Denver Urban Transport
Competitive Tendering Saves $88 Million
Excerpts from Final Report by
Mundle & Associates
Wendell Cox Consultancy
March 29, 1996
Denver Transit Agency Reports Higher Savings
Denver Transit Agency Corrects Legislative Report, Buys
The Regional Transportation District (RTD), Denver's urban transport operator, is required by Colorado state law to competitively tender 20 percent of its bus service. This is the only compulsory competitive tendering program in the United States.
Results of a recent evaluation of RTD's competitive tendering program are as follows:
- "RTD's operating cost savings are estimated to be $88.0 million from 1989 to 1999."
(Annual operating cost savings have ranged from 31 to 35 percent since the program began in 1989.)
- "RTD's cost performance has improved during competitive contracting. In the pre-competitive contracting period, service levels increased slightly less than operating costs.
During competitive contracting (competitive tendering), service levels rose 12.6 times the operating cost increase."
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