SWUTC Research Project Description

Title of Project:  Quantifying the Purchasing Power of Public Transportation in Texas

Project Number: 0-6194

Principal Investigator:
Linda Cherrington
(409) 740-4734
P.I. Affiliation:  Texas A&M University
l-cherrington@tamu.edu

Project Monitor:
Shawna Russell
Texas Department of Transportation
(512) 463-7858
srussel1@dot.state.tx.us

Project Status:  Active

Date Started:  9/1/08

Estimation Completion Date:  8/31/09

Estimated Cost - Current Fiscal:  $72,492

Estimated Cost - Total Planned:  $72,492

Project Summary:
Project Abstract:
Public transportation services are provided in Texas by many different entities, both public and private. Each of these entities buys goods and services on an individual basis. There are only a few of examples of cooperative purchasing efforts, usually for the acquisition of vehicles. The multiplicity of public transportation providers and the lack of coordination have generated inefficiencies and wasted efforts and resources.

The proposed research will identify how a cooperative purchasing program can leverage buying power to reduce the cost of equipment, goods, and services and reduce the time and expense for administration of procurement activities for public transportation providers. Research will also quantify the purchasing power of public transportation in Texas and document the economic impact on the local and state economy. Case study examples will illustrate opportunities to leverage buying power by a group of transit providers. The size and extent of the markets and the dollars savings possible or the other benefits gained will be documented. The research report will include best practices to effectively manage procurement and help public transportation providers to increase productivity and reduce or control costs.

Project Objectives:
Research is needed to quantify the purchasing power of public transportation in Texas and to document the economic impact on the local and state economy. Research will also identify how a cooperative purchasing program can leverage buying power to reduce the cost of equipment, goods, and services and reduce the time and expense for administration of procurement activities.

The research team will identify case study examples of opportunities to leverage buying power by a group of transit providers. The size and extent of the markets and the dollars savings possible or the other benefits gained will be documented. The research report will also include best practices to effectively manage procurement to help public transportation providers to increase productivity and reduce or control costs.

Task Descriptions:
Task 1. Review Literature and Regulations

Task 2. Research State-of-the-Practice

Task 3. Estimate Purchasing Power and Economic Impact of Public Transportation

Task 4. Select Case Studies to Examine Opportunities for Purchasing Cooperatives

Task 5. Conduct Case Studies

Task 6. Document Findings and Conclusions

Index Terms:
Public transit, Transit operating agencies, Public private partnerships, Case studies, Quantification, Cooperatives, Purchasing, Texas, Research projects