METRO Magazine Logo
MenuMENU
SearchSEARCH

Pub Perspective: Growth in contracting gives agencies more tools in the toolbox

As public transportation budgets and political support have grown in the U.S. and elsewhere, so too has the interest in using private operators. Whether out of local political climate or a desire to have more flexible options for delivering services, outsourcing presents both challenges and opportunities.

by James Blue
July 10, 2017
Pub Perspective: Growth in contracting gives agencies more tools in the toolbox

Transdev

2 min to read


Transdev

As public transportation budgets and political support have grown in the U.S. and elsewhere, so too has the interest in using private operators. Whether out of local political climate or a desire to have more flexible options for delivering services, outsourcing presents both challenges and opportunities. In short, each circumstance is different.

Factors affecting growth
A variety of factors have contributed to the growth in outsourcing to a private operator. Not least of these is expediency, but the growth differed slightly by industry sector. In U.S. commuter rail, for example, the best way to get new service up and running was to contract to Amtrak or several private rail firms. In paratransit service, new regulatory demands in the wake of the 1990 Americans with Disabilities Act drove a need to control cost of compliance, and the best way for many agencies to do that was to turn to specialty operators. Particularly in the U.S. Sunbelt, such as in Las Vegas and Phoenix, where there was little existing transit service but a rapidly growing need, agencies turned to contractors. Others, such as Denver and San Diego, sought a mix of privately provided and directly operated service.

Ad Loading...

More recently, the growing interest in alternative project delivery for new capital investments has increased demand for contracting. Examples include Denver’s Eagle P3 commuter rail service, but the state of Maryland is now also seeking to use a similar model for its Purple Line light rail project. Most ambitious of all is the California High-Speed Rail program’s plan to use international consortia not only to design, but also to operate and partially finance the network. Internationally, service delivery through contracted or franchised arrangements with private firms is the rule, not the exception.

Not exactly a new idea
Of course, in many ways this is a “back to the future” return. This century’s twist, however, is how best to manage public sector control and the issues in the public interest. Key issues include risk sharing, incentives, and performance monitoring. Each situation is different.

In the U.S., we are in the early days of this new era. So far we seem to be doing this incrementally, and it is probably wise. We can learn much, however — both what to do and what to avoid — by looking to international examples in Britain, Australia, and perhaps most appropriate of all, Canada. The latter will be a good laboratory as we learn more about what the Trump Administration would like to do with private sector involvement in infrastructure investments.

Subscribe to Our Newsletter

More New Mobility

Trinity Metro On Demand Vehicle
Technologyby StaffMay 19, 2026

Via Announces Scheduling and Supply Studio

The Scheduling and Supply Studio provides the world’s first fully integrated platform for optimizing vehicle and driver availability to rider demand, said company officials.

Read More →
Community Transit's Bluebell bus celebrating the agency's 50-year milestone.
Busby StaffMay 15, 2026

Washington's Community Transit Celebrates 50-Year Milestone

The milestone highlights both the agency’s history and its evolving role in meeting the region’s growing mobility needs.

Read More →
Mayor Tim Keller in front of an ABQ RIDE microtransit vehicle
New Mobilityby StaffMay 12, 2026

ABQ RIDE Forward's Next Phase Sets Target Date

ABQ RIDE Forward is the first transit system overhaul in more than 25 years. This latest phase marks 15% completion of the 16-phase rollout, which will continue over the next several years.

Read More →
Ad Loading...
A Waev Gem vehicle with a ramp deployed.

ABC Teams with Waev, Knorr-Bremse in Boston Top Biz Briefs

Stay informed with these quick takes on the projects and companies driving progress across the transportation landscape.

Read More →
frontrunner bus
SponsoredMay 1, 2026

ADA Compliant Transit: Easier, More Dignified Travel for Every Passenger

Today’s riders—and the communities you serve—expect more from public transit. While ADA compliance is required, leading transit agencies know that true accessibility also means delivering dignity, efficiency, and a better rider experience. This whitepaper reveals why forward thinking agencies nationwide choose the Low Floor Frontrunner as their first choice for ADA compliant vehicles—setting a new standard with passenger first design, faster boarding, improved safety, and unmatched operational performance.

Read More →
A Valley Metro bus
Managementby StaffApril 28, 2026

Keolis Contract Extended for Valley Metro's East Valley Fixed-Route Bus Service

Under this extension, Keolis will continue to manage and operate fixed-route bus service across the East Valley, serving communities including Tempe, Mesa, Chandler, Scottsdale, the town of Gilbert, parts of Phoenix, and the Gila River Indian Community.

Read More →
Ad Loading...
A MOIA/Beep vehicle on the road
New Mobilityby StaffApril 24, 2026

MOIA America Teams with Beep to Grow US Footprint

Through the strategic partnership, MOIA America will provide MOIA’s turnkey autonomous mobility solution. This includes purpose-built, autonomous-ready ID. Buzz vehicles equipped with the self-driving system developed by Mobileye, as well as operator training and enablement.

Read More →
A rider looking at a Via map on a smartphone
New Mobilityby StaffApril 6, 2026

NJ TRANSIT Introducing New Microtransit Pilot

The service will offer free connections to major bus stops and park-and-rides, linking customers to NJ TRANSIT’s fixed-route bus network.

Read More →
A new LexRide vehicle for Lextran's on-demand service.
New Mobilityby StaffMarch 31, 2026

Kentucky's Lextran Launches LexRide to Enhance Downtown Mobility

LexRide connects key destinations, including Downtown Lexington, the Distillery District, and the Warehouse Block/National Avenue area, making it easier to explore without worrying about parking, traffic, or multiple rideshare trips.

Read More →
Ad Loading...
Opening art for Sustabinability Partners Q&A
Zero Emissionsby Alex RomanMarch 25, 2026

Inside EVaaS: A New Model for Airport Fleet Electrification

Sustainability Partners’ Arnold Albiar discusses how a service-based approach is helping airports and public agencies deploy and manage electric fleets more efficiently.

Read More →