1. My Experience Procuring Intelligent Transportation Systems (ITS)
2018 Autumn Technology & Shared Mobility Conference
Short List Dem = observe, validate and question
Relook at proposers solutions, team, experience and implementation approach
Found misrepresentations (Incident Management) and MDT’s too big
Omar McPherson
San Luis Obispo Regional Transit
November 2018

2. ITS Overview Concept of Services Goals & Benefits
Make public transit more attractive to the general population.
Increase awareness of ITS benefits.
Maximize passenger movements.
Reduce operational costs.
Reduce emissions and energy costs.
Improve transit system safety.
Goals & Benefits
Provide riders with a more predictable ride
Provide riders with real-time arrival information
Provide riders with tools (Smartphone's, Web, SMS messages)
Allow riders to better plan their day
Reduce complaints
Improve routes & stops
Build community good will! 2

3. Passenger Information Network
Real-Time Arrival Predictions
Changeable Message Signs
Bus Stop Signage
Interactive Voice Response (IVR)
Text Messaging (SMS)
Customer Trip Planner
Customer Web Site
Mobile Applications 3

4. ITS On-Board Elements Automatic Vehicle Location (AVL)
Vehicle Logic Unit (VLU)
Automatic Vehicle
Location
Closed Circuit
Television/Recorders
Electronic
Head Signs
Voice Annunciation
Radio
Remote Vehicle
Monitoring
Automated
Passenger Counters
Infotainment
System/Signage
Fare Collection
Automatic Vehicle Location (AVL)
Voice Annunciation (ASA)
Vehicle Head Signs
Automatic Passenger Counters (APC) Wheelchairs/Bike Racks
Vehicle Radio Systems
Fare Collection
Infotainment Systems
Vehicle Camera Recording Systems (CCTV)
Wi-Fi

5. So, how did we get it? Request for Proposal (RFP)
Contract Negotiations
Signed Agreement/Contract

6. RFP's Request for Proposal (RFP) Benefits Best Practices
Establishes your objectives and requirements
Establishes vendor competition
Converts vendor sales talk into enforceable commitments
Codifies requirements into a single document
Obtains multiple solutions to your problem
Best Practices
Always include your agencies form contract
There is NO substitute for preparation
Do not limit vendor creativity in proposing alternative solutions (be descriptive, not prescriptive)
Release
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RFP's
Evaluate

7. RFP's Request for Proposal (RFP) Sections Introduction
RFP Schedule of Events
General Requirements
Terms & Conditions
Proposal Submittal Process
Evaluation Criteria & Proposer Selection (Best Value)
Current Operational Overview
Fixed Route Functional Requirements
Demand Response Functional Requirements
Passenger Information Network
Data Communications
Optional Requirements
Architectural Requirements
Proof of Concept
Additional Requirements
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8. RFP's RFP Appendix (selected elements) Requirements Acknowledgement
Price Summary Form
Milestone Payments
Sample Agreement
Insurance Requirements
Federal Regulatory Requirements
Buy America Requirements
Fly America Requirements
Certification of Restrictions on Lobbying
etc., etc., etc…….
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9. We’ve selected our vendor,
now what?

10. RFP's Prepare for Negotiations Know your requirements
Read proposal materials very thoroughly and in detail
No level of detail is too deep!
Identify all costs and deliverables
Understand the vendors strengths and weaknesses
Prepare an RFP “Clarifications Table”
Know what you’re negotiating
Anticipate changes that are predictable and unpredictable
If necessary, enlist help (seasoned negotiator, attorney)
Release
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11. RFP's Negotiating Strategies & Pitfalls
Negotiations is a “Process”, not an “Event”
Seek a “Strategic Partner” not just “Another Vendor”
Strategize your negotiations (want to pitch one against the other or talk to first one only)
Make the vendor aware that there is credible competition
Have at least two credible vendors (could go with either one of them)
Don’t be undersold!
Vendor Ploys:
You don’t need to write that down, you can trust me!
You’re getting our best price!
I’ll have to get any changes approved by corporate!
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12. RFP's Negotiating Strategies & Pitfalls
Use payments and retentions as leverage
Get remedies in writing (if its not written down, it never happened!)
Beware of “Evergreen” clauses
What’s your appetite for risk? (balance price against protection)
Would you rather lock into long-term maintenance contracts (for predictable budgeting) or revisit your contracts more frequently (riskier but may provide interim savings opportunities)
Goal is to avoid litigation situations
A “Good Deal” is when both sides feel that they got something (“Win Win”)
Release
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Organize
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Negotiate
RFP's
Evaluate