Lesson

Consider issuing separate awards for specific project components when procuring divergent technologies, equipment, or services.

The Riverside Transit Agency experience with the methods used to procure equipment and software for automatic vehicle location (AVL) and computer-aided dispatch (CAD).


January 2006
Riverside County,California,United States


Background (Show)

Lesson Learned

In some cases, it may be advantageous for two or more agencies to partner when procuring similar technologies or equipment. For example, multiple agencies procuring mobile data terminals (MDTs) for their demand response vehicles may find it beneficial to release a single request for proposals (RFP) for both agencies. Benefits can include reduced costs (e.g., one agency can take the lead in putting together the procurement documents), reduced risk, and greater industry participation (i.e., many vendors are more likely to respond to a larger-dollar value contract).

It was logical for RTA and SunLine to partner in this particular effort as they both intended to procure AVL and CAD technologies for their demand response and fixed route fleets. However, the two agencies’ needs diverged over time. One agency wanted to focus efforts on demand response operations while the other wanted to focus efforts on fixed route operations. Consequently, the procurement partnership was no longer a logical choice: many vendors who traditionally provide customized software for demand response are not particularly well-versed in fixed route operations; and, vice versa.

In addition to combining or separating procurements, the experience of the Riverside County project stakeholders provides the following suggestions that may be helpful to other agencies considering similar procurements.
  • In the event that two or more agencies choose to issue an RFP jointly, despite the fact that they may have somewhat different needs, consider issuing multiple awards (i.e., one award for each distinct element of the procurement). In contrast to combining procurements, if the procurement involves diverse technologies, equipment, or services, or, if the needs of procuring agencies change, it may be less risky to the project to issue separate awards. Although RTA and SunLine did not go this route, one agency indicated that it would have been advantageous to allow for individual project bids for the fixed route versus demand response elements of the project. This would have enabled separate awards to vendors uniquely qualified in each of the two areas.
  • Have clear goals and a clearly defined memorandum of understanding (MOU) in the event of a joint-procurement RFP. It can be advantageous for agencies to partner when procuring equipment or technology. However, it is important that the agencies have a clearly defined memorandum of understanding (MOU) that defines the roles and responsibilities of those involved, and that the individual entities involved have a clear sense of their own needs before discussing regional needs and goals.

The lesson presented here suggests that procuring agencies should consider whether or not it is beneficial to combine similar project elements (e.g., hardware, software, services). In some cases, procuring agencies may realize reduced costs, reduced risk, and greater industry participation. In other cases, procuring agencies may want to consider issuing multiple awards when project needs result in diverse or competing requirements. In addition, it is important to have similar needs and goals and a clearly defined MOU.


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Source

Riverside County Transit Project Final Evaluation Report

Author: J. Rephlo, M. Carter (SAIC)

Published By: U.S. Department of Transportation

Source Date: January 2006

Other Lessons From this Source

Lesson Contacts

Lesson Contact(s):

Jennifer Rephlo
Science Applications International Corporation (SAIC)
703-676-2407
jennifer.a.rephlo
@saic.com


Agency Contact(s):

Natalie Zaragoza
Riverside Transit Agency (RTA)
951-565-5194
nzaragoza
@riversidetransit.com

Lesson Analyst:

Firoz Kabir
Noblis
202-863-2987
firoz.kabir@noblis.org


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Lesson ID: 2005-00172