COMMERCIAL BUS STUDY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-05599A000100100020-1
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 18
• Document Creation Date: December 9, 2016
• Document Release Date: March 22, 2000
• Sequence Number: 20
• Publication Date: June 27, 1973
• Content Type: MF

Approved For 5`~' 6O2b5101 :CIA=RDP7$' 59 0100100020-1
27 JUN 1973
MEMORANDUM FOR: Director of Logistics
SUBJECT Commercial Bus Study
1. Problem: To consider the possible use of a
commercial contract to operate the Agency shuttle system.
2. Assumption: Management feels that the Agency shuttle
system can and must become a less costly and more efficient
operation.
3. Background:
a. The Agency has six W-7 bus drivers and four W-6
limousine drivers whose annual gross salaries total $121,872,
exclusive of fringe benefits (see Annex A).
b. The Agency has in its inventory six 33-passenger
Blue Bird buses and six 12- assenger Checker limousines whose
total acquisition cost was 163,000.
c. Direct annual cost of operating the shuttle
system is $138,652. If depreciation of the vehicles is
included, the annual cost is $159,027. Cost of operating the
system on the routes, however, is $100,778 (see Annex B).
d. The Agency operates two bus routes and two
limousine routes (see Annex Q. Routes 1, 2, and 4 begin at
0730 hours and Route 3 at 0830 hours, Monday through Friday,
approximately 252 days a year. The service terminates each
evening at 1730 hours. This results in 198,000 miles
traveled per year on the routes plus 37,000 miles per year
traveling to and from the routes.
e. A total of Q passengers will be transported
STATINTL in FY-1973. Of this number, 75 percent will utilize Routes 1
STATINTL and 2: 43 percent between the Headquarters Building and
and 32 percent between)
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SUBJECT: Commercial Bus Study
(hereafter
referred to as "the triangle"). Of the remaining 25 percent,
10 percent of the_passenger load is on Route 3 and 15 percent
is on Route 4 (see Annex D).
4. Discussion:
a. This study is exploratory in nature; however,
some specific conclusions and recommendations are offered.
Discussions were held with commercial bus and chauffeur ser-
vices to determine the feasibility of a commercial contract
and their individual interest in bidding on a contract if it
is let. The need for an extremely high degree of reliability
and security clearance of the company's personnel was stressed.
The following plans for operating the shuttle service were
presented:
(1) The contractor will provide drivers,
supervision, and inspection, and the U.S.
Government will provide vehicles, mainte-
nance, and fuel.
(2) The contractor will provide drivers,
maintenance, fuel, supervision, and in-
spection, and the U.S. Government will
provide the vehicles.
(3) The contractor will provide the
total service, defined to mean vehicles,
drivers, maintenance, fuel, supervision,
and inspection.
b. A meeting was held with representatives of five
bus companies. They all expressed an interest in at least one
of the three plans.
Interested in Plan 3
Interested in all plans
Interested in Plan 3
Interested in Plan 3
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SUBJECT: Commercial Bus Study
c. Although I expressed
an interest in all three plans, their reliability seems in
question since this firm brokers for the services of other
companies. The other companies rejection of Plans 1 and 2
stems from their fear of potential legal problems as well as
the problem of divided responsibilities for operating the
services.
d. Ten chauffeur services were contacted by tele-
phone to determine their interest in a contract. The three
different plans were presented to each. The first four of
the ten chauffeur services are interested.
Interested in Plans 1 & 3
Interested in all plans
Interested in all plans
Interested in Plans 1 & 2
Not Interested
Not Interested
Not Interested
Not Interested
Not Interested
Not Interested
e. Three of the four interested chauffeur services
expressed the view that only they could perform the service to
STATINTL the Agency's satisfaction. while not
so confident, desires the opportunity to bid on any contract.
f. Under Plan 1, the Agency annual payroll would
decline $121,872 (the present annual salary for drivers, exclusive
of fringe benefits). The upper limit of any contract let
under Plan 1 would thus be about $122,000. Under Plan 2, the
contractor also maintains and provides fuel for the Government-
furnished vehicles. The present annual cost of maintenance and
fuel is $16,780. This gives an upper limit of about $139,000
for any contract let under Plan 2. The present direct annual
cost of the shuttle service is $138,652 plus vehicle procurement
costs. Depreciating the vehicles over an 8-year period raises
the annual cost to $159,027 giving an upper limit of about
$160,000 for any contract let under Plan 3.
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SUBJECT: Commercial Bus Study
g. Based on the experience of other Government
departments, a contract for Plan 3 could be negotiated
between $158,256 and $176,284. Both the Department of State
and the Department of Defense have contracted out their bus
service. The contract awarded by the Department of State
in January 1973 was for $157 per bus per day. Applying this
rate to the Agency shuttle system results in an annual cost
of $158,256. The Department of Defense contract was awarded
in June 1972 at a rate of $ .89 per mile. Applying this rate
to the 198,072 miles covered by the Agency shuttle routes
results in an annual cost of $176,284 (see Annex E).
h. Cost savings may be derived by eliminating some
of the present runs. For example, the direct limousine run
from Headquarters to the duplicated the
present bus routes. Its elimination would result in a savings
of about $35,000 based on the Department of Defense and the
Department of State contracts.
i. The Department of Defense, the Department of
State, and the Agency have overlapping shuttle service in the
triangle. Meetings were held with representatives of the
Departments of Defense and State to determine if there was
mutual interest in cooperating on shuttle service in the
triangle. Two proposals were put forward. First, to agree
to allow reciprocal use of shuttle buses with the Department
of Defense and the Department of State servicing the triangle
and the CIA providing service between 0 and Agency STATINTL
Headquarters. Secondly, to enter into a tripartite contract.
Under the first proposal, the Agency would only have one bus
route rather than the present two, saving at least $40,000
each year. The parties mutually agreed that if an agreement
is desirable that the agreement should be kept as simple as
possible and that access to the services should be controlled
but not complex.
5. Conclusions:
a. No savings in direct costs are expected by con-
tracting out the entire shuttle system (Plan 3).
b. A commercial contract for Plans 1 and 2 is
possible. The actual costs can only be determined with a
formal invitation to bid.
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SUBJECT': Commercial Bus Study
- c. A -savings of $35,000 is possible by eliminating
d. A savings of at least $40,000 is possible by
cooperating with the Department of State and the Department
of Defense in allowing them to provide shuttle service in the
triangle area while the Agency handles the Headquarters-
STATINTL I Iservice.
6. Recommendations:
a. Meeting with the Department of State and the
Department of Defense to decide on joint use of service in the
triangle area, either through a memorandum of understanding or
a tripartite commercial contract.
b. Solicit bids from the commercial contractors on
the 3 plans including any route adjustments which may result
from meeting with the Department of Defense and the Department
of State.
c. Based on these solicitations, determine the cost
advantage and feasibility of negotiating a commercial contract.
Chairman,
Commercial Bus Study Group, OL
Recommendations 6a, 6b, and 6c are
STATINTL APPROVED?
I17 JUL 1973
: J -
Distribution:
Orig. - SA-D/L
1 - C/LSD
1 - C/PD
1 - OL/Official
1 - D/L Chrono
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Drivers' Salaries
STATINTL
W-07, Step 4 Chauffeurs (effective 5-13-73) Hourly Per Annum
$4.61 $ 9,588.80
W-07, Step 3
38,355.20
$4.44 $ 9,235.20
W-06, Step 4 Chauffeurs (effective 5-13-73)
$18,470.40
$4.37 $ 9,089.60
W-06, Step
$4.21 $ 8,756.80
$17,513.20
$92,518.40
$29,354.00
$121,872.40
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$18,179.25
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Direct Annual Cost
Salaries of Drivers
$121,872.00
Maintenance and Fuel
Buses - $ .08/mile for 134,000 miles
10,720.00
Limousines - $ .06/mile for 101,000 miles
6,060.00
Total Direct Annual Cost w/o Depreciation
$138,652.00
Annual Depreciation
$163,000 Acquisition Cost : 8 years
20,375.00
Total Direct Annual Cost
$159,027.00
Operating Cost Per Mile
Bus
Maintenance
and Fuel
.08
.50/mile
Salary
.42
Limousine
Maintenance
and Fuel
.06
.48/mile
Salary
.42
Operating Costs on Routes
Blue Birds
Miles/Year
Op Cost/Mile
Op Cost/Year
Route
1
48,384
x
.50
$ 24,192.00
Route
2
48,384
x
.50
24,192.00
Rush
Hour
13,680
x
.50
6,840.00
Total
110,448
x
.50
55,224.00
Special
5,000
x
.50 =
2,500.00
115,448
x
.50
57,724.00
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Limousines
Miles/Year
Op Cost/Mile
Op/Cost/Year
Route 3
38,556
x
.48 =
$ 18,506.88
Route 4
49,140
x
.48 =
23,569.92
Total
87,696
x
.48 =
$ 42,094.08
Special
2,000
x
.48 =
960.00
9$,696
x
.48 =
$ 43,054
Direct Cost on Routes
Blue Birds/year
$ 57,724.00
Limousines/year
43,054.08
$100,778.08
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Department of Defense Contract
Iaa. 3eci
Agency Costs Based on Other Government Contracts
Route Trip/Day Miles/Trip
1 8 x 24 =
2 8 x 24 =
4 13 x 15
Special 2 x 15
Special 2 x 7
1 x 10
Totals 43 x 112
Department of State Contract
Required
Cost/Bus/Day
$157.00
Miles/Day Days/Year Miles/Year
192 x 252 = 48,384 x
192 x 252 = 48,384 x
252 = 49,140 x
7,560 x
= 2,520 x
Rate Cost
.89 = $ 43,062.00
.89 43,062.00
.89 = 34,315.00
.89 = 43,734.00
.89 = 6,728.00
.89 = 3,140.00
.89 = 2,243.00
252 = 198,072 x $ .89 =
$176,284.00
Cost/Day Days Operating Cost/Year
$628.00 x 252 = $158,256.00
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 ROUTING AND RECORD SHEET
SUBJECT: (Optional)
81
FROM:
SA-D/L
EXTENSION
NO.
1202 Ames
7491
DATE 2 ! JUN 1973
TO: (Officer designation, room number, and
building)
DATE
RECEIVED FORWl3RDED
OFFICER'S
INITIALS
COMMENTS (Number each comment to show from whom
to whom. Draw a line across column after each comment.)
bDirector of Logistics
1206 Ames
2 7
1N i~ 3
2.
17JU
L'i9~3
6.
9.
10.
11.
12.
13.
14.
15.
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JAIUO~ SA-D/L OL 3 3703
TO
FROM
SUBJ.
12 6 June
Director of Logistics
SA-D/L
Commercial. Bus Study
ao~t.c cam. ki
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/JX
, '/ /Z- . 7J ,
ANSWERED NO RtLPLY
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