MIT1_258JS10_lec04

MIT1_258JS10_lec04 - Contracting with Private Providers by...

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Contracting with Private Providers by the Public Transportation Industry Outline Organizational Schemes (Also see 1.201, Lecture 19) Services Typically Contracted Contract Economics Contracting Issues and Practices Types of Transit Contracts Contract Management Case Studies Final Thoughts on Performance Regimes John Attanucci/Nigel Wilson 1.258J/11.541J/ESD.226J 1 Spring 2010, Lecture 4
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rimary Organizational Schemes in the U.S. Primary Organizational Schemes in the U.S. tandard Public Ownership & Operations 1. Standard Public Ownership & Operations * Simplest structure * Theoretically has maximum accountability and control * Political and labor issues may introduce inefficiencies * Innovation often tied to individual GM skills and future ambitions John Attanucci/Nigel Wilson 1.258J/11.541J/ESD.226J 2 Spring 2010, Lecture 4
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rimary Organizational Schemes in the U.S. Primary Organizational Schemes in the U.S. anagement Contract 2. Management Contract * Mostly in smaller areas/not growing in number * Provides expertise and/or experience via a manager or team who are not available locally 3-5 year contract duration typical—usually fixed fee * * Large incentive difficult to justify * Employees either public employees or hired by a locally- incorporated private entity * plementation can be flawed; few incentives for private Implementation can be flawed; few incentives for private managers; very similar to first model John Attanucci/Nigel Wilson 1.258J/11.541J/ESD.226J 3 Spring 2010, Lecture 4
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rimary Organizational Schemes in the U.S. Primary Organizational Schemes in the U.S. ervice Contracting 3. Service Contracting * Various components of service can be contracted out * Provision of actual bus or paratransit service most common * Vehicles, facilities, and equipment may or may not be included in contractor-provided services * Objectives of public agencies key to determining type of rocurement and contract procurement and contract John Attanucci/Nigel Wilson 1.258J/11.541J/ESD.226J 4 Spring 2010, Lecture 4
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U.S. Transit Industry Structure Remarkably little change since the early 1970s: regional transit authorities regulating, planning and directly operating most services in larger urban areas (> 100 buses + rail) municipalities operate transit in many small cities (< 100 buses) principal use of private sector is in providing limited types of purchased services to transit authorities John Attanucci/Nigel Wilson 1.258J/11.541J/ESD.226J 5 Spring 2010, Lecture 4
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ncillary Services Typically Contracted Ancillary Services Typically Contracted ncillary or support services: cleaning advertising Ancillary or support services: cleaning, advertising, real estate, etc. * relatively straightforward and easy to define & administer
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This note was uploaded on 12/06/2011 for the course ESD 11.380j taught by Professor Fredsalvucci during the Fall '02 term at MIT.

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MIT1_258JS10_lec04 - Contracting with Private Providers by...

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