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Missing the Bus: The Fight to Contract Competitively for MBTA Bus Service

Public transit agencies across the nation are struggling to control costs without reducing service. One effective strategy used by a growing number of public transit agencies is to contract competitively for bus operations. Almost without exception, these agencies report that private bus companies can deliver equal or better service at a 20 to 30 percent lower cost.

Public Profits from Private contracts: A Case Study in Human Services

Robert Melia, author of Pioneer’s White Paper entitled Public Profits From Private Contracts and former vice president of Policy Studies, Inc, used child support enforcement as a case study to compare private versus public delivery of human services. Melia argued that competitive contracting is often a more effective way of delivering services not because public employees are inefficient or private companies pay less, but because bureaucratic checks and balances are inherent in government.