Bus Lines Takes Advantage of Pilot Program

By Pam Wight, San Gabriel Valley Tribune, Calif.

Jun. 15–MONTEBELLO — Montebello Bus Lines will save more than $2 million on the purchase of 39 buses, thanks to a federal pilot program that studied ways to improve how transit agencies buy their equipment.

The company became the first lead agency in Southern California to participate in the Federal Transit Administration’s Cooperative Procurement Pilot Program when its application was approved in May, said Allan Pollock, Montebello’s director of transportation.

In an effort to encourage the practice of buying in bulk, the program reimburses 90 percent of the costs of “capital equipment” — in this case buses — for each participating agency if they enter into joint purchases with other agencies.

Normally, the Transportation Administration reimburses transit agencies 80 percent of bus purchases, leaving the companies to come up with the other 20 percent.

“The benefit for us is by reducing our local match, we can divert that money into services,” Pollock said. “That extra 10 percent adds up. That $2million is equal to about 27,000 hours of service.”

Being the “lead agency” means Montebello Bus Lines will control the entire procurement process for 10 other transit companies when they join together to purchase 200 hybrid gasoline electric buses, said bus line spokeswoman Paula Faust.

They will be responsible for sending the purchase request out for bid and will be able to determine equipment specifications and contract details.

The program had its first “phase” last fiscal year using three lead agencies from across the country, Faust said.

—–

To see more of the San Gabriel Valley Tribune, or to subscribe to the newspaper, go to http://www.sgvtribune.com.

Copyright (c) 2006, San Gabriel Valley Tribune, Calif.

Distributed by Knight Ridder/Tribune Business News.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.