Barriers to Private Sector Participation in Public Transportation

This is a detailed examination by the New York Department of Transportation of barriers to contracting out of public transportation service or its support functions. It includes an examination of the potential relationship between the private sector and various kinds of services, reviews several key barriers to private sector involvement, and explores its tentative conclusions through three case studies. The study highlighted a wide variety of obstacles to the contracting process, originating at all levels of government. These include lack of private involvement in mandated planning processes; the Section 13(c) labor protections; attitudes of local officials; state entry, exit, and tariff regulations; insurance and safety regulations; state legislation mandating particular institutional arrangements; administrative burdens resulting from federal or state regulations; restrictive local ordinances; a lack of private operators to bid; and the initiation of contracts that are negotiated, not bid. It acknowledges some current UMTA actions to address the Federally originated barriers. Most of the material appears to have broad applicability, but some of the discussions of state laws and regulations are specific to New York. Some case studies in various New York counties are included.