Creating Provider Contracts

Provider costs are normally handled through contracts, which may be renegotiated or put into bid rounds at different intervals (for example, every two years).

Before you begin

The Trapeze4 Workstation must be open.

About this task

Some of the costs related to runs are not based on individual activities. These additional costs are defined using provider contract validities. For example, guaranteed minutes include total minutes incurred on the run plus an additional cost if the minimum number of minutes is not met.

Cost validities can be limited to specific time periods, which allows for the creation of future cost structures that include defined activation dates. For example, you may create one validity for weekend and statutory holidays, and another for holidays. Validity time periods are defined using week days and Valid from and Valid to dates.

Procedure

  1. Click File > Ancillary Data > Para > Provider Costing > Provider Contracts.
    The Provider Contract dialog box appears.
    The Provider contract dialog box. A Contract called DISTANCE RATE with a Contract type of HOURLY is being defined.
  2. Click the Add New button.
    The label <New> appears in the Contract and Contract name fields.
  3. In the Contract frame:
    1. Provide the following information:
      Contract name
      The name of the contract.
      From Date
      The contract start date.
      To date
      The contract end date.
    2. Do one of the following:
      • In the Contract type list, click an existing contract type.

        Contract types allow users to group and filter similar contracts.

      • Click the New type button to create a new contract type.

        In the New contract type dialog box, type a new Contract type name and click OK.

    3. Click the Save button.
    The contract is added to the list of provider contracts.
  4. In the Validity frame, provide the following information:
    Valid from and Valid to
    Specify the date range during which the contract rules will be in effect. Note that there is a valid from/to range for the contract and also for the validity. When you are defining a multi-year contract, you can set up validities for the negotiated cost of each year of the contract.
    Weekday
    Select check boxes for each day of the week that the rules will be applied.
    Sched Period
    (Optional) Click the sign-up period.
    Time Pay Unit
    Type the dollar rate (value is in seconds).

    For example, 60 = per minute, 3600 = per hour.

    Time Pay Interval
    Type the rounding value to be used when calculating.

    For example, if the time pay interval is 60, times are rounded to minutes and providers will be paid for each applicable minute.

    Distance pay unit [Distance Unit]
    Type the distance to travel to be paid for one unit.

    For example, if the value is 1 (one), the rates are specified per distance unit.

    Distance units are defined in File > Properties, on the Formats tab, under Distance.

    Distance pay interval [Distance Unit]
    Type the rounding value to be used when calculating distance to be paid.

    For example, if the distance interval is 0.1, the distance is rounded to one tenth of a distance unit.

    Base Index
    Type the starting price index value that is used for adjusting rates when creating new validities.

    For example, rates may be adjusted due to changes in oil prices.

    Note: Enter a base index of 100 for your first validity record. Using this value makes it easier to compare it with subsequent indexes. If you do not plan to use indexing, leave this field blank.
    Banded Guaranteed Flat Rate
    Type the minimum amount a provider will be paid for a banded mileage trip.
    Note: Banded rates are rates that vary depending on the number of units. Using run costs allows you to apply a banded mileage rate that gives a higher rate to the first mile and a minimum guaranteed rate if the total calculated distance cost falls below the guaranteed flat rate value.
    Banded Max Empty Time
    Type the maximum deadhead time in minutes allowed.
    Note: The Banded Max Empty Time value controls when a new guaranteed rate (defined in run costs) should be applied.
    Weighted Index
    The base index supports imposing a contract penalty on providers who default on the contract conditions associated with their allocated set of orders.

    In the Weighted Index field, type the factor by which provider cost should be multiplied to obtain a weighted provider cost. For example, to institute a 20% penalty, a weighted index of 1.2 could be used.

    Ignore segment cost for empty runs
    Select whether the system should ignore segment costs for runs on which no trips have been scheduled.
    Calculate direct distance
    Select whether the system should calculate the system using street routing or the default distance calculation method defined in schedule server.
    Priority
    Type a number representing the importance of the contract.
  5. Click Add Validity.
    The Price Index dialog box appears.

    See Using Price Indexes for more information.

  6. Select a record in the grid and click Edit.
  7. To define the provider costing, click the following buttons as needed:
    Period Definitions
    Defines time periods during the day required for contract dates and validity periods.

    See Defining Time Periods.

    Segment Cost
    Defines costs that apply to a run. By attaching a contract ID to a run, costing that is associated with a run (regardless of the number/type of trips served on that run) can be computed. Setting up these costs allows you to define guarantee time costs by setting a minimum cost for the run, which is paid even if the sum of the activity, trip, and mobility aid costs are less than that amount.

    See Defining Segment Costs. Defined segments can also be excluded from run costs.

    Rate Profiles
    Defines formulas for flat rate, mileage rate, or time rate-based cost calculations. Formulas may be defined once and then associated with any number of specific trip or activity types.

    See Defining Rate Profiles.

    Run Cost
    Defines rates based on a minimum amount of distance, time, or bookings performed.

    See Defining Run Costs.

    Tour Cost
    Defines how much a provider will be paid for a passenger, their companion or attendant, or for a dedicated or general escort provided by the transport authority.

    See Defining Tour Costs.

    Activity Cost
    Defines costs associated with an activity such as a pick-up, drop-off, pull-in, or pull-out.

    See Defining Activity Costs. Defined activities can also be excluded from run costs.

    Trip Cost
    Associates a cost with the travel between any two types of activities. Trips costs are defined as the cost of the interval between two activities such as a pull-out and a pick-up.

    See Defining Trip Costs.

    Quotas
    Defines the number of trips a provider can perform per passenger type during a time interval.

    See Defining Provider Quotas.

  8. To replicate trip cost and activity cost rules, click Replicate rules.
    The replication window allows the user to select which contracts/validities must have the replicated rule.

    See Copying Trip Cost Rules and Activity Rules to Other Contracts.

  9. Click the Save button.