lect0506ja

lect0506ja - Contracting with Private Providers by the...

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Nigel H.M. Wilson 1.259J/11.542J/ESD.227J, Fall 2006 Lecture 5, John Attanucci 1 Contracting with Private Providers by the Public Transportation Industry Outline Organizational Schemes Types of Transit Contracts Contract Economics Contracting Issues and Practices Contract Structure and Management Case Studies
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Nigel H.M. Wilson 1.259J/11.542J/ESD.227J, Fall 2006 Lecture 5, John Attanucci 2 Primary Organizational Schemes in the U.S. * 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
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Nigel H.M. Wilson 1.259J/11.542J/ESD.227J, Fall 2006 Lecture 5, John Attanucci 3 Primary Organizational Schemes in the U.S. 2. Contract Management * Mostly in smaller areas * Provides expertise and/or experience via a manager or team who are not available locally * 3-5 year contract duration typical—usually fixed fee * Employees either public employees or hired by a locally- incorporated private entity * Implementation can be flawed; few incentives for private managers; very similar to first model * Large UK holding companies less interested in these contracts (slow growth)
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Nigel H.M. Wilson 1.259J/11.542J/ESD.227J, Fall 2006 Lecture 5, John Attanucci 4 Primary Organizational Schemes in the U.S. 3. Service Contracting * Various components of service can be contracted out * Provision of actual bus or paratransit service most common * Vehicles and equipment may or may not be included in contractor-provided services * Objectives of public agencies key to determining type of procurement and contract
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Nigel H.M. Wilson 1.259J/11.542J/ESD.227J, Fall 2006 Lecture 5, John Attanucci 5 Services Typically Contracted Ancillary or support services: cleaning, advertising, real estate, etc. Maintenance of way and vehicles * limited examples in U.S. * labor issues can be tricky * more examples in the private sector
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1.259J/11.542J/ESD.227J, Fall 2006 Lecture 5, John Attanucci 6 Services Typically Contracted Fixed route bus and rail services * limited examples but increasing—Denver, Dallas, Southern California, San Juan, D.C. suburban services * generally has been proposed to reduce costs and/or to provide new services * since market is relatively small, # of bidders usually low
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lect0506ja - Contracting with Private Providers by the...

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