Joint Partnership Program for Deployment of Innovation

SUMMARY: This Notice announces establishment of a new public/private

Joint Partnership Program for Deployment of Innovation (JPP) in the

mass transportation industry, describes the statutory bases of the JPP,

requests comments on the proposed approach, and solicits initial

proposals for JPP consideration. Section 3015 of the Transportation

Equity Act for the 21st Century (TEA-21), signed into law by President

Clinton on June 9, 1998, creates a new Section 5312(d) in Title 49,

United States Code, which authorizes the Secretary of Transportation to

enter into grants, contracts, cooperative agreements, and other

agreements, with competitively selected consortia to promote the early

deployment of innovation in mass transportation services, management,

operational practices, or technology that has broad applicability.

Under the JPP, competitively selected consortia will share costs,

risks, and rewards of early deployment of innovation in the transit

environment.

FOR FURTHER INFORMATION CONTACT: Dr. A.M. (Tony) Yen, Deputy Associate

Administrator for Research, Demonstration and Innovation (TRI-2), at

(202) 366-0264, or Donald R. Durkee, Acting Director, Office of

Technology, at (202) 366-0942.

DATE: Proposals (2 copies) must be received by December 1, 1998.

ADDRESSES: Proposals shall be submitted to Donald R. Durkee, Acting

Director, Office of Technology, (TRI-20), Federal Transit

Administration, 400 Seventh Street, SW., Room 6429, Washington, DC

20590 and shall reference JPP.

SUPPLEMENTARY INFORMATION:

Table of contents

1. Background

2. General Authority

3. Joint Partnership Agreements

4. Definition Of Consortium

5. Financing

6. Technical Areas

7. Selection And Evaluation

8. Industry Consultation

9. Submission of Candidate Proposals

Attachment. List of Federal Transit Administration Regional Offices

1. Background

The U.S. Department of Transportation has long been recognized as a

national and international leader in promoting the benefits of

innovation in all fields of transportation. The Federal Transit

Administration (FTA), likewise, has been recognized as a leader in

sponsoring innovation in the field of mass transportation. Evidence of

FTA's support can be found in all areas, including FTA's Research,

Planning, Capital and other assistance programs. However, like many

Federal assistance programs, FTA's leadership in technology

introduction has been characterized as dealing with other stakeholders

at arm's-length, under sometimes inflexible policies, procedures and

practices which emphasize insulation of FTA from technological and

financial risk. Similarly, Federal intellectual property rules

governing ownership and access to intellectual property have tended to

discourage the private sector from investing in FTA supported

activities.

Increasingly, however, the benefits of partnering and assignment of

risk according to ability to best manage and control risk factors have

been recognized. This has been particularly evident in the FTA's

efforts to accelerate the deployment of innovation in mass

transportation. By accepting some share of the financial risks

involved, FTA has been able to bring significant amounts of new capital

into the industry. Innovative financing techniques, such as cross-

border leasing, well known in the airline industry, but relatively

little used in mass transportation, are a prime example. Another

example is the FTA's Turnkey Demonstration Program. FTA's Joint

Partnership Program for Deployment of Innovation is intended to further

develop and institutionalize this trend. In exchange for a greater

sharing of costs and risks of early deployment of innovation, FTA and

its partners will also share more equally in the rewards. For example,

Section 3015 of TEA-21 gives FTA greater flexibility to negotiate terms

and conditions for a JPP, such as those involving ownership and access

to intellectual property, than is available under FTA's other research

and capital programs.

2. General Authority

Chapter 53 of Title 49, United States Code, Section 5312(d)

authorizes the Secretary, under terms and conditions that the Secretary

prescribes, to enter into grants, contracts, cooperative agreements,

and other agreements with consortia, to promote the early deployment of

innovation in mass transportation services, management, operational

practices, or technology that has broad applicability. This program is

intended to be carried out in consultation with the transit industry by

merit-based competitively selected consortia that will share costs,

risks, and rewards of early deployment of innovation.

3. Joint Partnership Agreements

Historically, FTA has supported research, development,

demonstration, and deployment of innovation through the use of grants

and cooperative agreements. Since 1994, FTA has acted as agent for the

Defense Advanced Research Projects Agency (DARPA), which pioneered use

of ``other agreements'' as an alternative to grants and cooperative

agreements. These ``other agreements'' have proven successful in

situations where the other funding instruments did not provide

sufficient flexibility to induce non-government, particularly

commercial, entities to participate in partnership with the Government.

FTA sought and received ``other agreement'' authority in TEA-21. In

selecting from among grants, cooperative agreements and other

agreements, FTA will select the instrument best suited to the goals and

objectives of each Joint Partnership Project. Generally speaking, an

``other agreement'' will be used in those instances where one of the

more traditional instruments is determined, in consultation with the

potential partners, to be inappropriate for one or more reasons.

The Joint Partnership Program transcends all other FTA assistance

programs. As long as a proposed project meets the statutory

requirements of both the JPP and the other program (e.g., a Section

5308 clean fuels program project) it is an eligible candidate for Joint

Partnership assistance. In many cases, it may be preferable for both

the recipient and the Government to proceed as partners through use of

``other agreement'' authority afforded under a JPP to proceed under the

traditional relationship.

4. Definition of Consortium

An eligible consortium will be made up of:

(a) One or more public or private organizations located in the

United States that provide mass transportation service to the public,

and one or more businesses of any size incorporated in a State,

offering goods or services, or willing to offer goods and services, to

mass transportation operators; and

(b) as additional members that are public or private research

organizations

[[Page 53267]]

located in the United States or State or local governmental

authorities.

5. Financing

(a) Cost Sharing. Section 5312(d)(3) provides that a consortium

assisted under the JPP shall provide not less than 50 percent of the

costs of any joint partnership project. Any business, organization,

person, or governmental body may contribute funds to a Joint

Partnership Project. FTA intends to apply the same non-Federal share

rules to the JPP as apply to other FTA assistance programs in most

cases. Cash or in-kind contributions applicable to grants and

cooperative agreements with state and local governments (49 CFR part

18) or its companion (49 CFR Part 19) applicable to non-profit or

educational institutions, are acceptable.

Note: This program is not an independent source of funds. FTA

funding for JPP projects will come from other eligible funding

sources including specific annual congressional appropriations.

(b) Revenue Sharing. To the maximum extent practicable, a portion

of the revenues resulting from sales of an innovation project funded

under this program shall be made to the FTA. Such revenues are

authorized to be used for further funding of the Joint Partnership

Program. Similarly, FTA would expect all partners to negotiate

equitable revenue sharing commensurate with their own contributions to

a project.

6. Technical Emphasis Areas

(a) Notice. FTA will periodically give public notice of the

technical areas for which joint partnerships are solicited, required

qualifications of consortia desiring to participate, the method of

selection, and evaluation criteria to be used in selecting

participating consortia and projects, and the process by which

technology innovation projects will be awarded. Initially, FTA will

focus on introduction of innovative technologies and related

innovations, in such areas as Intelligent Transportation Systems,

magnetic levitation technology, composite materials as applied to

vehicles or facilities, clean fuels, communication based train control,

energy storage systems (such as batteries, etc.), chemical and

biological agent detection, other environmentally beneficial propulsion

technologies, integration software, construction methods, condition

testing of structures, and vehicle systems and subsystems which appear

sufficiently advanced as to be ready for deployment in the mass

transportation industry in the relatively near term, i.e., within five

years. Other technologies and related innovations which may be expected

to be ready for deployment further into the future will continue to be

supported through FTA's other research, development and demonstration

initiatives. As the Joint Partnership Program develops, consideration

will be given to partnership projects in mass transportation services,

management, and operational practices that are not technology based, as

well.

(b) Sample Technology Emphasis Areas. Energy Storage Devices.

Hybrid-electric transit bus designers have identified the need for

affordable, compact, and light-weight energy storage systems. A hybrid-

electric bus uses an internal combustion engine-generator set in

combination with an energy storage device to provide for hotel and

propulsion power requirements over a variety of transit duty cycles.

The hybrid system is designed such that charging or replacement of the

energy storage device is only required at a minimum of six year

intervals. Significant improvements in current hybrid-electric bus

operating performance and efficiency will be possible with an

affordable high-power density energy storage system to replace

conventional battery packs now in use (i.e., lead-acid and nickel-

cadmium). Further development and testing of promising technologies

such as ultra-capacitors, advanced battery chemistries, advanced

battery construction such as spiral wound thin film batteries, and

flywheel technology are potential candidates for hybrid-electric

transit bus applications.

Advanced Train Control. Several efforts are underway to develop and

test Communications-Based Train Control (CBTC) systems to improve

capacity and safety in rail rapid transit without additions to existing

infrastructure. CBTC systems have the potential to improve safety at

grade crossings while minimizing disruption to traffic flow and

concurrently improve train throughput for commuter and light rail

systems which operate in dedicated right of way. CBTC systems offer

great flexibility in operations for schedule adherence and recovery,

quick turn-around in coupling or decoupling of trains, and ancillary

functions such as energy management and real-time customer information.

Additional work is needed to exploit full potential of CBTC systems in

different rail transit modes.

Magnetic Levitation. Numerous studies around the world have focused

on cost and feasibility of high speed (up to 300 mph) Maglev systems.

Due to increasing metropolitan area traffic congestion, air pollution,

and relatively stagnant rail technology, there is increasing interest

in the potential of low speed (less than 50 mph) Maglev technology to

serve as an alternative to the existing family of rail technologies.

Low speed Maglev systems might operate in an intracity or city-to-

suburb type of service. Additional tests, evaluation and demonstration

of components, subsystems, vehicles and systems are needed to bring the

technology to the point where a reliable revenue service system could

begin.

Composites: FTA is interested in further testing and validation of

the long-term structural integrity, maintainability, and life-cycle

costs of vehicles manufactured utilizing a composite primary bus

structure in a transit operating environment. Proposals for two or

three pre-production quality, light-weight composite, low-floor, heavy-

duty transit buses are solicited. All Joint Partnership Projects must

contribute to the accomplishment of one or more goals of the FTA

Strategic Plan through one or more Program Areas of the FTA Research

and Technology Five-Year Plan. This Plan, developed in consultation

with the U.S. transit industry and other stakeholders, is specifically

designed to contribute to accomplishment of the FTA Strategic Plan and

the U.S. Department of Transportation Strategic Plan.

(c). FTA Strategic Goals

(1) Safety and Security--Promote the public health and safety by

working toward the elimination of transit-related deaths, injuries,

property damage, and the improvement of personal security and property

protection.

(2) Mobility and Accessibility--Shape America's future by ensuring

a transportation system that is accessible, integrated, efficient, and

offers a flexibility of choice.

(3) Economic Growth and Trade--Advance America's economic growth

and competitiveness domestically and internationally through efficient

and flexible transportation.

(4) Human and Natural Environment--Protect and enhance communities

and the natural environment affected by transit.

(5) Quality Organization--Ensure a quality organization that is

responsive to employees' needs, empowers its employees, and provides

excellence in customer service.

(d) FTA Research and Technology Five-Year Plan Program Areas

(1) Safety & Security

Railroad Grade Crossing Safety

Information Security

Crime Prevention and Anti-Terrorism

[[Page 53268]]

(2) Equipment & Infrastructure

Bus Technology

Advanced Technology Subsystems

Small Durable Bus

Bus Testing

Fuel Cell Transit Bus

Hybrid Electric and Electric Vehicle

Rail Equipment and Systems

Communication-Based Train Control Systems

Light Weight Rail Transit Vehicles

Specialty Guided Technologies

Civil Infrastructure

Infrastructure Project Delivery Innovations

Tunnel Design and Construction

Transit Station Design

Advanced Simulation

Design

Testing

Training

Innovative Financing

(3) Fleet Operations

Transit Capacity and Quality of Service

Transit Intelligent Transportation Systems

Bus Rapid Transit

Mixed Rail Corridor Operations

(4) Specialized Customer Services

Welfare to Work

Accessibility for Persons with Disabilities

Elderly Services

Low Density Transportation Services

Mobility Management

(5) Planning and Policy

Transportation Institutional Reform

Multimodal System Evaluation

Planning Technology

Sustainable Development

Livable Communities Initiative

Smart Growth

Intermodal Connectivity

(6) Professional Capacity Building

Attracting a Quality Workforce

Training a Quality Workforce

Retraining a Quality Workforce

Technology Sharing

(e) FTA Investment Principles. FTA's approach to technology

investments is guided by several fundamental principles. In making R&D

investment decisions, FTA will:

Favor investments that focus on both the short and long

term, potentially high-payoff activities and outcomes that may not

occur in the absence of a Federal presence.

Favor activities that employ merit-based competitive,

peer-review processes.

encourage collaborative arrangements with other government

agencies, transit agencies, industry, academia, non-profit

organizations, state and local governments, and appropriate overseas/

foreign counterparts.

7. Selection And Evaluation

(a) Candidate Pools. Joint partnership projects shall be selected

from two candidate pools: (1) new merit-based competitive proposals,

and (2) renegotiation of existing assistance agreements previously

awarded through a merit-based competitive process by either FTA or an

FTA grant or cooperative agreement recipient.

(b) Selection Process. FTA envisions a two step selection and

evaluation system for establishing partnerships with candidates from

each pool. In step one, proposed projects would be described at a broad

conceptual level which would be subjected to an initial screening

process. Sponsors of projects determined by FTA following initial

screening that warrant further consideration for partnership will be

invited to submit detailed proposals to include such elements as:

statements of work, technical risk, benefits to transit, milestones

associated with accomplishment of specified tasks, financing plans,

deployment/commercialization plan, etc.

(1) Initial screening. Proposed projects will be screened by a

combination of Federal, state, or local officials, and representatives

of private industry, who will be invited to evaluate proposed candidate

projects within discrete technological groupings such as ITS,

propulsion, clean fuels, bus, rail, electronics, etc. The reviewers

would provide their individual assessments of the relative merits of

proposed projects against established criteria.

(2) Final evaluation and selection. Utilizing the information

provided by the reviewers, FTA will further screen the proposals and

invite candidates for partnership to submit detailed proposals as a

basis for negotiation of a JPP agreement.

(c) Selection Criteria. In screening and selecting partnership

candidates, FTA will employ the following criteria:

(1) New Initiatives:

a. Relevance to goals of the FTA Research and Technology Five-Year Plan

and FTA R&D Investment Criteria

b. Management Capability

c. Technical Expertise

d. Cost and benefits (payback) of proposed work

e. Time to complete test and evaluation of the concept or technology.

f. Realistic probability of achieving production (commercialization)

g. Relative technical and financial risk

(2) Renegotiation: Deployment of technological innovations

involving ongoing research, development, and demonstration projects

awarded through a merit-based competitive process prior to enactment of

TEA-21, will also be considered for inclusion in the JPP, and will be

evaluated against the same criteria as new projects.

8. Industry Consultation

(a) Pre-Proposal Meeting. FTA will hold a pre-proposal meeting with

interested parties at FTA headquarters in Washington, D.C., on a date

to be announced. The purpose of the meeting is twofold: (1) to answer

questions on the program as outlined in this notice, and (2) a

listening session to receive industry input on how best to refine or

recast the program to best serve the needs of the transit industry.

(b) Continuing Consultation. As noted in section 7b(2) above, it is

intended that proposed projects will be screened by a combination of

Federal, state, or local officials, and representatives of private

industry, who will be invited to evaluate proposed candidate projects

within discrete technological groupings. FTA also intends to utilize

these and other groups with experience in technology transfer such as

the Transportation Research Board, and the American Public Transit

Association, as a resource for continual assessment of the program

focus and direction.

9. Submission of Candidate Concept Proposals

FTA is soliciting initial concept proposals for the JPP. These

preliminary proposals should outline the following In Abbreviated Form:

(1) overview of the proposed effort, or proposed concept; (2) list of

partners; (3) state of the technology; (3) work to be performed, (4)

physical and/or operating characteristics of the innovation; (5)

development of prototype equipment/process or pilot program; (6)

project output; (7) schedule; (8) total project cost, including source

of matching funds (private, non-profit, commercial, Title 49

discretionary or formula, CMAQ, ITS, etc.); (9) assessment plan; (10)

relationship to FTA Research and Technology Five-Year Plan program

areas listed in paragraph 6(c) of this Notice and the FTA investment

principles listed in paragraph 6(d).

As previously mentioned, proposals (2 copies) must be received by

December 1, 1998. Proposals should be sent to the name and address in

the ``Addresses'' section of this Notice. A copy of the proposal also

should be sent to the appropriate FTA Regional Office, whose addresses

are listed at the end of this Notice.

[[Page 53269]]

Issued On: September 30, 1998.

Gordon J. Linton,

Administrator.

List of FTA Regional Offices

Mr. Richard H. Doyle, Regional Administrator, Region I, Federal Transit

Administration, Volpe National Transportation Systems Center, Kendall

Square 55 Broadway, Suite 920, Cambridge, MA 02142-1093, 617-494-2055

Fax: 617-494-2865

Ms. Letitia A. Thompson, Regional Administrator, Region II, Federal

Transit Administration, 26 Federal Plaza, Suite 2940, New York, NY

10278-0194, 212-264-8162 Fax: 212-264-8973

Mr. Sheldon A. Kinbar, Regional Administrator, Region III, Federal

Transit Administration, 1760 Market Street, Suite 500, Philadelphia, PA

19103-4124, 215-656-7100 Fax: 215-656-7260

Ms. Susan E. Schruth, Regional Administrator, Region IV, Federal

Transit Administration, Atlanta Federal Center, 61 Forsyth Street, SW,

Suite 17T50, Atlanta, GA 30303-8917, 404-562-3500 Fax: 404-562-3505

Mr. Joel P. Ettinger, Regional Administrator, Region V, Federal Transit

Administration, 200 W Adams Street, Suite 2410, Chicago, IL 60606-5232,

312-353-2789 Fax: 312-886-0351

Mr. Lee O. Waddleton, Regional Administrator, Region VI, Federal

Transit Administration, 524 E Lamar Boulevard, Suite 175, Arlington, TX

76011-3900, 817-860-9663 Fax: 817-860-9437

Mr. Lee O. Waddleton, Acting Regional Administrator, Region VII,

Federal Transit Administration, 6301 Rockhill Road, Suite 303, Kansas

City, MO 64131-1117, 816-523-0204 Fax: 816-523-0927

Mr. Louis F. Mraz, Jr., Regional Administrator, Region VIII, Federal

Transit Administration, Columbine Place, 216 16th Street, Suite 650

Denver, CO 80202-5120 303-844-3242 Fax: 303-844-4217

Mr. Leslie T. Rogers, Regional Administrator, Region IX, Federal

Transit Administration, 210 Mission Street, Suite 2210, San Francisco,

CA 94105-1800, 415-744-3133 Fax: 415-744-2726

Ms. Helen M. Knoll, Regional Administrator, Region X, Federal Transit

Administration, Jackson Federal Building, 915 2nd Avenue, Suite 3142

Seattle, WA 98174-1002 206-220-7954 Fax: 206-220-7959

[FR Doc. 98-26614 Filed 10-1-98; 8:45 am]

BILLING CODE 4910-57-U