Multiagency Electronic Fare Payment Systems (2017)

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

120 APPENDIX D Procurement Dimensions The project dimensions defined by the Smart Card Alliance “Planning for New Fare Payment” (SCA, 2010) that are associated with Figure 17 are listed in Table D1. TABLE D1 DIMENSIONS OF A PROCUREMENT MODEL—DEFINITIONS Contracting Alternatives Project Responsibilities Consulting Services The agency selects a consultant to design a system. The system design constitutes system requirements and specifications. The contract may include services to assist the agency during system implementation. Systems Manager The agency hires a system manager through a consultant selection process. The manager participates in all phases of system implementation, including planning, design, development, and testing. Design/Build A design/build agreement provides for design and construction of improvements by the contractor and is often preceded by preparation of a partial design (sometimes designated as a 30% design). Task Order Unlike the above options, task orders do not assign project responsibility but are used to acquire services or supplies as needed during the project. Task orders are used in conjunction with either the systems manager or design/build alternative. Method of Award Criteria Used and Steps Taken to Select Contractor Low Bid Commonly referred to as sealed bidding, this method employs competitive bids, public opening of bids, and low price awards. Negotiation Negotiation allows considerable flexibility and typically relies on evaluation of a technical approach, qualifications, and experience as represented in a technical proposal and subsequent presentations to the agency. Best Value The best value method combines the features of negotiated and low bid procurements. Contractors submit their proposals for evaluation and negotiations with the procuring agency. The proposal selected is the proposal that offers the best value to the agency. Sole Source Sole source selects a contractor without competition. Contract Form Form Use to Authorize Work Phased Contracts Phased contracts divide the work into predefined phases, and the contractor is authorized to begin work on a particular phase when a letter to that effect is issued by the agency. Task Order Task orders (or indefinite delivery) are used when the supplies and services required are unknown at the time of contract execution. Task orders allow the agency to place orders for these supplies and services as needed over the term of the contract. Purchase Order Purchase orders are a form of sole-source contracting used for relatively small procurements. The cap on the size of purchase order contracts varies among agencies but is usually less than $50,000.

121 TABLE D1 (continued) Incentive Contracts Incentive contracts motivate contractors who otherwise might not be motivated and discourage contractor inefficiency and waste. Predetermined formulas for incentives allow for increases in profit or fees only for achievements that surpass fixed targets. Decreases in profit result when such targets are not met. The incentive increases or decreases are applied to performance targets rather than minimum requirements. Source: SCA (2010, pp. 16–17). Time and Materials Time and materials agreements procure supplies and services based on labor hours at agreed- upon fully burdened fixed hourly rates and materials at cost, including handling fees. Time and materials contracts are generally used when it is difficult to estimate the extent and duration of the contractor’s work. This type of contract places considerable risk on the agency and requires careful contract monitoring and oversight. Contract Type How Contractors Are Reimbursed Including Performance Incentives and Penalties Fixed Price Contract A fixed price contract places the risk and full responsibility for all costs and profit on the contractor. Post award, the price cannot increase, regardless of the costs incurred by the contractor during performance. Cost Reimbursement A cost reimbursement contract establishes an estimate of the total cost of the project that constitutes an expenditure ceiling. The contractor cannot exceed this ceiling without the approval of the agency. The contractor is also paid a fixed fee in addition to being reimbursed for the actual cost of performing the work. Thus, while the contractor is guaranteed a profit (in contrast to fixed price contracts, where the contractor can lose money), the amount of profit as a percentage of total cost can vary considerably.

Abbreviations and acronyms used without definitions in TRB publications: A4A Airlines for America AAAE American Association of Airport Executives AASHO American Association of State Highway Officials AASHTO American Association of State Highway and Transportation Officials ACI–NA Airports Council International–North America ACRP Airport Cooperative Research Program ADA Americans with Disabilities Act APTA American Public Transportation Association ASCE American Society of Civil Engineers ASME American Society of Mechanical Engineers ASTM American Society for Testing and Materials ATA American Trucking Associations CTAA Community Transportation Association of America CTBSSP Commercial Truck and Bus Safety Synthesis Program DHS Department of Homeland Security DOE Department of Energy EPA Environmental Protection Agency FAA Federal Aviation Administration FAST Fixing America’s Surface Transportation Act (2015) FHWA Federal Highway Administration FMCSA Federal Motor Carrier Safety Administration FRA Federal Railroad Administration FTA Federal Transit Administration HMCRP Hazardous Materials Cooperative Research Program IEEE Institute of Electrical and Electronics Engineers ISTEA Intermodal Surface Transportation Efficiency Act of 1991 ITE Institute of Transportation Engineers MAP-21 Moving Ahead for Progress in the 21st Century Act (2012) NASA National Aeronautics and Space Administration NASAO National Association of State Aviation Officials NCFRP National Cooperative Freight Research Program NCHRP National Cooperative Highway Research Program NHTSA National Highway Traffic Safety Administration NTSB National Transportation Safety Board PHMSA Pipeline and Hazardous Materials Safety Administration RITA Research and Innovative Technology Administration SAE Society of Automotive Engineers SAFETEA-LU Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (2005) TCRP Transit Cooperative Research Program TDC Transit Development Corporation TEA-21 Transportation Equity Act for the 21st Century (1998) TRB Transportation Research Board TSA Transportation Security Administration U.S.DOT United States Department of Transportation

NO N-PRO FIT O RG . U.S. PO STAG E PA ID CO LUM BIA, M D PER M IT NO . 88 TRANSPORTATION RESEARCH BOARD 5 0 0 F ifth S tre e t, N W W a s h in g to n , D C 2 0 0 0 1 A D D R ESS SER VICE R EQ UESTED M ultiagency Electronic Paym ent Fare System s TCRP Synthesis 125 TRB ISBN 978-0-309-38985-3 9 7 8 0 3 0 9 3 8 9 8 5 3 9 0 0 0 0