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If I were the head of Amtrak what would you do
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<p>In our discussion of the amount of fuel that Amtrak uses for the Hiawatha Service, or any other route, I forgot an important source of information. A basis for estimating the fuel burn and cost is found in the Amtrak Monthly Performance Report.</p><p>For the FY ended September 30, 2007, Amtrak used an average of 2.3 gallons of diesel fuel per train mile. The average cost was $2.10 for the year. This does not tell us how much was used on the Hiawatha service, but it gives us a basis to come up with a reasonable estimate. And it is a pretty good indicator that some one at Amtrak has at least a rough handle on how much fuel its trains drink.</p><p>When I rode the Hiawatha last year it consisted of a loco, four horizon cars, and a cabbage [sic] unit. Also, if I am correct, the line from Chicago to Milwaukee is relatively flat. My impression is that we are talking about a train that is no heavier than the average Amtrak train and runs over relatively flat territory, thereby not requiring the extra power and fuel to climb a mountain. It is probably reasonable to assume that the fuel burn on the Hiawatha's is not greater than Amtrak's average, and it may be less.</p><p>The distance from Chicago to Milwaukee is 86 miles. Thus, for a typical run, the average fuel burn would be 197.8 gallons of fuel. The cost would be $415.38. Of course, the actual cost on any day would be different because of weather, operating constraints, engine performance, etc. But at least one can use the Amtrak averages to get a reasonable idea of how much fuel is required to power the Hiawatha's.</p><p>The Hiawatha Service is financed primarily by the Illinois and Wisconsin Departments of Transportation. Presumably Amtrak manages the service under a contract, either jointly or severely, with both states.</p><p>If the contract is structured properly, i.e. it contains terms that can be administered and audited; the terms should spell out the billing requirements. </p><p>Terms and conditions can vary, but most contracts specify that the service provider will bill the client or customer monthly. If it is time and materials contract, it will spell out the detail required in the billings. For example, the vendor (Amtrak) would be required to show the billed labor charges by class, rate, and hours. Furthermore, Amtrak would be required to provide reasonable supporting documentation, e.g. time tickets, labor sheets, etc., or at least make the documentation available for an audit. The billed consumables (fuel) should show the grade, amount, and cost per unit. If it is a lump sum contract, it should show the anticipated labor, fuel, maintenance, etc. in schedules in the body of the contract or as addendums. </p><p>Whether the contract is time and materials or lump sum, it should contain details regarding the vendor's costs to provide the service, and it should contain a right to audit clause. This would give the state's auditors the right to look through Amtrak's records to make sure that the billings are complete, thorough, and accurate or that the schedules in the contract were based on reasonable and supportable costs. If the contracts lack sufficient detail or do not contain a right to audit clause, the person(s) who formulated and executed them dropped the ball.</p><p> </p><p> </p><p> </p>
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