Public Private PartnershipsMaximizing Opportunities

UMA Motorcoach Expo

Los Angeles, CA, Feb 17, 2014

Stephen B. Brown, Brown Coach, Inc.

Dale Krapf, Krapf Coaches

Stephen B. Brown

Vice President

Brown Coach, Inc.

Amsterdam, NY

Points of Discussion

• History and Overview• Opportunity• Where to Start?• Relationship Building• Contract and Bidding Options• Vehicle Equipment Strategies• Dale Krapf, Krapf Coaches• Questions and Discussion

History and Overview

• In most areas, early public bus service was privately owned.

• Public Transit had seen a shift to mostly public transit agencies and federally funded vehicles through last half of 20th century.

• Is that ready to change?

Opportunity

• Governmental Budgets are tight and have shortfalls at all levels– Federal– State– County– City, Town, Village– Transit Agencies– Other Non for Profit Agencies Needing

Transportation

Opportunity Cont’d

• Private Industry is inherently more efficient. Many success stories of outsourced public transit at a significantly reduced expense

• We pay taxes, create revenue, and add to tax base.

• Many public agencies have mandates to a outsource a minimum percent of business to private enterprise or utilize woman or DBE businesses as vendors.

• You may have the equipment and labor to provide quick response and expansion for a local public transportation service provider.

Where to start?

• Identify all agencies in your local area that may require your services

• The list is most likely longer than you think.

Where to start? Cont’d

• Public Transit Agencies• Municipalities• Social Service Agencies• ARCs• Veterans Agencies• Office for the Aging• College and Universities• School Districts• Other large employers, public and private• Is there a unique niche market in your area?

Relationship Building• Most important part of whole process

• Identify all the key players in the local transportation market.– Transit Agency Executives and Board

Members– MPO Staff and Transportation Planners– Business Administrators and Purchasing

Agents– Executive Directors and Transportation

Supervisors.

Relationship Building (cont’d)

• Get Involved• Go out and meet and greet the key players• Attend Transit and Agency Board Meetings• Join a Board• Be visible in the community• Let all parties know you have the equipment and

labor resources available to make their jobs easier.

• Invite people to visit you and your facility.

Contract and Bidding Options

• Most public opportunities involve some form of bid or proposal.– Be willing to and offer to assist in the process.

A strong set of requirements is most likely in your best interest and helps level the playing field

– Encourage an RFP process, if at all possible. This creates a framework to showcase your company’s local connections, strengths and experience, safety ratings, training programs, etc.

Contract and Bidding Options (cont’d)

• In all likelihood, you can provide service more cost effectively than the public sector.

• Important to know your true costs both direct and indirect, especially hidden ones.– Maintenance costs– Increased insurance costs– Additional staffing, hours of operation, etc.

Contract and Bidding Options (cont’d)

• Also good to have a rough idea of costs of public entity to provide service– Transportation budget / number of routes– Good at hiding costs:

• high spare ratios• employee benefits, retirement plans, buildings

and grounds, etc. separated from operating costs

Vehicle Equipment Strategies

• Know your equipment options when pursuing new revenue opportunities.

Vehicle Equipment Strategies (cont’d)

Provide your own equipment.• Spare equipment available• Off peak opportunities to use your equipment• More capital intensive• Offers most flexibility• Make sure the equipment is a good fit for type

of work• Capital Cost of Contracting

Vehicle Equipment Strategies (cont’d)

• Operate Public Equipment– No Capital Investment or Equipment Financing

Expense– Limited or no flexibility in use of equipment

beyond contract– Increased outside scrutiny in maintenance and

operation of equipment. – Use caution not to inherit maintenance or

operational issues with equipment.– Structure contract language to minimize

unforeseen large maintenance and repair expenses for items beyond routine PM and repair.

Dale Krapf

• Krapf Coaches, West Chester, PA