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.

Media Info

  • Media Type: Print
  • Features: Figures; References;
  • Pagination: pp 47-52
  • Monograph Title: Transit research developments
  • Serial:

Subject/Index Terms

Filing Info

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