Caltrain looking to a new operator

Caltrain management on Thursday announced it has negotiated a proposed contract with TransitAmerica Services Inc. of St. Joseph, Mo., to operate the San Francisco-San Jose Peninsula rail system and that it will recommend the contract for approval to the Peninsula Corridor Joint Powers Board at its Sept. 1 meeting.

Caltrain said the recommendation “is based on a competitive process that extended over more than 15 months and included detailed and expert evaluation of five proposals from top rail management firms.”

“The proposal presented by TransitAmerica received a consensus top ranking,” Caltrain said. “Proposals were scored in three major areas of criteria: the management, operations and maintenance plan; the cost proposal; and the qualifications and experience of the firm and key personnel proposed by the firm as the management team for the Caltrain service.”

The first full year (Fiscal Year 2013) of the five-year contract is for $62.5 million, within projected Caltrain operating and capital budgets. Subsequent contract amounts are subject to annual negotiations.

With the transition to a new rail contractor, federal regulations provide job protection for current employees. “We made a business decision to go to the marketplace, and the result is an opportunity for a partnership between TransitAmerica and Caltrain that can meet the high expectations we have for a safe, reliable, viable Peninsula commuter rail service now and in the future,” said Caltrain Executive Director Michael J. Scanlon. “This is a contractor with the experience, know-how, and vision to assist Caltrain in operating a system that provides opportunities for improvements, expansion, and cost and operational efficiencies, and to continue and enhance the long-established Caltrain culture of safety first.”

Should the Joint Powers Board approve Caltrain’s final recommendation, it would bring to an end the 20-year relationship between Caltrain and Amtrak, which has operated the rail system since 1992, when the Joint Powers Board assumed responsibility for the 148-year-old Peninsula line.

“The contribution of Amtrak to the Caltrain service can never be fully measured,” said Scanlon. “The successes enjoyed by Caltrain are due in significant part to the partnership between Amtrak and the agency, and we are grateful for all Amtrak has done.”

Once the contract is executed, there will be a five-month period during which the new operator will transition into place and mobilize its new management team. During that period, Caltrain and Amtrak “will remain in a partnership and Amtrak will continue to operate the railroad as it participates in the transition,” the agency said.

The Caltrain panel recommended TransitAmerica after receiving best and final offers from four firms, including Peninsula Corridor Rail Services, Inc., a partnership between Amtrak and Bombardier. The best and final offers were received “after extensive review of each proposal by a technical evaluation team—more than 30 individuals, including Caltrain staff, consultants, and advisors from Caltrain partner agencies—who assessed each proposal in several key areas, including safety, finance, operations, maintenance and customer service,” Caltrain noted. “The evaluation team then provided its comments to a scoring team of senior Caltrain staff. TransitAmerica received the highest scores by each member of the scoring team. The company also had a demonstrated track record of success operating other commuter rail systems across the country, including San Diego’s Coaster, Dallas’ Trinity Railway Express (TRE), and New Mexico’s Rail Runner Express.

The major components of Caltrain’s new five-year contract, with five one-year options, include the daily staffing and operation of trains, as well as inspection and maintenance of tracks, the passenger rail vehicle fleet, rights-of-way, structures, the signaling and communication network, stations, and other facilities.

Scanlon said that while cost was “a critical criterion, it was not the only factor in identifying the best proposal to meet the system’s needs. TransitAmerica presented the agency with the best overall proposal to provide the desired operational enhancements and performance improvements for Caltrain riders with an achievable operations plan that should result in efficiencies to the system over the life of the contract.”

In an unrelated development, Caltrain has been selected by the Federal Transit Administration to receive $750,000 to develop a comprehensive program to manage the maintenance of the railroad. The commuter railroad was one of six in the country selected to participate in the $3 million pilot program.

The funds will be used to develop an all-inclusive program to track the condition and maintenance of the railroad’s physical assets, which include everything from railroad ties and signals to benches on station platforms. Caltrain has 55 miles of track, 31 stations, and more than 50 grade crossings.

“Although Caltrain has a computer software program to track condition and maintenance, the funding will allow the agency to upgrade its current program, which will make it easer to use,” the agency said. “In addition, the new program will allow data entry in the field, which will help save time and ensure that the information is up-to-date. By having a record of the railroad’s condition and maintenance repairs done over time, Caltrain will be better able to plan for the future. The program also will highlight areas that need to be addressed and help prioritize capital projects.”

The pilot is expected to last 15 months. After that, the results will be analyzed and shared with transit agencies across the country.