bus maintenance overview on current cost structure … · bus maintenance overview on current cost...

Bus MaintenanceOverview on Current Cost Structure and Benchmarks

DRAFTNovember 2, 2015

CONFIDENTIAL AND PROPRIETARY

1|DRAFT Confidential – Proprietary and Predecisional

Table of contents

Overview of current MBTA internal bus maintenance cost structure

Benchmark analysis on MBTA’s bus maintenance cost against three external comp sets:

▪ U.S. public sector transit fleets

▪ 12 Massachusetts regional transit authorities

▪ U.S. public sector transit fleets with outsourced maintenance


We have been charged with identifying the Full Potential for bus maintenance efficiency opportunities

Definition of “Full Potential”

Cost savings available to the MBTA if we:▪ Aggressively pursue best-in-class efficiency for

our maintenance operations▪ Look to other systems for best practices▪ Are willing to engage with the private sector▪ Collaborate with our labor partners to increase

productivity and reduce cost▪ Pursue best-in-class, modern contracting and

procurement strategy for materials and supplies

Today, we are not proposing policy changes. We are laying out a fact-set for the FMCB and

other stakeholders


We perform everything from routine maintenanceto advanced repairs on a fleet of 1000+ MBTA buses PRELIMINARY

Key bus maintenance activities include

Vehicle and systems inspection Refueling

Filter, oil, and fluid replacements

Major component repair and replacement

Introduction to our fleet

At the end of FY2015, the MBTAhad:

▪ 1060 buses, including 931 active buses, 28 electric trolley buses, 32 dual motor diesel/electric buses, and 69 buses in our contingency fleet

▪ Average active fleet age of 9 years

▪ Average active fleet original purchase price of $395K/bus1

▪ Average total fleet maint. cost of $98K/bus per year2

Source: MBTA bus maintenance department

1 Nominal price at time of purchase2 Not including specialty vehicle engineering costs or administrative costs; includes maintenance and operating fuel costs


44

84

22

133

60

28

32

69

25

155

109

175

124

ConnDOT 40ft Hybrids

40’ ECD (New Flyer)

40’ ECD (New Flyer Option)

NFI 60’ Diesel-Hybrid Buses

40’ ECD (New Flyer)

40’ NeoPlan ECD

40’ NeoPlan ECD

Contingency fleet

Dual motor

Electric trolley bus

40’ NABI CNG

40’ NABI CNG

2003 Neoplan 60’ CNG

Manufacture year Purchase Price

The weighted average purchase price of the active bus fleet in 2015 was $395 K

Number of busesFleet

Overview of key facts on the current active MBTA bus fleet

Source: MBTA Bus Maintenance Department—September 2015

CURRENT MBTA COSTS

2003 $614 K

2004 $321 K

2005 $312 K

2005 $342 K

2005 $330 K

2007 $322 K

2007 $320 K

2009 $369 K

2010 $1,042 K

2015 $819 K

1994-1995 varies

2001 $1,666 K

2000 $1,080 K


FY16 budgeted operating costs

0

20

40

60

80

100%

Outsourced

Transport

Commuter rail

$384M

The RIDE

$111M

$510M

Maintenance

Bus maintenance

$125M

Transit facilities maint.

$80M

Rail maintenance

$72M

Everett Engineering

$56M

Power systems, maint.

of way, signals,etc,

$167M

$500M

Transport

Operations

Bus

$202M

Heavy rail

$81M

Light rail

$70M

$372M

Corporate

and

support

General

$70M

Finance

& IT

$61M

$187M

Ferry and

buses

$16M

Control center

$19MHR, marketing,

cust serv., other

$56M

Total FY16 = $1,569M

Total MBTA maintenance costs are forecast at $500M for FY16, including $125M to maintain the bus fleet

NOTE: Some bus and rail maintenance costs (e.g. Vehicle engineering at Everett) are not contained under the bus and rail maintenance depts.

CURRENT MBTA COSTS


0 50 100 150 200

Weighted avg per bus $98K

with fuel

Everett Bus

South

Hampton $151K

Lynn $111K

Quincy $108K

North

Cambridge $106K

Charlestown/

Bennett $98K

Arborway $93K

Cabot $87K

Albany $74K

Fellsway $74K

n/a

11

7

9

9

12

7

12

12

11

Average

fleet age

(years)

n/a

$4.30

$7.39

$3.35

$3.59

$12.42

$3.29

$3.39

$3.66

$3.49

Cost per

mile

drivenWeighted avg per bus $98K

with fuel

The total bus maintenance FY15 was $121M (including fuel); maintenance costs per bus vary across garages INCLUDES FUEL COSTS

CURRENT MBTA COSTS

Source: MBTA operations department

1 Includes wages, overtime, benefits, plus all services and materials. Does not include admin costs2 Includes 40ft & 60ft fleets, diesel & CNG buses, hybrid buses, and electric trolleys. North Cambridge services electric trolley buses, South Hampton

services DMAs, and Everett is a specialized vehicle engineering shop3 Latest available NTD-reported data for US systems operating more than 100 buses, trolley buses, or commuter buses

Total cost of bus maintenanceFY15 actual1 – WITH FUEL

Average annual cost of maintenance Spend per bus – WITH FUEL

Diesel bus garage Specialty garage

Specialty engineering shop, N/A

2015 total fleet size 1060$114KAverage cost per

bus w Everett

0

20

40

60

80

100%

Everett Bus

$19M

Lynn $10M

Quincy $9M

Charlestown/

Bennett

$24M

Arborway

$11M

Cabot $17M

Albany $8M

$121M

South

Hampton

$15M

North

Cambridge

$3M

Fellsway $6M


0

20

40

60

80

00%

Everett Bus

$19M

South Hampton

$13M

Lynn $7MQuincy $6M

Charlestown/

Bennett

$17M

Arborway $9M

Cabot $14M

Albany $6M

$99M

North

Cambridge $3M

Fellsway $5M

The total bus maintenance FY15 was $99M (excluding fuel); maintenance costs per bus vary across garages

CURRENT MBTA COSTS

Source: MBTA operations department

1 Includes wages, overtime, benefits, plus all services and materials. Does not include admin2 Includes 40ft & 60ft fleets, diesel & CNG buses, hybrid buses, and electric trolleys. North Cambridge services electric trolley buses, South Hampton

services DMAs, and Everett is a specialized vehicle engineering shop

0 50 100 150

Weighted Avg $77K

without fuel

Everett Bus

South

Hampton $129K

Lynn $82K

Quincy $81K

North

Cambridge $106K

Charlestown/

Bennett $71K

Arborway $76K

Cabot $71K

Albany $57K

Fellsway $59K

n/a

11

7

9

9

12

7

12

12

11

Average

fleet age

(years)

n/a

$3.45

$6.34

$2.47

$2.69

$12.42

$2.39

$2.77

$2.99

$2.68

Cost per

mile

drivenWeighted Avg $77K

without fuel

Total cost of bus maintenance FY15 actual1 – NO FUEL

Average annual cost of maintenance Spend per bus – NO FUEL

Diesel bus garage Specialty garage

Specialty engineering shop, N/A

1060$94KAverage cost per

bus w Everett

DOES NOT INCLUDE FUEL COSTS

2015 total fleet size


Our largest garages are our most efficient (based on maintenance cost per vehicle hour)

0 100 200 300

19

28

99

81

80

112

86

245

113

197

0 20 40 60 80 100

91

13

65

28

35

36

35

91

49

77

Diesel bus garage

Specialty garage2

0 5 10 15

Everett Bus

North Cambridge $12.42

South Hampton $7.39

Fellsway $4.30

Quincy $3.59

Albany $3.49

Lynn $3.35

Charlestown/

Bennett $3.29

Arborway $3.39

Cabot $3.66

N/a

0 1 2 3 4

0.21

2.10

1.52

2.91

2.27

3.09

2.46

2.69

2.32

2.56

Total fleet size (2015)Cost per hour (w/ fuel)$ per vehicle hour1

Cost per mile (w/ fuel)$ per vehicle mile1

Headcount productivityBuses/Employee

CURRENT MBTA COSTS

Source: MBTA operations and bus maintenance departments

1 Includes all miles and hours driven (e.g., revenue, deadhead, free shuttle) and all fuel (both maintenance and operating fuel)2 North Cambridge services electric trolley buses, South Hampton services DMAs, and Everett is a specialized vehicle engineering shop3 Does not include 5 FTEs in shared bus maintenance administrative function

Total Bus Maintenance wages / overtime / benefits: $66.4M; Total FTE: 525; Total cost per FTE: $127K

0 20 40 60 80 100

$98.69

$57.93

$50.50

$48.60

$39.96

$39.00

$32.74

$30.82

$28.29

Maintenance headcount3

People (FTE) per garage

N/a


Largest driver of maintenance expense is wages/benefits at $66M in FY15 for 525 employees ($127K per employee)

0

20

40

60

80

100%

FY15

Wages and Benefits

$66M

Materials and

Services $30M

$121M

Cleaning and

Uniforms $3MFuel $22M

0

20

40

60

80

100%

Cost/employee

Wages $75K

Overtime $16K

Benefits $36K

$127K

FY15 actual spend – Bus Maintenance FY15 labor costs per employee – Bus Maintenance

Overtime wages

Fringe benefits

Regular wages

Number of employees

$8.3 M

$19.0 M

$39.1 M

525

Total

CURRENT MBTA COSTS

Source: MBTA bus maintenance department


Average maintenance cost per hour for US public sector transit fleets with fleet size of 100+ and fleet age of 10+ years was $24.32

1

Public transit systems $1.88

MN Metro $1.51

CTA $1.94

SEPTA $2.24

WMATA $2.47

LA Metro $2.60

SF Muni $3.08

NY MTA $5.36

MBTA $3.85

$24.32

$19.67

$20.33

$23.69

$26.81

$30.10

$30.21

$37.96

$40.81

940

801

914

1,097

979

1,240

882

1,644

1,313

Maintenance spend per vehicle mile (2013)

Maintenance labor hours/bus (2013)

Maintenance spend per vehicle hour1 (2013)

PRELIMINARY

For the 7 large, urban transit peer comparisons above, the average fleet age was 10 years

“Public transit systems” average includes 71 public transit systems with▪ Average fleet age older than 10 years▪ Total fleet size over 100 buses▪ Largely public, but some private operators

Total fleet size (2013)

PUBLIC SECTOR BENCHMARKS

Source: National Transit Database. All numbers are for 2013 and include maintenance fuel expenditures, but not operating fuel expenditures (and thus not comparable to internal benchmarks on slide 8)

1 Includes both revenue and deadhead hours

1054

3896

556

2540

1774

1392

1940

912

329


Berkshire Regional

Pioneer Valley

Merrimack Valley

Cape Ann

MetroWest Regional

Brockton Area

Greater Attleboro-Taunton

Cape Cod RegionalSoutheastern Regional

Bill's Taxi

Lowell RegionalLowell Transportation Management Inc

Merrimack Valley Area Transportation Co.

Cape Ann transportation operating company

Montachusett Regional

Management of Transportation servicesManagement of Transportation services Gardner

Town of BellinghamTown of Middleborough

Bill's TaxiTown of Medway

PTM of Attleboro, Inc.

MV

Local 404

Local 1547Local 174Local 1037

Local 690

Local 1578

Local 42

Local 1547

Local 1548

Most RTAs’s outsource bus maintenance to private operators who employ union labor

MA RTA COMPARISON

*Source: 12 MA RTAs reported to the NTD 2013 contractor database; all MA RTAs reporting to NTD are included above. Worcester performs in house maintenance

Worcester

Directly operated public transit


1

Costs vary across MA regional transit authorities

$1.09

Worcester – in house maintenance

MA RTA average (excl. Worcester)

$1.17

$1.96

MetroWest

Lowell

$1.45

Cape Cod

$0.92

Montachusett

$1.03

$1.01

$0.89

Pioneer Valley

Cape Ann

$0.50

Brockton Area

$1.07

Southeastern Regional

$1.46

Berkshire

Greater Attleboro-Taunton

Merrimack Valley

$1.16

$1.06

MBTA $3.85

Public transit systems2 $1.88

$20.63

$12.40

$15.39

$14.81

$24.32

$23.78

$7.39

$13.22

$14.96

$15.14

$18.96

$15.28

$14.18

$19.72

$40.81

Maintenance spend per vehicle mile

Maintenance spend per vehicle hour1

PRELIMINARY

MA RTAs (2013 numbers) Union affiliation2

Total fleet size

MA RTA COMPARISON

Source: National Transit Database. All numbers are for 2013 and include maintenance fuel expenditures, but not operating fuel expenditures

1 Includes both revenue and deadhead hours 2 ATU: Amalgamated Transit Union; IAM: International Associations of Machinists; IBT: International Brotherhood of Teamsters. The MBTA works with several unions, but ATU 589/IAM 264 together comprise 61% of the 2015 workforce 2 Average of 71 agencies with fleet size >100 buses and average fleet age >10 years

Fleet age

IBT 40428 7

ATU 154750 7

IBT 17054 9

ATU 174/103765 10

ATU 448182 7

ATU 69037 11

ATU 154749 9

ATU 157850 8

ATU 154845 7

IBT 4217 12

ATU 2227 6

ATU 589/IAM 2641054 11

n/a329 11

ATU 2227 6

n/a52 8

Directly operated system


Summary benchmark bus maintenance costs

Public transit systems3 $1.88

MA RTA systems Avg2 $1.09

Privately operated US public transit systems1 $1.20

MBTA $3.85

Maintenance spend per vehicle mile4 (2013)

Maintenance spend per vehicle hour4 (2013)

$24.32

$15.28

$16.04

$40.81

▪ On a $/vehicle hour basis, the MBTA costs 2.5x more to operate than the outsourced US system average

▪ On a $/mile basis, the MBTA costs 3.2x more to operate than the outsourced US system average▪ MA-based RTAs are slightly outperforming the national average for cost efficiency in outsourcing

1054

272

52

Avg total fleet size (2013)

PRELIMINARY

PRIVATELY OPERATED PUBLIC TRANSIT COMPARISON

Source: National Transit Database. All numbers are for 2013 and include maintenance fuel expenditures, but not operating fuel expenditures

1 25 Privately operated public transit systems with a fleet of over 100 buses (e.g, Honolulu, Denver, Phoenix, Las Vegas)2 11 regional transit authorities based in Massachusetts who outsource maintenance to private operators – excluding Worcester which has in house maintenance3 For 71 agencies with weighted average fleet age>10 years and more than 100 buses 4 Includes both revenue and deadhead miles and hours

329


Next steps for bus maintenance

▪ Establish time standards for the most common bus maintenance tasks within next 60 days

▪ Engage an outside firm to analyze our current footprint and recommend strategy to maximize efficiency

– Including: cost-control, staffing strategy, workforce practices, facility footprint consolidation/reduction; fleet consolidation/reduction; outsourcing options; capital needs

▪ Mgmt and Local 264 will connect with RTA’s mgmt and union leadership to understand RTA model and best practices

bus maintenance overview on current cost structure … · bus maintenance overview on current cost...

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