Analysis of Transit Contracting Models and Proper Incentives for Long-Term Success

As transit systems are being challenged to operate in the most cost-effective manner, and budgets are being tightened and demand for services increases, there has been renewed interest in the area of contracting for fixed route service in the United States (U.S.). Researchers were tasked to inventory and synthesize previous work in the area of types of transit operating contracts in the U.S. and Europe, assess the benefits and drawbacks of each general approach, and develop situational guidance for Florida Department of Transportation (FDOT) to help determine if a particular model could be appropriately considered. The investigation began with a review of the literature. Using the National Transit Database for 2011, transit service contracting practices in five states were reviewed, focusing on the monetary nature of the contractual relationship between the agency and the contractor. Specific contracts awarded were reviewed to compare and contrast operating parameters outlined in the contracts in terms of assignment, responsibility, and oversight. Researchers turned to individual transit agencies to explore lessons learned from their contracting experience, providing valuable insight not only for agencies considering contracting some or all service for the first time, but also for agencies interested in improving their existing contractual relationships. A contracting decision tree is illustrated, and several strategies to improve service in-house are detailed for agencies that decide to forego contracting. In order to meet the challenges of today’s economy, transit agencies must understand and assess the benefits and drawbacks of each general approach to contracting for transit service.

• Record URL:
  • https://doi.org/10.5038/CUTR-NCTR-RR-2013-11
• 
• Summary URL:
  • https://fdotwww.blob.core.windows.net/sitefinity/docs/default-source/research/reports/fdot-bdk85-977-47-sum.pdf
• Record URL:
  • https://fdotwww.blob.core.windows.net/sitefinity/docs/default-source/research/reports/fdot-bdk85-977-47-rpt.pdf
• Supplemental Notes:
  • This document was sponsored by the U.S. Department of Transportation, University Transportation Centers Program.
• Corporate Authors:

  National Center for Transit Research

  Center for Urban Transportation Research, University of South Florida
  4202 East Fowler Avenue, CUT 100
  Tampa, FL  United States  33620

  Florida Department of Transportation

  605 Suwannee Street
  Tallahassee, FL  United States  32399-0450

  Research and Innovative Technology Administration

  1200 New Jersey Avenue, SE
  Washington, DC  United States  20590
• Authors:
  • Davis, Janet L
  • Reich, Stephen L
• Publication Date: 2013-11

Language

• English

Media Info

• Media Type: Digital/other
• Edition: Final Report
• Features: Appendices; Figures; References; Tables;
• Pagination: 56p

Subject/Index Terms

• TRT Terms: Contracting; Contracts; Decision trees; Fixed routes; Literature reviews; Public transit; Transit operating agencies
• Geographic Terms: Europe; Florida; United States
• Subject Areas: Administration and Management; Public Transportation; I10: Economics and Administration;

Filing Info

• Accession Number: 01516265
• Record Type: Publication
• Report/Paper Numbers: NCTR 77952-00
• Contract Numbers: FDOT BDK85-977-4
• Files: UTC, TRIS, RITA, ATRI, USDOT, STATEDOT
• Created Date: Feb 28 2014 1:32PM