N.J. Admin. Code § 16:85-2.2

Current through Register Vol. 56, No. 9, May 6, 2024

Section 16:85-2.2 - Financial criteria

(a) The decision to award to a carrier, a contract for regular route bus service will be made by NJ TRANSIT based upon whether such an award substantially improves the financial position of NJ TRANSIT. NJ TRANSIT will make such a determination by establishing a benchmark cost against which proposed costs shall be compared. The benchmark is not a bid, but rather is a detailed estimate of the incremental costs by an NJ TRANSIT operating subsidiary to operate the subject regular route service. Since the measurement of cost must be based on the net actual cost increase or cost savings to NJ TRANSIT, the marginal cost of operating the service will be used to determine the benchmark.

(b) The benchmark cost figure shall include, but not be limited to, the following types of costs: operators' labor, mechanics' labor, cleaners' labor, fringe benefits, fuel and lubricants, rentals, insurance, toll and departure fees, commissions, and all other direct costs. The benchmark may reflect any cost-related agreements reached in advance in writing between any NJ TRANSIT operating subsidiary and its unions in accordance with the applicable collective bargaining agreements. The benchmark shall be prepared confidentially by designated staff and will not be disclosed to staff involved in the evaluation of private carrier cost proposals until all proposals have been received and opened.

(c) Proposals from carriers that achieve the minimum technical evaluation score in accordance with N.J.A.C. 16:85-3.8 and offer to provide the regular route bus service at a cost less than the established benchmark, subject to (a) above and (d) below, shall be deemed to improve NJ transit's financial position. NJ TRANSIT shall determine whether such improvements in its financial position are substantial.

(d) Additional cost factors, which shall be included in NJ TRANSIT's assessment of proposals shall include, but are not limited to:

1. Lost opportunities to use part-time labor on other NJ TRANSIT routes, which result in cost increases for NJ TRANSIT;

2. All costs related to labor protection (unless the carrier agrees to assume such cost);

3. Any additional cost that NJ TRANSIT will incur, including monitoring and administrative costs, such as revenue collection equipment and services associated with the contract; and

4. Any necessary facility improvement cost that NJ TRANSIT will incur in order to accommodate the proposed service.

N.J. Admin. Code § 16:85-2.2

Adopted by 54 N.J.R. 93(a), effective 1/3/2022