The contracting of urban bus services – Recent Australian developments

Adapting Procurement Models for Electric Buses in Latin America

“…International experiences indicate that public transit agencies can typically reduce costs by 20% to 30% when previously public operations are competitively outsourced to the private sector (14,17). Likewise, many cities with informal bus systems have recently endeavored to formalize their transit systems, around stronger government involvement, to increase the quality and accountability of the service (9,12,21).…”

“…From the abovementioned range of bus provision options, most of the literature promotes some variation of a public–private hybrid model, since it can capture the cost effectiveness of private sector participation while also reaping the public benefits of governmental oversight ( 9 , 11, 14 – 18 ). Since the 1980s there has been a global trend for cities with publicly owned and operated bus systems to contract operations to private firms to increase the cost effectiveness of service ( 19, 20 ).…”

“…Since the 1980s there has been a global trend for cities with publicly owned and operated bus systems to contract operations to private firms to increase the cost effectiveness of service ( 19, 20 ). International experiences indicate that public transit agencies can typically reduce costs by 20% to 30% when previously public operations are competitively outsourced to the private sector ( 14, 17 ). Likewise, many cities with informal bus systems have recently endeavored to formalize their transit systems, around stronger government involvement, to increase the quality and accountability of the service ( 9, 12, 21 ).…”

“…Despite the various factors which can influence the success of competitive tenders and negotiated contracts, there are two major takeaways that emerge from the literature. First, many authors claim that competitive tendering can ensure efficient and economical contracts (especially in the case where there is no incumbent operator), since firms sparring for an open tender need to be cost-effective to provide a competitive bid ( 12, 17, 22 ). Another major takeaway from the literature is that negotiated contracts can establish better partnerships between public agencies and private operators than competitive tendering, which can lead to more comprehensive, publicly-beneficial contracts since agencies and operators are communicating issues with each other during the negotiation process ( 14, 15, 23 ).…”

Regulation of public bus services: The Israeli experience

“…If the period is too long, it may fail to create an effective threat to the operator of cessation or a decision not to renew the contract with it, thus failing to sufficiently motivate the provision of good service (Muren, 2000). A long contract period also reduces the Augustin et al (2014), Beltran et al (2013), Hensher and Wallis (2005), House of Commons (2012), Preston and Almutairi (2013), Rye and Wretstrand (2014), Sakai and Takahashi (2013), van de Velde et al (2008), Wallis et al (2010), Wallis and Bray (2014), Walters (2010 possibility of reorganization and adaptation of the services in light of technological innovations or changes in demand, which are sometimes obstructed in the case of signed contracts (Berechman, 1993). In comparison, there are advantages in choosing a relatively long contract period: greater feasibility for the operator to invest in capital and equipment, better possibility of finding sources of financing and resources, and the possibility of learning in the course of the work, thereby reducing costs within the period (Muren, 2000).…”