Under Contract
As with most public transportation agencies, TriMet needed to explore innovative ways to cut costs. The result was a new, fixed-cost maintenance contract that paid providers on a mileage basis based upon their successful bid. This new model made ongoing fleet maintenance efficiency and cost control the primary responsibility of the contractor, not TriMet. The next step was to find a contractor who could comply.
When TriMet began searching for contractors, it witnessed firsthand Penske’s transit maintenance capabilities showcased in New Orleans, where Penske maintains over 190 vehicles for the regional transit authority. During the bidding process, Penske presented a fair contract, which included a unique cost overrun protection clause. Other contractors were competitive with the base price in their contract bids, but Penske took the time to understand TriMet’s business. And, Penske was awarded the contract.
Seamless Transition
The maintenance start-up consisted of a 30-day transition. There was, however, some concern at TriMet over how the existing maintenance team, consisting of 11 technicians and one manager, would work with Penske and the possibility of turmoil and negative effects on fleet maintenance activities. But Penske provided training and integrated the “Penske way” into the existing maintenance program—losing no one in the transition.
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