Vermont Rail Action Network

Explained below is the procurement process that led to its selection of Colorado Railcar DMUs and in a separate, but related RFP called the “Corridor Partial Competition Pilot Program” its award of $2,000,000 to Vermont. The RFP is quoted below.

“In 2005, Congress directed a demonstration of potential state corridor route competition under PL-108-199 and set aside $2.48 million for a pilot competitive state route project. In its April 2005 Strategic Reform Initiatives, Amtrak agreed to work with the Federal Railroad Administration (FRA) to advance such a pilot project. Pursuant to its FY06 Grant Agreement with the FRA, Amtrak is now soliciting proposals for a pilot trial of State and/or private participation in the provision of intercity passenger rail service requested by a State that can be demonstrated to reduce the cost to Amtrak and to the State of providing that service and/or improve the quality of that service. Except for providing the locomotive engineer for a proposed pilot program train, all services provided directly by Amtrak shall be considered eligible under this RFP.”

Amtrak had 2.48 million dollars to conduct a test of improved operations on a selected corridor. The proposal we submitted to do this test indicated a willingness to use the new DMU technology which Amtrak has selected ultimately for use nationwide on secondary lines. $2,000,000 of this money was awarded to Vermont. A critical section of our response to the Amtrak RFP is quoted below.

“In the fall of 2005, Vermont Agency of Transportation entered into discussion with Amtrak about the current Vermont state supported services. Driven by the Amtrak board’s decision to bring all states up to a level of contract funding that covered all direct cost incurred by Amtrak, the parties agreed that if current levels of service were to continue, some significant changes to the service would need to be made. Gil Mallery, VP of Planning & Business Development, arranged a meeting with Charlie Miller from VTrans, Mark Yachmetz from the Federal Railroad Administration and Arthur Rader from Colorado Rail Car to discuss opportunities for purchase of equipment that would better fit the Vermont model for intercity passenger service. Amtrak had been working with Colorado Rail Car on the development of an equipment specification for a “Rail Diesel Car”. It was obvious to all the parties at the meeting that equipment under development by Colorado Rail Car would meet the anticipated use in corridors such as the Vermonter and Ethan Allen Express.

Shortly after this meeting Gil Mallery and Jeff Mann made a proposal to Agency Secretary Dawn Terrill and Deputy Secretary David Dill on the benefits of moving from Vermont’s current equipment situation to utilization of the new DMU technology. Based on a review by the Amtrak planning department, Vermont could actually increase the frequency on the Vermonter to two trains daily for the approximate cost of the current service”.

Completely separate from the Route Test RFP was Amtrak’s internal procurement process that selected the new DMU technology. Amtrak selected the Colorado Railcar DMU only after a full-scale and completely proper internal procurement review, including the opportunity for competitive bidding. The winner of the Amtrak equipment bid process was the Colorado Railcar DMU.

When its budget allocations permit Amtrak plans to order a full fleet of these cars (initially 17 and potentially up to 40 cars), but in the short-term it wants to facilitate a Federal/State partnership to test if the new technology can seriously improve operations and financial performance on at least one appropriate route. As the DMUs are intended for rural and branch-line conditions the VERMONTER route was an ideal candidate. We were awarded the $2,000,000 to conduct this test. Amtrak legitimately expects that we do it using the technology we described in our bid and which Amtrak approved.

Ø Amtrak wants new, rather than rebuilt equipment, as they want to test new generation cars. As I mentioned, Amtrak has a perfectly legitimate interest in trying to simplify its fleet by operating only equipment of a fairly standardized form, which does not require, as 1950s RDCs would, the actual recreation in machine shops of many parts. Amtrak had a very bad experience in the 1970s operating RDCs, which even then were suffering from advanced age-related maintenance issues.

Ø Amtrak granted Vermont $2,000,000 of the 2.48 million total available for the partnership test program—a very generous response indeed!

Ø But tied to the two million dollars was the expectation that we would carry out the intended test using the equipment which Amtrak had selected and based on the service plan that we had outlined. This included use of the new DMUs.

Ø If we don’t conduct the route experiment using the new DMUs we should clearly understand that we will not get the $2,000,000.

Ø We would be VERY unlikely to get rebuilt RDCs approved for use in this test, because for better or for worse the RDC is a long-established technology.

[Adopted from a memo to the Vermont State legislature by Carl Fowler]

The dmu proposal offers the certainty of major cost savings combined with a significant improvement in service. DMUs have become the world-wide standard for branch-line and secondary passenger services in the last ten years. They can produce a remarkable improvement in Amtrak’s finances and ridership in Vermont and deeply cut Vermont’s subsidy for the service.

DMUs as a technology offer many advantages:

Ø DMUS reduce fuel expense because of reduced weight and more efficient design. They offer up to a 500% improvement in fuel consumption compared with the use of two conventional diesel engines, as required by the present Amtrak equipment. On a 600-mile round trip from St. Albans to New Haven CT, a DMU set, at a very conservative $1.80 per gallon diesel fuel cost, would save $2,956 per day in fuel costs. In a year, the DMU would save $1,078,940.

Ø Total DMU savings are even greater, because maintenance cost is reduced by tailoring the length of the train to demand and using new cars which require less expensive overhauls. The DMU equipment, if used on a single round-trip daily, will require $693,000 per year for maintenance compared to $2,350,000 for the present Amfleet locomotive-hauled train, a savings of $1,657,000 per year. The Amfleet cars presently in use are 25-30 years old.

Ø Combined, the fuel and maintenance savings for the DMUs on just a single round-trip daily saves $2,735,940 per year.

Ø Compared to the $17,176,415 purchase price for the DMUs, the fuel and maintenance savings alone pay for the cars in only 6.3 years!

Ø DMUs are 75% less noisy than conventional diesel engines.

Ø DMUs produce 72% less pollution than conventional diesels.

Ø DMUs offer greater acceleration, permitting faster and more frequent service on the route. Modern DMUs are fully capable of 70-80 mph operation.

Ø DMUs are fully compliant with current U.S. crash-safety requirements.

Ø DMUs can pull up to two additional unpowered coaches. This allows for expanded passenger capacity without adding another engine, crew or train.

Ø DMUs have been successfully tested in Alaska under the most demanding mountain conditions and on grades much steeper than anywhere in Vermont. DMUs can operate through ice and snow and are much less likely to be delayed by storms than either air or highway transportation.

Ø DMUs reduce station and terminal costs. Platforms can be shorter, maintenance is simplified, and less space is required in yards for service and storage.

Ø New DMUs offer higher standards of passenger comfort. The nearly 30-year old coaches used on the VERMONTER have tiny windows and cramped passenger seats. Contemporary DMUs can be ordered with large picture windows, an efficient on-train café, more spacious seating, and built-in facilities for bikes and skis. This is particularly important on the VERMONTER, since the train no longer has a baggage car.

Ø The operational savings from using DMUs make it practical to add a second round-trip between White River Junction and New Haven. The incremental cost for fuel and maintenance to add this service is only $271,000 per year, but passenger loadings can be expected to soar and more than recover those costs. Amtrak has found repeatedly that more-frequent service dramatically improves train economics. Illinois just added one additional daily train between Chicago and Carbondale. Business grew 61% in the first month. Between Chicago and St. Louis, the addition of two daily trains produced a first month growth of 91% on the route!

Ø A second DMU train each day would restore connections to the Chicago, west coast and Florida Amtrak services, generating 25-30 more passengers per day.

Ø Because of the DMUs faster acceleration, an overall schedule improvement is possible which could allow the VERMONTER to connect at New Haven to Amtrak’s 135 mph ACELA EXPRESS. This would provide schedule reductions of up to a full hour enroute to Washington DC.

Ø The DMUs provide better viewing of the beauty of Vermont with their much larger picture windows. Combined with their more spacious seats and interiors, this will encourage more ridership and further reduce costs.

Ø A two-car DMU can replace a five-car conventional train. At present, Amtrak is forced to pull the equivalent of three empty coaches which are needed only south of New Haven. This would reduce fuel, crew, and maintenance costs.

Ø Additional DMUs could be used to institute service from Burlington to Middlebury, Rutland, Manchester, Bennington and Albany at a fraction of the cost of a locomotive-hauled train. Because of their lighter weight, they can operate at marketable speeds over more lightly-built track, which is exactly what exists on this route. While some upgrading still would be needed, much of this work is completed.

[adopted from testimony by Carl Fowler before the Vermont legislature]