Surviving the Economic Tsunamiin Transit

Surviving the Economic Tsunamiin Transit

Overview

possibilities opportunities

survival through private sector partnering.

how contracting can help:

optimizing the benefits

Challenges

Identifying what to contract

Optimizing the cost efficiency of contracting.

Leveraging private sector capabilities

a function or multiple functions within a portion of the system

an entire division of the system

multiple functions within the entire system

the entire system

Finding the Correct

Contracting model

Contract

OPTIONS

Private Sector

Advantages

efficiency, cost savings and accountability 25-30%

innovation and flexibility

broad and multi-faceted experience

new alternatives for capital investment

Maximize Contracting Efficiencies

Share Risk

Include supply and/or financing of equipment

Collaborate on identification of opportunity to realize savings

Include incentives and penalties

Increase Scope and Term

What it looks like when it works

Large scope of work combining four separate contracts.

Contract term of 5 + 3

Enabled Veolia to find staffing efficiencies and make sizable investment – 26 OTR Coaches

Ongoing collaboration

Service Alternatives

For Low Demand

Using private provider capacity late night and weekends

Broker to serve an established market.

Issues:

Industry Profile – capacityRegulatory Environmentfare elasticity Alignment with contractual requirements

Keys to Success deep commitment

by all partners

Willingness to re-define roles

Recognition of differing sector needs

Inclusion, Collaboration

mutual accountability, mutual respect