AGENDA ITEM 9-C
ACTION ITEM
TO:
CHAIRMAN COVINGTON AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
MARCH 16, 2012
RE:
AUTHORIZATION TO ISSUE A SOLICITATION FOR THE ANALYSIS
OF RAIL EQUIPMENT AND MAINTENANCE MANAGEMENT
_____________________________________________________________________
RECOMMENDATION:
The VRE Operations Board is being asked to authorize the Chief Executive Officer to
issue a solicitation for an independent third party analysis of VRE rail equipment and
maintenance management.
BACKGROUND:
On June 18, 2004, a multi-year initiative to shift fleet maintenance to VRE’s outlying
yards was approved by the Operations Board. As part of this initiative, construction
projects at both yards were initiated to include inspection pits, service and inspection
buildings, car washes, and a warehouse facility. Through these projects, VRE has
been able to fully assume equipment maintenance functions. In addition to establishing
the required infrastructure to support the maintenance of equipment, VRE has also
procured new locomotives and passenger cars to further support operational needs and
promote mechanical operations synergies.
On January 20, 2012, the Operations Board approved the issuance of a task order to
VRE’s mechanical engineering consultant to study and make recommendations
regarding VRE’s long term rolling stock maintenance, equipment, and facility needs.
This effort will result in an action plan that addresses life cycle maintenance and
overhaul requirements for all VRE rolling stock. A comprehensive view of the current
maintenance organization, structures, practices, and facilities is underway and once
complete, this summer, will be summarized along with the identification of future
requirements.
Coordinated with, but independent of, this work, VRE staff analysis has brought to light
the potential for major cost savings through consolidation of management functions and
lean management principles, which could ultimately lead to a shift to in-house
maintenance operations. This authorization would allow the pursuit of an independent
third party analysis to verify the magnitude of potential cost savings as well as assist in
the development of project timelines and approaches to achieving such.
FISCAL IMPACT:
There is no fiscal impact associated with this action.
TO:
FROM:
DATE:
RE:
CHAIRMAN COVINGTON AND THE VRE OPERATIONS BOARD
DALE ZEHNER
MARCH 16, 2012
AUTHORIZATION TO ISSUE A SOLICITATION FOR THE ANALYSIS
OF RAIL EQUIPMENT AND MAINTENANCE MANAGEMENT
RESOLUTION
9c-03-2012
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, on June 18, 2004, a multi-year initiative to shift fleet maintenance to VRE’s
outlying yards was approved by the Operations Board; and,
WHEREAS, as part of this initiative, construction projects at both yards were initiated to
include inspection pits, service and inspection buildings, car washes, and a warehouse
facility; and,
WHEREAS, through these projects, VRE has been able to fully assume equipment
maintenance functions; and,
WHEREAS, on January 20, 2012, the Operations Board approved the issuance of a
task order to study and make recommendations regarding VRE’s long term rolling stock
maintenance, equipment, and facility needs; and,
WHEREAS, related analysis has brought to light the potential for major cost savings
through consolidation of management functions and lean management principles; and,
WHEREAS, this authorization would allow the pursuit of an independent third party
analysis to verify the magnitude of potential cost savings as well as assist in the
development of project timelines and approaches to achieving such.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board authorizes
the Chief Executive Officer to issue a solicitation for an independent third party analysis
of VRE rail equipment and maintenance management.