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Value for money in procurement of urban bus services – Competitive tendering versus negotiated contracts: Recent New Zealand experience

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  • Wallis, Ian

Abstract

The new Public Transport Operating Model (PTOM) recently introduced by the New Zealand government for local public transport services involves a mix of competitively-tendered and negotiated bus contracts in the main metropolitan areas. Most features of the procurement procedures and almost all the contract terms and conditions are common to both types of contract. This has provided a rare opportunity internationally to compare the impacts of the alternative procurement methods on contract prices.

Suggested Citation

  • Wallis, Ian, 2020. "Value for money in procurement of urban bus services – Competitive tendering versus negotiated contracts: Recent New Zealand experience," Research in Transportation Economics, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:retrec:v:83:y:2020:i:c:s073988592030158x
    DOI: 10.1016/j.retrec.2020.100960
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    References listed on IDEAS

    as
    1. Wong, Yale Z. & Hensher, David A., 2018. "The Thredbo story: A journey of competition and ownership in land passenger transport," Research in Transportation Economics, Elsevier, vol. 69(C), pages 9-22.
    2. Wallis, Ian & Bray, David & Webster, Heather, 2010. "To competitively tender or to negotiate - Weighing up the choices in a mature market," Research in Transportation Economics, Elsevier, vol. 29(1), pages 89-98.
    3. Wegelin, Philipp, 2018. "Is the mere threat enough? An empirical analysis about competitive tendering as a threat and cost efficiency in public bus transportation," Research in Transportation Economics, Elsevier, vol. 69(C), pages 245-253.
    4. Mouwen, Arnoud & van Ommeren, Jos, 2016. "The effect of contract renewal and competitive tendering on public transport costs, subsidies and ridership," Transportation Research Part A: Policy and Practice, Elsevier, vol. 87(C), pages 78-89.
    5. Wallis, Ian P. & Bray, David J., 2014. "The contracting of urban bus services – Recent Australian developments," Research in Transportation Economics, Elsevier, vol. 48(C), pages 48-61.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Bus procurement; Bus tendering; Competitive tendering; Bus contracting; Negotiated contracts; Benchmarking; Cost efficiency; Value for money; Thredbo conference; Public Transport Operating Model; New Zealand;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy

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