PurchasingB2B

New Flyer lands two service contracts

Winnipeg company to provide vendor-managed inventory services to transit authorities


August 12, 2011
by Purchasing b2b staff

WINNIPEG: Heavy-duty transit bus manufacturer New Flyer Industries Inc. has been awarded two new contracts to provide vendor-managed inventory (“VMI”) services to the Washington Metropolitan Area Transit Authority (WMATA) and to the Maryland Transit Administration (MTA). Both transit agencies are New Flyer customers for buses and spare parts.  Both contracts were competitively bid, and are incremental to New Flyer’s current parts sales to these customers.

“We believe these contract awards are a reflection of the long-term relationship between New Flyer and our customers, and shows the confidence that both WMATA and the MTA have in our ability to support their efforts to increase bus up-time while reducing their operating costs” said Paul Soubry, New Flyer’s president and CEO.

New Flyer’s VMI contract with the WMATA is for a one-year term, with two one-year option terms, and the base contract is valued at about US$2.1 million annually.  The program has three elements:

  • New Flyer will provide inventory planning and automated supply and replenishment of select spare parts under a performance program requiring defined response times and fill rates;
  • The company will provide maintenance engineering support to analyze material usage and to provide recommendations through the use of reliability engineering; and
  • New Flyer will help WMATA in the analysis of the data generated by the automatic vehicle monitoring systems installed on WMATA’s buses.

New Flyer’s contract with the MTA is to supply point-of-use brake kits for transit buses built by a variety of original equipment manufacturers, including New Flyer. The contract is for five years and is valued at about US$1.7 million annually.