Implementation Guidelines - Federal Transit Administration - U.S. ...

complete drug and alcohol testing
program, such as monitoring service
agents, training, record keeping, etc.
This model, although in use today by
several transit agencies, is not
technically considered a consortium
under the FTA regulations, since the
participating agencies have no ongoing
relationship beyond the initial purchase
arrangement.
Separate Management Entity. In a
separate management entity model, the
consortium provides more extensive
management functions for member
agencies. The consortium may assist
member agencies by monitoring and
training employees, preparing reports,
and procuring testing services at reduced
prices. Member agencies sign an
agreement, which specifies the
management responsibilities of the
consortium, how costs will be shared,
and how testing will be achieved.
Often, a state transit association or a
state department of transportation takes
the lead in establishing the consortium.
The lead agency may hire staff and
manage the program itself, or more
commonly, contract with a TPA to
perform management functions and
procure testing services from individual
service agents.
This model requires strong
leadership and agency commitment. A
consortium administrator who is
knowledgeable about the testing
regulations, contracting, and the needs of
the consortium members is required to
provide oversight of the TPA or
individual service agents. The cost of
managing and operating the consortium
is in addition to the cost of purchasing
drug and alcohol testing services.
However, the administrative costs are
spread among the member agencies.
Either consortium staff or a TPA
obtain testing services. In-house
management requires a staff large
enough to oversee each of the individual
service contracts, process billing, and
perform administrative functions of the
consortium. Hiring a TPA allows for a
single point of control between the
consortium and the individual service
agents. The TPA should have
demonstrated expertise with the DOT
testing program. The TPA is essentially
a general contractor, who subcontracts
with other service agents to provide the
full package of testing services required.
The separate management entity
model provides members with
management expertise and avoids the
costs each member would otherwise be
forced to absorb in the hiring or training
of its own expert. While this model
provides expertise and flexibility in
management, this high level of service
may be expensive. Also, TPAs have
limitations (previously discussed in
Section 3) that must be taken into
Chapter 11. Joining a Consortium 11-8 August 2002