1. DELIVERING EXCEPTIONAL CUSTOMER SERVICE WITH THE NEW FEATURES …………..

2. con’t…… AND TECHNOLOGIES AVAILABLE ON THE DOE CONTRACT JUNE 22, 2016

3. DOE BID 2016-01 STEVE MURPHY SCHOOL BUS SALES MANAGER FLORIDA TRANSPORTATION SYSTEMS, INC. 3

4. TOPICS 4  WHO WE ARE - FTS  WHO WE ARE - BLUE BIRD  ARRAY OF FEATURES  SAFETY  COST SAVINGS  ENGINE OPTIONS  FACTORY A/C

5. FLORIDA TRANSPORTATION SYSTEMS, INC.  33 Years serving Florida Districts (Three times our competitors combined)  2 Company owned full service facilities  19 Service Technicians  41 Employees in Florida  6 Dedicated parts support personnel  11 Service vehicles LARGE CUSTOMERS WE SERVICE  7 of the TOP 9 Districts in Florida (including the 3 largest) #1) Miami-Dade#5) Palm Beach #2) Broward#7) Pinellas #3) Hillsborough#8) Polk #9) Lee #6 DUVAL IS CONTRACTED NATIONALLY 5 WHO WE ARE-FTS

6. 6 WHO WE ARE-BLUE BIRD  BLUE BIRD WAS FOUNDED IN 1927 AND HAS BEEN BUILDING QUALITY SCHOOL BUSES EVER SINCE  BLUE BIRD IS THE MOST ICONIC AND FASTEST GROWING SCHOOL BUS BRAND  ONLY SCHOOL BUS OEM TO GROW MARKET SHARE FOR 6 STRAIGHT YEARS  UNDISPUTED LEADER IN ALTERNATIVE FUEL POWERED SCHOOL BUSES  ONLY PURPOSE BUILT BUS BUILT FROM THE GROUND UP AS A SCHOOL BUS  ONLY SCHOOL BUS OEM NOT RELIANT ON TRUCK CHASSIS MODELS

7. 7 MILESTONES 1937 – FIRST ALL STEEL BUS BODY 1948 – ALL AMERICAN FORWARD ENGINE 1978 – REAR ENGINE SCHOOL BUS 1991 – FIRST CNG SCHOOL BUS 1992 – FIRST PROPANE POWERED BUS 1994 – FIRST ALL ELECTRIC SCHOOL BUS 2003 – TYPE C BUS ON A UNIQUE SCHOOL BUS CHASSIS 2007 – FIRST OEM PROPANE SCHOOL BUS 2012 – FORD / ROUSH CLEAN TECH OEM PROPANE BUSES 2014- INTRODUCTION OF TELEMATICS 2016 –INTRODUCTION OF CUMMINS ISV CLEAN DIESEL 2016- INTRODUCTION OF GASOLINE 2016 – INTRODUCTION OF CNG TYPE C

8. 8 PRODUCT LEADERSHIP RANKED IN ORDER OF BLUE BIRDCOMPETITOR ACOMPETITOR B IMPORTANCE* #1) SAFETY - - - - #2) QUALITY, RELIABILITY - - - - DURABILITY #3) OPERATING COSTS - - - - #4) ACQUISITION COSTS - - - - #5) HOW THE BUS DRIVES - - - - BB RANKED FIRST IN FOUR OF FIVE TOP ATTRIBUTES, (ALL FIVE USING FLORIDA BID) *FREEDOM CUSTOM RESEARCH REPORT AMONGST PUPIL TRANSPORTATION PROFESSIONALS - BLUE BIRD IS THE BRAND MOST LIKELY TO BE RECOMMENDED

9. 9 ARRAY OF FEATURES - DOE BID  AIR DISC BRAKES  ELECTRONIC STABILITY CONTROL  VGT BRAKE  LED LIGHTS - STUDENT AND DIRECTIONAL  WARRANTY OPTIONS  FACTORY AIR CONDITIONING  ENGINE OPTIONS

10. 10 AIR DISC BRAKES

11. AIR DISC BRAKES - ($1727) SAFETY – REDUCED STOPPING DISTANCES  STUDIES INDICATE THAT VEHICLES WITH AIR DISC BRAKES CAN STOP IN UP TO ONE THIRD LESS DISTANCE THAN CONVENTIONAL DRUM BRAKES. WHILE MOST STUDIES HAVE BEEN CONDUCTED FOR ON HIGHWAY TRANSPORT FLEETS THERE IS NO QUESTION THAT AIR DISC BRAKES IMPROVE STOPPING CAPABILITY IN SCHOOL BUS APPLICATIONS COST REDUCTION($500 AVERAGE BRAKE JOB)  DISTRICTS ALREADY OPERATING AIR DISC BRAKES ARE EXPERIENCING SAVINGS IN REPLACEMENT LABOR DUE TO THE REDUCED CHANGE OUT TIMES. LIFE EXPECTANCY OF BRAKE PADS HAS VARIED FROM MARGINAL TO SIGNIFICANT IMPROVEMENT. THE START AND STOP REQUIREMENTS OF SCHOOL BUS OPERATIONS, AS WELL AS VARIED DRIVER PERFORMANCE AHAVE SIGNIFICANT IMPACT ON PAD LIFE. 11 AIR DISC BRAKES

12. 12 ELECTRONIC STABILITY CONTROL ELECTRONIC STABILITY CONTROL – ($1180) ESC SYSTEM MONITORS THE WHEEL SLIPPAGE AND YAW OF THE VEHICLE AND APPLIES BRAKING TO SPECIFIC WHEELS IN SEQUENCE TO KEEP THE VEHICLE FROM SLIDING SAFETY  ESC IS MANDATED FOR ALL HIGHWAY APPLICATIONS TO BE IMPLEMENTED WITHIN THE NEXT 3 YEARS  ESC IS EXTREMELY EFFECTIVE IN LOCATIONS LIKE FLORIDA WHERE OPERATORS OFTEN ENCOUNTER WET, SLICK ROAD CONDITIONS  SAFETY VIDEOS (BLUE BIRD WEBSITE – WWW.BLUE-BIRD.COM)  RIDE AND DRIVES

13. 13 VGT ENGINE BRAKE CUMMINS VGT ENGINE BRAKE ($360) COST REDUCTION  VGT ENGINE BRAKE – THIS FEATURE UTILIZES THE POWER OF THE ENGINE TO SLOW A VEHICLE DOWN WITHOUT THE DRIVER NEEDING TO APPLY THE BRAKES. THE SYSTEM ALLOWS THE DRIVER TO MINIMIZE THE AMOUNT OF BRAKING REQUIRED, EXTENDING BRAKE LIFE SIGNIFICANTLY  A LIFETIME OF 10 TO 20 BRAKE JOBS @ 50% REDUCTION AFFORDS AN OPPORTUNITY TO SAVE $2500 TO $5000 OVER THE LIFE

14. 14 LED LIGHTS LED LIGHTS – STUDENT LIGHTS ($490) DIRECTIONALS ($145) LIGHT EMMITING DIODES (LED’S) ARE ALREADY REQUIRED BY FLORIDA SPECIFICATION FOR MANY OF THE LIGHT SYSTEMS ALREADY ON BUSES SAFETY  LED LIGHTS ARE BRIGHTER PROVIDING GREATER VISIBILITY FOR THE YELLOW AND RED WARNING LIGHTS WHEN LOADING OR UNLOADING STUDENTS  LED DIRECTIONALS ALSO PROVIDE GRATER VISIBILITY FOR MOTORISTS INDICATING LANE CHANGES AND TURNS COST REDUCTION  THE BIG BENEFITS OF LED LIGHTS ARE THAT THEY:  CONSUME LESS POWER  LAST MUCH LONGER WITH LONGER REPLACEMENT CYCLES  OPERATE MUCH COOLER PROVIDING LONGER LIFE CYCLES

15. 15 WARRANTY OPTIONS WARRANTY OPTIONS - DISTRICTS UNDER THE CURRENT BID HAVE MORE FLEXIBILITY IN TAILORING THEIR COVERAGES TO THEIR SPECIFIC NEEDS COST REDUCTIONS  DEPENDING ON NEED, DISTRICTS CAN NOW ELECT TO EITHER:  REMOVE WARRANTY COVERAGE TO REDUCE INITIAL ACQUISITION COST -$3255 BASIC COVERAGE  INCREASE WARRANTY COVERAGE TO REDUCE FUTURE MAINTENANCE COSTS

16. 16 FACTORY AIR CONDITIONING FACTORY A/C - DISTRICTS HAVE THE OPTION TO HAVE FACTORY AIR CONDITIONING INSTALLED AS THE BUS IS MANUFACTURED. THE BENEFITS TO FACTORY INSTALLATION ARE:  COMPONENTS ARE INSTALLED ON LINE AND SECURED TO THE BUS AS A REGULER PART OF THE VEHICLE BUILD PROCESS  NO AFTERMARKET DRILLING WITH LESS LIKELIHOOD OF SHAVINGS LEFT IN THE PASSENGER COMPARTMENT  REDUCED COSTS IN MANY CASES  IMPROVED WARRANTY  INCREASED ANCILLARY COMPONENTS WITH FACTORY PACKAGES

17. 17 ENGINE OPTIONS OPTIONS, OPTIONS, OPTIONSFROM INDUSTRY LEADERS DISTRICTS CURRENTLY HAVE THE GREATEST NUMBER OF OPTIONS AVAILABLE TO THEM WITH THE GREATEST OPPORTUNITY TO ‘GO GREEN’, SAVE MONEY, OR TAILOR THEIR NEEDS TO THEIR OPERATIONS  ‘CLEAN DIESEL’  PROPANE  ‘CLEAN DIESEL’ LIGHT  CNG  GASOLINE

18. PROPANE - ADVANTAGE FOR NOW AND THE FUTURE  GENERATION 4 – CLEANER, MORE FUEL EFFICIENT, USER FRIENDLY  MOST ECONOMICAL BUS IN FUEL COST PER MILE AND OPERATING COSTS  OVER 9 MILLION MILES IN FLORIDA WITH PROPANE POWERED SCHOOL BUSES  BLUE BIRD PROPANE BUSES HAVE OVER 90 MILLION MILES NATIONALLY - ENOUGH TO CIRCLE THE GLOBE 3500 TIMES  BLUE BIRD HAS 6 TIMES AS MANY ALTERNATIVE FUELED BUSES OPERATING AS OUR COMPETITORS COMBINED  OVER 20% OF BLUE BIRD’S CURRENT PRODUCTION IS PROPANE  20% OF FLORIDA DISTRICTS ARE RUNNING PROPANE POWERED BUSES AND EXPECTED TO GROW TO 27% THIS YEAR 18 PRODUCT LEADERSHIP

19. 19 ‘CLEAN DIESEL’ COMPONENTS Charged Air Cooler EGR Cooler EGR Valve Turbo Charger Dosing Unit Pre Oxidation Catalyst Dosing Module

20. 20 ‘CLEAN DIESEL’ COMPONENTS HEATED SUPPLY LINE DOSING CONTROL UNIT DEF TANK ASSEMBLY DEF TANK SCR CATALYST NOX SENSORS ADDITIONAL SENSORS / ASSEMBLIES 17-30 QUARTS VS 7 QUARTS

21. ‘ CLEAN DIESEL’ OR PROPANE ANALYSIS 21 ANALYTICAL TOOLS 'CLEAN' DIESEL or PROPANE ANALYSIS Notes & Assumptions: prepared for: White Boxes Only are input with customer data All costing assumes diesel fuel station already exists SAMPLE All Maintenance / Engine / Labor and Hidden Costs are measured against Diesel as Standard Light yellow are automatically calculated subtotals Date 5/25/16* Best estimated non-warranty expense divided by years of service ** Infrastructure Amortization-accruing over entire fleet makes false assumption about impact. Years of Service12 Miles per year22,000 Customer Input - Only input White Boxes If Applicable New Bus Fleet Size43 Fuel Related Costing Propane Diesel Fuel Cost (Net After All Rebates ) Per Gallon (36 cent Federal credit for 2016) $0.72 $1.51 Miles Per Gallon 3.80 7.52 Fuel Cost Per Mile 0.1895 0.2008 Add'l Fuel Labor for Propane ($24 / hr) 1/4 hour per additional fueling (IF APPLICABLE) $0.0156 N/A DEF Cost per mile (Calculated at 2% of Diesel Cost) N/A 0.004 Fuel Savings / Cost per mile versus New Diesel - (MOST CRITICAL FUEL METRIC) $0.00 $0 Fuel Dollar Savings or Cost per Year per Bus versus New DZL $6 $0 Fuel Island Infrastructure (electric hookup, tank setup, guard poles)$5,000(electric) **Fleet Size Used For Infrastructure Amortization (Suggest 30-50% of current fleet)40 Infrastructure Cost Divided by Years of Service Divided by Amortized Fleet Size $3 Annual Maint. Differences - Engine Related (post warranty / total service years) *Average DPF Cleaning or Replacement per Year (filter cleanings, partial replacement) N/A $435 *EGR Cooler and Valves Parts and Labor (cooler, EGR Valves / years in service) N/A $108 Engine Oil Changes / Fuel Filters / Air Filter / Coolant Test / Spark Plugs (propane) $372 $317 Nox Sensors, Dosers, Engine Parts, Labor (Dzl), Misc. Engine Parts and Labor (Propane) $100 $88 Injectors - One set per life cycle (DZL) 1 set per 3 Buses (Propane) $12 $188 Injector Pump Parts and Labor (1 of 3 buses replacement / service life) N/A $52 Transmission Service (Dzl - 100K, Propane - 2 Years) $54 $43 DEF Crystallization Labor (Every 2 years at 3 hours labor) N/A $38 Turbo Chargers N/A $307 Additional Hidden Costs (Unrecovered Costs or Lost Productivity) Miles to Servicing Engine Dealer5 15 Fuel per mile$0.21 $0.20 Fuel Expense One Way to Dealer$1.03 $3.01 Travel Labor Expense per mile (Average Labor $ Cost per trip divided by miles to dealer)$2.00 Miles to Dealer times Travel Labor per mile$10 $30 # Employees Involved in Dropping Bus at Dealer (1 to 2 or average)1.5 Labor Cost Each Way (# Employees X Labor Cost)$15 $45 Additional One Way Maintenance Cost To Dealer (at $.30 per mile)$2 $5 ________ Hidden Costs - Total Cost Round Trip (Fuel, Maintenance plus Lost Labor)$35.05 $105.02 Average Trips to Dealer per year1 1 Total Annual Hidden Trip Costs Associated with Engine (Per Bus)Sub Total$35Sub Total$105 Upcharge for Propane less Rebate (HB 579 Rebate for 2016 at 50%)$2,400 Engine Upcharge Divided by Years of Service $200 ________ ANNUAL ENGINE RELATED COSTS PER BUS (infrastructure, maint., engine upcharge,) $776Total Add'l$1,681 TOTAL FUEL SAVINGS OR COST AND ALL FUEL COSTS (infrastructure, engine maint. )Total$782 Propane vs. New Diesel *ANNUAL NET (SAVINGS or COST PLUS ADDITIONAL DIESEL COSTS) PER BUS($899) ONE BUS - ANNUAL NET TIMES YEARS OF SERVICE($10,787) NEW BUS FLEET PURCHASE - ANNUAL FLEET NET OVER YEARS OF SERVICE($463,820) Contains confidential/proprietary information only for use of authorized customers. *ANNUAL NET = FUEL SAVINGS LESS ADD'L COST FOR FUEL TYPE PLUS ADD'L DIESEL COSTS Florida Transportation Systems, Inc. | 1-800-282-8617 | www.fts4buses.com F uel R elated E valuation D evice

22. 22 QUESTIONS????????

23. 23 RESOURCES FLORIDA TRANSPORTATION SYSTEMS, INC. WWW.FTS4BUSES.COM ROUSH CLEANTECH WWW.ROUSHCLEANTECH.COM BLUE BIRD BUSES WWW.BLUE-BIRD.COM CUMMINS WWW.CUMMINS.COM BENDIX WWW.BENDIX.COM

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