Bus Contracting Model (Singapore)

The Bus Contracting Model (BCM), formerly known as the Government Contracting Model (GCM), is a contracting model introduced by the Land Transport Authority for more responsive bus services and higher service levels for commuters.

First introduced in 2014, the new contracting model will enable the Government to make public bus services more responsive to changes in ridership and commuter needs. This will also inject more competition between bus operators, improving bus services for commuters.

As Bus Service Operating Licenses (BSOL) for SMRT Buses and SBS Transit expire in 31 August 2016, the Land Transport Authority have decided to revamp the bus industry into a competitive tendering process where bus operators bid for the right to operate the bus services while LTA will be the central bus planner, deciding the bus services to be provided and bus service standards. It will also own all bus assets like bus depots and fleet management systems. Bus operators that win a tender for a bus package will be paid a fixed fee to operate the services.

Under the bus industry model, commuters will benefit with lesser waiting time for buses. All bus services will run at intervals of not more than 15 minutes, and feeders will run at even shorter intervals at 6 to 8 minutes.

For a start, the Land Transport Authority will tender out 3 packages. The contracts will last for 5 years, with 2 years extension for good performance. The remaining 9 packages, now reorganised into 11 packages, be run by the existing operators for a period of 2 to 10 years after their Bus Service Operating License (BSOL) expire in 31 August 2016, after which the bus industry will complete transiting to the bus industry model. LTA will tender out more packages after these negotiated contracts expire.

In October 2014, LTA called for tenders to operate the Bulim Bus Package comprising 26 routes from Bukit Batok, Jurong East and Clementi bus interchanges. The tender, which closed on 19 January 2015, attracted 11 bids. In May 2015, LTA announced that the tender has been awarded to Tower Transit Singapore.Bulim Bus Depot was handed over to Tower Transit on 31 July 2015.

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