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RTD's Competitive Contracting Program: Cost Savings Produce More Service, Attract More Passengers

IP-2-99 (January 1999)
Author: Jon Caldara

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Executive Summary:

The competitive contracting program, which requires RTD to contract out 20% of its services to private contractors, has reversed RTD’s previous trend of increasing costs. The cost savings from competitive contracting has enabled RTD to improve service, resulting in the largest ridership gain of ant of the nation’s largest 25 bus systems. If the legislature raised the percent of RTD services which can be competitively contracted to 35% or more, the benefits to metro Denver mass transit users would be all the greater.