CONTRACT MANAGEMENT IN THE TRANSIT INDUSTRY

During the past decade, there has been a growing trend toward public acquisition of failing private transit companies. Many government agencies and public entities have turned to transit management companies to run the daily operations of their systems. The transit management companies offer a range of services which include assistance in a number of fuctional areas in transit management. The purpose of the study was to examine the organizational structure, the decision making process and certain attributes of the organization performance for transit systems operated under contract management. The study has focused on 26 transit properties managed by three major contract management companies. The study showed that management companies mesh into three basic types of local organization structures. Each of these types possesses certain characteristics. Each management company was also found to be more associated with a certain type of property and local organization. The organization, often, reflected the company's own operating philosophy and perspective on transit management. Results of the study could also be used to look at the merits of contract management in situations similar to those experienced by the transit industry. /Author/