The Orange County Transportation Authority announced it will change contractors later this year to a new firm that will operate up to 40% of the OC Bus fixed-route service beginning in June, according to the agency's news release.

The change in the contract is a move that will continue to save taxpayer money while allowing for additional bus service.

The OCTA Board of Directors earlier this month approved the selection of Keolis Transit Services LLC, to provide the management, operation, and maintenance of the contracted fixed-route bus service. Keolis will take over from First Transit Inc., which has operated the contracted service since 2015.

The $286.3 million contract begins on June 11 for an initial term of four years, with two options to renew the contract for an additional two years each. 

“Our contracted bus service plays an essential role in keeping taxpayer costs down while at the same time providing the high level of customer service and reliability that the people of Orange County count on,” said OCTA chairman Gene Hernandez. “We are committed to making this a smooth transition to keep our OC Bus passengers moving safely and efficiently.”

For more than a decade, OCTA has contracted with a third-party provider for the operation and maintenance of a portion of transit service. In 2009, the portion of service operated by the third-party contractor was approximately 6%. The most recent contract, awarded to First Transit in 2015, included about 30% of overall service, which eventually grew to approximately 39%. The limit of contracted service is 40%.

OCTA said its decision to contract a portion of bus service is a cost-saving strategy that is helping provide an additional 150,000 revenue vehicle hours — equivalent to approximately 10% of OCTA’s bus service overall.

The current contract was awarded under a competitive bidding process, taking into account several factors, including qualifications of the firm, staffing and project organization, work plan, and cost.

The contracted fixed-route service will continue to operate and maintain vehicles out of the Anaheim and Irvine/Sand Canyon bases.