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Table Of Contents
 Message from the Chair
By Bill Lochte, Bombardier
THANKS FOR THE MEMORIES It is hard to imagine that my two-year term as chair of your Business
Member Board of Governors (BMBG) comes to an end in October at APTA's
Annual Meeting in Atlanta. I would be less than honest if I didn't admit
that I view the "passing of the gavel" with both regret and
relief.
Serving as chair of the BMBG has been a personal privilege
and honor; it is also a lot of work and is not for the faint of heart.
Over the past two years, the board has taken its job very seriously
as we worked to increase the "value proposition" of APTA's
private-sector members. We held ourselves accountable to look beyond
just the sale and focused on important common objectives that also affected
our public-sector col-leagues … all in a spirit of mutual respect
and partnership.
APTA is an evolving organization, and the challenges facing us following
9/11 are unprecedented. Too often the true value and potential of our
industry are not recognized by many on Capitol Hill when, in reality,
public transportation can and should be the very economic engine to
get America back to the level of prosperity it enjoyed prior to the
tragedy of Sept. 11. Unfortunately, as of this writing, it remains to be seen whether
or not Congress will act on TEA 21 reauthorization. Rest assured that
APTA and all of its members remain vigilant and committed to succeed
on this most important legislation.
The Benefit of Succession Planning Over the past two years, working together, I believe we accomplished
much. However, if there will be any long-term impact from our efforts,
it will be left to the leadership that follows. The BMBG's new Five-Year
Tactical Plan sets a forward road map that if successfully implemented
will be a "win-win" not only for the business members but
for all members of APTA. We listened to you and set bold initiatives
and objectives for the immediate future. The underpinning philosophy
for the plan was how to achieve a better return on investment for all
business members of APTA. It has been gratifying how our President Bill Millar and his staff
have embraced this plan; many of the strategies have been integrated
in APTA's annual business plan for the coming year and only time will
tell if all make a real difference. The BMBG's bylaws emphasize the importance of conti-nuity of leadership
for APTA's business members and define a six-year leadership timeframe.
I am both confident and content in handing leadership of the BMBG over
to Kim Green of GFI Genfare, an amazing manager with out-standing relationship
skills. Under Kim's leadership, and with the support of Delon Hampton
and Sharon Greene, I look forward to the BMBG continuing to broaden
and strengthen the benefits that the board makes on behalf of APTA's
business members.
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Tactical Plan Update
By Kim Green, GFI Genfare
As noted in BMBG Chair Bill Lochte's column, the Business
Members' Tactical Plan is progressing rapidly on several fronts in response
to the feedback gained from last year's listening sessions on how the association
could be more responsive to the supply side's needs. Here is a quick progress
report on several initiatives under the plan (more will run in the next issue
of Business in Motion):
APTA Market Forecast: This action calls for the development of a market forecast
that could be pre-sented to financial institutions to prove a better case
for investment in the supply side of the transit industry.
A brainstorming session comprising 16 business members and
APTA staff was conducted July 21, 2004, to arrive at the key forecast variables
that could affect the public transmaterials, the document will provide busi-ness
members with a consolidated source of information regarding the timing and
scope of potential new vehicles, equipment facility, systems and other major
procurements. To date, specific informa-tion has been collected from 40 top
transit agencies. A draft report on the scope, outline and content on this
system is scheduled for completion and presentation at the October BMBG meeting,
with a final report to be presented to the BMBG in January.
Disseminate the Business Case: Originally two discrete task
forces tackling the national and grass roots stakeholders separately, the
groups combined into a single effort. The combined group held a strategy conference
call; available sup-porting studies and documents that could be used in a
business case media and information kit were also discussed. A draft first
"overview" press release for the media kit was presented to the
BMBG in Denver. The transportation staffer of the National Conference of State
Legislatures also attended the Denver meeting at this group's invitation.
In June, Cliff Henke met with (PT)2's Mary Trupo to discuss new (PT)2 ads
based on the business case for 2005 placement. A press and advertising strategy
will be presented to the BMBG at the January meeting.
Involve Business Members More in APTA Leadership: Chair George Dixon has
listened, and in response formed a bylaws task force comprising equal members
from the business, operating and governing board ranks.
BMBG Members Work with FTA on Procurement
Issues
By Nuria Fernandez, Earth Tech
Two groups of the BMBG's procurement task force charged with encouraging
the FTA to create market incentives for using standard procurement guide-lines
and practices have scored some successes in recent months.
At recent meetings, the FTA was willing to entertain innovative
procurement concepts that would benefit the public and private sectors, in
particular if the proposals were submitted by grantees with low-risk profiles.
FTA's suggested opportunities for incentivizing grantees including the recently
enacted Cooperative Procurement Pilot Program, currently underway; an update
to the portation market. The resource requirements and means for research
and model development remain to be defined. By the end of the year, the task
force will have established general parameters for report, developed and ranked
the variable factors affecting the forecasting model and revised the work
plan to include resource and funding needs. The revised plan will be presented
to the BMBG at its Annual Meeting in January 2005.
Upcoming Business Opportunities Early Warning System: This
group is developing a program to regularly collect and share with business
members information on future contract opportunities in public transportation.
Drawing upon information from transit agency five-year plans or other appropriate
Chenoweth, Joe Alexander and task force leader Nuria Fernandez, held separate
meetings with the FTA and several transit operators. They addressed several
areas of concern to business members and pointed out opportunities for efficiencies
and strengthening the transit marketplace via implementation of the Standard
Bus Procurement Guidelines and FTA's Best Practices Procurement Manual.
FTA expressed interest in streamlining the procurement process,
but in return asked the industry representatives whether there was any potential
for the recently legislated Cooperative Procurement Pilot Program as an opportunity
for fostering cooperative specifications and standardized equipment requirements
through Internet-based technologies. They suggested that one of the criteria
in the solicitation for the three pilot projects required by the legislation
could be the application of the voluntary standard technical specification
and war-ranties that have been developed and promoted by FTA and APTA.
To illustrate the perceived imbalance of current FTA policy
against suppliers, the task force representatives pointed out that the Best
Practices Procurement Manual focuses on liquidated damages for late deliveries,
but is silent on rewards for completing an order, project or service ahead
of schedule. Paul Veltri, FTA's Office of Procurement director, replied that
the Department of Defense Air Force Procurement Award terms included lan-guage
on financial incentives for completing projects or delivering equipment ahead
of schedule. He also reiterated FTA's posi-tion that liquidated damages should
equal the cost to the customer for the delay, and is not meant to be a penalty.
Meanwhile, the FTA has also examined ways in which it can
foster the use of con-sensus-based industry standards in the transit marketplace,
because both current administration policy and federal technology legislation
favor adoption of such standards in lieu of traditional regulation. Recognizing
this development as well as the growing interest in standards, the APTA Executive
Committee has approved the association's status as a standards development
organization, similar to the Society of Automotive Engineers or the Institute
of Electronic and Electrical Engineers. Accordingly, APTA has created the
Standards Development Oversight Council, comprising both business mem-bers
and operating members of the association. The council is charged with over-seeing
the work of the various standards-developing committees in APTA, as well as
formulating overall budgets and working with government, related industry
and international bodies to ensure that transit standards are devel-oped and
used as effectively as possible.
There will be two important sessions at the APTA Annual Meeting
on the subject of standards. In addition, all the standards committees will
hold meetings. Those attending the Annual Meeting are encouraged to attend
these sessions as well.
Cliff Henke, NABI, contributed to this article.
GM Works to Make Transit Industry Clean
By David W. Mikoryak, Allison Transmission
Who would have guessed that the world's largest automobile
manufacturer would be maintaining a high profile in the relatively low volume,
highly specialized, sometimes sporadic U.S. transit industry. But it is happening!
General Motors Corp. (GM), through its many divisions, has historically been
a major equipment and component supplier to the public transit industry. Automatic
transmissions from Allison Transmission, engines from Detroit Diesel, locomotives
from Electromotive and transit buses like the GM Classic, the (New Look) 5300
series and the infamous RTS (Advanced Design Bus) from the GM Bus and Coach
Group are all part of this legacy.
The U.S. transit industry, being comparatively small, does
not fully benefit from volume economics, resulting in equipment afford-ability
issues. The automobile markets are growing beyond expectation in China and
India, placing unprecedented demands on world energy supplies. This added
energy demand stimulates increased opportunity for clean, fuel-efficient and
affordable public transportation systems. Sharing clean and fuel-efficient
propulsion technologies between automobiles, trucks and buses has real eco-nomic
appeal to GM, who serves all of these markets.
International competition, once a threat to our domestic suppliers, is now
part of a new global order. Maintaining a leadership position in this international
environment can strain the resources of any one company. Partnering, alliances,
JVs and other methods to exploit strengths and shore up weaknesses require
understanding, cooperation, regulatory control and teamwork.
The U.S. transit industry is becoming an international business. APTA is
the industry association of choice to unify the transit industry with a meaningful
voice, especially in Washington, D.C.
GM realizes the value of APTA's role as a champion for the American transportation
industry, both domestically and internationally. On its path to zero emission
vehicles, GM is introducing one of the most technically advanced hybrid electric
products in the world.* This new product endeavor has no borders. GM's hybrid
technology product launch will be progressive, starting with transit buses.
GM is embracing new markets and new business partners for commercial success.
This is an exciting time, and good partners are essential. APTA and the Public
Transportation Partnership for Tomorrow (PT)2 will be part of GM's winning
team.
* GM Allison Transmission manufactures one of the most technically advanced,
roadworthy parallel hybrid-electric propulsion systems in the world for heavy-duty
transit buses. The GM Allison EPSystemTM is in buses running regular revenue
transit service in numerous cities throughout the U.S.
Upcoming Meetings
A number of important meetings and events for business members will take
place during the Annual Meeting in Atlanta. All are open to APTA business
members:
- Seminar on upcoming business opportunities in China, Saturday at 4 p.m.
- Business member committee meetings Saturday afternoon and Sunday morning
- BMBG meeting, Sunday at 1:30 p.m.
- Gala reception and dinner honoring Richard Wagoner, chairman and CEO of
General Motors, Monday at 6 p.m. (tickets required)
- General Forum featuringAmbassador Andrew Young, Tuesday at 8 a.m.
- General Forum featuring futuristDaniel Burrus, Tuesday at 9:45 a.m.
- Continuing the dialogue session with Daniel Burrus, Tuesday at 1:45 p.m.
The next meeting of the BMBG and business member committees will take place
January 19-21 in Miami, Fla.
PROFILE IN BUSINESS
John D. Satterfield
Bio
data: Vice president of global strategic accounts at Cubic, where he has
been employed for 19 years and focuses on business opportunities in the U.S.
and Australia. Has been involved with BMBG for seven years and has served
on the board for two terms. Prior to his current position at Cubic, he focused
on BART in San Francisco and learned about transit and fare collection in
Chicago. Before joining Cubic in 1985, he worked for a defense consulting
firm in Connecticut for five years after serving in the U.S. Naval Submarine
Service for 10 years. He currently lives inNorthern Virginia with wife Michele.
Toughest career challenge: Keeping up with Cubic's growing business
in the U.S. and globally. "I'm fortunate to be in a career where the
niche is relatively small and today's success-es lead to tomorrow's customers."
Proudest success: Time spent in Chicago delivering the AFC system
to the Chicago Transit Authority and PACE. "The greatest satisfaction
from my career is providing a service solution that makes a difference in
so many people's lives every day."
Outside of work: "Between business travel and work the only thing
I really have time for is golf. Thanks to APTA, there are several opportunities
to mix golf and work at conferences around the country."
If there is only one thing APTA could do this year, I want it to:
"Continue the (PT)2 program to inform the public in general and the political
powers to be of the importance of our industry for years to come."
Supports APTA because: "Its success is directly related to our
industry's success. We have to support our professional associa-tion to grow
our influence in today's economy for the future."
Preferred mode of travel-buses or trains: Rail, "only because
it better fits my travel and commuting needs."
What It Takes For Prime and DBE Partnering Success
By Delceno Miles, The Miles Agency (First of two parts)
There are many prime contractors/consultants seeking to team
with qualified disadvantaged business enterprises (DBEs) and women's business
enter-prises (WBEs). However, the challenge invariably tends to be finding
and building relationships so all parties, including the client, can benefit.
In this article, Ann M. Geter, director of purchasing for the Central Ohio
Transit Authority (COTA); Paralee A. Shivers, busi-ness development and assistance
officer of Houston's Metropolitan Transit Authority (METRO); and Kenneth R.
Scott, executive director of the Norfolk International Airport Authority in
Virginia, offer practical advice from their experiences.
At COTA, DBE opportunities are deemed as ways of partnering
and mentoring small businesses. An example is its contract for paratransit
services. Considering it an opportunity for DBE development and mentoring,
COTA worked closely with the prime contractor to identify and utilize such
opportunities. However, for these partnerships to succeed, prime contractors
must be open and willing to participate in these pro-grams and DBEs must be
willing to commit as well. As a result of COTA's efforts, a DBE subcontractor
is currently participating in the delivery of paratransit service and the
prime contractor's staff training program.
At Norfolk International Airport, the authority specifies
a minimum level of DBE participation in the agency's RFP documents for operating
concessions. In the case of the recent retail concession operator, the specified
minimum was 15%. The level of DBE participation is an evaluation factor the
authority uses in selecting the prime contractor.
More than these incentives and specifications, however, the
agency staff encourages active outreach by assisting primes with access to
all available sources of information regarding DBE participation, including
the Virginia Department of Transportation's (VDOT's) DBE Directory, the Airport
Minority Advisory Council and the Virginia Department of Minority Business
Enterprise. The authority also publishes all of its RFP notices and contract
announcements with those agencies. All DBEs selected for airport contracts
must be certified by VDOT under the Virginia Unified Certification Program
mandated by U.S. DOT, and it is an excellent source to identify qualified
DBEs. Prime contractors that do not meet the prescribed DBE goal for a specific
bid must provide a very detailed explanation of their efforts to obtain DBE
participation as prescribed in Federal Aviation Regulation (FAR) Part 26.
Houston's METRO has a very innovative and aggressive DBE
program. In fact, METRO reports that it rarely cannot find DBEs for a project.
Its Office of Business Development has several tools to encourage more DBE
utilization, and it created METRO Opportunities University (MOU) to help create
existing part-nerships between prime and DBE/Small Businesses. MOU offers
courses requested by small businesses to help them learn how to do business
specifically with METRO. Courses offered include "The METRO Bidding Process,"
"Mock Bids," "How to Get Paid," "Partnering and Building
Relationships," "Accessing Capital, Prime/Subcontractor Relationships"
and "Project/Contract Management."
To encourage prime and DBE/Small Business relationships further,
METRO also offers quarterly small business networking forums for primes and
DBEs and other small firms to network. It sponsors forums and courses that
are industry-specific and request that primes participate on the agenda and
share how DBEs and small firms can partner with them on projects.
METRO also gives primes a copy of its Certification Directory, which lists
more than 1,600 small businesses by industry with contact information and
areas of expertise, as well as a list of noncertified firms registered with
METRO. METRO also uses the Texas Unified Certification Program (TUCP) database
to search for DBEs that may be able to participate on projects. METRO accepts
firms that are cer-tified for its projects with TUCP.
Upcoming Transit Ballot Measures
The industry needs the private sector to get involved not only in the national
political process but at the grassroots as well. Here are the key measures
where the business case can help ensure victory this fall:
Phoenix, Ariz: Maricopa County half-cent sales tax extension and $16
billion regional transportation plan, funding light rail and BRT.
San Francisco Bay Area, Calif.: $980 million bond issue to pay for
BART earthquake safetymodifications.
Contra Costa County, Calif.: Renew Measure C, a half-cent sales tax
funding $1.6 billion in highway and transit projects, and update the county’s
growth management plan.
Sacramento: Extension of Measure A, the existing half-cent transportation
sales tax, which would raise $4.7 billion for road and transit improvements.
San Mateo County, Calif.: Renewal of Measure A, a
half-cent transportation sales tax, worth $1.5 billion over 25 years in road
and transit projects.
Santa Cruz, Calif.: Half-cent sales tax to raise $530 million for
road, trails and transit.
San Bernardino, Calif.: A $6 billion, 30-year transportation plan,
including commuter rail, light rail and BRT.
Marin County, Calif.: Half-cent sales tax increasefor road and bus
projects.
Ventura County, Calif.: Half-cent sales tax increase for road and
transit improvements.
San Diego: Transnet, a $9.5 billion plan for transit and highway projects.
Denver: FasTracks, a $4.7 billion expansion plan for several new light
rail and commuter rail lines.
Garfield County, Colo.: Whether the county should join the Roaring
Fork Transit Authority (Aspen).
El Paso County, Colo.: A plan to raise the sales tax by a penny to
fund road and transit improvements and to form the Rural Transportation Authority,
which would serve county communities including the Colorado Springs region.
Aspen, Colo.: A bailout of the Roaring Fork Transit Authority.
Florida (statewide): To repeal a provision to develop and operate
a state high-speed ground transportation system.
Kalamazoo City, Mich.: A $1 million property tax renewal for $1.56
million in transit service.
Charleston, S.C.: A half-cent sales tax increase to fund transit,
green space and roads.
Austin, Texas: Sales tax increase for a commuter rail starter line,
at a cost of less than $100 million.
Fairfax County, Va.: $300 million bond issue for transportation, human
services, parks and libraries, a third of which is for Washington Metropolitan
Area Transit Authority renewal, improvements and expansion.
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Business In Motion The official newsletter of the American Public Transportation Association's
Business Members Chair
William Lochte,
Bombardier Chair, Outreach Committee/Publisher
Cliff Henke, NABI Associate Publisher
Frank Di Giacomo,
METRO Magazine Editor
Leslie Davis, METRO Magazine Graphic Designer
Joni Hutton, Bobit Business Media APTA Staff Advisor
Fran Hooper Ensure a positive R.O.I. …Get active in APTA. To receive Business in Motion electronically, email Fran Hooper at
fhooper@apta.com.
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