CONTRACTING CUTS COSTS

Privatization, the contracting of public services to private operators, is seen as aiding in cost control for public transit. When the private sector operates such services, control of the operation remains with the public transit agency. In public transit cost increases above the inflation rate have been routine since establishment of operating subsidies. In recent years private operators have been largely excluded from public transit with the exception of school transportation. Traditionally schools have contracted more than 40 percent of their transportation to private operators. Other contracted public services include garbage collection, fire protection and building maintenance. Elderly and Handicapped (E&H) services marked the entry of public transit into privatization. The Federal Private Enterprise Participation Policy of 1984 requires UMTA to have its grantees give equitable consideration to private operators for new or restructured service. Labor agreement provisions also cannot stop the consideration of the private sector. APTA reports 48 percent of its members contract out E&H services as well as 27% other types of revenue operations. Transit agenicies also contract out 41 percent of bus body repairs, 35 percent major overhauls and up to 75 percent some administrative services. It is concluded that (1) public transit service will be sustained only if costs are controlled and public interests met; and (2) Contracting for transit cannot only bring costs under control but offers an alternative in solving fiscal problems facing public transit.

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• Corporate Authors:

  Bobit Publishing Company

  2500 Artesia Boulevard
  Redondo Beach, CA  United States  90278
• Publication Date: 1985-9

Media Info

• Pagination: 5 p.
• Serial:
  • Metro
  • Volume: 81
  • Issue Number: 5
  • Publisher: Bobit Publishing Company
  • ISSN: 10098-0083

Subject/Index Terms

• TRT Terms: Contracting; Cost control; Labor agreements; Policy; Private enterprise; Productivity; Public transit; Transit operating agencies
• Old TRIS Terms: Government policies
• Subject Areas: Administration and Management; Policy; Public Transportation;

Filing Info

• Accession Number: 00451134
• Record Type: Publication
• Files: TRIS
• Created Date: Nov 30 1985 12:00AM