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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
2|DRAFT Confidential – Proprietary and Predecisional
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
3|DRAFT Confidential – Proprietary and Predecisional
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
4|DRAFT Confidential – Proprietary and Predecisional
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
5|DRAFT Confidential – Proprietary and Predecisional
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
6|DRAFT Confidential – Proprietary and Predecisional
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
7|DRAFT Confidential – Proprietary and Predecisional
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
8|DRAFT Confidential – Proprietary and Predecisional
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
9|DRAFT Confidential – Proprietary and Predecisional
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
10|DRAFT Confidential – Proprietary and Predecisional
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
11|DRAFT Confidential – Proprietary and Predecisional
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
12|DRAFT Confidential – Proprietary and Predecisional
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
13|DRAFT Confidential – Proprietary and Predecisional
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
14|DRAFT Confidential – Proprietary and Predecisional
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