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

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.”