Contracting for Bus and Demand-Responsive Transit Services A Survey of U.S. Practice and Experience: Special Report 258 (2001) / Chapter Skim
Currently Skimming:
6. Summary and Assessment
6. Summary and Assessment
Pages 128-137
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 128... ...
For much of the 20th century, private companies provided most transit services under the regulatory oversight of state and local governments. During the past four decades, the model for transit service has changed as state and local governments have assumed almost exclusive responsibility for transit planning and funding.
|
From page 129... ...
During the past 20 years, numerous studies have examined the effects of contracting on service cost and quality, usually by scrutinizing the experience of individual systems. While the results from these studies indicate that cost savings are a main reason for contracting, they also point to a multitude of other reasons for the practice from the desire for more dexibiTity in adding and withdrawing services to the special expertise needed for the provision of particular kinds of service, such as transportation for people with disabilities.
|
From page 130... ...
The survey results, augmented by National Transit Database (NTD) data cob lected by the Federal Transit Administration (F~\ provide important inky mation on the extent of contracting among federal aid recipients, how contracts are structured, and the state of competition far contracted services.
|
From page 131... ...
The duration is sufficiently long to avoid repeated costs associated with rebidding, but sufficiently short to discourage contractor complacency. Systems usually provide the vehicles and other major assets for bus service contracts, and they often provide them for demand-responsive services as well.
|
From page 132... ...
These results suggest that the level and nature of contracting are dynamic and that the mix of advantages and disadvantages favoring contracting or inhouse methods of service provision can change for a transit system over time. The main reasons transit systems contract for service, according to transit managers, are to reduce costs and increase flexibility to introduce new services.
|
From page 133... ...
Nearly ah general managers of systems that are now contracting reported cost savings. However, shortcomings in contractor service quality and associated time demands on agency staff to ensure quality are the main reasons some believe contracting has not fully met their expectations.
|
From page 134... ...
Make internal estimates of service costs, and use this inflation as a base[ne in assessing the cred~iLty of contractor proposals, including those that are priced too him and those that are priced too log. Clears spell out all contractor respons~ilhies, closed monitor perky mance, and communicate Aid Me contractor.
|
From page 135... ...
First is a discussion of some of the additional information the committee would like to have had during the course of the study information that was not recognized as being important until after deliberation of the survey results. This is followed by the committee's own ideas or hypotheses for further evaluation on how transit contracting is occurring and evolving in the United States.
|
From page 136... ...
Third, the committee was unable to determine with any specificity the magnitude of the cost savings from contracting and whether they change over time, nor were respondents asked to verify their perceptions of cost savings. As discussed above, the committee relied on the general managers to use their best judgment, and did not advise them on what constitutes cost savings or how to calculate those savings.
|
From page 137... ...
That some services are taken back in house may be the result of cost differentials diminishing over time. In other cases, the original desire to achieve cost savings or increase the amount of service through contracting may be replaced by a greater emphasis on improving service quality.
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.