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<< Rail News Home: Mechanical

6/6/2006    Fleet

Rail News: Mechanical

FTA launches joint procurement pilot program

Replacing transit-car fleets could cost an agency more than $1 million per vehicle — a pricey procurement for budget-constrained public entities. That’s why the Federal Transit Administration (FTA) has launched the Cooperative Procurement Pilot Program, which is designed to encourage transit agencies to jointly purchase capital equipment to help reduce procurement costs.

The FTA will provide 90 percent federal funding to agencies that participate in the pilot instead of the standard 80 percent federal match. The administration will help fund the cost of the equipment, as well as expenses incurred from developing cooperative specifications, issuing requests for proposals, evaluating offers and purchasing Internet-based software.

In addition, FTA contracted Implicit PurchasePooling Solutions LP to recruit public transit agencies to participate in the pilot program and jointly procure light-rail cars or buses. The company offers an Internet-based service that enables each agency to retain individual specifications, terms and conditions.

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