Quantifying the Benefits of the Florida Transit Research Inspection Procurement Services (TRIPS) Program

(Center Identification Number: 77936)

The objective of this research project is to determine if any economic benefits are derived from the TRIPS Program. The focus of the research will be on the full range of benefits related to vehicle purchase on a life cycle basis to uncover long term benefits spanning beyond vehicle purchase requisition cost reductions.FDOT Project Manager

Principal Investigators         

Janet L. Davis, Sisinnio Concas

Phone: (813) 974-6920

E-mail: davis@cutr.usf.edu

and

Sisinnio Concas

Phone: (813) 974-7760

E-mail: concas@cutr.usf.edu

Center for Urban Transportation Research

University of South Florida

Tampa, Florida 33620

Fax: (813) 974-5168

Websites:               http://www.cutr.usf.edu  and http://www.nctr.usf.edu

FDOT Project Manager     

Robert E. Westbrook

Phone: (850) 414-4533

E-mail: Robert.Westbrook@dot.state.fl.us

Florida Department of Transportation

Office of Public Transportation, MS 26

605 Suwannee Street

Tallahassee, FL 32399-0450

I. Object/Problem Statement

Since 1995, the Florida Transit Research Inspection Procurement Services (TRIPS) Program has been providing government and non-profit agencies with the means of procuring quality public transportation vehicles at competitive prices. Formerly known as the Florida Vehicle Procurement Program, TRIPS is managed by the Center for Urban Transportation Research (CUTR) under an agreement with the Florida Department of Transportation (FDOT).

It is always desirable to quantify the benefits of any program, but it becomes imperative as resources become more constrained and competition for scarce funds becomes more intense.

In the late 1990s, a vehicle purchase cost comparison was done for vehicles acquired under the Florida Vehicle Procurement Program versus those that were not, but the analysis focused only on acquisition costs.

It is recognized that although buying vehicles in quantity can produce scale economies and reduce bulk acquisition costs, there are other potential savings related with the TRIPS program. Specifically, vehicles purchased under the TRIPS program must meet strict safety standards that are unique to Florida, which result in structural improvements to the integrity of the purchased vehicles. This results in vehicle improvements that might prolong the average life of each unit and lower recurring costs. In addition, under the TRIPS program, vehicle procurement warranties tend to exceed minimum requirements usually provided through competitive bidding, which could have a positive impact on return on investment.

Therefore, to capture the full benefits associated with the uniqueness of the TRIPS program, a broader analysis that focuses on benefits on a life cycle basis is warranted.

II. Objectives and Supporting Tasks

The objective of this research project is to determine if any economic benefits are derived from the TRIPS Program. The focus of the research will be on the full range of benefits related to vehicle purchase on a life cycle basis to uncover long term benefits spanning beyond vehicle purchase requisition cost reductions.

The study will focus on an analysis of potential savings associated with agency administration, regulatory compliance, warranty monitoring, and vehicle inspection.

Changes in the quality of vehicles purchased under the program and safety related features of the buses will be addressed. This is because since the 1990’s the program has focused more on the potential savings and safety on a vehicle life-cycle basis, rather than initial capital cost reductions.

Task 1. Project Management

This task will cover project management at CUTR, including producing required progress reports and carrying out deliverable reviews before submittal to FDOT.

Task 2. Analysis of TRIPS Vehicle Procurement Database

The objective of this task is to analyze the extensive TRIPS database to identify and quantify any cost savings produced by the TRIPS program. The database analysis will cover the period since the inception of TRIPS (formerly known as the Florida Vehicle Procurement Program) and will cover all types of vehicle purchased under the program. The TRIPS database provides information on vehicle acquisition costs, funding sources for each vehicle, warranty work, issues with the vehicle while in production, and issues encountered after delivery.

Task 3. Data Analysis

The data analysis will compare vehicle acquisition and warranty costs culled in Task 2. The analysis will also extend to identify if, controlling for prices, there are differences in vehicle characteristics between TRIPS procurement and non-TRIPS procurement vehicles.

Task 4. Benefit Estimation

The objective of this task is to quantify and report the results of task 2 and task 3. The benefit estimation will be conducted on a life-cycle basis to capture any cost savings produced by the TRIPS program. In addition to comparing TRIPS vehicle procurement costs versus straight bid costs paid in the absence of TRIPS support, the analysis will focus on analyzing changes in vehicle safety standards and warranties that might produce a positive impact on return on investment.

As part of the benefit analysis, CUTR will also seek to identify and quantify all potential benefits associated with the program production oversight, which includes random in-plant inspection to assure technical specifications and monitoring of the manufacturing quality. To estimate these benefits, the analysis will be extended to include a determination if a statistically significant difference exists between TRIPS and non-TRIPS vehicle failures.

To the extent that benefits can be quantified, the analysis will extend to consider other long term impacts that the TRIPS program safety standards might induce. This is because the TRIPS program implemented strict safety standards that might result in lower probabilities of passenger and operator injury. In addition to making the vehicle safer, these changes also improve the structural integrity of the vehicle. This in turn extends the average life of each unit. These safety requirements are unique to Florida and must be considered when comparing cost of procurements of states without such standards. The implementation of the TRIPS program safety standards might also produce costs beyond those related to vehicle purchase. When compared to other agency procurement programs, TRIPS’ compliance to stricter safety standards might increase overall maintenance and monitoring costs. As part of this task, CUTR will seek to estimate the costs associated with compliance as part of a comprehensive benefit cost analysis approach to the overall TRIPS program.

Task 5. Final Report

At the conclusion of the project funding period (90 days before the end date), CUTR will provide a draft final report to FDOT’s Research Center. The draft report will summarize and synthesize all data collected and analyzed in Task 3 and Task 4 and present the results of the analysis of Task 4. The 90-day review period will allow adjustments resulting from FDOT comments.

The revised document will be provided to the FDOT Project Manager and the Research Center within 12 months of the issuance of the Task Order. Further details on the final report are described below in the section “Deliverables.”

Work not included in this scope of service is not to be performed and will not be subject to compensation by the Department.

III. Deliverables

A kick-off meeting shall be scheduled to occur within the first 30 days of execution by the university. The preferred method for the kick-off meeting is via teleconference or video conference. At a minimum, the project manager and the principal investigator will attend. The Research Center staff must be advised of the meeting and given the option to attend. Other parties may be invited, as appropriate. The subject of the meeting will be to review and discuss the project’s tasks, schedule, milestones, deliverables, reporting requirements, and deployment plan. A summary of the kick-off meeting shall be included in the first progress report.

Progress Reports The Principal Investigator will submit quarterly progress reports to the Research Center. The first report will cover the activity that occurred in the 90 days following the issuance of the Task Work Order.

Reports should be submitted within 30 days of the end of the reporting period. Reports are due even if little or no progress has occurred (in which case, the report should explain delays and/or lack of progress). Progress reports should be sent in MS Word to Sandra Bell, sandra.bell@dot.state.fl.us.

Progress reports must include the following information:

1. Contract Number, Task Work Order Number, and Title

2. Work performed during the period being reported

3. Work to be performed in the following period

4. Anticipated modifications (i.e., to funding, schedule, or scope). This section is for reporting/informational purposes, not for officially requesting an amendment.

Note: To request an amendment to a contract, the contractor must provide the project manager with the appropriate information (i.e., what is being requested with justification) in the required format. If the project manager concurs with the request, he/she shall forward it with his/her approval and commentary, as appropriate, to the Research Center for administrative review and processing (pending available funds, etc.)

5. A Progress Schedule (figures A, B, and C) updated to reflect activities for the period being reported.

Failure to submit progress reports in a timely manner may result in termination of the work order.

Draft Final Reports The Draft Final Report is due 90 days prior to the end date of the task work order. The draft final report will be submitted to Sandra Bell, sandra.bell@dot.state.fl.us. It should be edited for technical accuracy, grammar, clarity, organization, and format prior to submission to the Department for technical approval. The Research Center expects contractors to be able to provide well-written, high quality reports that address the objectives defined by the scope of service. Draft final reports must be prepared in accordance with the “Guidelines for Preparing Draft Final and Final Reports.”

Final Reports Once the draft final report has been approved, the university shall prepare the final report. The university will deliver a minimum eight (8) copies on CD or DVD – seven (7) CDs should contain the final report in PDF format, one (1) CD should contain the final report in PDF format, MS Word format and a Summary of the Final Report. The CD/DVDs should be labeled in a professional manner and include at a minimum the contract number, task work order number, project title and date.

The final report is due no later than the end date of the task work order and should be delivered to the following address:

The Florida Department of Transportation

Research Center, MS 30

605 Suwannee Street

Tallahassee, FL 32399-0450

Project Closeout

A closeout meeting shall be scheduled during the final 30 days of the project. The purpose of the closeout meeting is to review project performance, the deployment plan, and next steps. Attendees shall include, as a minimum, the project manager, the principal investigator, and the Research Center performance coordinator. This meeting is to occur prior to the expiration of the contract and subsequent to the approval of the draft final report.

IV. Project Schedule

Start Date:  February 2011               Expected End Date: May 2012

V. Project Budget

The proposed budget for this project is $75,000.

VI. Equipment

No need for non-standard equipment is expected for conducting the proposed research.

VII. Travel

No travel will occur on this project.

VIII. Use of Graduate Student(s) and Other Research Assistants

Student involvement is expected in order to perform data gathering and analysis under Task 2.

IX. Personnel Roles and Responsibilities

Principal Investigator: Janet L. Davis is the principal investigator for this project. Ms. Davis is the deputy director of the Transportation Program Evaluation & Economic Analysis (TPEEA) team at the College of Engineering at the University of South Florida.  Ms. Davis will head the project from start to finish, including project management, researching, gathering and analyzing data, and writing and editing for this project. 

Co-PI:  Sisinnio Concas is the principal investigator for this project.  Dr. Concas holds a Ph.D. in Economics from the University of South Florida (USF), and a Doctoral degree in Political Science from the Universitá Degli Studi Di Sassari, Italy.  He specializes in urban economics, parametric and nonparametric economic modeling, time series analysis and forecasting, economic impact analysis and public policy analysis.  Dr. Concas is a senior research associate at the Center for Urban Transportation Research (CUTR) assigned to the Transportation Program Evaluation & Economic Analysis (TPEEA) team at the College of Engineering at the University of South Florida.  Dr. Concas will conduct the data analysis and will work to write and edit the draft report and final report. 

Researcher:  Stephen L. Reich is the director of the TPEEA program at CUTR. Mr. Reich will provide analysis and contribute to the final report for this project.

Researcher:  Joel Volinski is the director of the National Center for Transit Research (NCTR) program at CUTR. He will provide internal review of the draft final report and oversight throughout the project period, and while his effort is small on this project, his expertise is essential to this project and the program. The budget figure reflects his estimated input for this project.

Program Assistant:  Rebecca Bosco is the program assistant assigned to the TPEEA team at CUTR and will provide assistance with contract administration including quarterly reporting, layout and editing of the draft final report as well as other programmatic and clerical assistance needed for this project. Ms. Bosco, while OPS, is a highly skilled staff member with a wide-range of essential duties.  As stated earlier, the annualized salary proposed is a calculation of her hourly rate.  She works part time.

Graduate Research Assistant:  a graduate research assistant will perform most of the detailed data analysis of the under Task 3. The graduate student selected will need to be enrolled at the Masters level.  College coursework in advanced statistics and data analysis will be needed as they are required for the project work.  Again, his or her annualized salary proposed is a calculation of their hourly rate and is competitive with similar graduate students in the college.

The actual salaries proposed are based off of USF’s official central payroll registers and are in fact, the actual salaries paid to the individuals who will work on the project.