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New Flyer hails two new maintenance contracts

Published by Steve Coleman on August 08, 2011

New Flyer Industries has landed two new maintenance contracts worth an estimated US$3.8 million annually to the company for up to the next three years.

Both the Washington Metropolitan Area Transit Authority and Maryland Transit Administration have signed contracts with the company for spare parts and maintenance help.

The Vendor-Managed Inventory deal with the WMATA is worth US$2.1 million in the first year with two optional one-year terms as part of the contract.

The U.S. capital city's transit service has 1,500 heavy-duty buses. Of those, New Flyer built 48 per cent.

As a part of the contract, New Flyer will track and resupply "select spare parts" and provide engineering support to look at material usage and provide recommendations on how the transit company can use fewer of the most-used pieces. On the same note, New Flyer will also analyze data collected in the field to help come up with a better long-term maintenance strategy.

New Flyer's five-year, U.S. $1.7 million per year contract with the Maryland Transit Administration will provide brake kits for MTA's 800 buses, including the 48 per cent of vehicles in the fleet the company didn't build.

"We believe that 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," Paul Soubry, New Flyer's President and Chief Executive Officer, said in a statement. "... This is a major step in moving New Flyer from reacting to quotes, to planning and supporting our customer's needs. These contract awards also recognize New Flyer's ability to provide tailor-made material supply solutions in response to the dramatic funding pressure our customers currently face."

Thes most-recent VMI contract awards are similar to programs that New Flyer is building with other transit operators in the U.S. and Canada.

New Flyer has had a point-of-use brake contract with OC Transpo in Ottawa since 2010. The two sides are working on a "unique consignment program" as part of OC Transpo's purchase earlier this year of 306 new articulated New Flyer buses.

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