Report to Congress on the Results of the Cooperative Procurement Pilot Program
Section 166 of the Transportation, Treasury, and Independent Agencies Appropriations Act, 2004 directed the Federal Transit Administration (FTA) to establish the Cooperative Procurement Pilot Program (CPPP) to determine the benefits of encouraging cooperative procurement of major capital equipment among transit agencies. Under the CPPP, competitively selected grantees, consortiums of grantees, or members of the private sector acting as agents of grantees were to develop cooperative specifications and conduct joint procurements among transit agencies.
Section 166 called for FTA to conduct three pilot projects, with the Federal share for a grant under this pilot program constituting 90 percent of the net project cost. Section 167 of the Transportation, Treasury, and Independent Agencies Appropriations Act, 2005 directed the FTA to continue the CPPP and to expand the program to five pilot projects.
The FTA’s goals for CPPP were to develop, refine, and test innovative procurement practices that provide significant benefits to the public transit industry. Potentially significant benefits could include cost savings compared to standard procurements, improved efficiency of the process, and a decrease in the managerial burden for the organizations involved.
Section 166 also directed FTA to report on each pilot project, evaluating any savings realized through the cooperative procurement and analyzing the benefits of incorporating cooperative procurement into the mass transit program as a whole. Additionally, Section 3048 of the Safe Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) directed FTA to determine whether the benefits were sufficient to formally incorporate cooperative procurement into the mass transit program, based on the pilot program as well as other experience.
The report details the results of each of the pilot projects and FTA’s conclusions about further efforts related to cooperative procurement. More specifically, FTA finds that Cooperative Procurements are already an eligible activity under FTA’s program and are a recommended practice under FTA’s Circular FTA C 4220.1F, "Third Party Contracting Guidance." However, FTA did not find that this expanded Federal share provided a significant inducement leading to greater use of cooperative procurement.
The five pilot projects awarded by FTA, and included in this report, are:
- STV Incorporated;
- The Regional Transportation Commission of Southern Nevada;
- The City of Montebello, California;
- The Texas Department of Transportation; and
- Implicit Purchase Pooling Solutions.
This report was published and transmitted to Congress in April 2010.