THIRD PARTY TRANSACTION COST-BENEFIT ANALYSIS

This project involves a comprehensive analysis of direct and indirect costs of transacting business via third parties versus Arizona Department of Transportation (ADOT) Motor Vehicle Division (MVD) field offices, including long term and short term costs. The analysis examines the third party process in detail and compares it with the same process within MVD operations to determine the cost to MVD of providing a transaction through a third party versus the cost to provide the same transaction in an MVD office. Using lessons learned from a review of prior models, review of relevant literature, and interviews with key personnel, a Third Party Transaction Cost model was constructed, populated with relevant data, and analyzed. Utilizing the model and cost and transaction data for the most recent fiscal year data available (July 1, 2001 - June 30, 2002), a summary table shows the costs per transaction by Channel-MVD Customer Service ($12.80), Renew-by-Mail ($2.42), traditional Third Party ($11.74), and Service Arizona (Internet) ($4.60). It is noted that Renew-by-Mail and Service Arizona only include registration renewals. In addition to the cost savings of the Third Party Program, the Program provides a number of significant intangible benefits, such as: reduced wait times in existing Customer Service offices; more convenient hours and days of service availability; reduced customer travel time and improved customer goodwill; reduced need for new buildings, MVD staff, and equipment; improved image of MVD responsiveness; process improvement; and demonstrated success of e-government and private/public partnerships.

• Record URL:
  http://azmemory.azlibrary.gov/cdm/compoundobject/collection/statepubs/id/10407/rec/1
• Record URL:
  https://rosap.ntl.bts.gov/view/dot/38116
• Corporate Authors:

  Data Site Consortium

  1 East Camelback Road, Suite 660
  Phoenix, AZ  United States  85012

  Arizona Department of Transportation

  206 South 17th Avenue
  Phoenix, AZ  United States  85007

  Federal Highway Administration

  1200 New Jersey Avenue, SE
  Washington, DC  United States  20590
• Authors:
  • Keeling, M
  • Kalina, S
  • Logue, D
• Publication Date: 2003-4

Language

• English

Media Info

• Media Type: Digital/other
• Features: Appendices; Figures; References; Tables;
• Pagination: 118 p.

Subject/Index Terms

• TRT Terms: Benefit cost analysis; Cost effectiveness; Costs; Customer service; Improvements; Internet; Interviewing; Literature reviews; Mathematical models; Public private partnerships; Registration; Travel time; Waiting time
• Identifier Terms: Arizona Department of Transportation
• Uncontrolled Terms: Convenience
• Subject Areas: Administration and Management; Finance; Highways; I10: Economics and Administration;

Filing Info

• Accession Number: 00962100
• Record Type: Publication
• Report/Paper Numbers: FHWA-AZ-03-539,, Final Report
• Contract Numbers: SPR-PL-1-(61)539
• Files: NTL, TRIS, USDOT, STATEDOT
• Created Date: Aug 18 2003 12:00AM