ordinance, administrative ordcr1 rule or regulation, or decree of any court, sha11 be included i n the i ndemnity hereunder. The Contracto r further agrees to inves-tigate, handle. respond to, provide defense for and defend any such claims, etc., at his/her sole expcose and agrees to bear all other com and expenses r elated thereto (including attor ney fees and court costs), even i f such claim is groundless, false or fraudulen t. 12. Law gov<:rning: AlJ comractua.l3greements shal l b e subject to, governed by. and construed according to the la ws of the State of-----13. Antidiscrimjna.tion No Re-spondent to this request shal1 in any way, directly or indirectly, discriminate against any person becau-Se of age> race, color, handicap. sex, nationa] origin, or religi ous creed. 14. S:ondjtional propos3ls: Conditional proposals are subject to rejection in who1e or in p3.rt. 15. Can.ccllation gftontr.1ct: (I) The Agency reserves the right to cancel any contract resulting from this procuremen t for cause by written notice to the Contractor. Cause fo r cancel13tion will be documented {3i)ure(s) of the Contractor to provide service s i n the qu

Appendix A performance under the contrac t is and the date upon which such termination becomes effective. I n the event of any termination, Agency shall pay t h e agreed rate only for services delivered up t o the date of termination. Agency has no obligation to the Contractor, of any kind, after the date of termination. The Contractor shall deliver al l records, equipment. and materials to AgtnC)' wi t h in (numb;!) day(s) of the date of termination 16. Subletting of con tract: Thecontractderived from this RFP shal l not be sublet except with the written consent of the Agency No such consent shall be conStrued as making t h e Agency a p -arty to such s ubcontract, o r subjecting the Agency to liability of any kind to any subcontractor. No subcontract shall, under any circumstances, r elieve the Contnctor of hi s liabilit y and obJjgation under this contract, and trans.,ctions with the Agency must b e throug h the Contractor. 17. Auigomcnt/transfer o( There shall be no assignment/transfer of interests or delegation of the Contractor's rights duties, o r rcsponsibi )ities of the -Contractor under the contract derived from this RFP without the prior written approval of Agency. 18. Licenses, permits and taxes: The successfu l Contractor shal l be appropriately l icensed fo r the work required as a result o f the contract. The cost for any required licenses or permilS shal l be the respon si bil ity of the Contractor. The Contractor is l iable for any and al l taxes due as a result of the contract. 19. Regulatorv requi rements:. The Contractor shall compl y with all Fe dera l Stat e, and local l icensi ng and/or regu latory requ irements (including permilS) for the provision of transi t s e rv ices. 20. Equa l onwrtunirv: The Contractor will at all t imes abide by the equal opportunity provisions o f the Civi l Rights Act of 196-4 as amended 21. Responsi ble firms: Nothing herei n is i n tended t o excl u de any responsib]c firm or in any way res-trai n or restrict competition. On the contrary, 31) responsible firms are encouraged to submit proposals 22. Agmarcsencs rjgh 1 : The Agency reserves the right to accept or reject any or all of t he proposals s u b mitted> waive informalities and technicalities, and negoti ate any or al l elements of the proposals. Upon furth e r analysis of need and analys is o f costs resulting from response-s to this propos3.1, the Agency r eserves the righ t to award or reject any ponions of the proposed system. 23 Lack of funds clause : Shoul d any member agency of A gency fai l to appropriate funds for this contract, said contract shaH be terminated, at n o charge to the Agency, when existing fW'Iding is exhausted. In such instAAcc> the Agency will provide (n umber) days advanc ed notification to the Contractor. 24. Dispute resolution: Note: Every public agency have a procedure for dealing with any disagreement o ver a question of fact that has been decided upon by the agency$ contract maMgtr. Usually, a contracror has30da)' to 11ppeal tbedecisron of a contract manager. The process for handling dispuu.s should be laid out in chepYocurement document so that Biddm underst4nd the environment u nder which they will be operating. 25. Prote,st procedure: Note: Every recipient ofUMTA funding is required t o develop a pr otest resolution procedure for all procurements The agencys bid protest process should be included in th e procurement documf!71t and considered when establishing project timelines. The agency should ensure that its process for hearing and resolving proresu U quick and comprehensive. 26. Disadv3ptaged Business Ent erprise: l.nsett t he agencys policy statement and goals. 86 Appendix A : Sample Request for Proposal


Appendix A 27. Buy Americ: The Contractor shall comply with ppl icobl e Buy America requirementS set forth under the requiremen ts of Section 165(a) of the Surface T ransponation Act of !982 and the applicab le regulations in 49 CFR Part 661, as amended. 28. Severabilitv: In the event any provision of the contract is d eclared or d etermi ned to be unlawful. invalid, o r unconstitutional1 such declaration shaJI not affect, in any manner, the legallty of the remaining provisions of the con tract and each provis i on of the contract be and is deemed to be separate and severable from each other provision. 29. Conservation: The selected Contractor shall recognize mandatory standards and pol ic ies rdat i ng to energy efficie ncy which are containe d in t h e State energy conserv:nion plan issued in compliance with the Energy Pol icy ond Conservorion Act (42 USC Section 6321 et seq). 30. Env i ronmental Viol a ti ons: For all contracts and s ubcontracts in excess of $100,000, the selected Contractor agrees to comp l y wi t h aH applicable stattdards, orders, or require-ments issued under S ec t ion 306 of the Clean Air Act {42 USC :es 7 (h)), Sect io n 50 8 of the Clean Water Act {33 uSC 136&), Execut iv e Order 1 1738 and Environment al Protection Agency Regulations (40 CFR Part 15) which prohibits the use under nonexempt F ederal contracts, grants or loans of facili tie s included on the EPA List of Violating Facilities. The sel e cte d Contractor shall report viola tions toFT A and to the US EPA A ssistant Administrator for Enfo r cement (EN0329). 31. Interest of members of or delegates t o Congrm: No m ember of or delegate to the Congress of t he United States sha ll be a dm itte d to any share or part of the contr a ct o r to any benefit arising therefrom. 32. Cargo prefer requirement s therein apply to the con t ract ari sing from this procurem ent. 33. Act and Copebnd Act : The selected Contractor shall comp l y wlt h t he p rovision s unde r the DvisBcon Act (40 USC 276a to a 7) as supplemente d by the Department of Labor regubtions (29 CFR, Pan 5). The Contractor shall also comply w ith the provisions underthe Copeland Ant iKickback Act ( 1 8 USC 874 ) as supplemented in Department of Labor regulations (29 CFR, Part 3). 34. Publication. reproduction . anrl ust of mareri:al: No custom material p roduced i n whole or in p3rt under the contract shall be subject to copyright or pten t in the U n ited States or in any coun try. Agency and FTA shall have aut ho rit y to publish. distribute -:tnd other'Wise use, in whole or in pan, any custom materials prepared under the cont ract. 35. Dt:h:med. sumended. or ineligible c:ontrac tQG: The Bidder certifies by submission of a response to th i s RFP (proposal), th a t neither it nor its p rincipals is pre.sent1y debarred, suspended, propos ed for declared inel igib le o r voluntari l y excluded from parti c ip a tion in this transaction by any Fede r al, State or loc al depanment or agency. 36. !lliki> with any proposer or person to refrain from proposing> and further, that it has not in any matuler. directly or indirect1y sought by agreement, coUusion, communication. or conference, with th3t o f any person, to fix the propos-a) amount herein or that of any other Bidder, o r to fix the proposal amount herein or cost deme n t of said proposa' aJnount, o r that of any other proposer, or tO secure allY against the AgerJcyor any person interested in the proposed contract. Appendi x A: Sample Request for Proposal 87 -------


Appendix A 37. LoQJrtj ng strictions : The Bidder certifies by submission or this RFP that: a. No Federal appropriated funds have been paid or will be p.Ud, by or on behalf of the Bidder, tO any person fo r influe ncing or attemptin g to influence an officer or employee of any agen cy 1 a Member o f Congress, an off icer o r employee of Congress, or an employee o f a Member of C ongress in c o nnection with the awarding of any F ederal contract, the making of any Federal grant, the m aking of any Federa l loan, the entering into of any cooperative agreement, and the c>.1:ension, continuat ion, renewal amendment, or modification of any Federal contract grant, l o an, or cooper:3tivc agreemen t b. If any funds other than Federal appropriated funds have been p.Ud or will be paid t o a ny per son for influencing or attempting to influence an officer or of anyagency, a Member of Congress, an officer or emp lo yee o f Congre-ss, or an employee of a Member of Congress in connectio n wi t h this Federal cont ract, grant, loan, or cooperat iv e agree ment, the Bidder shal l compl ete and submit Standa rd Form -LLL, "Disclosure Form to R.epon L obbying, .. in accordance with its instructions. c. The Bidder shall r equ iret hatt he language o f this certificat ion be include d i n the award documents for all subawards at all tiers (including subcontractors, subgrants, and contrac ts under gran ts, l oan s and cooperative agreement) and that all subrec.ipi ents shall cett i fy and disdose: according ly. V. SUBMITIALPACKAGE This seccion conca ins the submittal forms an d requescs detailed descriptions ofh= the Respondent plans w a ctuall) OpM'ate the service. All inftn-mation necessary for evaluacion and seleccion purposes should be requested in chis section. The Respondent should nol be required lO pieu together required submittal in/orma t z 'on from throughout the RFP. NOTE: This section must be tailored to describe the unique characteristics of each solicitat.ion. Unless otherw i noted, references to spedfic approaches to sc,.vice procurement or provisiQn sbQuld be cQnsi dtred illustrative rather th4n suggest ed or rec ommended. The f ollowi ng f orms muSt be completed and submitted to be considered as candidate for wo rk described i n this RFP Attach additl onal sheccsasnecess

Appendi x A _DBE cenifiation or plan tO oomply with Agm

90 Appendix A 1.7 Managers for this Contract Attach resume s of daily and c orporate managers and three references Label those attachments "1.7 Managers Resumes. If sele ction of a daily manager has not been made attach r esumes of candidotes being co nsidered and label "1. 7 Candida t e Manag ers. Daily Manager : Corporate Manager: P h one : Phone : Antic i pa t ed portion of t ime Dai l y Manager will devote to this project_% Anticipated portion of t ime Corporate Manager w ill devote to this proj ect % 1.8 Proposed Subcontractors and Consultants Attach company name, contact, ad d ress, phone, an d anticipated r ole of any proposed subcontractor and/ o r also include three references fo r each proposed subcontractor and consul t a n t Label these attachments "1.8 Proposed SubcontractOrs and Consu1tartts ... 1.9 Disadvantaged and Small Business Status A Disadvantaged Business E n terprise (DB E) i s d e fme d as a business at l east 5 1 % of v.hich is owned, operated and controlled b y ntinority group m e mb e r s, or in the cases of publicly owne d busi nesses at least 51% of which is owned, operated, and controlled by minor ity group memb ers. "Minority Group Members are define d as Blacks, Hispanics, Asian American, Amer i can Indians, A l askan Nativ es, or women regardless o f race or nationality. ASma1J Business i s defined under Small Business Administrat ion (SBA) secti o n S(a) rules. Check t he appropriate of Respon dent's bus iness : DBE Smal l Business Neither DBE or Small Bus iness -DBE and Sm:Ul Busines-s certificatiot\ documents) i f applicab l e If Respondent Qrganization is not classified as a DBE firm, desc ribe h o w Respondent expects to meet Agency's DB E goal. Attachments shou ld be l a b eled "1.9DB E Status 1.10 Additional Vehitlcs Is the Bidder will i ng and abl e t o provide ad d i t io nal vehicles for the proposed opera t ion> Yes No Does Respondent anticipat e p r ovi ding its own vehicles a s a component of this bid? Yes No If yes expl ain why and attach des criptions of proposed vehicles (make model, age, lift or ramp equi ppe d, quantity p roposed, etc.). Label "1.10 Pr opos e d Vehicles: Appendix A: Sample Request for Proposal


Appendix A 1.11 Is any litigation pending agains t Respondent or any officer or partner of Respondent's organization? Yes No If yes, give details below. 1.12 Service References On the follo wing pages, please tell u s a bout up to (number) simihr contracts w hich t h e Respondent Organiz. tion has provided serv ice under Note: the agency should supplyrhe appropriaunumherofblank service reference fomJS. Service Refere-nce H ---Firm Name: Street: City, State, Zip C ode: Contact Petson: Telephone Number: Length o f Service (from/to): Please d escribe the s e n ices responden t pro vid ed t o t his o rganiza tion b y checking as many o f the following as appl y : J ramit Operations Services Fixed Route Demand Respon se (Pamransit) __ Other (descr ibe) Maintenance Sc:rvicC"s Chaner __ Daily School Bus Serv ic e __ Heavy Repair _Upholstery __ L ig h t Repair __ Servicing/cleaning P r e v entive Maintenance Roa d cal l __ Painti n g Towing __ Body Work __ Communication E quipment Repair Appendix A: Sample Request for Proposal 91

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Service Fcoat ures Vehicles Drivers _Road Supervision __ D isp atching Mechanic s Fue l Appendix A Pans Tires __ Telephone I nformation Services Facilities __ Scheduling Average n umber of miles operat e d per weckl public, disabled, e t c.): Please use additional sheets to provide any furthe r information a bout this reference. Label "Additional inlormation: Service Reference it_." 2. Maintenance Program Please describe Respondent's current vehi cle preven tive and corr e ctive m.Untcn;ance programs (if Re-spon dent performs own maintenance) and the p r ograms proposed for this c ontra c t If Respondent docs not perform vehi cle mainte-nance and/ o r plans t o sub contract pan or aH maintenance work. please indicate i ntentions. A lso describe the program Respondent will f ollow for inspection and cleaning of vehicles 3. Drive r Standards Please describe Responden t' s current hiring stan dards and training and safety programs for drivers; if different from the guidel i nes as stated in this RFP, please desctibe the program planned for hiring, training and safet y under this contract Also, inclu de the names of organiZ>t ions to be uti lized in the sensitivity and defens ive training portions as required. 4. Fac ili ties 92 Please provide address(es) and physical descrip tion(s) of facility(ies) Respondent plansto utilize for provision of this service. Include maintenance and fueling f:lcllitics owned> fc:ased, or subcon tracted for this proj ect. Bidders which have not selected a facil ity tO be used for this program should su b mit candidat e site s b e i ng c onsi d ered 0gency may give highe r ratings to Respondents proposing !h.t facility for this work over those submitting several candidates or none) Appendix A: Sample Request for Proposal

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Appendix A 5. Service Description Ple
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Appendix A ESTIMATED MILES FOR CONTRACJ' PERIOD COST PER MILE The undersigned certifies thothelshe isau t horized by Respondent to make the preceding bid and bind Respondent accordingly Respondent Person Comple ting Bid Title SignMure Date (Not to be S\lbm.ittcd unless requested by Agenc:y) Assumptions: Labor Annual vehicle mi les Annual driver hours Average wages: Driver Dispatcher Mechani c Annual fares/ donations Other Management Dispatch Driver Maintenallce Fringe Benefits Materials & Supplies Vehicle Pam & Supplies Radios Tires Fuel & Lubricants Office & Misc. Other (list) Services Other 94 Telephone Vehicle Repairs Towing Other Oist) Insurance Rents & Leases Vehicle license. Inspect ion> etc. Appendi x A: Sample Request for Proposal

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Taxes Verudes Utilities Comract Se curity Other TOTAL COST COST PER MILE BID Appendix A The undersigne dcenilie sthat he/she is authorized by Respondent t o make the preceding bid and bind Respondent accordingly. Respondent ""'on. Completing Bid Tide Signature Dar< 9. Optional Services P l tase describe below any optional services Re.o;pondcnt could or would like to provide Us< on< Optiona l Services form for each optional service offered. Complete the bid ponion of the form indicating the new Tol3l Cost and CoS! per Mile. Tota l Cost CoSt per Mile A1TACHMENTS TO SAM PLE RFP Not<: Agmcies ,bould include, or make awiL.ble, tbe fol/o.,.ing information as well as any othf!T matmals and dar.. which will aid respondents in d
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Appendi x B SAMPLE SERVICE SPEC/FICA TIONS Appendix 8 : Sample Service Specifications 97

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Appendix B The ump/1 sn-vic. spif.aritms pro'flidtJ in this Appmtlix art rtprinttrl u.;rb permission from the Public Pri-Jart Transportation Ntrwork(PPTN)antl Palm &4ch County Transportation Authority. Thcal netrls anti rtquirt!mtnU miiSt b. cart!fully considered and loca l legal review ir recommtndtd. Generi c service specificat ions are provided for the following services: I. Fixed-Rout e Transit Services bas<"
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Appendix B a. Front: A Destination sign., whether a header or an insen in the front windshield at t he base of the windshield on t h e passenger side in clear view of the public Minimum sign siu shall b e i n height and 18" w ide. b Sides : A provided sign shal l be located on eac h side and minimum siu shall b e 18" in height and 36 wide A p r o vi ded LOGO shal l a lso be appl i ed on both side s 3.2.2 Vehicle" Standards The vehicles used to provide s e rvice must comply wi t h all app li cable lo cal, State, and Feder a l Codes, safety stan d ards or laws and comply with or exceed manu f actu r ers safety a n d mechanical standards for the particular vehicle and model used in the provis ion of services under this contract All vehicles p r ovided must: Have:: r e-;,;r.vjew m irror and mirrors mounted on both sides of the vehi cle b Have fun ctioning interior )ighting within the passenger compartment. c. Have a functioning speedomete r indicating speed in mil e s per hou.r and a functioning odometer correctl y indicating distance in tenths of a mile d. Be equipped with operab l e air conditioning syst ems. If the ai r conditioning syStem becomes inoperable during the day, the Contrac t or sh2.11 repbcc the veh i cle wit h i n one h our. The vehicle shall not again be used until such time tha t the air c onditioning system has been repaired. e. Have exterlor free of grime. oil or other substances and free from cracks, breaks, dents and damaged paint chat n o ticeably detract from the overall appearance of the vehicle f. Be dean in the interior and free from torn floor coverings, damaged or broken seats, and protrudi ng sharp edges g Have unobstructed vision on a t l east three (3) sides o f the veh icle. h Have a properly funct i oning whee l c hair lift mechanism in order to provide accessibilit y to chos e passengers who are non-ambu l atory. A m.ioi mum of one (I) wheelchair space must be availab l e on each vehide. When comes into compli ance with ADA fo r two (2) accessible spaces per bus, the Contractor will as w ell comply The w heelchair spaces shal l have a mechanism i n place to proper ly secure the whe elchair. If th e wheelchair l i ft b ecomes i nopera ble d uring the day, the Contrac tor shall rep lace the vehicle within one hour. The vehicle sha ll not again be u sed unti l such time that t h e wheelchai r l ift ha s been re paired. t Not have l ea k s o f any kind. J Be equippe d w ith a funct i on i ng horn. k. Not be more than five (5) years of age, nor have more than 100,000 mi les o f service for vehi cles 29' i n leng t h or smaller. A t no tim e duringtheduration o f this Con tract or any 100 A pp endix B: Sample Service Specifications

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Appendix B renewal t h e reo f shall the vehicle be more thn seven (7) Y"'" of age or have more than 200,000 mi les. I. Not be more than ten (10) yeus of oge, nor have more t han 250,000 miles of service for vehicle-s 30' or greater in length. At no time during the duration of this Contract or a11y renewal thereof shall the vehicle be more than twelve (12)years of age or have more than 500,000 miles This app)ies tO a continuouslyused vehicle for se-rvice m A spare vehicle may be up to fift een (15) years old A spare vehicle i s s eldom used and will be taken out of service once the norma) veh i cle for service is repai red. 3 .2.3 Yili_ick Inspections Upon issuance o f the first Contract and each two {2) mon ths thereaf t er, t he Contractor shall supply the County with a l ist of all vehicles and ID numbers tO be use a i n the subsequent two months. All veh icles shall be made available fo: inspection at any time ordered bythe Couui.y .ci. i l.s Jis<.., edvr. Auy vehicle not found in conformity with the above standards must be rem oved from service until subsequent inspections verify correction of defic ienc ies. The County funher reserves the right to order the immed i ate removal from service of any veh icl e not in compliance with any vehicle standards refe rence d herein. F:Ulure to comply with this requirement may cause for dis.tllowance of compens.ation for services rendered in the violating vehicle 3.2.4 Tvp< of Vehicle: The two basic. types of vehicles which a Contractor may uti l ize in the provision o f transportation services are described be low: Vehicle Type ff of S eat s Length Minibus 9-28 2)'. 29' Bus 28 30' or greater Vehicles must have stanchions or grab b3rs for standees Vehides must be accessible tO the handicapped 3 2 5 (1) {2) Sufficient Numtxr and Types of Vehicles to meet Enjmattd D emand ; Com,.ctar provided vehicles must conform to the ___ color s cheme. The Contractor shall provide at least (number) vehicles equal to handle the Peak Vehicle Requirement {PVR) and sPare ratio. Contractor shall prov ide a back -up vehicle in plac e within one (1) hour of a reponed breakdown. 3.3 w ith Laws. Liccnsjng Requ irement s and Terms Q(Contr.lct: Contra c tor shall comply w ith any ond all l aws, statutes, ordinances, rules, r egulat ions and pro cedu ral requirements whethe. r federal, S t ate, o r Lo c al and o f any agency or such government, indudinCoumy and FT A, which r elate tO or in any m:mncr :affect the perforrnaJ\ce of this Contract. Thisindudcs compliance with any exist ing or future d rug polic ies, t he Americans with Disabilities Act (ADA), and any laws and regul ations issued by local, State or Federal agencies. Appendi x 8: Sample Service Specifications 101

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Appendix B 3.3.1 All participating contractors mus-t p r o vide a System Program Plan as required under Florida Statute 341.061 and FDOT Rule 1490. 3.4 Contractor Personnel : The C<>ntractor shall ensure that its drivers shall adhere to the following provisions: 3.4.1 Personal Appearance Cleanliness and neatness are requir e d at all times. A driver s uniform must be dean, pressed, brushed and i n good r epair at 3)) times) shoes must be shined. Driver's hair, moustache and be3rd must be well groomed or drivers who do not have moustache or beard must be clean shaven. The o f non uniform appare l will not be permitted except during cold weather when drivers will be permitted to wea r a non-uni f orm jacket or coat. At a ll times Contractor drivers sb.! :u1d !he public with courtesy and and shall conduct themselves in a p rofessional ma.nner. The foll owing acts are spe .cific.aBy prohib i ted b y drivers when providing s ervices under this contract. This l ist is not intended to be exdu.sive. a. Use of in toxic ating liquors, narcotics or controlled substances of any kind {excluding doctor>s prescriptions) while on d uty or reporting for duty in uniform whi)c under the influence ofliquors, narcotics or controlled substances of any kind {excluding d octor's prescriptions). b. Gamb lin g in any form upon ___ prem1ses. c. Smoking and other use-s of tobacco while on duty exc ep t in p l aces or at t i mes designated for that purpose. d. Carrying of pistols, firearms or concealed weapons .. b ile on duty e. Resorting t o physical v iolenc e to s ettle a dispu te with a fellow employee or the genera l public: while on duty or on premises. In se1f defense an employee may use no more fo rc e than is reasonab ly necess:1ry. f. Spitting in prohibi ted places or any other unsanitary pr actices. g. Use of loud, indece nt or profane language and/ or making threatening or o bscene gestures toward passengers. the general public or o the r employees. 3.4.3 Driver's R esponsibi l ity It shall be the responsibi l ity of the driver to devote f ull attention to the s.afe> smooth and effici e n t operation of equipment and to avoid di scom fort or i nconvenience to passengers Subject to orders of persons o f higher authority, the driver has charge of the vehicle and shal l be responsible for: a. Adherence to route schedules and time poi nts. b Knowledge and observance of traffic law s and safety regul ations c The safety of l:>oarding and alighting pa$Sengers. 102 Appendix 8: Sample Service Specifications

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Appendix B d. The collection, retinrnion and prop
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104 Appendix B 3.7 $chcdyjcs: Adherence to schedules is of utmos t importmce. Clocks should be synchronized to the dispatch cloc k time b y cal l ing o r radioing dispatch. Drivers may be required to kee-p--,ti m c reco rds that indicate act ual arrival and/ or departure times. 1 For fi xed. rout e service. the vehide must leave from a timed checkpoint 1\0 earlier than the schedu le d departure time and no late r than five (5) minutes after the scheduled departure t ime. 3.8 Commun icaJiQ.O Syntm; The Contractor's Communication Sy ste m sh a ll consist of: 1. T dc:phone System: The Contractor shal l make available su ffi cient telephon e c-apacity to e nsu: between the County .&nd Should ,..--determine that te l ephone access is inadequat e, t h e cont r actor must provide a dedicated telephone line. 2. Two-WtlV R adio Syst em: The Contractor, t hrough a base station or a County approved a1ter n a te communi cation systc:m (c:.g. mobile phones), i s required to be in regular radio communication with all vehicles providing transponation service. Additionally, will provide -.compati bl e radio equ ipment to the Contractor$ vehicle s u-t-,il""iz-e'd in t he Conrractforpurposes o f communicating between dispatch and Contractor's vehicles It shall b e the responsibility of the Contractor tO i n staB such equ ipmen t as specified by the County, at no cost to the County. A t the County's option, the County may requ i re installation of d ifferent radio equipment in the Contractor's vehicle 3 9 Srrikcs and Lock o uts: Ther e will be no strikes, work s t oppages, sick-o uts, picketing whil e working, slowdowns or o ther conce rted f ailure or refusal to petform assig ned work by the contractor's employc:es, md there wil1 be no lockouts b y the contractor for the duration o f t his Contract. The Contractor shall make an attempt to obtain from the association r epresenti ng the Contractor' s employees a letter of unders t and ing agre eing to support the County fully i n maintaini ng operations in every way. Any employee who p artici p a tes i n o r an jJJcgal strike, work s topp:\ge. picket line while working, slowdown. or concerted f ailu re or re fu sal to perform as signed work may be dischar ged or otherwise disc iplined by the contractor. It is recognized by the parti es that the County i s respons i ble for :md engaged in aCtivities which are the basis of the heal t h and welfare of our citizens and that any violat io n o f this se ction would give ris e to i r repara ble damage to the County and the p u blic at large. Accordingly it is understood and agreed that in the even t of any vio lation of this s ection, the County shal l be encit1ed to seek and obtain immedi ate i n junctive rel i ef and all other relief as provided by l aw including attorney's fees and full costsoss o ciared with the violation and restoration of serv i ce. In t h e event of a strike, work stoppage. o r i n terference with the operations and accomplishment of the mission of the county, the Contractor and the association represent i ng the Contractor'sempl oyeessball promptly and publicly order the empl oyees t o return to work and attempt to bring about a prompt r esumption of normal opentlons. Appendix B: Sample Service Specifications

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Appendix B Contractor shall ensure that all County prop<:rty is protecte d in the event of a mike Contractor shall ensure that the County has access to all irs property at all times. Access may he accomplished by orde r of the County to the Contractor to deliver all o f its property to loca tions designated by t he county within twcmyfour {24) h ours of such order or by providing safe and uninhib ited access tO premises by County employees to remove County property T he Contractor is required to prepare and i mplement contingency plans in order to maint ain scheduled service l eve ls in theeventof a labor mike. The Contractor shal l submit a copy of these plans within t hirty (30) days of execution of a contract. 3 1 0 Countv Provided Equipment: 1 The County will provide tO the contractor for use, only in connection w ith and subje c t to the terms of th i s Cozttract, the follow i ng equipment: a. (number) fare boxes. b. (number) setS of mobile radio equipment to inclu d e mobi le radio w ith AVL capabil i t y. c. In th e event Contractor eJects tO use agency furnished buses; (number) (type: of bus); ex. 199 0 F l xible Metro 3Q.foot, 28passenger acce s sib le buses; 1980 TMC Citycruiser bus, fully equipped including fare boxes and rad ios set forth above. d. Operation and training manuals used by the County for the equipment ident if i e d a b ove. 2 Title of the furnishe d property shall remain solely in The contractor shall t naimain adequate property control records o f furnished property i n accordance wit h sound industry practice All such property shal l be clearly id e i n i f ied as t he property of County and Contractor shalJ not re.move such Jn3rkings. Contractor shall not convey. encumber or prejudice, in any way, t h e County's property. 3. The Contractor shall be responsible for a.ny loss or destruct ion of, ordamoge to, the. ___ furnished property provided under this contract arising from any cause whatsoeve r The Contractor shall, upon compJction of this Contract, deliver a ll ___ .fur nished property to ___ at its Maintenance facili ty in County. 4 I n the event w furnished buses ue supplied for use in this Contract, jn addit ion tO the insurance requirem ents set forth e l sewhere. the ContractOr will obtain and in ful1 force and effec t Collision and Comprehensi v e damage i ns urance on the buses in the amount o f $14S,OOOfor each !990 F lx i ble Metro and $ 10,00 0 for the one 1980 TMC Cit ycrui,er bus (ident ifv aooroor i t buses). S. The County will provide normalmaint enmceat the facility of t h e fare b oxes and mobil e radio s provided hereunde f and may provjdc substitute items which will b ecome subjec t to the terms of thi s agree ment. Repairs and maintenance resuhing from negligent usc, misuse or damage to the e quipment will be charge d to the Contractor at 'sthen app l i cable bbor rate plus costs of parts andsupp!ies plus f ive (5%) percent handl i ng of pam and suppli es. Items d amaged b eyond repair will be charged t o the con tractor at its replacement cost plus five (5%} percent. Appendix 8: Sample Service Specifications 105 ---------------------

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Appendix B 6. The Conmctor shall he olely rC$pOnsible for the repair and maintenance of the prov ided buses. All maintenance shall be performed in accordance with provi d ed manuals and schedules at the Contractor's facility and at the Contractor's sole expense Only parts and material s meeting the manufacturer's specifications shall be used or instal Jed in the buses. Preventative maintenance wiH be required in a cc o rdance wit h the procedures of and at i ntervals as required by p er Appendix_. The Contractor shall not modify, alter or install accessories t o my County O'a.'ned equipment without prior con s ent of the County. WILL NOT furnish tools, or special equipment needed to majntajn or repair the buses. will supply pans to th e Con t ractor upon request only fo r t he repair of the -provid e d bus equi pment at cost plus 15%. Some partS may not be carrie d in parts inve ntory;. therefore, availabil ity is subject to manu factut'ers pans availabi li ty. From t ime to t ime may have a part which isthe last part by type in inventory and thus needed for 'sown fleet If this happens, will imm ediately reorder the part needed by the Contractor or the Contrac!Or may secure the part elsewhere. If all maintenance procedures a re adhered to and then a County-provided 1990 Metro bus has a major drive train component .failure, "'hiC"h i-5 as engine, transmission r::-fllfferential and the major component must b : replaced, then in tha t event wil1 make the repair at no cos t to the Conuactor. 7 Upon completion of the contract, t he Contractor w ill return all -supplied equipmen t and manuals tO the facil ity in as good condition as re c eived less normal wear and tear. 8 The County tag on the -provided bus equipment w ill remain, as th e County is pro viding the b u s equipment t o the Contractor as opposed to leasing the bus equ i pmen t 9. Advenising on Contractor provided bus equipment w il l be allowed provide d that there is no advertising of alcohol, tobacco> drugs, political or things of an immoral n2ture. Determining whether the ;ad vertising or its content is prohibited hereunder sh:i.ll lie solely with the County and Contractor agr ees to be bound b y the County's determination. Advert i sing on County owned bus equipment is un der the sole control of the County and all r evenue s resulting there fro m are the property of t h e County. Contractor will make available Countypro vide d bus equipment on demand for the purpose of changes in advertising panels. 10. A n Occupational License is required to operate in ____ County. 11. Anticipated award of a contract to a Proposer is
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Appendix B a. A s a minimum requirement, (num ber) ad di t ional bus(es) meet i ng all t h e RFP spl 3.0 g:>llons-<:hange every 30,0CO mi le s-use 85WI40 Ge ar Lube. f. Power Steering.5 gallons change every 40,000 miles use E n gine Oil!OW30. For 1980 TMC Citycruis e r: a. MPG is 5.0 b Cooling syStem-14 gallons-change every 40 000 miles. c. Engi ne oil 4 .3 gallons-change every 5,000 miles-use 40W d. T ransmi s sio n-4.5 ga1lons change e v ery 20)000 miles-use D ex t r on ll. e Differential-3.2 gallo ns-change every 30 000 m il es u s e 8 5 Wl40 g ear lube f. Pow e r Steeri n g w ith \X' hedchajr-7.0 g:1l1onschange e v ery 40 000 milesuse D extron ll. :--:---:-::::-County is a n on-a ttain me nt are a i dentified und('.(the C l ean Air Act. has always used J et A# I Diesel fuel to ai d i n emiss io ns control. therefore r e q uires the use ofJet A# I Dieselfuel to be u s e d i n all provided bus equipment w ill verify the u s e of jet AKI Diesel f uel by t he Contractor through a sample taken from a provided bus and tested Appendix B : Sample Service Specifications 107

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Appendix B to its clients. These vans are sometimes leased to other agencie,s to provide transportation to special e\'ents {such as the Special Olympics) Maintenance for these vehicles i s now performed by Community ImprovememsAssoc.iationspecifies a set budgetary amount for the p rovision of service; this includes d river wages and vehicle maintenance. Note: 7he contYacting agency should fully describe how the various agencies curr e ,Jdy utilize their vehicles etrJd opcra,c/ obtait: the services, e.g.t time of day, origirJS!destinatiom, restricrions,fares, etc. Existing figures indicate the rotlowlng: Primary Agency DSS Demand Response OIC Dema...1d ARC Subscription Adapt Demand Response CIA Demand Response Health Dept Demand Response McntaiHc.Jth Subscription Estimated Annua l Estimated cO!,/Bud& Estimated Cliems Served/PatronaM Cost figures may include onl y driver ""'ages and operating COStS (fuel, insurance, etc. ) and exclude such it e ms as fringe benefits. They are provided o nly s a gui deline f or prospective bidders. Most clients presently tran s porte d by the agencies have no other means of mobility and are physic:>ll y or memally disabled or These services provide a means for people to receive health pursue employment, or panicipate in sheltered workshops in the Count y community (see 19_ T ranspottat.ion Development Plm for the City of and County}. Presently (number) vehicles exist with which to develop a co ord inated transit syStem in Counry. Of these veh icles, aU but ( number) arc in g ood opera t ing condition The remaining vehicles are in need of some rehabilitation (i.e., eoginc rebuild, cosmetic improvements, etc.}. While the vehicles wilJ enable the system to commence setvice, rehabilitation or rcp]accment of up t o (numbe-t}vehiclesw i ll be in the fi rst 1 2 months of operation Agemy has allocated a total of$ for replacement or rehabilitation of vehicles and related asset s for the coordinated sys tem. W it hin C ounty, all presently active agencies (DSS, Counry Health Department, and ARC) are suited to form a coordinated trMsit agency. Transit Service, a city entity, will also participate in the system. Appendi x lists each transponation servic e c har acterist i cs while Appendi x l i sts currently operated vehicles. Agencies such as DSS will be able to book the i r trips for specific t imes on a dail y basis (i.e., subscript ion type services). These trips w ill become "Stwding.order trips" and will be operated on a regular basis. Trips for the remain ing agencies (ARC. DSS, and County Health Department) will be built around or cons olidated with these "Standing-order trips', where appropriate and where vehicle and time constraintS .Jiow. Appendix B: Sample Service Specifications 109

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Appendix B Estimated Project Member agencies pay S __ for their share of services received and since the system is conceptua l at this time, operating budgetS are currently undefined. Estimated operating expenses are$ per year, given the following assumptions for year one: Annual miles Annual driver hours Vehicles Agencies Passenger trips Fare revenue III. SCOPE OF WORK This section is designed to provide the potential bidder with details o f the scope of work required. Each agency will need to address all ofthe issues raised to detenn.ine how much (if any) latitude bidders will have in p r oposing methods for handling individual operating requirements NOTE: This section must be tailored to describe t h e unique characteristics of each so ] ic i tation Unless otherwise noted, refer ences to specific approaches to service procurement or provision should be conside red illustrative ratber suggested or recommended. Service Hours Service will b e provide d ( m t s days and houn ofoPS.tation). Sunday and holiday service is not regu l arly schedule d but may be required by Agenry. Holidays ar e as follows: (insert holidal!l gb sm< vehicle leaves unrilthe last vehicle returns. 110 Appendix B : Sample Service Specifications

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Appendix B Reservations There is signif icant va riation i.n the reservation requirements specified by the various agencies In general> the Contuctor can expect to be notified no less than 24 hourt in advance of modify the above paragraph to reflect the desir ed division of dutitJ Tbis secti o n also detail how reJer:Jation in forma zion is tO be tra nsmiued from the agency to the contractor. c:r"Vice Area The service area consi sts of the City and County o f __ Most trips will be wit bin the County; some will have an end p oint in the C ity. OccasionaHy, tnps 'Q.iH h ave bot h end points in the Cit y. Some trips extend beyond the boundaries of County. Common outofCounty destinations include----fare/DonaJigru In most josunces, users of this ride free of charge. I n cases w here a f are is to be colJcct e d, the Contractor shall collec t the fare and the monthly invoice for se rv ic e p r ovided to gencies will be reduced by the total dolla r value of fares which should have been collected. Likewise, all donati ons received shall be reponed and i nv oices reduced by tha t amount. The Contracto r shall provide a secure me,hod of coHect iog {3res and donations attd accounting for same. T he Contractor is not required to make change. Note: Farepolicieswry greatly someagenC'ies rhargeriders) others do no:; some use coupons or110uchers; somea1low tbe Contractor t o keep fares as a type of down paymcn< for ser.:ices Specify your policie. and whq is responsible for their enforcement. fhascin of Scryiccx To t h e transition of service from individua1 t o coordinated provision, a minimum of (number) but probably not more than (number} agencies will subs cribe to the coordin : ued service a t the start o f the program The remaining agencies, will be phased in at a later date. Note: Agencies should specify the,.,.,;,, Stdrt dace a nd lmgtb of phase in period (if any), a tid detail ho-w the transitio n iJ. to be handled for nMycontracted services as well wbich are re-bid. Contact PPTN for tips on transitioningfrom one p r
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Appendix B C3use, wy personnel furnished bytheContnctor. The Contractor shall not, absent priorwrlttcn notice to Agency remov e, o r re-ass ign the key man.gement personnel identified in its proposal (e.g., Project Manager} at any time prior to or after execution of the contract Th e Contractor shall obtain Agency's written consent prior to e n tering any subc on trac t aff ec ting the service. 112 J. Project Manager The Contractor shall des ignate a Proj e c t Man.ger who shal l oversee the day to-da y operation of t he s ervice. Due tO the Pro ject Managers critical role Agency prefers that t h i s person be identif ied> that a detailed resume be furni shed in the Bidder's resp ons e t o this RFP, and that this per son b e available to be in terv ie w e d by the proposal evaluation team. If the Respondent has not selected a proposed Projec t Mange r, resumes oflikely eandidatesshould be submitted (Agency may giv e higher ev aluat io n ratings to Respondents proposing a specific, named Proj ect Manager for this work over t hose submitting several candidates o r none). The Respondent sh ou ld also submit a resume of tbecorpome manag e r prop<>sed for this project 2. Office Staff The Contractor shal l supp l y a sufficient n u m be r of employees to staff the office at all required times and perfo r m all necessary tas ks associated w i t h the service T he Contractor will be responsib l e for training these employees and making su r e that all program policies and p roce dures arc understood. During all times when vehicles arc on the roa d for this program, t h e Contractor w ill staff the office wit h a t least one person trained to perfor m radio dispatching functio n s and m oni tor te l ephones 3. Drivers Note: The following are suggested minimum criteria. Each agency muse dec.ermineappropri ate stand a rds. The Contractor sha ll supp l y a sufficient number o f properly qualified p ers onnel to operate the equipment and to provide t he service s required. of the Contractor's employees shall, a t all t imes while on duty in the per fo rmance of the service.s required herein, be neatly and de:an l y dressed w d maintain a courteous and coop erative a ttitude in their co ntact w i t h the pub lic. All drive rs must be properly l i cen s ed in the State of tO provide this t ype of serv i ce and b e at least {numbe r } years of age. A written recor d from tbeStateMotor V ehicl es Department must be submitted to Agency (bow often, e.g., annu ally) for each driver Addition al ly, each of the Contractor's employees who may operate vehides w e ighing more than 26,0 00 pounds or originaBy designed to carry 16passengersormo r e (Including driver } mus t possess a Class_ Commercial Driver's L ic e nse Note: Agencies should refer to the na tio nal Commercial Drivers License regulation an d individual state code> and standards. Drivers must also meet the following minimum criteria to panicipatc i n this program: no more than ( pumber) moving v iola t ion(s ) for each year o f the last ( number) years pri o r to app l ication (or this p ro g ramt no more than (numbet ) moving v i olati on(s) withi n the last 1 2 months; Appendix B : Sample Service Specifications

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Vehjclcs Appendix B if l i cense has ever been suspended) applicant must h ave {number) fuU subsequent years with no violations; if license has ever been re vo ked must h:we subsequent years with 1lQ violations; under no condition will an applicant be a c c epte d as a driver for this program i f ( 1 ) he/ she has been convicted of a fel ony, and/ or (2) has been convicted of a drug or alcohol offense. All drivers must receive the following i nitial training through p r ogramsa pprov ed by Ag<>n<)andshow p r oof of successful completion {Note: rbe trainirJg is suggested}: behind the wheel (defensive dr iving) training -minimum hours, in cluding classroom instruc t ion; sensitivity trainingminimum hours classroom and {number) hours handson (including passenger assistance, loading, md tie-down training); first aid trainingi at the discret i on of the Agency, other t raining such as cardiopu1monary resu scitation (CPR) and geographic fami liari ty may be required. All costs associated with employee trai n ing w ill be the responsibil ity of the Con t r actor. T h e Contractor is responsi ble for ensuring that each drlver is properly acquainted with t h e requirements of the program and his/her respons ibilities s a driver. Agency requires that drivers receive ot le.st_ % o( their defensi-..e driver training and the "hands-on" portion o f sen sitivity training prior to providing any service in this program . All remaining driver trai ning must be completed no more than (number) days after any given driver begins providing service. Refresher training is require d for all drj ver$ on a (how often) basis Mor e frequent retraining may b e required, as necessary Drjverswill be required tO maintain vehicle logs for each day of service. Logs will i nclude rider nantes, scheduled and actual pick-up times, addresses, mileage, vehicle(s) utilized, no-shows, fares collected, 2nd other pertinent i n fo rmation. A sample driver log is shown in Appendix Human service agencies andAgenft vehicle lease is contained in Appendix_. Appendix B: Sample Service Specifications 113

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Appendix B Liscnsing The Contractor shal l keep all vehicles fully licensed and inspected as required by the State of and app licable local goverrunents agencies. Vehicles are/ are not (select one based on state law) eligib l e for free license plate.s. The Contractor must comply with all state and local vehicle registration, permitting an d regulatory requuements. Sa fcty/lnspcc-tions The Contractor shall perform daily safety inspections of vehicles prior to beginning each day's service Vehicles failing the daily inspection will not be used in service until t he reason for fail ure is corrected. Agency rese rve s t he right to ensure that vehicles are being maintained properly an d are in safe: operating condition lf a vehicle fails inspection. it -o.ill be barred from service until the p r oblem(s) are corrected. For passenger comfort, the heating and air-<:onditioning unju o f a ll vehide:s rnust be kept in proper worlOng order Agency may inspect veh icle$ a t >.ny reasonable time and may bar a vehicle from serv ice until problem(s) are corrected. Maintenance The Contractor shal l, at its e xpense, maintain all vehicles used for this program at a minimum i n accordance with the manufacturer's specifications and/ o r i n accordance with the State's vehidc maintenance standards (shown in Appendix _j. Whe r e duplicate recommendations exist, the Contrac tor shaH be re quir ed t o mainta i n v ehicles in accordance with the s t ricter Vehicles wi11 be kept clean inside and out. Service records must be kept for all vehicles and must b e av:Uiable for Agenry inspect ion during normal office hours. B idder shall descr ibe how and where vehic1cs will be maintained, and any maintenance system or procedures that will be utilized. Damage All physical damage to vehicles shall b e repaired with i n (number) dys of occurrence in a high quality manner, o f cause Ysh ic::fe Rc;habil ita tion / Rcti remcn t It is thcAgency'$ intent to rcp tace or rehabil i tate its vehicles in a t i mely manner at no cost to the Contractor. \V hen anAgencyvehide reaches the age of (number) years OJ' (oumhcr) miles, whic;hcver comes first, such vehicle will be e ligible to be rehbilitated at no expense to the Co ntractOr, assuming availabil it y of Federal, State and local funding. Vehicles reaching (number) years or miles, whichever comes first wi ll beeligibJe for retireme n t The Cont.racto r will assist Age'TJcy in s ecuring any such rehabi l ita t ions. No vehicle may b e retired wi thoutAgen') permlsStorL Radios Two-wy radios wiiVwill not{relecz ono/be furnished by Agmry. Bidders shall enumerate if th ey will provide such equipment or how the system will operate without a radio network. SRart Vehicles The Contr actor is required t o have at their immedia t e dis posal a t least (number) spare veh icles for every {number} requ i red to meet maxim\1m peak service needs. Vehicles must be able to carry a minimum of (number} persons and be maintained to the previously sta t ed standards. It is the Contr-ac-tor's responsibility to ensure that suffi ciem fleet vehicles arc availab l e to meet service requirementS. Any vehicle provide d by the Contractor must be (number) 114 Appendix 8: Sample Service Specifications

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Appendix B years old or less and have incurred fewer than (number) miles on its engine and transmission. Contractor-S\lpplicd vehicles shall be comparable in size, configuration, and appearance to AgenC)supplied vehicles. Vehide Uug,e to the Cont ractor, by Agmcy or one of the contracting agencie s, are tO b e used solely for the provisiol\ of this service. Personal usage and/or usc for any other purpose is prohibited Insurance T he Contractor shall b e required to carr y insurance (and funush proof thereof} to the f ollowing minimal limits: PP7NsuggestsaminirnumofS2,000 ,000aggregareco....,.ageandSJ,OOO,OOOperocetmence(absentlegislationexempting cbe ContraCl()r <>wr a certain limit} to adequ<1tely protect the agency. PPTN also suggests that eacb agency review state and / o (al insurance requirements and consult. a n:sk specialist before tsta.blis/,ing m im mum insurance ,_ :.. ......... ,,. ,f," : 1 ; ... ... 'mum s m""' be ostly ............................... <>'' ... .... : -., .. Bidder must submit p roof of insunbility r o the prescribed limitS as part of the p rop osal package an d disclose deductibl e s md self-insured retainers. The Bidder shall also identify its insurance agent(s) and undc,.riting company(s). Agency shall be named as addi tional insured as "-'elias loss payee on vehicles owned b y Agency; agencies owning other vehicles used i n program shall be named as additional insured as well as loss payee All accidents must b e im.medi>tely reported to th e Agency. Each polic y of insurance sha11 co nlain the following clause: "'It i s agreed that these policies shalJ no t be canceled nor the coverage reduced unti l thi rty (30) days alter Agency shall have received written notice of such cncella
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Appendix B The Contractor's bill shall be hosed upon the number of vehicle mi les trav e led for each agency. W hen a veh icle trip involves passengers from more than one agency, mileage shall be apportioned based upon the numbers of clients crried on t ha t vehicle trip. !men discussion of how group trips should be handled. Note: Numerous otber types of billing arrangements are possible including cou per passenger, cost per hour, cost per JMSSengermile or hour ttc Additionally, payment may be di/fer entUiu:d by passenger origin or destiTUicion, ambulatory wrsw non ambu&.tory, etc. Agencies are advised to stud y the advantages and disadvantages of each type and specify the methodology to be utilized in both t.he pricngpropoS4l and fontract reimbuY$ement methodology and Rm9..t11 The Contractor will be re:Spo nsi ble for prope r ly maintaining separat e records and sununaries for this setvice as deemed necessary by Agency The following are the types of information which Agency 9l!!!l! require the Cont ractor to keep; it is not an exhaustive liSt (see Appendix_ for sample forms ) Note: agencies should carefidly examine data requirements, taking care not to overburden the contractor with collection of unnece$sary or u$e/e$$ nfomlation. 116 clien t master file (name, identilication number, a ddress, p hone, authorized t ri ps etc ); vehicle assignment sheet
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Appendix B Contract Security Note: Tbi!rt art: numerouswa)'$ to attempt toguarantet chat a Contractor'"oJJil/ fulfill its obligations to pt:rfonn work according to the terms of the contract. Bid bonds guarantee the agency that bidders will enttr into an agreement and furnish the required inputs for completing the work if aWII.rded the contract. Performance bond$ aYe designed UJ compensate the agency for datn4ges incttrrcd ifche Con tr.::rc-to r defaul t.s or the agency tenn ina us the con tract for any failure by the contractor Perfomlance bonds are gent7'ally used u,hen procuring goods and as such their usefulness fo r ser uice contrP.cts is limited. Ageru:ie$ should review local atJd state bonding requirement; andJ if bonding i s re.quired, consult a n's.k management sperialist to assist in detemliTiirJg appropriate lim iu, terms, 12nd conditions. PPTN sugg(jtS that agencies comider the use of ahernate security me.asures {such .as payment 11.Jithholdings or cash set-asides combhud witb incentives and penalties tied to peifonna .nce standards) in lieu of perfonnance bonds. Contract Term The term of anyagree men t arising f rom this RFP shall be (number) year(s), commencing on the date transportation services a r e first rendered. At Agen(is option. the base contract may be renewed (or (num ber) year(s), at cates mutually agreed upoll b etween Agency and the Contracto r, up to (numb er) additional times Note: FT A limits single contract tenns and/or any combination ofinitial zmn and opt.ion periods to a tnaximum o/five'years Local limits may be more restrict h-e. Costing Responde n ts shall submit a bid based on cost per mile (
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Appendix B Other The Contractor will assi s t and adviseAgencyin managing the transpo nation service s including, but not l im ited to: procurement of capital items (e g vehicles, radios); accident investigation; agency l i aison ; general administration; and cost allocation The Bidder will ful1y describe th e servjccs encomp3.Ssed in its bid and o t h e r services ava,jlable at extra cost Vehicle Markings Vehicle markings required by Agency are subject to negotiation prior to bid award. State and f ederal regulations rega r d ing vehicle markings shal l be met by the Contractor. Any required changes toexiSiing vehicle point schemes or markings shall be the responsibility of _ ___ Records Agency, t,hr.<\1 ;md USDOT, or their designee(s) m:.y at any time perform auditS of the financiall .. and accounts of the Contractor. The Contractor agree-s to preserve> and to cause an.y subcontractor t o preserve and mak e available for a per iod of (number) yearS after the completion o f a contr3ct, any and all f i nancial, operations adm.lnistr ative, and main t enance records penaining to this contract. Perfo.rman C Incentives. and Penalties Note: '!he use ofincentivesand penalties can incrttUe thepublicdgency'schancesof receiving an acceptable or outstanding level of performance. They allow the agency to AChieve desired service stAndArds byadjustingpaymmts t o the contractor. Absent well-chosen penalties and incentives, an agencys choices with regard to a poorly performing contractor may be limited to living with the problem or terminating the agreement and rebidding the seruice. For further informatio n and examples, see the PPTN publication "A Compilati(m of PerformarJCe StAndArds, Penalties, and Incentives for use in Contracted Transit Services ... All st.andards, incentives, and penalties should be listed in one plac e in the RFP. Meetings Agency p l ans to hold meetings on a monthly basi s for t he purpose of discussing service probl ems and proposed solutions and to maintain open and frequent communications Occasional ly, additional mee t ings may be required (especially at the beginning of t he contract). Un1e$S othetwise not i fied, the contract manager or other employee with d ecisioomalUng authority will be required to attend all meetings. Minimum Strvice Gyaraotee NOTE: Recognizing that oneofthemajorinputs U>a contractor's bid preparation is the/eve/ ofstruice{mwured in miles, hours, passengers, etcJ descrilxd in the procurement documtnt t the agency should consider including a s tatement whi c h guarantees the successful contractor a minimum levelcfserui ce. 1be statement cculd guarantee that if the actual amount of struice available/provided is more than x% below the stAted /roe/, that the rate of reimbursement is subject co negotiation. Alternately, a formula or schedule rould be devised whereby a range of dev i ations from anticipated level of demand/seruice be pr011ided. 118 Appendix B: Sample Service Specifications

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Appendix B GENERIC SPECIF1CA TION FOR MAINTENANCE SERVICES II. INTENT It is the: intent of the (:agency) to secure the services of a qu:t!ificd firm to perform vehicle Ocet maintenance a.nd SCJ'\ices for the (agency) fleet. These se-rvices {including prevetuive maintenance1 repairs and other functions usocia"'d with the fleet} will be performed at the (garoge nome) which will be avait.ble through a )use agreement between the (agency) and the Contractor f o r a charse of (feelt.erm). Proposersare encouraged to suggest options, alternatives, or innovations to provide vehicle maintena.Jt o e services. NOTE: In some cases, tbe agency may be asking the colllra.rcls th>t the proposes in areas such as the following: 1. Total monthly maintenance cost target that includes all costs associated with maintenance of the subjeCt flw as in the Statement of Work 2. Bus availabiliry/downtime ) Eme.,;cncy vehicle (tow trud
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Appendix B Note: If tbe agency ha5 developed a reward and liquUlated damagl!5 package, this package hould be referenced here. If the agency dol!5 not have a reward and liquidated damages package, then bidders 5hould be req:wted t o include in their respomes to this RFP a 5ugge5tion for the reward/liquidated damage methodology. III. STATEMENT OF WORK t.o GENERAL 120 1.1 SCOPE The Contractor shall provide pr even tive maintenance, remedial repairs, overhaul, mobile service. tO"CVing, tire service, fleet management, vehicle deanjng, vehide fueling, and other such allied services as may be required to a$Sure the continuity of effective and economical of the {agency)'s vehicles and equipment detailed in Attachment A. The Contract<'r shall furnish all necessary supervision, bbor, parts, tools, and supplies required to maintain the fleet i n a state -of-repair and service readiness as defi ne d i n this Statement of Wo r k and consisten t with generally accepted fleet practices. In the Contractor shall provide and maintain a permanent detailed, automated record for each vehicle and vehicle in order to provide a basis for op timum fleet management and provide detailed maintenance and operating information f or the (agency ) Note: This requirement may not be applicable for a 5tnaller agency. The (agency)'s current automated v ehicle mintenance system (if there is one), or a proven system instal led and maintained by the may b e used to meet t his requiremem (include a description of the A VMS in an Attachment). !.2 FACILITIES Note : All that follows a5Sume. that tbe agency i providing an existing facility to the Contractor, and tbat a lease fee will be charged. If the agency doe. nothaveafacility that tbe Contractor must use, or iftheagency will not charge the Contractor a lea5e fee, this 5e on the {agency} network The Contractor will pay directly for all long distance phone cal/, and only charges associated witb maintenance and management of{agency)vehides may be included in monthly billing. The (agency) also shall provi de, vnd e r the oforement i oned yearly lease me, the (ogency}owned equipment, too ls, and furniture loc ated in the (garage name). All equipment added during the term of the Contract, and approved by th e (ogency) prior to acquisition will become t h e property of the (agency). The (agency) reserves the r i ght to establish an amortization schedu l e for major equipment pur chases wher eb y the ContraCtor will invoice only the sch ed uled amount month l y The physical factlicies, wd office and shop equipmenc provided to the Contractor f or th e term of the co ntraCt w ill become t he responsibility of the Contractor and will be returned to the (agency) in the same condit ion in which they were provided to the contractor except for norma l wear and depreciation. Appendix B: Sample Service Specifications

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Appendix B Between t h e date of Contract execu t ion and the date the Contractor begins occup:t.ncy of t h e faci l it y a complete physical inventory of office and shop e qui pment wil l b e taken by repre sen t a t i ves of the ( a genc y ) and the: Comc:actor to de termine what the Co ntractor is respo nsib l e for This inventory shall be repeated annually on the con tract s anniversary dotte. The interi o r exter i or, and in frast ructure of the physical facili t ies wiU be maintru.ncd b y the {agency) i ncl udi ng repairs, maintenance and/or ren ovatio ns, with the Contractor bein g responsible f or i nfor ming t he (agency) of degraded conditions and assisting the (agency) w ith minor and emergency repairs. The (agency) will supply gas and electric u t ilities and t"'Sh pick-up. T he Contractor shall maintai n equipmen t used by the Con tractor during vehicle maintenance such as: overhead doors, compressors. li fts bus washers, e tc. The Contracto r shall be responsi ble for interiOr housekeeping, jan i torial maintenance. and suppl ie s such a.s light bulbs. Grounds mainttn ance such as mowing and snow removal shal l be performed by the Contractor Th e Contractor shal l comply wi t h the (agency) standard for interior clima t e c ontro l which is degrees F min im um i n t he surnmer and degrees F maximum in the winter. Not<: !/the agency is leasing the facility to the Contractor a complete description of the facility should be provided. The description should include the number of bays, the sqUAre foouge of office space, description of tbt mechanics lounge an d other related facilities, inventor)' storage space) and equipme nt located in the facilit)'. Also,fo .cilic.ies for the storage of vebicles waitin g to be repaired or u."aiting lObe retumed to ser-.J:'ce should be d el4iled. In the case where the Contractor issupp l ying the l3ciliry. the 3gency should set min i mum requirements for the number of bays the f acility should have, the cype of equipment ne c essary, and sp e c i f i cations for s t oring veh icles. 1.3 SECURITY The Con trac::tor may change the l ocks on any or all of the faci l i ties and equipment lease d for t h e dura tion of the Contract. A dup l icate key for all re-keye d l oc ks shall be provi ded t o th e (agency)'s Divisio n of Equipment Maintenance head (name and tit l e of th e appropriate co ntact). S uch keys shall be identified by ugs(or o t her method). Note: 1/tbe Contract 'U/ere to include mainten&nceon otber municipal automobiles such as police cars, the agency should include risk man4gement securi ty procedures for handl ing these vehides. 2.0 PREVENTIVE MAINTE NAN CE 2.1 DEFINITION A preven t ive maintenance (PM) program shall b e established for all vehicles and equipment that are the r e sponsib i lity o f t h e Contractor (sec equipment list as detailed in Attachment A). The PM program shall b e designe d i n accordance with terms and condit i on s tO comply w ith the orig inal equipment manufacturers (OEM) specif ications, warrantie s and recommenda t ions The PM work p erformed generaBy wiH be as foll ows, but is subject t o change as required or sugges t ed by the Contractor and approved by (agency): Note : The agency sbould lis: its pre-u-emiw ma intenance p1'0gram specifications as follows (ether here or as an appendix tO Lhe RFP}: Appendi x B : Sample Service Specifications 121 ----------

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122 Appendix 8 a. perform the following items every (number) miles b perform the following items every (num b er) miles c. perform the following items every (number) miles d. wy a dditio nal items speci fic to i ndividual vehicles or vehicle types Or, if the a gency has not established a PM program, request that the Contractor propose a PM program as part of Section 5.0 Service Description. The Contractor 3t its sole cost and expense shall provide all fueiJ lubricants. parts, supplies, l:1bor, and major components for repairs, cleaning, maintenance, component rebuilding, road service . and towmg. The Contractor shall be full y responsible for !he ,afe ""d effi6ent maintenance of all v ehicles and associated equipment. The Contractor's duty and responsibility, tO maintain aH vehi cles and e quipment, is not dcJegatable to any other person . firm, or corporation without prior approval by the (agency). All parts, materials, tires, lubr ican ts, fluids, oils, and procedures used by the Contractor (or an authorized subcontracto r ) on all (agency) bus es wd vehicles shall meet or exceed OEM speci fi cations and requirements a.slisted (above or in an attachment). The Contractor shall address the following in me<:ting the PM parameters: a All components of the bus bodies, accessories, chassis, and any additiona ] equipment Otl the vehicles (e.g. lifts, radios) shall b e mainta i ned in a safe, sound and undamaged condition at all t imes. Repairs (including body, glass, and all bus appurtenances) shal l be made within (numbe r ) days of occurr e nce unless the defect would effe<:t safety or passenger comfort, or have a significant effect on appearance. Any repairs that would effect safety or passenger comfort shall be made before the v e hicle is used i n reve nue $er\'ICC. b. Heating and airconditioning (A/C) systems shal l be maintained to ensure that the passenger compartment is comfortably maintained under all climatic conditions at all times on all service runs. The shall maintain the A/C systems in a state of operating condition at all times. Note: 7be agency may want to indude maximum and minimum temperature a s a definition of .. comfortably mAintAined ., c. d. All mechanical, electrical, fluid air, and/ or hydraulic systems shall be maintained i n a safe and working condition at all times. Seats shal l be maintained in proper opera t ing condition at all times All tears, gum, graffit i and other damage shall be repaired in a professional manner within (number) days of the occurrence. The Contractor shall replace seat covers which are worn or cannot be professionally repaired, usi ng materials which arc iden tical in design and color to those materials being replaced. Appendix 8: Sample Service Specifications

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Appendix B 2.2 FLEET ASSESSMENT In conjunction with the initia l PM on each vehicle. the Contractor shall3.Ssess the condition of each vehicle and identify any vehicle not meeting the fleet standard. Any vehicles requiring sign i ficant repairs defined by the ogency os (??) shall be reponed t o (ogency) for opproval prior to making the requi red repairs. Note: Procedures to deal wit.h t.he CO"' of repairing any vehides in condition need to be deuziled. SpecifiCAlly, will the agency assume for any and all major repairs based on an initial fleet anessment, will those repairs be included in the contraClt o r will eacb situation be negoll4tcd. 2.3 SCHEDULING Preventive maintenance activities shill interfere minimally with normal (agency) work activities. Therefore, prevent iv e main tenanceshall be targeted for mid-day when peak vehicles are not in use, for the s e cond shift, [ r mmuaHy ;.greed upon by the Contracto r (ap-propriate agency contact). Spare veh idcs shall be rotated through the fleet t o allow for preven t ive maintenance during peak service hours. The Contractor shall develop wd provide to the {appropriate agency contact) a list of vehicles schedule d for PMs with sufficient lead time that the {approp. agency contact) can give the driver (num b er) working days notice The (approp. agency contact) will be respon sible for all contact wit h (ogency) employees regarding vehicle PM scheduling and repairs other th>n fueling and cleaning. Nore: This RFP assumes th4t tbe focility (garage) is locared at the agency's vehicle storage site. If t.his is not the case, the procedures for moving vehicles from the garage :o the vehicle storage area should he des<:ribed here. 2.4 PERFORMANCE The tim ely performance o preven t ive mai ntenance, defined as completion within (number) bus iness days of the date t he PM i s due, is incumbent upon the Con t ractor for all fleet veh icle s. The Contrac tor shall schedule and perform the requi red maintcmancc without initiation b y any other parry. The Contractor shall i nclude in the proposal a descrip t i on of the proposed progrnm to identify w h i ch veh icles are due for P}\1s an d tO ensure that PMs are performed in a timdy m;mner 3.0 REPAIRS 3.1 DEFINITION Necessary repairs that are identified through preventive maintenance a ctivities or by drivers ( users) shaH be made by the req uired, limitin g che nature and the extent o repairs to those necessary and reasonable. 3.2 LIMITATIONS Repa.irs estimated tO exceed $(amount) must be evaluated by the Contractor to determine the repa ir>s cost effect i veness and a repair request {induding the cost effectiveness analysis} must be submjtted ln writing to be approved by (approp. agency contact) When equipment replacement appears t o be more Appendix 8: Sample Service Specifications 123 .. ---------------

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124 Appendi x B COSt effective than repair, such rccommcnc:btion shall be presented in writing, by the Contractor to the ( appr op. agency contact ) 3.3 ROAD CALLS The Contrac tor shal l provi de emergency road service calls including t owings e rvicelorvehiclc s in th e (agency)'s fleet. T h e Contra ctor shall tow any (agency) own e d or leased vehicle requiring this service, regardless o f w hether or not the cause is an authorju d repair or another incident. For eq u i pment wh i c h cannot be brough t into the garoge lor repai r, the Contrac tor s hall provid e mob il e servi c e t o repair t his equi pment on loc-ation. 3.4 WASHING AND CLEANIN G Every vehicle must be cleaned daily, as weU as upon co mpletion of e v ery PM and repair (before being retu rned to service ) Dail y cleaning .,ill consist of the following: Washing the bus wheds and fuel f.U area Cleaning the interior an d exterior surfaces of all w indows Dusting all seats, dash boards, whee l wells, S w eepin g all floor areas Removing any tras h and l itter Wash ing and scrubbing th e rear exter i or of the bus Every (number) days or ( number) ntiles (which ever comes first) t h e bus int e rior shall be completdy cleaned This shal l include: Wash in g ceilings, sidewalls, and win
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Appendix B -warrant}"Ulork, payments and adjustmtmc.s received by Contractor/or warr1mtywork shall be to the (agency)'s account. 3.6 RE-REPAIR The Contrac to r shall track and ident ify re repair vehicles and shall not include in the monthly statement any costs for re-repairs occurring Jess than the scheduled t i me after' the original repair without prior approval from the (agency). The schedule for rerepairs is as follows: Note: Theagent:yshould list iu. prt$ent sumdardsfortbemir:imum number of miles that a repair is expected to last. if rheagttJC)has no appropriate standards, it should require that the Contra-ctor propose stAndards, and include these standards in Section S.O of the pYoposa/, Service Dacription 3.7 Ol!TSIOE REPAIRS The Contractor shall be responsible for arranging and managing the conduct of outside repairs which cannot be performed economically in-house. The Contractor shall be responsib l e for compasing the cost of specific outside re pairs with the costs of perfo rming the same work in-house:, considering the quality of work as v.ell. These outside repairs may include bodywo r k and pain t ing glass replacement, trans,mjssion seal i ng md repair, radiator work. alld other "90'ork that can res ult in a cost savings to the (agency). The Contractor's plan f or utilizing outside repair facilities shall be sta ted in the proposal. The shall h;tve :approval ov er any proposed change s to this pl:m after the contract is signed. The plan shall be periodically and informally reviewed by the Contractor to ensure that the outside repair ve. rsus in house repair dedsio n remains justifie d. AU respon sibi li ty, paperwork, jnvoicing qua l ity co ntrol, vehicle movement. vehicle secur i ty. etc., will be the respo ns ibilicy of t he Contra ctor. Subcontractor invo ices will be accepted and paid solely by the Contractor . 1.8 VEHICLE PREPARATION The Contractor shall prepare newly acquired v eh i cles for service. P r eparation shall include inspections> cleaning, and coor d inati o n of radio i nstallation with th e (agen cy)'s radio contractor Gf applicoble). Vehicles to be sold shall be prepared for disposal by the Contr.ctor. Preparation shal l include removal o f tags, decals, and special equipment, and comp l etion of required paperwork. 3.9 ACCIDENTS The Con t ractor shall be responsible for the processing of accident repairs covered by insurance. The Contractor's responsib ilities shall include appr3.isals, obtaining at least three repair bids (including th e Contractor's own bid, if applicable), tran sportati on of the vehicle to and from the repair site, repair quality and timeliness and administration includ i ng payment of invoices. Appendix B: Sample Service Specifications 125

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Appendix B 4.0 PARTS 4.1 PARTS S UPPLY The Contractor shall procure, stock, and furnish aU parts andsupplles r equired to maintain and repair the (agency)' svehicles and equipment. Any Comractor-insta.ll e d parts shall meet 0 EM specifications The (agen c y) shal. l specific all y approve product l ines (other than t hose currently be ing used by t he agency) before i ntroduction into the parts supply inventory. Partsinstal1edon v ehicles and equipment shall be identifi ed by part number and cost on the work order for the appropriate assignment. The list of current product line s is i ncluded as Appendix (??) t o t his proposal. Noce: The agency ind11de a list ofiu cuYYent lines if it includa the stacemenc abtn.:e that all n<'W products must be approved. 4.2 INVENTORY The Contractor shall purc h ase, at cost, (amount) of the (agency)'s active parts andsu pplies. A complete p h ysica l inventory will betaken by representa tive s of the (agency) and the Conmctor at the beginning ofthecontract. Upon completion of the inventory, the Contractor will b e tot:illy responsible fo r parts accountability and securi ty. A compute rized system shall b e used t o moni to r and control the p:arts in ventory This system shall be capable of generating a complete on-h and report by part numb er, an average coSt per part, usoge rate hiStory for each part normally stocked, and a l ist i ng of parts on order or to be order ed. Note : If the tzgency cun-ently utilize5 sucb a tyJttm, it can make tbe sys tem availa ble t o the Comractor. The (agency) reserves the right to purchase from the Contractor, at cost, all or any portion of t h e pans inventory on hand upon comp1etion or termination of the Contr.1ct. 5.0 REPORTING 126 5.1 RECORDS The Contractor shill provide the (agen cy}'s authorize d representatives access at al l reasona b le t imes to all computerized and hard dau, books, records, correspondence, lnstructions, pl:ms, drawings, receipts, vouche rs, and memoranda penain in g to wor k under the Contract for the purpose of audi t ing and verifyingcosu and qu ality of the work, upon (3.mount of titne) notice to the Contractor 's Project Manager. 5.2 FILES Th e Contractor shall maintain a complete fil e of service manuals, service bulletins,lubtication charts and other such inform>tion needed tO properly service and repair the ( age ncy)'s Oeet. A hud copy history folder shall be maintained by the Contractor for each (agency) vehicle Thisfolderwill co ntain, i n chronological order, al l work orders generat e d for that particular vehicle. The f o lde r shall also contain the vehicl e 's make, model, year, s erial number, (3gency) fleet number, license n umber, unit repair information. preventive maintenance i nspection repons. daily bus condition repons, work orders, failu re/r oad call in!orm3tion, along with any invoice i n formation. The agency wi1t transfe r Appendix B: Sample Service Specifications

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Appendix B to t he Contractor at the start of the cont r act existing repair re<:ords for each vehicle At c ontract completion, the Contractor will transfer all up-to.cJate vehicle history folders to the (agency) 5.3 MONTHLYREPORTS The Contractor shall collect and submit to the (agency) the o perating data for monthly analysis. The format of the Contractor 's reportS shall be subject tO a p proval from the (agency). Such dna shall include, but not be l imi ted to: 1. Summary of vehicle-s unavailable each da)', and cause of the unavailability 2. Sunu n ary of road cal1s, missed and accidents 3. Summary of vehicles in revenue service w ithout functioning air cond l t i oniog/heat ing. :md c ause of the failure 4. Vehicle cleaning summary (actual vs. schedu led) 5. Vehicle mileage (month, yearto.cJate, vehicle total ) 6. Fuel and oi l consumption (miles per uni t ) 7 PMs and repair service (actual vs. schedu led) 8. Road calls, i ncluding malfunction descrip tio n Records of all maintenance and inspections shall be kept and made available to the (agency), and/ or other regulatory agencies with juri sd iction, whe n request e d. T o ensure complianc e with the requirements outlined herein, the (agency) maintains the r ight to inspect, exami ne, and test ;at any reasonab l e time any equipme.nt used in the performance of this contract (agency) lnsp ections sholl not relieve the Contractor of the obliga t ion to continually monitorthecondicion of vehicles and equipment and to identify and correct all substanda rd or unsafe conditions immediately upon discovery 5.4 ANNUAL REPORT The Contractor shall provide the (agency) with an annual written report cenilying the description, serial number, cost and date of purchase o f any equipment or vehicles purchased under the contract and. i n a like manner for any equipment or vehicles traded, sold, or other wise disposed oL The annual report shall a ls o contai1t a summary of the year's activ i t y in the same format as the Monthly Repon. 5.5 INVOICES The (agency) will occept invoices no more fr e quently than ( number ) per m onth to inclu de only work performed in a (time period). Invoices shall besu bmine d in triplicate to the (name appropriate p erson). The (agency) shall notify the Controctor in wr i t ing w i thin (number) days of receipt of t h e invoice of any items questioned an d will remit payment to the Contractor within ( number} days The Contractor s hall prepar e verification data for the amoum cl aimed and provide compl ete cooperation d uring i nves-tigation of any areas in the invoice subject to question. Copies of the appropriate invoice s hall be provided for all reimbursable it ems i n the Contractor's invoice to the (agency). Appendix B : Sample Service Specifications 127

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Appendix B The agency may choose to withhold a small percent of the to tal fee included on each invoice until the dose-out of the contract is C<>mpleted. A t the end of each Contract year, the agency may release all or ;a ponion of the retainage for good performance. This may be done in l ieu of requiring a performance bond (see paragraph 10.2). IV. PROJECT TERMS AND CONDITIONS 3.0 MANAGEMENT AND STAFFING 128 3.1 GENERAL The Contractor shall provide all management, supervision, mechanics. maintenance derks, cleaners, and service workers necessary to responsibl y mai.main. repair, d ean, fuel, and lub ricat e th e (agency)>s vehicles. PROJECT MANAGER The Contractor shall provide a qualified Project Manager with at least (number ) years of progressive l y responsib l e experience in maintenance management and supervision to a'tt as liaiso n between the Contracto r and the (agen<')') . 3.3 STAFFING QUALIFICATIONS The Con tract or shall employ highly qualified and trained personne l to provide service to the agency's fleet The Con t ractor shal l include in the proposal an emp loyee training and improvement program that recognizes t h e merits of ASE {Automotiv e Service Excellence training) and vehicle and e quipm ent manufacturers' training opportunities as they apply to the (agency)'s fleet maintenance and repair. Maintenance personnel assigned to work on (agency) owned vehide.s sball have a t horough knowledge of the f ollowing: a (V ehide description) engines, transmissions and related mechan.ica1 pans b. (Vehicle description) chassis and bodies c. Tools. precis-ion instruments, equipment, :md p r ocedures used in the genera l repai r and maintenance o f (vehicle description) equipment d Specializ ed areas such as reupholSteri n g, relining brakes p ainting, and repairing a ir conditioning units and wheelchair lifts e. Met hods a.nd procedures used in serv ici ng m.ccha.oica1 equipment. 3.4 KEY STAFF Attach resumes of key staff to be assigned to this contract. I n clude, at a minimum, resumes of the o n site matJ.ager, contract manager and any consulting staff. Provide at least 3 references for the on-sight manager (name, title, organization, telephone num ber}. Label these documents .,3.4 -Key Staff ... Appendix B: Sample Service Specifications

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Appendix B 3.5 QUALITY ASSURANCE The: Contractor sha11 furnish the (agency)'sauthorizc:d represe n tativ e w ith every rcasonableoppottu nity for determining whether or not wor k is be ing performed in accord .a11ce with the requirements of the contract. The (agency) shaU appoint qualified person s to inspect the Contractors operations an d equipme n t, and the Contnctor shall permit these-authorized represent :ali ves to make such inspections at a reasonab l e time and p l ace Nore: If the agenncy has an')' specific st.Rndards for hi n'ng and raining mechanics, include these standards a s appendix t o this RFP and refe>-ence them he>-e. 4.0 FACILITIES Please provide address(es) and phy sical description (s) o f the f acility(ies) respondent plans t o u tilize (or provision o f this service. Include adm inistr-ative, mainten wce an d fuel i ng facil itie .s, and state whe t her these are ov.ned, leased or s ubcont racte d for thi s offering. A lso desc ri be any other services for whjch the lacili tyQes) will be used d u r ing th is contract Note: If th e agtn')' is providing all/acilities, do not itzdwde this secti-On, or modify cbis section c o only request infonnatio n on a dministrative offi ces/focilities. 5 0 SERVJCE DESCRIPTION Use this section to provide a detailed de-scription of hO'O.' } 'Our firm proposes t o provid e the service oudin e d i n th i s RFP The d escrip t ion should demonstrate your understanding of the program .,detai. led in this RFP. Additio nally) any minimum requirements which you propose to exceed> and / or services you wot1l d provide w h i ch are not specifical ly request e d her ein, shou ld be descri bed. Include any p r oposed P M and ReRepair schedu les h ere, as well as your p lan for use of ou tside repair faciJities. Use additional. pages as necessary. an d label t hese pages 5 .0 Service Description." 6 0 TRANSITION PLAN Describe your f irm's propos e d strategy and sche d ule for a s suming respons ibi l ity for the provisio n o f the (agency)smalntenancescrviccs Empha sis shou ld b e o n a timely, thorough transit i on plan and t h e assur-ance of serv ice quant it}' quality and eff j c i ency. D escri b e how any t ransi t ion perjod from the present service will be ccomplished. Note: Anycxi.,ing agency plans for the transition ofser "ice should be described a s an attachment co the RFP and the time lin e for the transition should be included in Section IV, paragraph 3.0. Appendi x 8 : Sample Service Specifications 129 ---------

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Appendix B 7.0 PRICE BID AND COSTING INFORMATION 130 The proposal shall include the Contr>cto r' s complete annual cost proposal for a (num ber)ye>r contract with a (number)year renewal option. Note: The agency must dttennine which compensation opti
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Appendix C SAMPLE CONTRACT Appendix C: Sam p l e Contract 137

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Appendix C A Generic CONTRACTUAL DOCUMENT for the Procurement of Transit Services 7/,iJ ump/t contract is nprinud wilh permission ftom lht PHblic Priwte Transportation Network (PFTN) 7ht Strflict sptdfoation is omitud ina wmple specifiatiom ""' provitkJ in C 7ht gtnmc conrractH.rl clocHment for lht prOCHrtmtnt of transit Strflias tUIJrtsSe< the dements considntd asmrial to lht dMopmtnt of a thorough contractHotl agrttment While tht clocHmmt is oriented UYU:drd tht optration of a para transit wrvict, with only light 17UKiifi<:4tion it can modtla fiJt
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AppendixC Contract# ______ ___ --------'19 MASTER AGREEMENT WHEREAS, the hereinafter called __ ," as a l ocal public tran sit operator, has deter mined that it is in the best interest of the and its r id ing public to utilize private sector transp ortation to provide ---------transportation servlees; :m.d WHEREAS to implement the program, specifications were developed and bids w ere solicited from p r i v a te operators interested in providing suc h transportation services, and in response to such solicitation of bids, --,..,---------------has been seleeted to en ter into a contract with the to provide transportation services as hereinafter set forth. NOW THEREFORE, the p arties hereto intending to he legally bound agree and covenant as follows: I Basic Agreement (Name of vendor providing transportation) hereinafter called "'Contractor." hereby covenants and agree.s to perform certain transportation services as hereinafter described, for the be nefit o f the _ and in consideration thereof, the_ agrees to provide a subsidy to the Contractor in accordance with the terms and conditions se t forth herein These services shall be known as ," and shall operate for a period of years with_ renewable extensions of_ year(s) each. This contract shall commence on 1 9 1.1 Eligibility Participation in this program is restricted to The criteria for certificati on presently is -----....,--,....,-The is responsible for certifying r i dersforthis program. The agency reserves the right to expand or reduce the number of certified riders and to modify the method(s) and standard(s) used for certification Each certified rider is l isted in the agency's client file and the agency w ill pay only for trips made by these riders. 1.2 1 Hours of Service The s ervice will beoperatedrom a m to_ p m on the following days: --=------"7" Service wa l not be prov i ded on the following days: The agency reserves the right to change the hours o service with 30 days written notice to the Contractor 1.2.2 Maximum rude Time The maximum invehicle ride time for clients is minutes No m ore tha n percent of the contractor's trips may exceed this limit. The agency will not pay Contractor for those over minutes beyond the_ percent limit. 1.3 Service The service orca incl udes the--------Appendix C: Sample Contract 141

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142 Appendix C 1.4 Trip Limits and Trip Authorizations (Insert the agenntractor and muSt be deducted f rom the receivables (billing Statements) submined by Contractor to the agen
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AppendixC Riders must be informed of their pickup tim e wh en they call to reserve a trip ; the pickup time shal l he guaranteed within a minute window If the trip must be rescheduled (not at the rider's request), the Contractor must call the rider not less than hours in advance of that pickup time. The Contractor will not call riders before_ a.m. nor after p.m for this purpose. If the Conmctor cannot contract the rider, the trip may not be rescheduled. 1.10 Late Cancella tions and No Shows A lat e cancellation is any cancellation rec eived by the Cootracoor w ith less than_ hour> notice of t he scheduled pickup Time adjust. meots to the schedule to >ecommodate medical and social services appointments arc oot late c ancellations. A rider is considered a no show if the rider fails to r es p on d for a pickup within minutes of the scheduled pic kup time. The agency will (will not} reimburse the contractor in any way for no shows and cancel l ations. Insert clien t no-show poli c y ; for example noshow s will result in a fine of S _, or service will be discontinued for_ days. 1.11 Trip Ticket Each trip will require the signature on the trip ticket of both the rider and the driver The times to he recorded by the driver for each trip are: (I) time of arrival at pi ckup, and (2) time of anival at destination. Trip tickets are to he signed by the rider For riders wh o C>.nnot sign a trip ticket, the driver s hall note in the space for the rider' s signatu re that the rider is unable to sign. No o n e but the rid er may sign hi s / her name on the "ip ti c ket 1.12 Trip Ticket Mileage The mileage of each trip (Startin g and ending or total) mun also he recorded on the driver's trip tick
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144 AppendixC Failure to post trip tickets in accordance with the above schedule will result in$ __ per ticket penalty. The computer generated reservation tickets must be stapled to the drivers ticket when returned. All void, cancelled and no show computer gen erated tickets must also be returned. 1 .14 Attendants Each progn.m participant will be allowed one attendant. The Contractor shall collect$ cash, or current _fare. The agency will not reimburse the Contractor for any other expenses related t o t ransponation of an attendant and may alter the fare policy Contractor can, at its discretion, elect to carry more than one attendant, friends and/ or family of the rider at a charge of S _or current fare per ride. Attendants must be picked up and dropped off at the location where the rider boards and alights. The Contractor i s not required to provide an attendant for program prticipants. 1.15 Passenger Assistanoe The Contractor is required to use the highest degree of care in the operation of equipment and assistance of riders. Each of the Contractor's drivers must assist passengers (but are not required to carry passengers) up or down at least step(s) of any dwelling or building, to/from the vehicle and boarding and alighting from the vehicle. In addition, the Contr-actor-'s drivers arc required to assist passengers by carrying up to_ bags of groceries/parcels between the vehicle and the entranceway of the place of origin o r destination. Each of the ContractOr's drivers are required to have the safety bel ts for each passenger fastened. 1 .16 Smoking/Expectorating/Eating/Drinking Smoking, expectorating, eating, and consumption of alcohol i c beverages by drivers or passengers while on board any vehicle engaged in performing service for the agency is not permitted. Rude offensive, and abusive language or behavior is also prohibited. Driving whil e under the influence of drugs and/ or alcohol is strictly forb idden The agency wiD exclude any driver from this program who is found to be driving while under the influence of drugs and/or alcohol and may, if it so choo ses exclude any driver whose personal behavior violates the smoking, eating, drinking, and expectorating ptOVlSJOQS, 1.17 GroupTrips Program participants who wis h to travel as a group between one point of origin and destination, returning to the point of origin m a y arrange suc h trips through and with the prior approval of the agency. All such requests received by the Contractor must be referred to the agency. The agency will see k a separate bid from the Contractor in such instances of group travel and will base its payments tot he Contractor accordingly. The agency may, if it so desires, contract with another entity for group trip service if similar service can be obtained at a lower cost. 1.18 Inclement Weather Policy In the event th:at weather conditions are such that service must be temporarily suspended to ensure the safety of riders and drivers, the Contractor shall immediately notify the agency to that effect The Contractor shall assume responsibility for making a best faith attempt to contact any users who may be at intermediate destinations (awaiting trans port home) and shall endeavor to provide such transport if safety and prudence permit. Appendix C: Sample Contract

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AppendlxC ll. ADM I NISTRA TION U.t B illi n g The Contracto r shall bill t he4gernymonthly for the number of tri p s prov i ded hereunder An invoice io rhe amoun t of70% of t he eStimated monthly bill shall be rendered o n o r a bout t h e first business day of each mo nth w ith a second invoice 10 he submitted pro mptl y after t he c o m p le t ion of e>eh month s service for t he balance o r c redit due. Follow ing preliminary verification o f 'he invoice. t h e tfgency will pay the C o n trac t o r within-,.;--;; days f r o m the date of submission. The agmcy may, at any time, c o nduct an audit o f any and/or all records k ept b y Contractor for t his service. Any overpay ment un c overed i n such an audit moy he chrged against t h e C o n t r acto r 's future invoices. The agmcy ma y withhold p a yment for services it belicve.s were failed t o meet Krvice specificatiOn$ o r are otherwi5C question a ble. Contractor ..,iJI not bill or he paid f or unserved trips. Contractor's bill shall he based upon the number of authorized trip completed u verified by passenger trip tickets. 11. 1.1 T e rrru o f Com pen sa tio n The agmcyshall p a y t o the Contractortbeamount of S per All program panicipants and anendants shall p ay the Contractor the current __ a du l t fare for a one way trip. This shall be d e d u cted from the amoun ts paid by the agmcy f o r s ervices rendered u nder this contract. Adj u stm e n t to the compensation described above shall be made upon verificatio n of service provided and p erormed in accordill1c e ll.'itb the terms and conditions of chis contract as noted else where in the agreement. 11.1.2 Submiss ion of Invoices Invoices for p a ymen t s hall b e so mark ed, prepared in triplieat e include a r eference to this contract number, and shall be consecutively numbered and (orwuded to: Insert b i lling add.sess and accompanied by any required reports. The Conuactor will invoice the agency on a monthly basis. Invoices muSt be accompanied by an item.iud list of trips to include client i .d. number, name, date times, and addresses. The agency will pay the Cont ractor within 30 days of receipt of 'he invoice. 11. 2 Record s a. Fi nancial and Perfonnance Data The Cont r 3 c t o r is required to keep s eparate w rinen and perf ormance r ecords for che agency progra m Th e Contractor will s u bmit quanerl y financial repons t o the agency using a standordiud financial reporting f ormat. Records must be available for inspect ion by che agmcy or an agmey appr ov ed agem at all timu upon reasonable nocification b y the 4gency. Appendi x C: Sample Contract 145

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146 AppendlxC b. Reporting Format The Contractor will be responsible for properly mainuining separate records and summaries for this service as deemed necessary by the agency. The following are the types of information which the agency requires the Contractor t o mainiain. Nou: Not all informatum lisud below will be necessary for all services. Care should be taken to not overburden theContractorwith information which wiU beoflittle ifanyvalue to the admini5tering agency. Monthly Passenger count b y ju risdiction Odometer readings of agency vehicles Condition of e'21ch agency vehicle Trip by Trip Records Trip origin street num ber, address and zip code Trip destination street number, address and z.ip code Specific trip purpose employment, medical therapy, education, social/recreation, personal/ shopping (non-food), shopping (food), nutrition, other Clock time, vehicle odometer r eading and on-board passenger count of: origin pickup, destina tion delivery, return pickup, return delivery Status of passengereld e rly handicapped, ambulatory, non -ambulatory Date and day of Service Monthly management report-sums number of unduplicated passengers served, one-way trips hours available for service, vehicle hours and miles, accidents per mile, complaints per mile, etc. In addition to reporting base data, the Contractor shall submit a detailed monthly report encompassing the following: accomplishments & goalsadmininration, transportation, maintenance existing and anticip:ited problems, with recommended solutions historical record of riders, miles and costs by month histo r ical record of accident and roadcall mileage intervals complete explanation of all accidentS, incidentS and unusual events FT AI 4gtncy reports Maintenance records vehicle number, dates and types of service, warr anty work, e t c Annual FT A Section 15 report The Contractor will be responsible for supplying to the 4genry, i n a timely fashion, any information required to complete this FT A report. c. Turndowns The Contractor is required to daily record turndowns of trip requeStS. This information is to be recorded in accordan.ce with agency procedures. The agency may require the Contractor to forward this trip turndown/denial recording on as many as five days a month. This information is being requested for planning and budgeting purposes. Appendix C: Sample Contract

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Appendix C d. Driver Registration Thi: Contractor is required to present all the documentation outlined in Section lli. 4.Driver Training and Section Il.4. 1 Minimum Driver St:mdard/Drug Screen/Annual P hysical Ex:unination to the agenC')' prior to any driver being authorized and registered tO carry any passenger s in this program. The agency will only reimburse the Contractor for trips performed b y registered drivers. The Contractor is required to inform and return the driver's J.D card to the agency within hour s whenever drivers are terminated or are no longer a pan o f the i r work f orce for this program. e Driver Information Each contractor shall furnish semi-annual rep ortS from the State Division o f Motor Vehicles on the driving record o f each driver The Contractor will also be required to promptly notify the agency i n writing i f a driver is cited for a moving violation or any other traffic or criminal off ense f. F alsification of Records There will be aS penalty per occurrence applied for falsifi ca tion of any records submitted to t he agency o r kept by the Contractor (as required by the contract) The agency may terminat e the contract in :additi on to imposing the p enalty. g. Drug Screen Required for Accident or Impaired Condition A blood and urine drug screen according to uniform stand a rds adop t ed by the State Department of Public Health and by a l aboratory possessing a valid permit issued by that Departme n t for this purp ose shall be given withi n 30 minutes to each employee involved in any accident when a program p articipant is onboardat t he time o f the accident or believed to be impaired by a good faith be l ief based upon an objectionable and reasonab le bas is. Resu lts of the drug screen shall be s ubmitted to agency The substances being tested are those listed with t he State of Any employee who fails to submit to t h e test or to pass the test will be e xcluded f rom this program. h. Audit of Records T h e agency and USDOT, or theirdesignee(s) may perform audits at any time of the books records and accounts of the Contractor. The Contractor agrees to preserve, and to cause any to pre-serve and make available, for a p eriod of three years after the com pl etion of a contract, any and all financial operations, administrative and maintenance records pertaining to this contract.. 11.3 Application Solicitation The Contractor is not allowed to solic it or distribute a pplicatio ns for r egistra tion to thi s program. Requests for application information should b e referred t o the agency. 11.4 Photo Identification Cards for Riders Drivers are required t o inspect t h e photo idtnt ification eligibility cards of all riders o n each trip. Append ix C: Sample Contract 147

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Appendix C 11.4. t Ineligible Clients If a driver observes or suspects that a client does not meet the eligibility criteria, the Contractor must report this to the agency. 11.4.2 Display of Driver !.D. Each approved d river will be issued a numbered photo identification card by the agenry. Drivers arc required to prominently display their photo identification card, in dear view, on board the vehicle they are driving at all times. The Contractor is required to submit to the agency a passport type photo of each driver for the identification card 11.5 Complaints The Contractor is required to respond orally or in writing to all rider complaints received from the agency or registered participants. The Contractor is required to notify the agency o( the corrective action that was taken to insure that this complaint will not r e occur. All written responses must be signed or cosigned by the person a complaint is againSt. If the agency requests a written response to a complaint the Contractor must respond in writing within_ calendar days. The agency will not ask the Contractor to investigate comp l aints by the rider about on-time performance when the actual pickup and/ or dropoff time for demand/response trips is reported to be_ or less minutes from the scheduled time The agency will not ask the Contractor to investigate com plaints by riders about on time p erformance for subscription trips when the actual pickup and/ or dropoff time is reported to be_ or less minutes from the scheduled time. 11.6 Confidentiality of Client Infonnation Any and all i nformation regarding any individual person served by the agency isstricdy confidential. ltshall not be released to any party in any f orm without the authorization of the indiv idual and/ or, as the case may be, the agency sponsoring the individual's transportation. 11.7 Advertising All advertising by Contractor about the agency's program must be submitted to the agency f or review and written permission to proceed must be receive d prior to distribution to the general public. The agency may not unreasonably withhold permission to advertise. 111. PERSONNEL 148 III.! Personnel The Contractorshall be solely responsible forthe provision of and satisfactory work performance of all employees as described by the contract o r any reasonable performance standard established by the agency, and shall be solely r esponsible for payment of all employees and/ or subcontractors' wages and benefits Without any additional expense to the Agency, the Contractor shall comply wlth th e requirements of employee liability, worker's compensation, employment insurance and social security. The agency shall have the right to demand removal from the project for reasonable cause, Apperldix C: Sample Contract

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Appendix C any perso=d furnished by the Contractor. The Contractor shall not, absent prior written notice to, and consent by the agency, remove or re-assign any key management personnel identified in iu propo .. l (e.g. Project Ma112ger) at any time prior 1 0 or after execution of the contract. IU.2 Key Employee The Contractor must employ an indiv i dual whose major duties include the dircx:tion of services performed for the agency. This key employe e will be required to successfully complete all se n si t ivity training for both drivers and office personn el and all program office and automation training and m ust have dcci.sionmaking powers for the Contract or. The key employee will be required to attend s u c h m eeti ngs as ore required by the agency provided hours notice is given. If the key empl oyee i s unable to attend a given meeting, another pers o n ve sted with de<:isionmakin g powers must attend 111.3 Office Personnel and Procedures 111.4 The Contractor shall supply a sufficient number of employees to staff the office at all required ti.snff. 111.4.1 Drivers and Driver Training The Contractor shall supply a sufficient number of properly qualified personnel to operate the equipment and to provide the scrvic:es required. Priority of hiring must be given to employee s wh o ue currently providing this service. The drive r training program will consist of the following and is the fmancial responsibility of the Contractor and must be approved by the agency prior to certificatio n of any drivers for this program. Behind the wheel ( defensive driving) Minimum two days, including classroom instruction; Sensitivity training minimum one day classroom and o ne-half day "bands-on" including lift trauung; Red Cross First Aid certificate; Gtognphic familiarization training; At the discretion of the agency, other _ing such as CPR. and seizures may be required. The Contractor is responsible for ensuring that each driver is properly acquainted with t h e requirements of the program and his/her respon s ibilities as a driver. T he agency requires that driver recelve at least half of their defensive driver training and the portion of sensitivity training prior to providing any service in this program. All rem.i.ning driver training must be completed n o m o re than thirty (30) days after any g iven driver begins providing service. Rc!re sbe r training is required for all drivers on an annual basis. More frequent re-trai.ning may be as necessary. Upon succ..., ful completion of on authorized training program conducted by a certified inSiructor or presentation of certification of ac:<:eptable training by an independent ageney certified by Appendix C : Sample Contract 149

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Appendix C the agency, ea<:h driver will receive an identification card ..,ith the name andagencycenification number on it and become registered to provide service under this program. The I. D. mUSt be displayed in plain view to riders at all times when the dri ver is carrying_ riders. I d entific ation cards are to be returned to the agency when a driver leavesthe employ ofthe Contractor or is terminated f rom the program. III.4.2 Minimum Driver Stand:ards/Drug Screen/ Annual Physic21 Examination Prior to acceptance of a driver for this program a current motor vehicle report (MVR) from the Sccret:ary of State must be submitted to the agency and the following conditions must b e met by each operator participating in the program, w itho ut exception. All drivers must be properly licensed in the State of to provide this type of service and be at least 21 years of age. A written record from the State Motor Vehicles Department mUSt b e submitted to the agency twice annually for each driver. Drivers who do not meet the following minimum criteria may not participate in the program: no more than one moving violation for each year of the last five (5) years prior to application for this program; no more than two moving violations within the last 12 months; i f lice nse has ever been suspended, applicant mUSt have two full subsequent years with no violations j if license has eve r been revoked must have 5 subsequent years with no violations; under no condi tion will an applicant be accepted as a driver for this program if (I) he/she has been c onvicted of a felony, and/ or (2) has been conv icted of a drug or alcohol offense. lll.4.3 Proper Hygiene All operators in the prog ram must practice good hygiene, are r equired to be neat, clean, and well groomed and are responsible for the proper care and cleaning o f the garments they wear while on duty. (Does the service call for unifonned driven?} IV. COMPUTER EQUIPMENT 150 IV.! ComputerEquipment The agency agrees to furnish the Contractor, at t he agency's expense, all computer-related equipment and software necessary to perfonn the functions required by the agency to perform the servi ce. The agency will provide the Contractor with a minimum of_ t e rminal(s) and_ printer(s). T he agency wiU lease data trans.russion "line s for such purposes at the agency's e xpe nse, and provide training for a reasonable number of the Contractor'-s employees) on how to us e such equipment. All computer equipment is to be operated in accordance with manuf acturers recommendations/ specifications and agency instruct ions. The agency "Nill pay for maintenance o f computer equipment except in instances of contractor misuse or neglect of such equipment, as determined by t he repairman. IV.2 Trip Tickets Trip tickets and trip reservation forms will be supplied to the Contractor by the agency. Appendix C : Sample Contract

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AppendixC V. PERFORMANCE CRITERIA V.l OoTime Performance On-time performance is the measure of th e Contractor,s abi l ity to arrive at a reservation pick-up locati o n as scheduled Trips will be reimbursed based on the following Reward/Penalty System. {Insert. o n time peiforrrumce measures, if any.) V.2 No Shows The Contractor is required to complete a minimum of % of all trips scheduled and accepted. Tri p comp l etionisdefined as picking up anddeliveringa passenger within_ minutes of the scheduled tim e In cases when the vehicle was present within this stipulation but the pass enger was not available or ref used t o trave l t h a t trip is consid ered incomplete and no payment "'ill be made to the Contractor for attempted services. If the Contrac tor misses a p i ckup or return trip through no fault of the rider, a penalty of S _per occurrence shal l be assessed for all trips falling below the stated minimum The agency is required to make a re asonab l e effon to ascertain ill the facts in such a circumstance and can o nly assess a no show fine when the Contract or sends no vehicle to pick up the passenger within hour o f t he requested p i ckup time. This penalty will be waived if the operator makes a pickup on days where weather or special events pose a problem VI. VEHICLES, FACILITY AND MATERIALS VI.! Vehicles Vl.l. t C l ean Equipment All equipment used in the program must be kept dean and be cleaned regular l y. If _ i den t i fies a vehicle used in service t hat is not clean, the contractor shall immediately remove the vehicle from service if requested orally or in writing by the agency. VI.I.2 Radio Standard s The Contractor must provide two way radio communication equipment for every v e hicle to be used in provision of service f or t h e agency. The Contnctor is required to provide the agtTJC)' with i t s radi o frequency number(s} used to communicate/dispatch i ts v ehicles used under this contract Vl.l.3 Identification of Vehicles via Symbol Vehicles used in this program are required t o display a numbered,_ symbol supplied by the agency in addi t ion to wha t ever n u mbers and symbols they may disp lay for other services. Agency may fme a Contractor$ a day for every vehicle found in violation of this section and may terminate the contract i f any vehicle that the vendor uses for thi s Service does not display the aforementioned symbol. Appendix C: Sample Contract 151

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152 Appendix C VI.t.4 _______ LeasedVehicles In addition to terms and conditions described herein, the .. Vehicle Lease'" document defines the exac t nature of the relationship between the property,the lessee and the lessor. VI.I.4.1 Maintenance Those vehicles which the Contr.ctor leases from the agency shall be maintained, at a mini mum, according to the manufacturer's specific
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Appendix C VI. 1.4.6 Dmtage All damage to vehicles shall be repaired within days of occurrence in a high quality manner, regard less of cause. Vl.I.4.7 Spore Vehicles The Contractor is required to have. at their immediate disposal, at leas t _spare vehicle for every _operated Vehicles must be able to carry a minimum of __ persons, and maintained to the previously stated standards. It is the Contractor's responsibility to ensure t hat sufficient fleet v eh icles are available to meet service requirements. Any vehicles provided by the Contractor must be_ years old or less, and have incu rred f ewer than miles on its engine and transmissi on They shall be comparable in size and configur ation to vehicles. The following may be used in the event the agency wishes the Contractor to suppleme n t t he agency' s vehicle fleet for this serv ice and/ or for backup vehicles. VI.2 Contractor Supplied Vehicles VI.2 .1 Scope It is the inten t of these requirements that the Conmctor obtain and operate vehicles which will pro vide safe, dependable, and comfortable transportation for t he passenger. Therefore, these requ ir ements outline minimum vehicle requirements for vehicles used by the Contractor in the provisio n of tran spona t io n for this pr ogram. Requirements are as follows : VI.2.2 HeadRoom Ampl e head room shall be provided to accommodate tall (6'6 ")wheelchair passengers during entry and transpon. VI.2.3 Tie Downs Wheelchair tie down systems are subject to the inspection and approval of the agenc)'. No chains blocks wheel wells, or eye hooks should be used in the tie d ow n system VI.2.4 Lifts Lifts for passenger loading must be hydraulic, electric or a combination of the two and must be of the latest design similar to the Collins or Braun. All current safety features are to be incorporated: stop gate sensitive edge, manual contro l, handrail inter lo cks to prevent movc:ment and be operable only in neutral. The l ift used must have been tested and be capable of safely l ifting up to 1 000 pounds. If e lect ron ic lifts are utilized, they must also be capable of manual lowering and raising. If lift s ar e mounte d for entry through the rear doo r of a vehicle, the vehicle must have flashing ligh t signaling capability mounted near the r oo f l ine, to be used during loading and unloading. VI.2 S Age No vehicle can be more than model years old nor have morethan miles on its e ngine and transmission. Appendix C : Sample Contract 153

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154 Appendix C VI.2 .6 w aming Lights An audible alarm and external flashing light (hazard warning) shall be incorporated to alen passengers of lift operotion. The audible alarm is to sound only during lift motion. The hazard warning lights are to be illurojnated whenever power to the lift is turned on. VI.2.7 Wheelchair Accommodations Vehicles intended for servicing wheelchair users must be able to accommodate standard, electric, three wheelers (Amigo types), and recent model light alloy wheelchairs. The wheelchair capacity of any given vehicle is left to the distretion of the Contractor so long as sufficient vehicles are available to service the trip demands of wheelchair users who can and cannot transfer out of the wheelchair dur i ng the trip. VI 2.8 Wheelchir Tie Down & Sfety Belt Requirement A wheelchair tie down system must be in place in all vehicles used for wheelchair users who do not transfer out of the wheelchair during the trip. The tie.
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Appendix C VI.2.14 lrupections Requirernent/St2te of ___ Each velllcle must pass State of Department ofT ransponation inspection required for non emergency medical transportation del ivery pe .rmits. Current inspection stickers must be displayed by all vehicles. VI.2.15 Fire Extinguisher Each vehicle must carry a full portable fire extinguisher. VI.2.16 Color Scheme Each vehicle purchased by the Contractor after award of dus contrac t must con form to the color scheme used by the agency on its bus system. VI.2.!7 Transmission Requirements All velllclesshall be equipped with a heavy-duty automatic or manual transmission The transmission shall be properly mated with the engine furnished. Contro l s and internal pans shall be adequately designed and adjusted to provide smooth power shift accelerations wit h out damage, and to prevent output torque when the selector lever is in neutral position VI. 2.18 Air Conditioning The vehicle heating and air conditioning syStems shal l be designed to provide passenger comfort w i tllln t he vehicle. Both heated and air condi t ioned air shall be evenly diStributed in the vehicle interior Blowers shall be of sufficient size to evenl y distribute air without creating drafts or blowing excessively on the passengers. Any vehicle with an inopera bl e air conditioning or heating sysrem shall not be used f or service. Each vehicle must use their air conditioning and/ or heating system as weather conditions and passenger comfort dictate. The air conditioning must be in operable condition from 1 to ___ 1 every year. VI.2.19 Mirrors A fully adjustable mirror shall be installed on each exterior side of the velllcle. An interior rear view mirror shall be mounted ahead of and to the right of the operator's position t o provide a genera l view o f the inter i or o f t he vehicle. VI.2.20 Roof Strength The vehicle roof strength must be such that the likelihood of roof collapse in a rollover accident is minimized. VI.2 .2t Vehicle Retirement When a vehicle is sold, retired, or no longer used in the program, the agent:) must be notif i ed and the identific ation sticker must be returned to the agency. Appendix C: Sample Contract 155

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AppendixC VI.3. 1 Facilit ies Contractor shall provide suitable facilities with which to operate the service. Thi s includes maintenance and storage facilities. All furnishings, equipment and supp lies are the responsibility of the contractor. Vl.4.1 Fuels and Materials All fuels, lubricants pans, materials, etc. required for the performance of this cont ra ct shal l be suppl ied by the Contractor. except where otherwise noted in thjs contract. VII. INSURANCE AND BONDS 156 VII.! Insurance The Contractor shall be required t o carry insurance (and furnish proof thereof) to the follow ing minimum limits: I. Workman'sCompensation Coverage A Statutory 2. Comprehensive General Liability (Including contr actual liabil it y and i ndependen t contractors ) Bodily Injury Liability: Each Person$1,000,000.00 Each Accident$! ,000,000.00 Propeny Damage Liability: EachAccident$1,000,000.00 3. Automobile Liabiliry Bodi ly Injury Liability: Each Person$! ,000,000.00 EachAccidentS!,OOO,OOO.OO Property Damage Liability: Each Accident$1,000,000.00 or St;ooo,ooo.oo Combined Single Limit 4. Uninsured/UnderinsuredMotorist 5500,000.00 5 Collision and Comprehensive Declared value of fleet 6. M edical Payments Each Person$5,000.00 All deductible paymen t s ar e the responsibility of Contractor. The agency shall be named as additional insured on allliability policies The agency shall be included as a loss payee on physical damage policies covering vehicles leased by the agency to the Contractor. All accidents must be reported to the agency within 24 hours of the occurrence. Each policy of insurance shall contain the following clauses: "It is agreed that these policies shall no t be cancelled nor the coverage reduced until thirty (30) days aftertheagencyshall h ave received written notice of such cancellation or reduction by cen.ified mail." Appendi x C: Sample Contract

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Appendix C The contraCtor wlll provide the agencydocwnentation proving insurance coverage, in a form approved by the agency within 30days of notice of contract 3ward or 10days beforecommencingtranspon
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158 Appendix C Vlll.2 Di$Ciaimer of Liability The agency will not hold harmless or indellUlify the Contractor for any liab ility whatsoever. VIII.3 Hold Hannless The Contractor agrees to protect, defend, indemnify and bold the agency, its officers, employee s and agents free and harmless from and against any and all losses, pe nalties, damages, settlementS, costS, charges, professional foes or other expenses or liabilities of every kind and character arising out of or relating to any and all claims,liens, demands, obligations, actions, proceedings or causes of actio n of every kind and character in connection with or arising directly or indirectly out of this agreement and/ or the performanc e hereof. Without limiting the generality o f the f oregoing, any and all such claims, etc., rtlating to personal injury, infringement of any pat ent trademark, copyright (or application for any thereof) or of any other tangible or intangible p ersonal or property right, or actual or alleged violation of any o ther tangible or intangible personal or propeny rig ht, or actual or alleged violation of any applicable statute, ordinance) administrative order, rule or regulation, or decree of any court, shall be included in the indemnity hereunder. The Contractor further agrees to investigate, handle, respond to, provide defense for and defend any such claims, etc., at his/her sole expense and agrees to bear all oth e r costs and expenses relate d thereto, even if such claim is groun dless, false or fraudulent. VIII.4 Low Goverrung All contractual agreements shall be subject to, governed by, and construed according to the bws of the State of __ Vlll.5 Aoti-discrintination Clause The Contractor shall not in any way, directly or indirectly discrintinate againSt any person because of age, race, color, handicap, sex, national origin, or religious creed VIII.6 Subletting of Contract This contract shall not be sublet except with the written consent of the agency. No such consent shall be construed as malsing the agency a party to such subcontract, or subjecting the agency to liability of any kind to any subcontractor. No subcon t ract shall under any circumstances, relieve the Contractor of his liability and obligation under his contract, and all transacti ons w ith the agency muSt be through the General Contractor VIII.7 Licensing and Perntits The Contractor shall be appropriately licensed for the work required as a result o f the contra ct The cost for any required licenses or permitS shall be the responsibility of the Contractor The Contractor i s liable for any and all taxes due as a result of the contract Appen'dix C: Sample Contract

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Appendix C VUJ 8 Anignmentfrrarufer of Interests There shall be oo assignmentltra.nsfe.r of lnteresu or delegation of the Contractors rights, duties, or rtsponsibllities of C ontractor under this contract without the prior written approval of \he agmcy. VIIJ .9 Regulatory Requirements The Contractor shall comply with all Federal, Sme, and lo c al licensing and/ or regubtory requirementS (incl u ding permiu) for the provision of transit services. VIIJ.IO Equal Opportunity The contracto r will at all times abide by theequal opp o rtunity provisi ons of the Civil Rights Act of 1964 as amended Execut ive order 11375 and as supp lemented in Department of Labor Regulations 41 CFR Part 60 md of the ru l es, regulations, and relevant orders of the Secretary of Labor. V UJ.II Lack of Funds The 11genc;y may cancel or reduce the amount of servic e tO be rendered if such aetion is, in the agtncy's determination, i n the agmcy's ben intereSts, or there be a lack of funding availoble for the service. In such event the agency will not ify the Contnctorin writing thirty (30) days in advance of the date such actions ate to b e impl emented. VIII.12 Disadvantaged Business Enterprise Insert the agency' s pol icy statemen t and goals. VIIJ.13 Buy America The Contractor shall comply w ith applicable Buy America requireme nts set fonh under the requirementS of Sectio n 165() of the Surface Tronsponotion Act of 1982 ond the applicoble regulotions in 49 CFR Port 661, as omended. VII1 .14 Sevenbility In the event ony provision of the contr oct is declored or determined t o be unlowful, invalid or unc:On$t.itutional, such declaration shaU not affect, ln any manner, the legality o f the remaining provisions of the contract ond each provisio n of the conrract will be ond is deemed t o be separate ond severoble from each other provisi o n VIJI.IS Conservotion The Contractor shal l recognize mandatory standords and polici es r elating to energy effic ien cy whi c h are con tained in the Stat e energy con serv ation plan issued in complion ce with the Energy Policy and Conservat ion Act (42 USC Sectio n 6321 et seq). Appendi x C: Sampl e Contract 159

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160 AppendlxC VIII.16 Environmental Violations For all contracts and subcontracts in excess of $100,000, the Contractor agreesto comply with all appl i cable standards, orders or requirements issued under S ecti on 306 of the Clean Air Act (42 USC 1857 (h)), Section 508 of the Clean Water A ct (33 USC 1368), Executive Order 11738, and Environmental Protection Agency Regulations (40 CFR Part 15) which prohibits t he use under nonexempt Fede ral contractS, grants or loans of facilities included on the EPA List of Violating Facilities. The Contractor shall report violat ions toFT A and to the USEPA AssiStant Ad m i nis trator for Enforcement (EN0329) VIII.t7 Safety Policy The Contractor shall at all times abide by the Contractor's written safety polic y as described in material s submitted during the procurement pr
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Appendix C be subject to inspection and test by thugmryto the extent practiab! e at all tim .. and pl=sduring the term of the contract. All inspections by the gtncy shall be mode in such a manner as not to undul y wor-k. The gmcyJhall have tbe right to enter the Contractor 's premises for the purpose of i nspecting and audi ting all dat a and reoords which pen.ios to th e Contractor's performance under thi s contract. The agency shall also have the right to enter the Contractor's premises for the purpose of vch_ic.les owned b y the Contractor tha t are used t o provjdc service under this contract. (B) If any work performed hereund er i s n o t in con formity with the requirement s o f this co ntract, the agency shall have the right t o require the Contracto r to perform the work again in conf ormity with the rtquirements of che Concraet at no additional ioc:rease in the tocal contract amount. When the work to be perf ormed is of such a nature that the defect cannot be corrected by reperformanc e of the w o rk, the agency shall have the right to (i) require the Contractor to immediately take all necessary steps to ensure futuro performance of the w ork in conformity with the requirem entS of the contract; and (il) reduce the contract price to reflect the reduced value of the work perfo rmed. fn the event the Contractor foils prompdy to perf orm the work or to take necessary steps to ensure future pe:rforma.nee of lhe work in conformity with the requirtme nts of the contract, theagmryshall have the right to e ith
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Appendix C Vlll.27 Subcontracting The Contl'llctOr shall obtain the agency's w rit ten consent prior to ente ring any subcontract affecting the service. The agency reserves the right to require certain clauses be placed in any subcontracting agreements affecting the s ervice pr ovided und er this contract. Vlll.28 Contract Work Hours and Safety Standards Act The Contractor shall comply with the provisions under the Contract Work Hours and Safety Stand ards Act (40 USC 327-330) as supplemented by Department of L abor regu l ations (29 CFR, Part 5). Vlll.29 Publication, Reproduction, and Us e of Material No custom material produced in whol e or in part under the contract shall be subject to copyright or pa ten t in the United States or in any country. The agency and FT A shall have authority t o publish diselose, diStribute and otherw ise use, in whole or in part, any custom materials prepared under the contract. IX. REVISIONS IX.I Revisions Certain revisions (e.g. computer technology, trip ticket procedures, rider I. D. d river/v ehicle I. D ., etc.) relative tO the procedures and processes, may be reviewed, revised and implemented in the inte rest of improved e ffic iency security, and practicality, following_ days \\ ritten noti ce to the Contractor and program participant, if app ropr iate. IN WITNESS WHEREOF, t he parties hereto have caused this Agreement to be made, effective and executed as of the day of 199 _,by their resp ect ive authorized officials. Signatures Notary 162 Appendix C: Sample Contract

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Appendi x D DIRECTORY Appendi x 0: Directory 163

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Appendix 0 NATIONA L ORGANIZATIONS Federal Transit Administration Office of Private Sector lnititives 400 7th Street, S.W. Washington, D.C. 20590 (202) 366-1666 Public-Privte T n.nspormion Network (PPTN) 8737 Colesville Road, Suite 1100 Silver Spring,lviD 20910.3921 ( 800) S22-PPTN The N21ional Council for Public-Private Partners hips 1101 17th Street, N.W. Wuhington, D .C. 20036-4704 (202} 467-6800 Ruson Foundation Privatization Center 3415 S. Sepulvecb Blvd., Suite 4 00 Los Angeles, CA 90034 Privatization Hotline: (310) 391-652S FLORIDA TRANSIT ASSO CIAT ION MEMBERSHIP Broward T ran.sit Divi sion 3201 West Copans Road Pompano Beach, Florida 33069 (305) 357-8301 PH, (305) 3S7-830S FX Palm Beach County Transp ortation Authority Bldg. S1440, P.B.l.A. West Palm Beach, Fl orida 33406-1498 (407) 233-111 PH, (407) 23J.II40 FX Metro-Dade Transportation AdminUtration Ill N W First Street Miami, Florida 33 US (JOS) 375-5675 PH, (305) 37S-460S FX Escambia County Transit System IS I S West Fairfield Drive Pensacola, Florida 32501 (904} 436-9383 PH, (904) 43647 FX Appendix 0: Directory Hillsb orough Area Regional Transit Authority 4305 East 21st Avenu e T arnpa, Florida 33605 (813) 623-5835 PH, (813) 223-7976 FX Jacksonville Transportation Authority 100 North Myrtle Avenue Post Office Drawer"()" Jacksonville Florida 32203 (904) 630.3181 PH, (904) 630.3!68 FX Key West Transit Authority Post Office Box 1550 K ey West, Florida 33040 (30S) 292-8247 PH Lokeland Area Mass Transit Distri ct 1212 GeorgeJenkiru Boulevard Lokeland, Florid a 33801 (813} 688-7433 PH, (813} 683-4152 FX Manatee County Transit 1108-26th Avenue East Brad enton Florida 34208 (813) 747-8621 PH, (813) 749 153 FX Pinellu Suncoast Transit Authorit y 1484 0 49th Strett North Clearwater Florida 34622 (81J} 530.9921 PH, (81J) 53>5S80 FX Regional Transit System 100 S.E. lOth Avenue Gainesville, Florida 32601 (904) 334-2609 PH, (904) 334 FX Sarasou. County Area Transit 5303 Pinkney Avl
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Suwann Valley Transit Authority 1907 Voyles Street Live Oak, Florida 32060 {904) 362-5332 PH TALTRAN 555 Appleyard Drive T allabas$, Florida 32304 (904} 574-5200 PH, (904) 574-5 3 85 FX T ri -County Commuter R3il Authority 305 S. Andrews Avenue I 200 Ft. Lauderdale, Florida 33301 (305) 728 PH, {305) 763 FX LYNX 1200 West South St. Orlando, Florida 32805 ( 407) 841-2279 PH, (407) 836-+474 FX East Volusia Transit Authority 950 Big Tree R o ad South Daytona, Florida 32019 (904) 761-7600 PH, (904) 254-4686 FX Lee County Transit Authority 1071 5 E. Airport Road Ft. Myers, Florida 33907 (813) PH, (813) 273-6743 FX Smyrna T ra.n.sit System 210 Sams Avenue New Smyrna Beach, Florida 32168 (904) 424-2100 PH, {904) 426-2456 FX Florida Department ofT nnsportation Burns Building (Ex Officio member) T allabassee, Florida 32399 (904) 488 2462 PH Transportation Disadvantaged Commi ssion 605 Suwannee Street (Ex Officio member) Tallahassee, Florida 32399 (904) 488 6036 PH, (904) 487-3403 FX 1 66 Appendix D Fl orida Transit Anociation Post Office Box 10168 Tallahassee, Florida 32302 (904) 878.0855 PH, (904) 878 .0725 FX FLORIDA DEPARTMENT OF TRANSPOR TATION DISTRICT OFFICES One 801 North Broadway #110 Bartow, Florida 33830.1249 Phone: (813) 533-8161, SunCom: 557-2387 DistriCt Two 7322 Normandy Blvd. jacksonvale, Florida 32205 Phone: (904) 695-4041, SunCom: 85 H067 DistriCt Three U.S. 90East Chipley, Florida 32428 Phone: (904) 638, SunCom: 767-1358 District Four 780 S.W. 2 4th Street Ft. Lauderdale, Florida 33315 Phone (305) 797-8500 Fax : (305) 797, SunCom: 423 District Five 51 S I Adan$0n Street Orlando, Florid 32804 Phone: (407) 623-1085 District Six 1000 N.W. lllst Ave. Miami, Florida 33131 Phone: (305) 377-5904, SunCom: 45 2-5904 District Seven 11201 N. McKinley Drive Tampa, F lorida 33612 Phone: (813) 975-6000, SunCom: 571-6000 Appen dix 0: Directory

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Appe nd ix D Florida Departmen t of Transp ortation Office o f Public T ransponati o n 605 Suwan nee S t r eet Tallahssee, Florida 32}99 (904) 488-7774 PH, (904) 922-4942FX, 278-m4SunCom FLOR I DA L OC AL COMMU N I TY T RAN SPO RTA TIO N COO RD I NATORS Coordin ated T ransponation System 2711 N.W. 6th St r eet, Suite C G:Une sville, F lorida 32609 ( 9 0 4 ) 373--874 7 Alachua, Gii
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Coordinated T n.nsport at ion System 2711 NW 6th Strut, Suite B Gainesville, Florida 32609 (90<4) 373-8747 GilcbriJr, Lwy COMSIS 4161 C armi chael Ave., Sui te Ill Jacksonville, Florida 32207 (904) 393-4200 Duval COMSIS 5514 N Davis Hwy., Suite 117 Pensac ola, Florida 32503 (904) 48+77 70 EsambiA Flagler County Council on Aging 1000 Belle Terre Boulevard P alm Coast, Florida 32137 (904) 437-7300, SunCom 370-7300 Flagltr Croom's Inc. Post Office Box 6 Apala chicola, Florida 32320 (904) 653 Franklin Big Bend T=sit, Inc. Post Office Box 1721 T allah..-, Florida 32302 (904) 222-4160 Gadsden, ]t/fmon, Leon, Madison, Taylor Goodwheels 7941 M ercbantile Street N orth F t M y e rt, Florida 33917 (313) 7 3 1 Glades, Htndry, Lee Gulf Co. AR C Po st Office Box 296 P o n St. Joe, Fl orida 32456 (904) 229-6327 Gulf 168 Appen d i x D Mid Florida Community Scrvioe, Inc Post Offioe Box 896 Brooksville, Florida 34601 (904) 799-1510 Hernando Hillsborough Co. Dept of Social Services 2103 North Rome A v e n ue Tampa, Florida 33607 (813) 272-5074, SunCom 5 43-5074 Hillsborough T ri Co unty Community Coun cil 301 North Oklahoma Street Boniloy, F lorida 32425 (904} 547-3688 HolmD, Walton, W.ubingron Indian River Co. Council on Aging Post Offioe Box 2102 V ero B e a ch, Florida 32960 ( 407) 569-0760 lndU.n RiV
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Marion County Senior Service 1644 Northeast 22nd Ave. Ocala, Florida 32670 (904) 622-24 50, SunCom 629-U61 Mtrrion Council on Aging of Martin County Post Office Box 3029 Stuart, F l orida 34995 (407) 283-1814 Martin Nassau County Council on Aging 1389 Hospital Drive Fernandina Beach, Florida 32034 (904} 8452452 Nassau Okaloosa County Coord. T ransp. 207 Hospital Drive Ft. Walton Beach Florida 325-48-5066 (904) 833 9165, SunCom 674-9165 Okaloosa LYNX 1200 W. South Street Orlando, Flor ida 32805 (407) 426-1212 Orange, o.aola Scninole Palm Beach County MPO Post Office Box 2429 West Palm Beach, Florida 32402-2429 (407) 684-4170 Palm Beach Pasco Co. St ar Transp. Div. 5418 Sunset Road New Port Richey, Florida 34652 (813) 847-8999 PdSCO Pinellas County MPO 14 S. Fort Harrison Ave. Clearwater, Florida 34616 (813) 462-4751, SunCom 570.4751 Pinellas Appendix 0 : Directory AppendixD Polk Coun ty Tranpo nation Syst em Post Office Box 1969 Bartow Florida 33830 {813) 53).2125 Polk ARC Transit 1209 Westover Drive Palatka, Florida 32177 (904) 325-9999 Pu.tnam St johns County Council on Aging II Old Mission Avenue St. Augustine Florida 32084 (904} 824-2000, SunCom 824-1646 St. johns St. Lucie Co. Human Resources Serv. 435 North 7th Street Ft. Pierce, Florida 3 49 50 (407) 468-1777, SunCom 259-lm Santa Rosa Co. Coun cil on Aging 609 AI. bam Street Mi lton, Florida 32570 (904} 62:}-0467 SantaROStr Friendship Centers !888 Alderman Street Sarasota, Florida 34236 (813) 957-1878 SarasotA A&. A Transport, Inc. 55 Nonh Lake Ave. Lake Butler, Florida 32054 (904) 496-2056 UnUm United Systerru T ransporution 950 Big T r Rood South Da)'lOna, Florida 32019 (904) 788.0384 VolKSi 169

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Appendix D Wakulla County Senior Citizen's Post Office Box 537 Crawfordville, Florida 32327 (904) 926-7145 Wakulla FLORIDA LOCAL PLANNING AGENCIES Gainesville MPO 2009 N. W. 67 Place Gaine sville, Florida 32606 (904) 336-2200, SunCom 625-2200 Alachua Northeast Florida RPC 9143 Phillips Highway, Suite 350 Jacksonville, F lorida 32256 (904) 363-6350, SunCom 874-6350 Baker, Clay, Duval, Flagler, Nassau, Putnam, St. fohns Panama City MPO Post Office Box 486 Pensa cola, F lorida 32593.0486 (904) 444-8910, SunCom 693-8910 Bay North Ce ntral Florida RPC 2009 N.W. 67 Place Gainesville, F lorida 32606 (904) 336-2200, Sun Com 625-2200 AlAchUA, Bradford, Colum/M.,Dixie Gilchrist, Hamilton, Lafoyette, Madison, Suwannee, Taylor, Union BrevardMPO 2725 St. Johns Street Building A, Room 252 Melbourne Florida 32940 (407} 633-2085, Sun Com 366-2086 Brt'!Jard BrowardMPO 115 South Andrews Avenue, Room 329 Ft. lauderdale Florida 33301 (305) 357-6641, SunCom 442-6641 Broward 170 Apalachee RPC 314 East Central Avenue, Room 119 Blountstown, Florida 32424 (904) 67
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Appendix D Southwest Florida RPC Post Office Box 3455 North Fort Myers, Aorida 33918 (813) 995-4282, SunCom 721-7290 ChtJrlotu, Collier, Gldes, Hendry, Sarasota SpringHill/Hernando MPO 20 North Main Street, Room 262 Brooksville Florida 34601 (904) 754-4057 Htmand o Tampa Urban Area MPO 201 East Kennedy Blvd., Suite 600 Tampa Florida 33601 {813) 272-5940, SunCom 543-5940 West Aorida RPC Post Office Box 486 Pensacola Florida 32593-0486 {904) 444-8910, SunCom 693-8910 &.y, EscmbiA, Holmes, OkAioosa, SantA Roso, Walton, Washington Indian River MPO 1840 25th Street Vero Beach, Florida 32960 {407) 567-8000, Ext 254 IndiAn Riwr Lake Cou nty Boazd of Co. Comm. 315 WHt Main Street T avarH Florida 32n8 {904) 3 43-9652 W e Lee County MPO Post Office Box 3455 North Fon Myers, Florida 33918-3455 (813) 995-4282, SunCom 721 Lee T allahasseeLeon MPO City Hall Tallahassee, Florida 32301 {904) 599-8600 uon Appendix 0 : Directory Levy County Board of Co. Comm. 1241 SW lOth Street Ocala, Aorid a 32674-2798 {904) 7)2-131S, SunCom 667-1315 Lwy Sorasota! Manatee MPO Post Office Box 8 Sarasota, Florida 34230 {813) 951-5090, SunCom 592-4140 Manotet Ocala/Marion Co. MPO Post Office Box 1270 Ocala, Florida 32678 (904) 629, SunCom 6S+8529 Marion Martin Co. Board of Co. Comm. 2401 SE R oad Stuart, Florida 34996 (407) 288-5494 Martin City of Key West Port & Transit Auth Post Office Box 1078 Key West, Florida 33040 {305) 292-8161, 1-800-432-0370 Monroe Ft. Walton MPO Post Office Box 486 Pensacola, Aorida 326930486 (904) 444-8910, SunCom 693-8910 OkA'-a Orlando Area MPO 1011 Wymore Road, Suite !OS Winter Park, Aorida 32789 (407) 623-1075, Sun Com 334 Orange, Osreola, Seminole Palm Beach Co. MPO Post Office Box 21219 West Palm Beach, Florida33416-1229 (407) 684-4170 Palm&ach 171

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Pasco County MPO 7432 Lale Road, Sterling Building New Port Richey, Florida 34i>S4 (813) 847-81J2, SunCom 596-1140 PaJ
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CHAPTER1 1Se<:tion D (c) of the Urban Mass Transponation (UM1) Act of 196-4 protects transit system employees fr o m adverse effe<:ts r
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Notes 'Wendell Cox and jean Love, Designing Public Tramit Competitive Contracting PrograTI'l$: The Public (n.p : American Bus Association, 1988): 24. 'ATE Management and Service Company, 86. 'Jean Love and Wendell Cox Competiti
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GLOSSARY OF TERMS Administration Functions: Non-ope rational function s of a transit system i ncluding marketing, human resources, finance/ accounting, and others. AI IDay Suburban Service: Fixed route service c haracterized by low density routes, serving areas that are not necessarily .lin ked to mainline routes, in outlying areas. Americans with Disabilities Act (ADA): Defines the responsibilities and requirements for transportation providers to make transportation accessible to individuals with disabilities. The Departme n t ofT ranspormion published the Final Rule on T ransponation for Individuals with Disabilities on September 6, 199 1 (49 CFR Parts 27, 37, and 38). Arbitration: A process by which the parties to a dispute submit their differences to the judgment of an impartial person or group appointed by mutual consent or st atutory provision. Average Weekday: A representative weekday in the operation of the transit system computed as the mathematic.") average of several typical weekdays selected at random throughout the year A typical weekday is one where ther e are no anomalies s uch as h igh ridership due to extra service added for a convention, or low ridership due to a snowstorm. Avenge Saturday and Sunday data1 including holiday service, are determined the same way Base Period: The time of day during which vehicle requirements and schedu le s are not influenced by peak period passenger volume demands. Bid Bond: A bond that may be requ i red of bidders to protect the transit system from a contractor that wins a bid but then refuses to commit to a formal written agreement under the terms agreed to in the -bid. Bonding: A le gal instrument under which one party agrees to answ .er to another pany for the debt, defau l t, or fa ilure to perform of a third pany. Buy America: Pertaining to Section 165 of the Surface Transportation Assistance Act of 1982, 49 C.F. R Pan 660, and the Surface Transporution and Uniform Relocation Act of 1987, it establishes the percentage of domestic content requireme n ts for f ederally funded projeCts. Cement, steel, and manufactured products other than rolling stock have a 100 percent requirement, while rolling stock must have a 60 percent requirement of components and subcomponents, and final assemb l y must take place in the United States. Capital Equipment: Rolling stock and other tangible property with an expected life of more than one year. Capital Expense: Expenses related to the purchase of tangible property. Property includes tangible assets with an expected life of more than one year at the time of their installation. Carpooling: See Ridesharing Charter Service: Vehicle(s) hired for an exclus i ve purpose that do not operate on a regular route or a regular schedule, and are not av ai lab le to the general public. Collective Bargaining: Negotiation bet ween representatives of organized labor and management Conunodities: ProduCts which are bought and sold by an entity; does not include services Commuter Rail: Shonhaul rail passenger service operating in metr o politan and suburban areas, whether withi n or across the geographical boundarie s of a state, usually characterized by reduced fare multiple ri d e and commutation tickets, and by morning and even i ng pea k period o p erations Glossary of Terms 175

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Glossary of Terms Competitive Contracting Assessment Process {CCAP): A procedure developed by CUTR to assist transit systems in the decisionmaking process of evaluating contracting alternatives anddetermini ng the feasi biliry of the i r implement:ltion. Congestion Management: Effective management of new and existing transportation facilities through the u
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Glossary of Terms Fare Retention: A method used by transit systems to compensa t e contractors for services rendered by allowing the contractor to keep a portion or all of the fare revenues collected Federal Title V1 Program: The system of requir e ments, procedures, actions, and sanctions adopted b y federal, State, and local agencies and other applicants, recipients, and subrecipientS that are deemed necessary a n d appropriate to comply wit h Title VI. Section 601 of T itle VI of the Civil Rights Act of 1964 states the following: N o person i n the United States shall, on the grounds of race, color, or national origin, b e excluded from pat'ticipation in, be denied the be nefits of. or be subjected to discrimination under any program or activity receiving Federal financial assistance. Federal Transit Administration (FT A): Formerly known as the Urban Mass Transit Administration (UMTA), the agency tha t adminiSters the Federal Transit Act, as amended. Feeder Service: A bus route that collectS passengers and transportS them to a faster and hi gher capacity transit service, such as comm uter rail or hc:a.vy rail. Financial Penalties: Forfeiture of funds by a contractor for poor performance or nonperformancc w hile a contract is in effect. Fixed Price Contract: An agreement between an agency and a contractor that identifies a specific amount t o be paid for all necessary services and materials. Fixed Unit Cost Contract: An agreement between an agency and a contractor where the contractor is compensated for units of service provided. This may include either cost units or service units Fixed-Route Service: Regularly schedu led transit service along the same road or highway, usually uti lizing motorbus vehicles. FT A Other Assistanc e : Include s suc h sources as S ecti on 6 Demonstration Assistance Section 8 Planning and T echnical Studies, S e ction 10 Managerial Training and Section 18 Rural Assistance Program, as specified in the Federal Transit Act. as amended. FTA Section 3 Assista nce: Funds obtained through Section 3 of the Federal Transit Act, as amended. The section e nables the Secretary ofT raosponation to make discretionary capital grants to States and local public entities to financ e specific types of public transportation p ro jects. Section 3 funds are usually divided among rail modernization. rai l starts, bus1 planning, and other projecls, including the transponation of elder l y and disabled individuals. FTA Section 9 Assistance: Funds obtained through Section 9oft he Federal T rans i tAc t, as amended. This section covers the distribution of the public transit capital and operating block grant appropriations made by Congress each year and allocated among urbanized areas across the nation. Grants are based on a Congressionally established formuh. General Purpose Maint e nance Facility: A facil ity used for inspecting, servicing, and performing light maintenance on revenue vehicles, such as brake adjustments, engine degre.asing, tire work, minor body repairs, painting. etc. Headway: Refers to the frequency of bus or service artd is the scheduled time io minutes. be tween v ehides stopping at a given point on a route. Heavy Maintenance Facility: A facility used for performing heavy maintenance on revenue vehicles, such as unit rtbuilds, engine ove rhauls, signilicant body repairs, or other major repairs. Glossary of Terms 177

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Glossary of Terms Heavy Transit service using rail cars able to move under the-ir own power, driven by electric power usually drawn by a third rail, configured for passenger traffic and usually operated on exclusive rights-of-way. Utilizes generally longer trains and consistS of longer Station spacing than Light Rail. Also known as Rapid Rail transit Hold Hannless: See Indemnification. Incentive Payments: Additional payments made to a contractor as a reward for excellent performance. Indemnification : A contractual obligation by which one person or organization agrees to secure another against loss or d=age from specified liabilities. Insurance: A contract binding a company to indemnify an insured party against specified loss. lntennodal Planning: Reflects a focus on connectivity between modes as a means of facilitating linked tri p making. It emphasizes connections,. choices, coordination, and cooperation among transportation organizations. Invitation for Bid (IFB): A method for soliciting contractor interest on a particular activity by requesting that potential contractors submit a cost bid for the provision of specific goods/services it feels it is qualified to render. Thi s bid process emphasizes low cost as the primary selection criterion. Joint Expenses: Operating expensesthat are shared by more than one mode. These shared or jo int expenses cannot be assigned directly to a specific mode in multimodal system. Lote Nigbt Service: Trans i t service during bouts of the night ond early morning when fixed route service i s not usually provided. Length of Contract: The duration of time an agreement (a contract) is in effect. Liability: The possibility or probability of incurring an obligation according to law. Light Rail Transit: A fixed-guideway mode of urban transportation utilizing predominontly reserved but not necessarily grade-separated rights-of way. It uses primarily electrically propelled rail vehicles, operated singularly or in trains. A raised platform is not necessarily required for passenger access. Liquidated Damages : See Financial P e nalties. Maintenance Functions: Indudes those functions nece,ssary for the preservation repair, and upkeep of the vehicles in the fleet. Also include non-v e hicl e maintenance such as repairs to office equipment, radios bu ildings, ond grounds. Major Components: Th is includes auxiliary equipment, such as engines, transmissions ond other essential componentS (body partS) of a revenue vehicle. Market Share Limitation: The ability t o contain the area of a contractor by a publ i c entity so the contractor is no t able t o gain unfair advantage or monopoly over the provision of service. Matching Funds: A situation in which one public entity puts up the same amount of money as another public entity in order to fund a particular program. Metropolitan Planning Organization (MPO): The area-wide agency responsible for conducting the continuous, cooperative, and comprehensive urban transportation planning process. It is also the single region -wide recipient of federal funds for transportation p lannin g purposes Together with the State, it carries out the p lanning and programming activities necessory for federal capital funding assiStance. The MPO is designated by agreement among various units of local government and the Governor. Midday Period: The period of time between the end of the AM peak and the beginning of the PM peak. 178 Glossary of Terms

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Glossary of Terms Minority Business Enterprise: A business that is at least 51 percent owned and controlled by members o f the f ollo wing groups: B l ack Am ericans Hispanic Americans, AsianIndian Americans, Asian-Pacific Americans, Native Americans. and Women Mobility Management: The practice of moving people (as well as vehicles) effectively and ef ficiently. Mode: Generic term fo r types of transportation, i.e ., auto, bus, rail, etc. Motorbus: Mode o f senrice involving passenger revenue vehicles operating on fixed r outes and $Chedules on roadways. The vehicles ar e equipped with rubber tires and ar e powered by diesel, gosoline, propane, or other altern ative fuel engines contained "-'' ithin the vehide. Multimodal Planning: Consideration of more than one rnode to serve the t ransportation needs o f a given Non-Performance : The situation that arises when a contractor does nol perform according to the contract specifications Operating Expenses: All expenses associated w ith the operation of an individuol mode b y a given operato r Operating expenses exclude reconciling item s such as interest expenses and depreciation. Paratransit: See Demand Responsive Service. Park-and-Ride: Parking garages and/ or pavement used for parking passengers' automobiles e i the r free or for a fee, while they use trans i t system facilities Park-and-ride l ots are g enerally established as collector sites for rail or bus service Th e y may also serve as collector sites f o r carpools and vanpools Passenger Fares : Revenue earned from carrying passengers in regularly s cheduled service. Passenger fare s include the base fare, zone premiums> e xpress service premiums, extra cost transfers, and quantity purchase discounts applicable to the passenger's ride. Passenger Mile : A measur e of service utilization tha t rep r esents the cumulative sum of the distances r idden by each possenger. For example, 10 passengers riding in a vehicle for 2 miles equal20 passenger miles. Peok Period: The time(s) of day and day(s) of the week wh en additional service$ are provided to handle higher passenger volumes. The period begins when normal beadways a r e reduced and ends when headways return to norma1. Perfonnance Bond: A bond purchas ed by a contractor to guarantee the tranit system t hat the work w ill be completed and that it will comply with the contract sp..:ifications Performance In centives: See Incentive Payments. Perfonnance Indi cator : Statistical r e p resentation of how well an activity, task, or function is being perform ed Usually computed by relating a measure of s ervice output or utilizat i on to a measure of service input or cost. Perfonnance Standards: Quality and quantity benchmarks that serve a.s indicators to measure how a contractor is c omplying with c o ntract specifications. Population Density : Populati on divided b y the area for which the population was measure d i.e., persons pe r square mile. Pretest: A small survey conduCted prior to the major effort to determine the eff..:tiveness and understan ding of the survey instrument. Pr ivate Contractor: A private entity that provides commo dities or services to the public sector for compenS3tion. Glossary of Terms 179 -------------

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Glossary of Terms Private Conventional Bus Serviao: Fixed -route, scheduled operations that provide conventional, publicly available services without the use of Section 9 funds, direct or indirect, and not under contract tO ;a public entity Private Subscription Bus Service: Fixed-route scheduled operations contracted for by specific employers, employees, or community groups that provide conventional bus services without the use of Section 9 funds, dlrect or indirect, and not under contract to a public entity. Professional Services: Spec::ialized$ervices provided under contract to a public entity, $UCh as architectural desi gn, engineering, landscape design, and land surveying. Public Transit Agencies: A p u blic entity responsible for administering and managing transit activities and services. These public entities can directl y operate transit service or contract for all or pan of the total transit service provided. Purchased Transportation: Transportatio n service provided by a public or private transportation provider based on a written contract with a public agency. It does not include franchising, licen sing operations, management services, or private conventional bus service. The provider is obligated in advance to operate public transportation service for a public agency for a specific monetary consideration. Reporting Requirements: The documentation needed by the transit system from the contractor to review t he status and performance of the contract. Request for Proposals (RFP): A method for soliciting contractor interest on a particular activity by requesting that potential contractors submit a proposal for the services. This proposal process implies a balanced c onsideration of cost and technical merit. Retained Fare R e venues : Reported separately by mode, these are any fare revenues ret aine d by a contractor providing purchased transportation services. Returned Fare Revenues: Also kno wn as revenues returned to the buyer. This includes any fare revenues collected by the provider of purchased transportation services which are returned to t he purchaser of transporta cion servtce.s. Revenue Miles/Hours: Miles/hours a vehicle travels while in revenue service. A transit vehicle is in revenue service only when the vehicle is available to the public and there is a reasonable expectation of carrying passengers t h a t either d ir ectly pay fares, are subsidized by public policy or p rovide payment through s ome contractual arrangement Excludes vehicle miles/hours to a.nd from storage facilities, for training operators prior tO revenue service, for road tests and deadhead travel, and for school bus and charter services. Ridesharing: A cooperative effon between two or more people who travel together, usually to and from work Carpools, van pools, and buspools are all examples of ridesharing. Risk Assessment: Qualitative assessment procedure to address the shortcomings resulting from th e assumption that all criteria are weighte d equally in the ranking process of the CCAP and to begin reaching a consensus on which activities are appropriate to recommend for contracting. Rural Service: Transit service provided to rural areas characterized as low density areas with low frequencies of servtce. Section 13(c): Protects transit system employees from adverse effects resulting from changes made by a transit system, including competitive contracting. Section 15: A reporting system used to accumulate public mass transportation fmancial and operating info rmation by uniform categ ories and a uniform system of accounts and records. 180 Glossary of Terms

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Glossary of Terms Service Specifications: Description within a contract of the specific goods and/or services to be provided by the private contractor. Service Area: The square miles of the reporting agency's operational are3. Subcontract: A contract that assigns some of the obligation of an original con tract to a third party Suctt.ssor Clause: A provision for the assumption of a capital equipment or facility lease by a new cont r actor. Tennination: Ending the relationship between a contractor and a t rans i tsystem. Termination for Convenience: A right that a transit system can reserve for itself if it feels that continuing a contract serve.s no useful purpose even though the contractor is performing adequately. Transportation Improvement Program (TIP): A pri ority l ist of transportation pro jec ts developed by eoch area MPO in cooperation with the State and transit operators The program is for a three-year period and includes a financ ial plan that demonstrates how the program can be implemented. The projects in the TIP muSt be consist ent with the long range plan Trip Verification: Procedure used by a transit system wh e n contracting for demand responsive service to determine whether trips were actually taken> confirm passenger qualification, and assess p:usengcr quality. Urban Mass Transit Administration (UMTA): See Federal Transit Administration (FTA). Urbanized Area: An area designa ted by the Census Bureau that comprises one or more places and the adjacent densely settled surrounding territory that together have a minimum of 50,000 persons Van pool: A vo luntary conunuter ridesharing arrangement using vans (with a seating capacity g r eater than seven persons, including the driver) or buses. See also Ridesharing. Vanpool Program: A program established to encourage and support t he formation of vanpoo ls. Vehicle Maintenance: All activities associated with th e maintenance o f vehicles, including rou tin e maintenance, body/paint work engine repairs, etc. Vehicle Miles/Hours: Thetotal hours/miles of travel by revenue velllcles, including both revenue and deadhead miles/hours. For rail, vehicle refers t o passenger car miles/hours. Glossary of Terms 181

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SELECTED REFERENCES ATE Managemtnt and Service Company, Inc. "Priv ate Stctor Contracting for Transit Services : Operator Handbook." Cincinn ati, OH: ATE Managem ent and Service Company, Inc. 198 7 ----,= "Improving Elderly & Disabled Transp ortation Through Private Sc:aor Contractin g. C in ci nnMi, OH: ATE Management ond Service Company, Inc., 1987. Adiv, Aar on. 'Specialized Transportation Servi ces at the Univel'$ity o f Mi ch igan: A Case Study in Publi cPrivatt Cooperat i on. Transportation Research Record 1098. Wa s hington, D.C.: Transportation Research Board, 1986. Allen, Joan W ., and others. 71>e Priwte Stctor in Service Delivery Examples of lnnovati"''t PrAO"'"tion: 1M Srat.oftb.-An. Washington, D.C.: American R oad and Transportation B uilders Association 1991. American Public Transit Associ ation, "Summary of Bus Tire Procur
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Selected References -----::-:-"Pr ivat i zation in Mass TransitTechnical Memorandum H2: Description of Privatization Efforts and Id e n tifica t io n of Issues." Tampa, FL: Center for Urban T ransporution Research, University of South Florida, 1992. --::-::::::Commute Alternatives Systems Handbook. Tampa, FL: Center for Urban T ransponation Res earch, 1992. Cervero, Robe n Transit Service Contracting: Cream-Skimming or Defu:it Skimming! Berkeley CA: Urban Mass T ransponation A dmi nistration Research and Training Program, 1988. City of Phoenix Public Transit Depanment "RequeSt for Proposals, Fixed Route Transit Service. Ph oenix, AZ: C i ty of Phoenix, 1992. Clarkson Kenneth W., and Philip E. F ixler, Jr. The Role of Privatizat i on in Florik s GrtYwtb. Coral Gables FL: School of Business Administrat i on, University of Miami and Santa Monica, CA: L ocal Government Center, the Re:lSon Found:nion n. d. Compet i tive Servic es Board, Vebick Ownership, A Competitivt Services Board Report. Washington, D.C. : The Urban InStitute 1993. -=-::"Adopted Principles of the Competi t ive Services Board ,1986-1990. Compet i tive Services Board, May 1990. Contract Services Association. FinalReponTechno l ogy Im pa cts Evaluation." Washington D C : Urban Mass T ransponation Administration, 1989. Cox, Wendell. "Privatizatio n in the Pub lic Services: Competitive Contracting and the Public Ethic i n U rban PublicTranspon." lnPriwtizaticn: Tactics and Techniques, ed. Michael A. Walker, 201:17. Vancou v er, BC: The Fraser Institute 1988. ----:=-:'and Jean Love. A Public Purpose for Public Tra nsit: A Response t o t h e EPIRepon, Policy Study No. 2 07." Santa Monica, CA: Reason Foundation, 1990. "Designi ng Public Transit Competitive Contracting Programs: The Pub lic Perspective." n p. : Ame rican Bus Associatio n 1988. -.....,-,="Mass Transi t in the M idwest: Spending and Comp e tit ive Contracting. A HeanlandPolicyStudy No. 30. Chicago, IL: Heanland inStitute, 1990. Davis, Frank W., Jr., et al. "Deve l opment of a Public Service Pro viding Strategy: Agency P r ovided v s Privatization; Single Provider vs. Strategic Network." Knoxville, TN: Depanmen t of Marketing Logistics and T ransponation, University ofT ennessee 1989. Deloitte & Touche. A Manual for Guidelines f or Public Transponation Contracting with the Private Sector. n.p.: State of California Depanment of Transpona tion, 1990. Donahue, John D. The Privatization Decision. Public Ends, Priwce Means. Ne w Yor k : Basic Books 1989. Dunn, James A., Jr., and William Felix "Privatizing Local Serv ices As a Federal Policy Goal: Th e Case of New Jersey Transit. Paper pres e nte d at the Annual Meeting ofthe Southern Political Scie nce Association Atl:mt>, 1990. Ecosome trics.Inc. "'OverviewoftheCompetitiveServicesDcmonstrationProgram ... Ecosometrics, Inc. 184 Selected References

PAGE 193

Selected References Fairfax County. "Request for Proposal No.: 30036620, Consultant Services. Privatization of Speci fi c Count y Services." Fairfax VA: Fairfax County, 1 992. Federal Publications, Inc. Mass Transit Procu remen t: Course Manual." P ublications Inc 1993 Fixler, P h il i p E., Jr., eta!. "Fourth Annual Report on Privat i zation: Privatization 1 990." Santa Monica, CA: Reason Found ation, 1990 --:--.,-'and K enneth W. Clarkson "Employee Adjustments/Incentives: The Key to Successful Privatiza t ion. Savings A .S.A.P. Alternarive ServictDelivery Assessment P-roject: An Analysu of the City and County of Los Angeles. Santa Monica CA: Reason Foundation and University of Miami, 1988. Frave l Frederic D eta!. lnn01Jative Fundingfor lnurcityMo
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Selected References ITE Technical Council Coiilnllttee 6A-41. 'Privatization of Public Transit Services.' ITE journal (September 1992): 2933. Janab,James T., et al. "T nmsit Service Sponsor Costs: A Public/Privte Case Study." Paperprcsent e d at Session 188 of the 68th Annual Meeting of the Transportation Research Board, January 22-26, 1 989. J ohnson County Publ ic Works O ffice/Tr ansit. "Request for P r oposal9 1-064.' Olathe, KS: Johnson County, 1991. ___ ."Request for Proposal91-134." Olathe, KS: Johnson County, 1990. Joint Center fo r Urban Mobility Research. Priwte Sector Briefi: Private Sector lnwlvement in Public Tramporw tion. Houston, TX: Rice Center, 1988. KPMG Peat Marwick. "Denver RTD P rivatization Performance Audit Update: July 1990to June1991. Vienn, VA: Regional Transportation District, 1991. ----:= "PerformanceAuditofPrivatization ofR TD Services. Vienna, VA : Regional Transportat ion District, 1990. Kaiser Engineers. 'Hillsborough Area Regional Transit Privatization Study Final Report. Tampa, FL: Kaiser Engineers, 1987 Kent, Calvin A., ed. Entr'{Jreneurship and the of Government. New York : Quorum Boo k s, 1987. Kitchen, Harry. "Urban Transit Provis io n in Ontario: A Public/Private Sector Cost Comparison." Public Finance Quarterly, Vo lume 20 Number I Oanuary 1992): 114-128. Kurbrin Dan. "LACTC T aps a 53 T rillion Market to Save Money by Pri vatization. Metro Magazine Ouly/ August 1992): 40-41. Kuttner Robert. 'Privatizat ion is Not a Cure-All." Wall Streetfoumal, April 30 1992. Lave, Charles A., ed. Urban Transit. The Challenge toPub/U: Transportation. San Francisc o, CA: Ballinger Publishing Co. 1 985. Love, jean, and Wendell Cox. Compttitivt Contracting ofTransit Services-HowTo Guide 115. Los Angeles, CA: Reason Foundation 1993. MacManus, Susan A Doing BusintSs With G o vernment. New York: Paragon House 1992. Marlin, john Tepper, ed. ContractingMuni
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Selected References Maze, T H., and Kathleen Waggoner "Manual on Contracting for Vehicle Maintenance Services Final Report. Ames, !A: Iowa State University, Iowa Transportation Center, 1992. Merrimack Valley Plann ing Commission The Potential for Privatizing the MVRT A F ixed Route Bus System. Haverhill, MA: Merrimack Valley Planning Commiss ion, 1988. Metro-Dade Transi t Agency. "Private Enterprise Participation (PEP) Final Evaluation. Draft." Miami, fl: Metro-Dade Transit Agency, n .d. Metropolitan Dade County, Florida. "Invitation to BidPrivate Enterprise Participation (PEP) Program for the Provision ofT r ansit Services for the Dade County Transit Agency. Miami, FL: Dade County, January 25, 1988. Metropolitan Transit Authority, Policy and Planning. "E lementS o f S uccessful Competitive Contracts of Business Services." May 1992. Moore, Stephen. "Does Privatiza tion Real l y Harm Public Employees?" Parmmhip Focus Oune 1990): 18-22. Morlock, Edward K ., et al. Privatization of Public Transit. Phi l adelphia, PA: Urban Mass Transporta tio n Admi n istration, 1988. Muni cipality of Metropolitan Seanle. A Study of Privatiz ation ofT ransportation Services. Sea ttle W A: n .p ., 1988. New Jersey Transit. contracting Out Pol icy." Newark, NJ: New Jersey Trans it, April1986. ---;;;;-- An Overview of Relations Berween N J Transit and Private Carriers." Newark, NJ: New Jersey Transit, 1991. "NewT ransit Agency Cuts Costs 43% on Routes T aken Over FromRTD. Metro Magazine, Vo lume 33, N umber 3 (May/june 1992): 48-49. Niagara Frontier T rans ponation Authori t y "Transit Contracting S e rvices StudyPhase ll Final Report." Buffalo, NY: Niag a r a Frontie r Transportation Authority, 1989. New York State Depanment of T ransportation. t o Private Sector Partjcipation in Public Trans-porta tion." A l bany, NY: Urban Mass Tr.msportation Administration, 1986. Northeast Ohio Areawide Coordinating Agency. "Development of a Local Policy fo r the Competiti,e Contracting of Transportation Services in Northeas t Ohio. Cleve lan d OH: Northeast Ohio Areawide Coordinating Agency November 1990. Pace. Private and Operation of Pace-funded Paratransit Discusion P aper SP 1986.02." Chicago IL, Pace Strategic P lan ning Div i sion, 1986. Pagano, Anthony M. "Private Sector Alternatives for Public Transportation." Tramportation Quarterly. n.p. : n p., n.d.: 433-449. Pennsylvania University. "Privatization of Pu bli c Transit." Philadelphi a, PA: Urban Mm T ransportation AdminiStration, 1988. Selected References 187

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Selected Referen ces PERINI/DMJM/HSST. Privatization Project LAX to Palmdale Transit," Volume 1, Summary. San Francis c o, CA: PERINVDMJM/HSST, 1990. ---;:;-"Caltra.ns Privatization Project LAX to Palmdale Trans i t," Volume 3, Technical Proposal. S an Francisco CA: PERINI/DMJM/HSST, 1990. Perry, James L., and Timlynn T. Babitsky. "Comparative Performance in Urban Bus Transit: Assessing Privatization Strat e gies. PublicAdmini
PAGE 197

Selected References --=..,. "The Generic Conuacrual Document for the Procurement ofT....,.;, Scrvi= Silver Spring, MD: COMSIS Corporation, n.d. --..,=-.,. A Gene r ic Request for Propos.l Document for Rural Paratronsit Operacions Version 2.0 Silver Spring, MD: COMSIS Corporation, n d. ---,=-.,. "'A Generic Request for Proposal Document for Urban Paratransit Operations. Ve rsion 2.0." Silver Spring, MD: COMSIS Corporation, n.d. --:-- A Generic Request for Proposal for Mainten:mee Contracting. Silver Spring, MD: COMS I S Corporatio n. 1989. --..,=--, A Compilation of Performance Standards, Penalties and Incentives for usc in Contrac:telyCon tracted Commuter Bus Service Bus Tramit Seruice Straztgies. Wuhington, D.C.: Transportatio n Re>earch Board, 1986. Savas, E.S. Privatization, The Key zo Better Government. C hatham NJ: Chat ham House Publi s hers 1987. -=.,. Privatizing Public Seczor, How to Shrink Gowrnmenc. Chatham, N J: Chatham H ouse Publi shers, 1982 -..,.,..,. Privati:z.otion and Productivity PublicProducti'llityHandboolt. N,... York NY: Marcel Dekker, Inc., 1992 Selec ted References 189

PAGE 198

Selected Referen ces --=--'and Anthony Cantarella A Compar at ive Study of Public and Private Bus Operations in New York City." New York NY: Baruch Colleg e/CUNY,July 1992. Schumach er, David E "Transit Cost Allocation and Finan c ial Forecasting: An U pdate on the San Diego Approa c h to Provi de Servic e Through Competition San Dieg o, CA: San Diego Metro po l itan Transit Deve l opment Board, 1 990 Sclar, D. "Loss Than Meets the Eye: Colorad o's Costly Experience With Transit Privatization." Washington D C.: Ee onomic Institute 1991. --=-=Testimony before the Transporta t ion Committee of the Colondo State Senate. De. nver,January 29, 1991. ---=-;-,' K. H. Schaeffer, and Robert Brandwein. "The Emperor's New Clothes: Transit Privatization and Public Policy." Washingt on, D.C.: Inst itute, 1989. Snoho mish County Public Transpo r t a t ion Benefit Area Corporation service Agreemen t for Mass Transit Setvices." Lynnwood, WA: CommunityTrannt,1986. Southeastern Pennsylvani a Transportation Authority "Contract Documen ts and Specifi cations f o r Paratransit Services. Pbiladdphia, PA: Southeastern Pennsylvania Transportation Authority, 1991. Stanley, Ralph L. "Tnnsit." In l'riwriZRtum: The Provision of Publ ic Servias by the PrivauStor
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Selected References Thompson, Theodore A. Barriertol'riuate&aor Participation on Public Transportation. Albany NY, Urban Mass Transporta t ion Administration, 1986. Touche Ross. "'Privatization in America: An Opinion Survey of City and County Governments on Their Use of Privatization and Their I nfrastructure Needs." Washington, D.C., Touche Ross & Co ., 1987. ---="'State Government Privatization in America: An Opinion Survey of State Governments on T h eir Us e o f Privatization. Washington, D.C.: Touche Ross & Co., 1989. "Transit Authority is Liable for Private Contractor s Improper Drug T si t ProfilesThe Thirty Largest Agencies For the 1990 Sect ion IS Report Year. Washington, D.C. : Urban Mass Transpor tation Administration, November 1991. Data Tables For the !990 Section 15 Report Year. Washington, D C., Federal Trans i t AdminiStrat i on, December 1991. --= "Transit Profiles Agencies in U rbanized Areas 200,000 Popu la tion For the 1990 Sect io n 15 Report Year. Washington D.C., Federal Transit Administration, November 1991. --,---.,. "Transit Profiles Agencies in Urbanized Areas with a Popu lation of Less Than 200,000 F o r the 1990 Section IS Report Year Washington, D.c., Fede ral Transi t Administration, December 1991. --=-.,... Public Transportation in the United States : Performance and Condition Washington, D .C ., Federal Transit AdminiStration, June 1992. ---..,=-Fully Allocated Cost Analy1is Ptn, February 1991. --..,,.--"Private Sector Contracting Workshop Manua l for Rural and Small Urban Public Transporonion Providers. Washington, D.C., U.S. Department of T ransportation, November, 1988. Se l ected References 191

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Selected References -----:::-"The Competitive Contracting Process Participant Reference Notebook." Notebook for the Competitive Transit Service Contracting Workshops Washington, D.C.: Urban Mass T ransportation Administration n.d. --:--"The Private Sector and Public Transit." Publication for the Fourth Annual Symposium Confe r ence Agenda New Orleans, LA., March 7-9, 1988. ---"Planning Guidelines for Suburban Transit Services." August 1988. ____ "Urban Mass Transportation Act of 1964, As Amended Through 1988." Section JJ(c). Vickers, John, and George Yarrow. Economic Perspectives on Privatization."' JournAl of Economic Perspecth'es, VolumeS, Number 2 (Spring 1991): 111. Walther, Erskine S., and Daniel S. Turne r, eds. Regi


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