N.Y. MTA cuts paratransit costs by $52.5M

Posted on April 21, 2010

As a result of renegotiating contracts with 43 of their paratransit service vendors, the New York Metropolitan Transportation Authority (MTA) will save a total of $52.5 on paratransit services this year and next year.


Maggies Paratransit in Brooklyn and PTM Management Corp. in Jamaica, N.Y. are a couple of the companies that agreed to negotiate their fees. MTA works with approximately 16 accessibility transit providers.


Kevin Ortiz, spokesman, MTA, confirmed that, in addition to saving $15.9 million on paratransit services this year, the MTA will see an annualized savings for the next 12 months of $36.6 million. “In terms of 2010 savings, other vendors and suppliers, we were able to find $2.6 million in savings for a total of $18.5 million,” he added.  


Ortiz explained that, as MTA was facing a looming budget gap, they decided to try approaching suppliers to work out a deal. “We asked them if they would be able to do better, with regard to renegotiating some contracts. They all listened and understood our current financial situation. We asked them to come back with some solutions.” Many of the service providers offered to renegotiate.


“The important thing is we’re getting the same level of service from these providers, just at a much lower rate. No changes to service, no impact to our customers,” Ortiz stressed.


The renegotiation process moved forward quickly, taking only a couple of months, according to Ortiz. “We’re in the process of dealing with an $800 million budget deficit so this is all being taken care of as fast as possible.”



View comments or post a comment on this story. (0 Comments)

More News

Q’Straint to supply Quantum, Q’POD securement systems for ABQ Ride’s BRT system

Benefits of the Quantum rear-facing solution include shorter dwell times at stops; little or no involvement of bus operators; less likelihood of operator injury; and fewer instances of operators being placed in awkward working positions.

Q'Straint to host 'Emerging Trends in Wheelchair Transportation' webinar

Presentation will explore developing ridership and securement dilemmas facing transit providers, and examine how emerging technologies and recent regulatory changes are addressing the previous short comings of primitive securement applications.

How to Write Effective Mass Transit System Policies

Solid policies — whether for employees or riders — are the backbone of any transportation agency’s operations.

Denver RTD to enhance wheelchair securement area, access on LRVs

As a part of this effort, RTD will be altering the seating design of current and new light rail vehicles. The retrofit includes removing a set of seats next to the current wheelchair areas, which will open up the designated area for easier access.

KCATA set to launch new ridehailing service May 1

The one-year RideKC Freedom On-Demand pilot enables customers to call on taxis any day, at any hour, to enjoy everything Kansas City has to offer.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment


Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close