My Experience Procuring Intelligent Transportation Systems (ITS) 2018 Autumn Technology & Shared Mobility Conference Short List Dem = observe, validate and question Relook at proposers solutions, team, experience and implementation approach Found misrepresentations (Incident Management) and MDT’s too big Omar McPherson San Luis Obispo Regional Transit November 2018

ITS Overview Concept of Services Goals & Benefits Make public transit more attractive to the general population. Increase awareness of ITS benefits. Maximize passenger movements. Reduce operational costs. Reduce emissions and energy costs. Improve transit system safety. Goals & Benefits Provide riders with a more predictable ride Provide riders with real-time arrival information Provide riders with tools (Smartphone's, Web, SMS messages) Allow riders to better plan their day Reduce complaints Improve routes & stops Build community good will! 2

Passenger Information Network Real-Time Arrival Predictions Changeable Message Signs Bus Stop Signage Interactive Voice Response (IVR) Text Messaging (SMS) Customer Trip Planner Customer Web Site Mobile Applications 3

ITS On-Board Elements Automatic Vehicle Location (AVL) Vehicle Logic Unit (VLU) Automatic Vehicle Location Closed Circuit Television/Recorders Electronic Head Signs Voice Annunciation Radio Remote Vehicle Monitoring Automated Passenger Counters Infotainment System/Signage Fare Collection Automatic Vehicle Location (AVL) Voice Annunciation (ASA) Vehicle Head Signs Automatic Passenger Counters (APC) Wheelchairs/Bike Racks Vehicle Radio Systems Fare Collection Infotainment Systems Vehicle Camera Recording Systems (CCTV) Wi-Fi

So, how did we get it? Request for Proposal (RFP) Contract Negotiations Signed Agreement/Contract

RFP's Request for Proposal (RFP) Benefits Best Practices Establishes your objectives and requirements Establishes vendor competition Converts vendor sales talk into enforceable commitments Codifies requirements into a single document Obtains multiple solutions to your problem Best Practices Always include your agencies form contract There is NO substitute for preparation Do not limit vendor creativity in proposing alternative solutions (be descriptive, not prescriptive) Release Create Organize Manage Negotiate RFP's Evaluate

RFP's Request for Proposal (RFP) Sections Introduction RFP Schedule of Events General Requirements Terms & Conditions Proposal Submittal Process Evaluation Criteria & Proposer Selection (Best Value) Current Operational Overview Fixed Route Functional Requirements Demand Response Functional Requirements Passenger Information Network Data Communications Optional Requirements Architectural Requirements Proof of Concept Additional Requirements Release Create Organize Manage Negotiate RFP's Evaluate

RFP's RFP Appendix (selected elements) Requirements Acknowledgement Price Summary Form Milestone Payments Sample Agreement Insurance Requirements Federal Regulatory Requirements Buy America Requirements Fly America Requirements Certification of Restrictions on Lobbying etc., etc., etc……. Release Create Organize Manage Negotiate RFP's Evaluate

We’ve selected our vendor, now what?

RFP's Prepare for Negotiations Know your requirements Read proposal materials very thoroughly and in detail No level of detail is too deep! Identify all costs and deliverables Understand the vendors strengths and weaknesses Prepare an RFP “Clarifications Table” Know what you’re negotiating Anticipate changes that are predictable and unpredictable If necessary, enlist help (seasoned negotiator, attorney) Release Create Organize Manage Negotiate RFP's Evaluate

RFP's Negotiating Strategies & Pitfalls Negotiations is a “Process”, not an “Event” Seek a “Strategic Partner” not just “Another Vendor” Strategize your negotiations (want to pitch one against the other or talk to first one only) Make the vendor aware that there is credible competition Have at least two credible vendors (could go with either one of them) Don’t be undersold! Vendor Ploys: You don’t need to write that down, you can trust me! You’re getting our best price! I’ll have to get any changes approved by corporate! Release Create Organize Manage Negotiate RFP's Evaluate

RFP's Negotiating Strategies & Pitfalls Use payments and retentions as leverage Get remedies in writing (if its not written down, it never happened!) Beware of “Evergreen” clauses What’s your appetite for risk? (balance price against protection) Would you rather lock into long-term maintenance contracts (for predictable budgeting) or revisit your contracts more frequently (riskier but may provide interim savings opportunities) Goal is to avoid litigation situations A “Good Deal” is when both sides feel that they got something (“Win Win”) Release Create Organize Manage Negotiate RFP's Evaluate