Contracting Commuter Rail Services, Volume 1: Guidebook (2018)

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57 This chapter provides guidance for assessing different approaches to commuter rail service using decision trees. The chapter also provides information for how the 31 commuter rail agen- cies assign responsibility for support functions in accordance with the different approaches for the primary functions of train operations, dispatch, maintenance of way, and maintenance of equipment. Decision Tree Analysis To implement commuter rail or to evaluate changes in the approach to service delivery, a commuter rail agency will make numerous decisions. Uniform processes for decision-making contribute to consistency, transparency, and efficiency. Decision trees facilitate such decision- making by presenting a step-by-step process for assessing a specific situation and methodically evaluating options to reach a final resolution that is most appropriate. As discussed in previous chapters of the guidebook, the primary functions for delivery of commuter rail service are • Train operations • Dispatch • Maintenance of way • Maintenance of equipment Although dispatch is typically part of train operations, case study research documented that dispatch is often part of the host railroad’s responsibility and so should be considered indepen- dently in decision tree analysis. The approaches for delivery of commuter rail service have been identified as agency operated, contracted, or mixed agency operated and contracted. Some functions may be provided by the host railroad, particularly maintenance of way and/or train dispatch. Each approach is associ- ated with unique opportunities and challenges, depending on local conditions. The size and complexity of the commuter rail system do not dictate a particular approach to service delivery. Each of the different approaches (agency operated, contracted–bundled, contracted–unbundled, or mixed agency operated and contracted) is used by large, medium, and small commuter rail systems. The only consistent correlation is that the largest legacy systems are agency operated (PATH, LIRR, Metro-North, NJ TRANSIT, and SEPTA); how- ever, medium and small new starts are also agency operated (FrontRunner and SMART). Other complex, large legacy commuter rail systems are either mixed agency operated and contracted (Metra) or contracted–bundled (MBTA). Each approach may be appropriate to a commuter rail system, depending on local conditions. C H A P T E R 7 Guidance for Decision Tree Analysis

58 Contracting Commuter Rail Services, Volume 1: Guidebook This chapter presents decision trees for use when assessing decisions related to the primary functions and dispatch. The decision trees guide users through an assessment of corridor- specific conditions and agency capability and capacity to operate the functions directly, an assessment of the benefits of assigning functions to the host railroad or to another rail operator or contracting the services. Yes and No questions address a comparison of benefits versus risks or challenges for each function. Decision tree users should have a basic understanding of the commuter rail agency’s operating environment, agency capability and capacity, and how each potential outcome (the results of a yes or no answer) affects the agency and commuter rail service. The decision trees use a common style, format, and common terms. The common terms are as follows: • Benefit. Positive outcomes for the commuter rail agency including but not limited to autonomy, resilience, efficiency, and increased customer satisfaction. Risks or challenges are introduced when an agency does not experience a benefit. • Capacity. The ability to undertake a specific task or assume a specific responsibility. • Require or request. The entity in question will not allow commuter rail service if the commuter rail agency does not agree to specific conditions. • Mutual interest. A situation in which a commuter rail agency and existing rail operator could benefit from working together. • By agency. A function of commuter rail service that is performed by the employees of a commuter rail agency or responsible transit agency. • Agreement or contract. A legal document that defines the roles and responsibilities of each party involved in providing the commuter rail service and any financial obligations. • Existing rail operator. An entity that operates rail service in the same corridor as the commuter rail. The following sections present the decision trees for each of the four key functions for com- muter rail. For the benefit of space, the following terms may be shortened within the decision trees and with respect to decision tree guidance. The shortened versions are CR agency (com- muter rail agency), CR (commuter rail), FR (freight rail), IR (intercity rail), MOE (maintenance of equipment), MOW (maintenance of way), and RR (railroad). Train Operations To provide commuter rail service, qualified train operators and staff must be available. Train operations include train engineers and crews to staff trains. The train engineers must be fully FRA-qualified. Train operations may include dispatch. The 31 commuter rail agencies approach train operations as follows: • Agency—28% • Host railroad—13% • Amtrak/VIA Rail Canada—9% • Contracted—50% If an agency approaches train operations differently for multiple lines, each approach is counted in the preceding percentages. A new commuter rail agency or an agency considering a change in approach can assess the most appropriate approach for train operations by answering a series of specific questions, as outlined in the decision tree presented in Figure 4. Table 15 provides guidance for use of the train operations decision tree.

Figure 4. Decision tree for train operations.

60 Contracting Commuter Rail Services, Volume 1: Guidebook Question or Decision Point Explanation Yes? No? Is there an existing rail operator? If there is an existing rail operator, the CR agency may have an option to contract for train operations with the existing rail operator. There is an existing rail operator. There is not an existing rail operator. The CR agency must identify the appropriate approach to provide train operations. Does the existing operator have the capacity and an interest in providing train operations? Capacity and interest to provide train operations indicate an opportunity for a contract between the CR agency and the existing operator. The existing operator has the capacity and an interest in providing train operations. The existing operator does not have the capacity or an interest in providing train operations. Does the CR agency benefit from working with the existing operator for train operations? Benefits from working with an existing operator for train operations may include cost savings, shared responsibility and risk, rapid deployment, etc. The CR agency will benefit from working with the existing operator for train operations. The CR agency negotiates an agreement for train operations with the existing operator. The CR agency will not benefit from working with the existing operator to provide train operations. Does the CR agency have the capacity to provide train operations? Capacity to provide train operations includes qualified staff, expertise, experience in customer service, etc. Training to meet FRA requirements may be required for workforce. The CR agency has expertise and the ability to devote qualified staff to train operations. The CR agency does not have one or more of the key capacity components for train operations. Contract train operations. Does the CR agency benefit from providing train operations? Benefits from the CR agency providing train operations may include better oversight, direct relationship with customers, cost savings, efficiencies, etc. The CR agency will experience greater oversight, better customer service, cost savings, efficiency, and other benefits from providing train operations. CR agency provides train operations. The CR agency will not benefit from directly performing train operations. Contract train operations. Table 15. Train operations decision tree guidance. Dispatch Commuter rail dispatch provides for the safe operation and ensures efficient, timely service. Train dispatchers are responsible for direction, supervision, and control over the safe movement of all trains. The 31 commuter rail agencies approach dispatch as follows: • Agency—29% • Host railroad—30% • Amtrak/VIA Rail Canada—12% • Contracted—29% If an agency approaches dispatch differently for multiple lines or specific rail segments of a corridor, each approach is counted in the preceding percentages. A new commuter rail agency or an agency considering a change in approach can assess the most appropriate approach for dispatch by answering a series of specific questions as outlined in the decision tree presented in Figure 5. Table 16 provides guidance for effective use of the decision tree. Maintenance of Way Maintaining the track that a commuter rail agency uses for operations is required for safe and efficient service. Maintenance of way consists of the systematic maintenance of the track, signals, power, catenary (if applicable), bridges, structures, and station platforms. Facilities outside of the right-of-way (e.g., parking) are generally not part of this function.

Figure 5. Decision tree for dispatch.

62 Contracting Commuter Rail Services, Volume 1: Guidebook The 31 commuter rail agencies approach maintenance of way as follows: • Agency—21% • Host railroad—34% • Amtrak/VIA Rail Canada—11% • Contracted—34% If an agency approaches maintenance of way differently for multiple lines or different rail segments of a corridor, each approach is counted in the preceding percentages. A new commuter rail agency or an agency considering a change in approach can assess the most appropriate approach for maintenance of way by answering a series of specific questions as outlined in the decision tree presented in Figure 6. Table 17 provides guidance for use of the maintenance-of-way decision tree. Maintenance of Equipment Equipment represents a substantial capital investment and regular maintenance ensures safety, longevity, and the greatest return on investment. Equipment maintenance includes daily servicing/cleaning and a range of maintenance programs for coaches and locomotives or other rail vehicles (e.g., DMUs). Mechanics must be fully FRA-qualified. This function may include maintenance of non-revenue equipment. Question or Decision Point Explanation Yes? No? Is there an existing rail operator? If there is an existing rail operator, the CR agency may have an option to contract for dispatch with the existing rail operator. There is an existing rail operator. There is not an existing rail operator. The CR agency must identify the appropriate approach to provide dispatch. Does the existing operator require or request to dispatch services on its track? An existing operator may require or request to dispatch all service to minimize the negative impact on existing service. If the existing operator requires that it dispatch all services on its track, the CR agency negotiates an agreement for dispatch with the existing operator. The existing operator does not require or request to provide dispatch. If the existing operator requests to provide dispatch, the CR agency may have an option to contract for dispatch with the rail operator. Does the CR agency benefit from working with the existing operator for dispatch? Benefits from working with an existing operator for dispatch may include cost savings, shared responsibility and risk, increased safety, etc. The CR agency will benefit from working with the existing operator for dispatch. The CR agency negotiates an agreement for dispatch with the existing operator. The CR agency will not benefit from working with the existing operator to provide dispatch. Does the CR agency have the capacity to dispatch? Capacity to provide dispatch includes qualified staff, expertise, experience, etc. Training may be required for workforce. The CR agency has the qualified staff, expertise, and experience to provide dispatch. The CR agency does not have one or more of the key capacity components for dispatch. Contract dispatch. Does the CR agency benefit from providing dispatch? Benefits from the CR agency providing dispatch include better oversight, improved service reliability, etc. The CR agency will experience greater oversight, improved service reliability, and other benefits from providing dispatch. CR agency provides dispatch. The CR agency will not benefit from directly providing dispatch. Does the CR agency have contract train operations? Dispatch is usually included with train operations if the CR agency is responsible for both functions. Bundle dispatch with train operations. Contract dispatch. Table 16. Dispatch decision tree guidance.

Figure 6. Decision tree for maintenance of way or MOW.

64 Contracting Commuter Rail Services, Volume 1: Guidebook The 31 commuter rail agencies approach maintenance of equipment as follows: • Agency—32% • Host railroad—3% • Amtrak/VIA Rail Canada—15% • Contracted—50% If an agency approaches maintenance of equipment differently for multiple lines, each approach is counted in the preceding percentages. A new commuter rail agency or an agency considering a change in approach can assess the most appropriate approach for maintenance of equipment by answering a series of specific questions as outlined in the decision tree presented in Figure 7. Table 18 provides guidance for use of the maintenance of equipment decision tree. Decision Tracking Tools The decision trees presented in the previous sections include multiple questions that require consideration. Additionally, the outcome to these questions leads in different directions depend- ing on the answers. For these reasons, effective use of the decision trees requires tracking of the answer to each question and the explanation for each answer. Question or Decision Point Explanation Yes? No? Does the CR agency own the track? Ownership determines ultimate control over the track and may define MOW requirements. The track owner has decision authority for how MOW is executed. The CR agency must defer to the track owner for MOW requirements. Does a freight RR own the track? Does another entitya own the track? Does a freight RR operate on the track? Multiple operators on a track may make coordination of maintenance more challenging. A freight RR operates service on the same track as the CR agency. A freight RR does not operate on the track. The CR agency must identify the appropriate approach to provide MOW. Will the freight RR perform MOW for CR? A freight RR or another entity may provide MOW for commuter rail because of business interests, existing contracts, or other business or legal reasons. The freight RR or other entity will continue to provide MOW, and the CR agency will operate commuter rail under a TRA or similar type of agreement. The CR agency must identify the appropriate approach to provide MOW for commuter rail. Will the other entitya perform MOW for CR? Does the CR agency have the capacity to provide MOW? Capacity to provide MOW includes staff, expertise, facilities, equipment, etc. Training to meet FRA requirements may be required for workforce. The CR agency has expertise and the ability to devote staff, facilities, and equipment to MOW. The CR agency does not have one or more of the key capacity components for MOW. Contract MOW. Include facility as required. Does the CR agency benefit by providing MOW? Benefits may include cost savings, improved safety, simplified operations, or other business or legal reasons. The CR agency will save costs, improve safety, simplify operations, and/or obtain some other benefit from providing MOW. The CR agency provides MOW. The CR agency will not benefit from directly performing MOW. Contract MOW. Does the CR agency have MOW facility? MOW facilities include shops, common work areas, a materials warehouse, rail storage yards, and other associated infrastructure. The CR agency has the facility required to provide MOW or has the time to develop the required facilities. The CR agency provides MOW. The CR agency does not have the facilities to provide MOW. The CR agency must arrange to lease or build infrastructure to provide MOW. Assess impact on timeline. aAnother entity might be Amtrak, state passenger rail, another commuter rail agency, or a public agency owner of the track. Table 17. Maintenance-of-way decision tree guidance.

Figure 7. Decision tree for maintenance of equipment or MOE.

66 Contracting Commuter Rail Services, Volume 1: Guidebook Appendix B provides a tool to track the answers to each question within each decision tree and to summarize the outcomes. Table 19 presents an example of how the tool in Appendix B might be used by a commuter rail agency during the decision-making process. This example includes a few of the questions presented in the maintenance-of-way decision tree and sample notation about why each answer was selected. Table 20 is an example of a filled-out decision summary tool. Question or Decision Point Explanation Yes? No? Is there an existing rail operator? If there is an existing rail operator, the CR agency may have an option to contract for MOE with the existing rail operator. There is an existing rail operator. There is not an existing rail operator. The CR agency must identify the appropriate approach to provide MOE. Does the existing operator have the capacity and an interest in providing MOE? Capacity and interest to provide MOE indicate an opportunity for a contract between the CR agency and the existing operator. The existing operator has the capacity and an interest in providing MOE. The existing operator does not have the capacity or an interest in providing MOE. Does the CR agency benefit from working with the existing operator for MOE? Benefits from working with an existing operator for MOE may include cost savings, efficiencies of scale, knowledge transfer, etc. The CR agency will benefit from working with the existing operator for MOE. The CR agency negotiates an MOE agreement with the existing operator. The CR agency will not benefit from working with the existing operator for MOE. Does the CR agency have the capacity to provide MOE? Capacity to provide MOE includes qualified staff, technical expertise, equipment, etc. Training to meet FRA requirements may be required for workforce. The CR agency has expertise and the ability to devote qualified staff and equipment to MOE. The CR agency does not have one or more of the key capacity components for MOE. Contract MOE. Include MOE facility as required. Does the CR agency benefit from providing MOE? Benefits from the CR agency providing MOE may include better oversight, cost savings, efficiencies, etc. The CR agency will experience greater oversight, cost savings, efficiency, and other benefit from providing MOE. The CR agency will not benefit from directly performing MOE. Contract MOE. Include MOE facility as required. Does the CR agency have MOE facility? MOE facilities include train yards, maintenance buildings, and other associated infrastructure. The CR agency has the facility required to provide MOE or has the time to develop the required facilities. CR agency provides MOE. The CR agency does not have the facilities to provide MOE. CR agency must arrange to lease or build infrastructure to provide MOE. Assess impact on timeline. Table 18. Maintenance-of-equipment decision tree guidance. Question Yes No n/a Explanation M ai n te n an ce o f W ay Does the CR agency own the track? X No. Does a freight RR own the track? X The private freight railroad owns the corridor. Does another entity own the track? X See above. Note: n/a = not applicable. Table 19. Example answer tracking tool.

Guidance for Decision Tree Analysis 67 If the commuter rail system operates on track with multiple railroad owners, the tracking tool will have to be adapted to reflect possibly different host railroad responsibilities. Timeline The decision tree analysis contributes to creating a timeline for implementation of commuter rail. Stakeholders will want to know when service can start based on the timeline. The decision tree exercise can help examine the sequence of work to build a critical path schedule. Consid- erations include the time required for workforce hiring and training and the time for facility development. Workforce Hiring and Training The commuter rail agency must assess the requirements for workforce hiring and training for each function to be examined in the decision tree analysis for either a new start or a change in approach to service delivery. Important questions are the following: Does the commuter rail agency wish to hire? Does the host railroad wish to hire and train? Do the contractors indicate they can expand? Is there a workforce to take over from an existing operator? What are the training timelines and who would provide the training and qualification? The important FRA-required programs when considering the workforce are listed below: • 49 CFR Part 213 Track Inspection and Safety Standards • 49 CFR Part 214 Railroad Workplace Safety • 49 CFR Part 217 Program of Operational Tests and Inspections • 49 CFR Part 218 Railroad Operating Practices/Blue Signal Inspection Plan • 49 CFR Part 219 Program of Drug and Alcohol Control and Testing • 49 CFR Part 220 Railroad Communications Procedures • 49 CFR Part 225 Railroad Accident/Incident Reporting • 49 CFR Part 227 Occupational Noise Exposure Date: 12/13/17 H os t R R A g re em en t C o n tr ac t A g en cy Train Operations X Dispatch X Maintenance of Way X Maintenance of Equipment X Total 2 1 1 Table 20. Example decision summary tool.

68 Contracting Commuter Rail Services, Volume 1: Guidebook • 49 CFR Part 228 Hours of Service Compliance and Recordkeeping • 49 CFR Parts 229–232 Railroad Locomotive Safety Standards and Inspection • 49 CFR Parts 233–236 Signal and Train Control Systems • 49 CFR Part 237 Bridge Safety Standards • 49 CFR Part 238 Passenger Equipment Safety Standards • 49 CFR Part 239 Passenger Train Emergency Preparedness Plan • 49 CFR Part 240 Locomotive Engineer Certification Program • 49 CFR Part 242 Conductor Certification Program • 49 CFR Part 243 Training, Qualification and Oversight for Safety-Related Railroad Employees • 49 CFR Part 270 System Safety Program • 49 CFR Part 272 Critical Incident Stress Plan Bundle or Unbundle? After determining the best approach for the primary functions, a commuter rail agency must make decisions to bundle or unbundle contracted functions, if appropriate to the outcomes of the decision tree analysis. The following factors are primary influences on the decisions to bundle or unbundle contracted functions: • Functions provided by the railroad owner or operator • Competitive marketplace for the procurement • Operating environment • Governmental and policy considerations Chapter 6 of this guidebook discusses these influences in detail. Support Functions In addition to the primary functions of maintenance of way, maintenance of equipment, train operations, and dispatch, commuter rail service requires a number of other support functions such as the following: • Management/oversight services • Facilities maintenance • Station operations and maintenance • Non-revenue equipment provision • Materials management services • Environmental services • Risk management assessment • Safety management • Accident/fatality investigations • Security services • Customer service functions • Parking management • Marketing • Communications • Ticketing/sales • Revenue collection • Information technology systems • Capital project implementation

Guidance for Decision Tree Analysis 69 The responsibility for support functions is unique to each commuter rail system. The profile for each commuter rail system in Volume 2 indicates the responsibility for each support function. Although the responsibilities for support functions are unique to each commuter rail sys- tem, there are trends according to how the commuter rail agency approaches service delivery (agency operated, contracted–bundled, contracted–unbundled, or mixed agency operated and contracted). The following sections summarize the practices for support functions according to the approach to the delivery of commuter rail service. Agency Operated Agencies that operate and maintain commuter rail services typically conduct all support functions in house. Notable exceptions include NJ TRANSIT and SEPTA, in which Amtrak operates and manages stations as well as maintenance of way, signals and communication, PTC maintenance and support, and dispatch on the Northeast Corridor. For the South Shore Line, Northern Indiana Commuter Transportation District contracts maintenance of way and related functions to Metra on the Metra Electric and contracts security, environmental services, and communications services. Contracted–Bundled Agencies that adopt a contracted–bundled approach for commuter rail usually retain respon- sibility for some functions. Almost every agency retains responsibility for the following func- tions, although in some cases (as indicated) the agency shares responsibility with the contractor: • Management/oversight services • Customer service (some shared) • Marketing • Communications (some shared) • Ticketing/sales (some shared) Of the 12 agencies that use the contracted–bundled approach, most of the agencies (7 to 10) take responsibility for the following functions, although sometimes the responsibility is shared: • Risk management assessment (some shared) • Safety management (most shared) • Accident/fatality investigation/support (most shared) • Revenue collection An equal number of agencies (six) retain responsibility for the following functions and an equal number (six) bundle the function with the services of the contractor. Sometimes the responsibility is shared: • Station operations and maintenance (some shared) • Security services • Information technology system (most shared) The following functions are typically included with bundled services: • Facilities maintenance • Non-revenue equipment provision • Materials management services • Environmental services The commuter rail agency typically authorizes the primary contractor to subcontract some functions as appropriate or as indicated by local conditions. Subcontracts are executed between

70 Contracting Commuter Rail Services, Volume 1: Guidebook the primary contractor and the service provider. There are examples of the commuter rail agency restricting the functions that can be subcontracted or establishing a minimum value for all services that the contractor must perform. Contracted–Unbundled Agencies that adopt a contracted–unbundled approach for commuter rail usually retain responsibility for some functions. As with the contracted–bundled approach, almost every com- muter rail agency that uses unbundled contracts retains responsibility for the following func- tions, although sometimes the responsibility is shared. • Management/oversight services • Customer service (some shared) • Marketing • Communications (some shared) Of the eight agencies that use the contracted–unbundled approach, most of the agencies (six to seven) take responsibility for the following functions, although sometimes the responsibility is shared (six). • Ticketing/sales • Revenue collection • Risk management assessment (some shared) • Safety management (some shared) • Accident/fatality investigations/support (some shared) Local conditions often influence how support functions are contracted and decisions may be related to railroad ownership. For example, if a commuter rail corridor has track segments with different owners, each section may have a different contractor to provide a service. Additionally, support functions for unbundled contracts, such as station maintenance, may be contracted to smaller local entities (businesses or municipalities) in an effort to return investment locally. Mixed Agency Operated and Contracted For agencies that directly operate some functions and contract other functions, local condi- tions directly influence the assignment of responsibility for each function. • Metra. Metra operates seven of 11 commuter rail lines directly. The remaining four of 11 rail lines are contracted to the host railroad, either UPRR (three lines) or BNSF (one line). Metra retains responsibility for the following functions for the contracted rail lines: – Management/oversight services – Customer service – Marketing – Communications • Northstar. Metro Transit and BNSF share responsibilities for Northstar. Metro Transit maintains rail rolling stock, and BNSF is responsible for train operations, dispatch, and infrastructure maintenance. Metro Transit is responsible for the following functions: – Facilities maintenance – Station operations and maintenance – Non-revenue equipment provision – Materials management services – Risk management assessment – Marketing – Ticketing/sales

Guidance for Decision Tree Analysis 71 – Revenue collection – Information technology system Metro Transit and BNSF share the following functions: management/oversight services, safety management, accident/fatality investigations, security services, customer service, communications, and environmental services. • WES. TriMet maintains the rail rolling stock for WES commuter rail. TriMet contracts with the host railroad to operate the trains and maintain tracks for passenger service. TriMet is responsible for the following functions: – Facilities maintenance – Station operations and maintenance – Risk management assessment – Security services – Customer service – Marketing – Communications – Ticketing/sales – Revenue collection WES and TriMet share responsibility for environmental services, information technology systems, and accident/fatality investigations. The remaining functions are assigned by contract to P&W. Consideration of Support Functions After Decision Tree Analysis As indicated in the preceding sections, the commuter rail agency must make the decision for responsibility for support functions after determining the approach to service delivery for the primary functions and within the context of the local conditions. Decisions must be made within context because there are no mandates. The functions most often retained by the commuter rail agency are management/oversight services, marketing, customer service, and communications (with the customers). Other Considerations The commuter rail agency must also consider service standards, financial requirements, and capital investment implications of the decision to contract and subsequent decisions, if required, to bundle or unbundle contracted functions. Service Standards A commuter rail agency will benefit from documented service standards (or equivalent per- formance requirements in contracted functions) so that all parties have clear service delivery expectations. Agencies can collect service standards from peer agencies for review during the service development process. Examples are referenced in selected case studies (MBTA, Tri-Rail, MetroRail, and GO Transit) in Appendix A. Financial As discussed in Chapter 6, case study data analysis provides limited evidence that the approach to service delivery directly affects financial metrics for cost-efficiency and cost- effectiveness (two exceptions were noted, that is, FrontRunner and MBTA). However, decisions on the service delivery approach have financial implications for the commuter rail agency.

72 Contracting Commuter Rail Services, Volume 1: Guidebook • Host railroad. Depending on the level of service of the commuter rail as compared with the operation of the host railroad, the host railroad may accept all or some of the costs of main- tenance of way and dispatch under a TRA. If a contract for services is required with the host railroad, costs can be negotiated or can be competitively procured as required by agreement between the parties. • Agency. If the commuter rail agency decides to operate rail service directly, the financial con- siderations are labor and benefits. Facility development costs may be required if facilities for maintenance of way and maintenance of equipment are needed. If the agency is a multi-modal transit provider, there may be some cost savings for shared central services (e.g., administra- tion, marketing, human resources, procurement, and legal). • Contractor. A public commuter rail agency is typically required to procure contracted ser- vices competitively. Private sector contractors will include corporate overhead and profit in the price. The public agency must also ensure adequate contract oversight and assurance of compliance with federal or provincial regulations. Unbundled contracts may call for more oversight for multiple contractors. Capital Investment Capital asset condition and regular capital investment for a state of good repair are critical to service levels and service quality. In evaluating different approaches for service delivery, the com- muter rail agency may also consider a financial plan for capital development. An agency should plan how start-up capital, ongoing capital asset management (infrastructure and vehicles), and expansion capital will be provided. If another entity owns the tracks, does an agreement with a host railroad require capital investment or establish minimum performance criteria to drive such investment? Should the contract require specified levels of normalized replacement and the capacity to perform special projects at agency direction? There is no single answer but the decision tree analysis may include these questions in reviewing approaches to service delivery. Summary The approaches for delivery of commuter rail service were identified as agency operated, con- tracted, or mixed agency operated and contracted. Some functions may be provided by the host railroad, particularly maintenance of way and/or train dispatch. Each approach is associated with unique opportunities and challenges, depending on local conditions. To implement commuter rail or to evaluate changes in the approach to service delivery, a commuter rail agency will make numerous decisions. This chapter presents decision trees for use when assessing decisions related to the primary functions (train operations, dispatch, maintenance of way, and maintenance of equipment). The decision trees guide users through an assessment of corridor specific conditions and agency capability and capacity to operate the functions directly, an assessment of the benefits of assigning functions to the host railroad or another rail operator, or contracting the services. After determining the best approach for the primary functions, a commuter rail agency must make decisions whether to bundle or unbundle contracted functions, if applicable, and decisions about the responsibility for support functions. There are no mandates to dictate what a com- muter rail agency must decide. All decisions must be made within the context of the commuter rail system’s operating environment and ownership of the required assets.