DEVELOPMENT OF INCENTIVE CONTRACTS FOR TRANSIT MANAGEMENT

Contract management is a widely used practice within the transit industry. Incentive contracts, however, are infrequently used to procure these services. The considerations in combining the two practices are discussed. The result is an incentive-fee arrangement with a private firm for the manageent of a local transit system. The basic concept being presented is that the management company's fee can be related to the performance of the transit organization. There are many beneficial features of this approach. First, it conveys to the contractor a sense of the transit agency's priorities for improvement. Second, it provides an incentive and rewards the management company financially for its success. And third, it can lead to an overall improvement in the productivity of the transit system. The process that a transit agency could follow in establishing an incentive program with an eligible contract management firm is presented. The options and key considerations that may arise during each step of the process are discussed. By following this guidance, the local agency should be able to synthesize these decisions and considerations systematically into a contract document for obtaining contract management services.

• Record URL:
  http://onlinepubs.trb.org/Onlinepubs/trr/1984/992/992-009.pdf
• Summary URL:
  https://scholar.google.com/scholar_lookup?title=DEVELOPMENT+OF+INCENTIVE+CONTRACTS+FOR+TRANSIT+MANAGEMENT&author=S.+Mundle&author=J.+Kraus&author=G.+Fielding&publication_year=1984
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• Supplemental Notes:
  • Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved. Publication of this paper sponsored by Committee on Public Transportation Planning and Development.
• Authors:
  • Mundle, Subhash R
  • Kraus, Janet E
  • Fielding, Gordon J
• Publication Date: 1984

Media Info

• Media Type: Print
• Features: Figures; References;
• Pagination: pp 47-52
• Monograph Title: Transit research developments
• Serial:
  • Transportation Research Record
  • Issue Number: 992
  • Publisher: Transportation Research Board
  • ISSN: 0361-1981

Subject/Index Terms

• TRT Terms: Analysis; Contractors; Cost effectiveness; Data collection; Incentives; Level of service; Management; Measurement; Performance; Performance measurement; Productivity; Transit operating agencies
• Old TRIS Terms: Analytical method
• Subject Areas: Administration and Management; Highways; Law; Planning and Forecasting; Public Transportation; I10: Economics and Administration;

Filing Info

• Accession Number: 00451177
• Record Type: Publication
• ISBN: 0309038014
• Files: TRIS, TRB
• Created Date: Nov 30 1985 12:00AM