Ferry Contract

Key Contract Changes

	Expiring Contract	New Contract
Structure	100% cost-reimbursement plus fixed management fee.	Combination of fixed price and cost reimbursement with management incentive fee. The management fee portion of the compensation will now be paid based on quarterly evaluations of the contractor’s performance rather than a flat fee.
Budget	$2.7 million in 2021. Contractor’s operating budget was fixed by specific line item (labor, supplies, training, etc.) and did not allow for adjustments to account for wage increases and labor market issues.	$3.5 million in 2022. Contractor can allocate fixed price portion as needed to ensure optimum balance between staffing, supplies, training, technology, and other expenses.
Technology	Limited ticketing system provided by a third party and billed separately with a cost sharing agreement.	Full service and modern ticketing system and real-time rider updates.
Level of Service	Provided two-boat service twice a week (Friday and Sunday) from June-August. Two-boat service was not a requirement of the contract.	Provides two-boat service three times a week (Friday, Sunday, Monday) and aligns peak season ticket fares (Friday before Memorial Day through Labor Day). Two-boat service included in the contract.
Customer Service	No customer feedback program.	Conduct monthly customer satisfaction surveys.
Accountability	No incentives or penalties for contractor’s performance.	Key performance indicators will be measured and published on the Open Pierce County website and used to determine the management fee payment.

Performance Standards (Key Performance Indicators)

Performance Objective	Target	Minimum Acceptable	Performance Standard	Method of Assessment	Frequency
On-time Departure Rate All ferry trips will depart the landing per the scheduled departure time and no trips will be delayed due to contractor’s inability to perform.	95.0%	90.0%	A departure is considered “on-time” if it departs the landing within 10 minutes of the published schedule.	Departure Reports Mechanical Breakdown Reports Incident Reports Accident Reports Unscheduled Visits	Monthly Randomly
Trip Completion Rate All scheduled trips will be completed, and no trips will be canceled due to contractor’s inability to perform.	95.0%	90.0%	A trip is considered “completed” if it departs and arrives at the designated landing in accordance with the published schedule.	Departure Reports Mechanical Breakdown Reports Incident Reports Accident Reports Vessel Run Time Reports Unscheduled Visits	Monthly Randomly
Maintenance Accomplishment Rate All operational maintenance in the Annual Maintenance Plan will be completed on time, and no maintenance will be deferred due to contractor’s inability to perform.	95.0%	90.0%	An operational maintenance activity is considered “on-time” if it is completed within one interval of the scheduled due date. For example, a Weekly PM must be completed before the next week’s PM is due. Daily PMs must be completed the day they are scheduled, otherwise, they must be recorded as “Missed.”	Maintenance Accomplishment Reports Incident Reports Accident Reports Periodic Sampling	Monthly Randomly
Customer Satisfaction Rate The majority of the riders will be satisfied with their experience using Pierce County ferries, and the Contractor will take active measures to improve customer satisfaction rate.	75.0%	N/A	A customer is considered “Satisfied” if they provide neutral or positive feedback in response to their ferry experience.	Customer Satisfaction Surveys Customer Feedback Forms Incident Reports Accident Reports Periodic Sampling	Monthly Randomly
Factors excluded from the calculations: Documented Emergencies (fire, law enforcement, medical) Railroad crossing delays at Steilacoom Ferry Terminal Weather events deemed unsafe to operate by the Master Maintenance and repair delays by outside vendors or County staff Documented mechanical breakdown of County-owned vessels or terminal facilities