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TPI ANNUAL REPORT Transit Procurement Made Easy

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TPI ANNUAL REPORT Transit Procurement Made Easy 2017 – 2018 TPI ANNUAL REPORT Transit Procurement Made Easy TABLE OF CONTENTS MESSAGE FROM THE PRESIDENT & CEO .................................................................... 3 MESSAGE FROM THE MANAGER OF TPI ..................................................................... 3 TPI’S GOVERNANCE STRUCTURE ................................................................................. 4 TPI STRATEGIC ADVISORY COMMITTEE ...................................................................... 4 OUR VALUED PARTNERS .............................................................................................. 5 KEY PERFORMANCE INDICATORS ............................................................................... 6 OTHER TANGIBLE BENEFITS ........................................................................................ 9 2017 – 2018 ACTIVE CONTRACTS .............................................................................. 10 TPI FACT SHEET .......................................................................................................... 14 UPCOMING INITIATIVES IN 2018 – 2019 .................................................................... 15 TPI TEAM NEWS .......................................................................................................... 15 2017 – 2018 HIGHLIGHTS • 5 new Municipal Partners joining the program (page 6) • 93% average client satisfaction (page 7) TPI • 18.4% growth in bus order intake (page 8) • Overall program savings/cost avoidance est. $25.9 million (page 8) • Supplier contract awards for 9m, 12m and 18m buses (page 11) • 2017 LINX Team Award for Service Excellence (page15) • Full complement of bus supply contracts: 6m up to 18m available For more information about TPI, please contact: Yolanda da SilvaTPI ANNUAL, Manager, REPORT Transit Procurement2 Ph: 416-202-5604; [email protected]; Or visit our website www.metrolinx.com/tpi MESSAGE FROM THE PRESIDENT & CEO Metrolinx’s Transit Procurement Initiative (TPI) and all the program has accomplished in the past year is proof there is so much room for collaboration and resourcefulness in the transit industry. TPI delivers customer service, procurement efficiencies, and operational value, allowing municipalities throughout Ontario to maximize their transit dollars and best serve customers and taxpayers. With five new municipal partners joining this year, TPI is a truly great example of what we can accomplish by working together to make transit more accessible across the region. Keep well, Phil Verster MESSAGE FROM THE MANAGER OF TPI I’d like to extend my appreciation for our shared accomplishments and your tremendous support for an amazing year. In working together, we have proven that we can accomplish more. If you are not familiar with the TPI program, we invite you to read about one of North America’s most innovative transit procurement programs. By aggregating quantities, collaborating to standardize technical specifications and eliminate duplicate procurement processes, the program provides lower unit costs, increased quality of goods and enhanced contract deliverables to transit systems, transit riders and taxpayers across Ontario. Best regards, Yolanda da Silva TPI ANNUAL REPORT 3 TPI’S GOVERNANCE STRUCTURE The Governance Agreement (GA) is the agreement between Metrolinx and the Governance participating municipalities outlining the Agreement principles of facilitating joint procurements and each respective party’s role and responsibility. Each project establishes its own steering committee with representatives from the participating transit agencies. This structure fosters a strong link between TPI’s project team and the steering committee on tender commercial strategies, technical specifications and evaluations criteria to deliver value for procured goods and services. The current five (5) year Governance Agreement is set to expire December 1, 2018. Work on the new Governance Agreement is set to start in the fall 2018. TPI STRATEGIC ADVISORY COMMITTEE TPI’s Strategic Advisory Committee (SAC) meets once to twice a year. The Committee is comprised of: • Chair and Co-chair, inclusive of TPI Manager • 4 members from Ontario transit systems • a member from Ministry of Transportation (MTO) • a member from the transit industry TPI’s manager and committee members work together on relevant issues that may develop over the course of the year, evaluate TPI’s ongoing business efforts, and identify any gaps or adjustments that need to be made as the TPI program continues to grow and mature. TPI ANNUAL REPORT 4 OUR VALUED PARTNERS Program participation of transit agencies continues to grow year over year, covering more regions across the province of Ontario. As of March 31, 2018, transit agencies (TA) have participated since the program began in 2006. Coordination TPI ANNUAL REPORT 5 KEY PERFORMANCE INDICATORS To ensure we continue to bring value to our partners, Metrolinx TPI has established a set of Key Performance Indicators (KPIs). By tracking the progress of these indicators, we assess how well our program is doing in achieving its objectives. Tracking the Number of Partners We are excited to add five (5) new transit partners to the program: Orangeville, Guelph, Simcoe County, Port Hope and Ottawa. The enrollment of these partners has helped us exceed our original target goal of 44 to 45 partners this year. We attribute this growth to program benefits to transit agencies, the availability of active contracts and the announcement of Public Transit Infrastructure Fund (PTIF) monies to municipalities. Transit Partners Participation • ITS-AVL • 8-metre Low Floor Bus and Minibus • Minibus, ITS-AVL, 9-metre Conventional Bus and Camera/Video Surveillance • Minibus • 12-metre Conventional Bus TPI ANNUAL REPORT 6 2017-2018 Client Surveys • 79% response rate (11 out of 14) • 83% response rate (5 out of 6) • 4.75 out of 5 (95%) level of • 4.4 out of 5 (88%) level of 2020) satisfaction - satisfaction Strengths: Strengths: • Transit agencies value the time • Solid project communications etre (2017 etre savings by participating in TPI m - • Excellent contract resolution • TPI advocates for all stakeholder 12 AVL Contract Management AVL Contract Management Experience Satisfaction abilities to deliver maximum return - Joint Procurement Satisfaction Joint Procurement ITS “TPI was very “Everyone at TPI is great professional and easy to work with.” “TAs gained from the to deal with and give us great confidence in professionalism and knowledge getting the maximum provided by TPI’s staff. I was able to return for all the save a considerable amount of stakeholders.” administrative time using TPI’s joint procurement process” “TPI did a great job.” “TPI always looked for clarification and seemed to understand the needs of all the transit “TPI paid close agencies.” attention to details and advocated for its members.” “TPI communicated very Overall Level of Satisfaction 100% well and always asked the right questions for the group when needed.” 75% 98% 98% 97% 95% 94% 93% 88% 79% 50% * Average Level of Satisfaction 2014 – 2018 Actual Target (94%) TPI ANNUAL REPORT 7 Program Savings TPI estimates that the administrative cost TOTAL CUMULATIVE SAVINGS ALL PROGRAMS avoidance, capital and operating cost $30 $25.9 savings is approximately $4.4 million in $25 million 2017-2018 across all participating contracts. $20 $15 Therefore, cumulative program savings to $10 $5 Ontario taxpayers have reached an Millions in Savings Estimated $0 estimated $25.9 million since the TPI 2013-14 2014-15 2015-16 2016-17 2017-18 initiative began in 2006. Overall Number of Buses Ordered As of March 31, 2018 the 1560 1% 6% cumulative total number of buses 9% 18-m (11) ordered through TPI reached 12-m (1164) 7% 1,560 buses, an increase of 18.4% 2% 9-m (39) from 1,317 buses over last year. 8-m HF (105) TPI Buses per Region 8-m LF (138) 75% Mini Bus (103) 14% Durham Region 25% Halton 9% Hamilton TPI’s bus joint procurement Niagara purchases reach across 24 Ottawa 14% regions of Ontario, with Simcoe approximately 75% being 19% Toronto served by Metrolinx divisions York 5% GO Transit and PRESTO. 5% Other 5% 4% 12-metre Market Share Landscape for Fiscal Year 2017-2018 In analysing Ontario’s 12-metre bus purchases, data 54% shows TPI market share has increased from 42% to 46% 2018 Non-TPI - in fiscal 2017-2018. This is accredited to new partners, as 46% 2017 well as PTIF transit investment projects. Data is based on 12m Market Share TPI of Ontario Bus Orders service populations of less than 2 million (excludes TTC). Bus quantities are based on the latest Canadian Urban Transit Association (CUTA) fact book operating data, assuming a 15-year replacement life for non-TPI members, and actual TPI member bus purchases. TPI ANNUAL REPORT 8 OTHER TANGIBLE BENEFITS .....includes Third Party Inspection Services The Metrolinx TPI project team manages in-plant bus inspection services on behalf of transit agencies (TA). The inspections provide independent oversight throughout the manufacturing process to ensure technical compliance and a well- built bus. Participating agencies receive a weekly status report capturing any deficiencies and corrective actions needed. The final inspection report captures detailed information of water test, road test, electrical and final bus finish sign off. The benefits to TAs include significant time savings, reduced travel costs, better quality buses, quicker bus revenue services placement and consistent builds across the consortium. 2017
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