There might be an opportunity for you to receive a new coach paid for entirely by the Federal government. Really. More commonly known as the Stimulus Act, the newly passed American Recovery and Reinvestment Act (ARRA) puts additional funding into an existing program that allows private sector operators to get full capital funding for coaches they purchase to serve underserved rural areas — especially those not presently served by airlines or existing rail and bus routes.

The program is narrowly focused on line-haul operations to underserved rural communities. The available money is to be distributed through the Federal Transit Administration's (FTA) 5311(f) Intercity Rural Access program. In previous years, operators willing to provide eligible line-haul services have been able to use 5311(f) funds to pay for up to 80 percent of the capital cost of the new vehicle. This year, the funding provided through the ARRA program is 100 percent. And there's a lot more money available this year.  It has already been distributed to all 50 states and it is up to their individual Governors and DOT officials to determine, if, where and how it will be spent.

The coaches themselves must be Altoona-tested and Buy-America compliant. Among intercity coach builders, MCI is uniquely positioned to fill that requirement with its D-Series coaches. Nevertheless, complying with funding requirements entails some specific configuration choices requiring that the coaches be ordered new from the factory following a competitive procurement process.

MCI Expertise

"Many of our customers have been able to take advantage of earlier grant programs to pay for equipment. This is simply an escalation of programs that have been in place for a few years," says Michael Melaniphy, MCI vice president - public sector. "We have extensive experience with these kinds of grants, and our team is accustomed to working with applicants to help them put together the right kind of equipment package.  If you contact your local MCI sales representative, he will be able to engage MCI's specialized public sector team."

MCI is the only coach supplier in the U.S. with an entire team dedicated specifically to managing public sector procurements. Expert help like that extended by Melaniphy's team tends to come in handy, because the FTA procurement requirements are quite complex, and a failure to fully comply can result in the forfeiture of all of the federal funding. Understanding how the vehicles are to be purchased, configured and produced in accordance with the federal regulations, along with the myriad of forms that must accompany the process, can be daunting. The government requires a lot of reporting, and it has hired extra inspectors to make sure that funded equipment is being properly acquired and used.

July 1 Deadline

ARRA grant applications must be submitted by state agencies to the federal government by July 1 of this year, though operators have considerably more time to actually take delivery of their coaches. The bid process can take a long time, so it's a good idea to start now.

For operators who are interested in participating in the 5311(f) stimulus program, Melaniphy has a few suggestions. First, they should contact the state department of transportation to inquire about the potential availability of these funds in the state(s) they feel they can provide rural access line-haul service within. Numerous states are funding programs right now, and others may be seeking potential new projects to ensure that all of the stimulus funding is spent. If a state DOT gives a positive indication that an opportunity might exist, then the operators should make sure they get registered for two federally mandated tracking numbers. The first is the DUNS number (www.dnb.com); the second is a Central Contracting Registry (CCR) number available at www.ccr.gov.

Depending on the state, FTA-funded coaches may be actually owned by the state or, in some cases, the operator. They are required to remain in service for a minimum of 12 years or 500,000 miles, however, many states stretch that out to 700,000 miles or more. At that point, the Department of Transportation usually auctions them off, sometimes on eBay, says Melaniphy.

"Even with all the rules, which we can help our customers negotiate, it's an unprecedented opportunity," says Melaniphy. "It's good for our industry, it's good for our customers, and it should be good for our country as well. And that's the kind of cooperative spirit that has kept the bus community strong. MCI is uniquely positioned to help our customers through this program, but you have to act NOW!"

In addition to contacting MCI, operators may want to visit the ABA website at www.buses.org/statefunding for a list of the specific state DOT contacts, the American Public Transportation Association at www.apta.com, the Federal Transit Administration at www.fta.dot.gov, or the federal stimulus tracking website at www.recovery.gov.

The FYI from MCI editorial staff values your feedback. Please e-mail any suggestions, comments, or ideas for future articles to fyi@mcicoach.com.