Surviving the Economic Tsunami in Transit

Overview survival through private sector partnering. how contracting can help: possibilities opportunities optimizing the benefits

Challenges Identifying what to contract Optimizing the cost efficiency of contracting. Leveraging private sector capabilities

Contracting model Finding the Correct OPTIONS Contract a function or multiple functions within a portion of the system an entire division of the system multiple functions within the entire system the entire system

Private Sector Advantages innovation and flexibility broad and multi-faceted experience efficiency, cost savings and accountability 25-30% new alternatives for capital investment

Maximize Contracting Efficiencies Increase Scope and Term Share Risk Include incentives and penalties Include supply and/or financing of equipment Collaborate on identification of opportunity to realize savings

What it looks like when it works Large scope of work combining four separate contracts. Contract term of 5 + 3 Enabled Veolia to find staffing efficiencies and make sizable investment – 26 OTR Coaches Ongoing collaboration 7

Service Alternatives For Low Demand

Using private provider capacity late night and weekends Broker to serve an established market. Issues: Industry Profile – capacity Regulatory Environment fare elasticity Alignment with contractual requirements

Keys to Success deep commitment by all partners Willingness to re-define roles Recognition of differing sector needs Inclusion, Collaboration mutual accountability, mutual respect