What federally-funded transportation programs provide special opportunities for private sector participation?
Important opportunities to provide service exist particularly in the areas of job access and human services transportation. Human services transportation generally refers to programs designed for individuals with lower incomes, persons with disabilities, elderly persons, and, sometimes, children and youth. Private providers may be uniquely qualified to serve these specialized travel markets.
On behalf of the Federal Interagency Coordinating Council on Access and Mobility, FTA is leading an interdepartmental effort known as United We Ride to promote coordinated human service transportation delivery systems and improve access to transportation-disadvantaged populations. This initiative emphasizes the need to develop coordinated transportation plans at state and local levels. Private operators have the opportunity to be active participants in development of these plans. The United We Ride initiative encourages communities to develop a family of services that may include fixed route bus, shared ride, demand response, and volunteer systems that offer a wide rage of mobility options for consumers.
Specific FTA-administered programs that present opportunities for participation by private providers include the urbanized and non-urbanized area formula grant programs. As noted above, public entities and private non-profit agencies that receive funds under these programs may contract with private entities for service. In addition, private for-profit companies may qualify for federal funds under the following programs and services:
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Elderly Individuals and Individuals with Disabilities. This program is designed to provide public transportation service to meet the special transportation needs of elderly persons and persons with disabilities where public transit is unavailable, inappropriate, or insufficient. Projects are derived from a locally developed, coordinated, public transit-human services transportation plan. Private operators can participate in the local planning processes and as service providers. While private operators cannot be direct recipients under this program, purchase of service by a recipient of federal funds under this program is an eligible capital expense, so the private non-profit agencies that are recipients may contract for service instead of acquiring their own vehicles. In addition, six states are participating in a pilot program that allows use of the funds for operating assistance.
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Intercity Bus Transportation. A state must use 15 percent of its annual apportionment under the non-urbanized formula program to support intercity bus service unless the governor certifies that the rural intercity bus needs are adequately met. States must consult with affected intercity bus providers before certifying. Program funds may be used for contracting out intercity bus service, providing capital assistance for intermodal facilities, and for providing feeder services that connect rural transit passengers with privately operated intercity routes. Private intercity bus companies can be either subrecipients of the state or contractors. Information regarding the status of the intercity bus program in a particular state is available through the state DOT or the appropriate FTA Regional Office.
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Over-the-Road Bus. FTA provides direct assistance to private providers of over-the-road buses for the incremental cost of equipment and training required by the ADA. By law, all the recipients under this program are private providers. FTA annually solicits applications and competitively selects recipients under this program through a notice placed in the Federal Register and posted on the FTA website. Additionally, there are contracting opportunities in private providers’ costs for wheelchair lifts and/or training services.
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Job Access and Reverse Commute (JARC). This program funds local specialized services and may provide contracting opportunities for smaller private providers. Funds are made available directly to large urbanized areas (over 200,000 population), and to the states for all other areas. Each area designates a recipient responsible for managing the program and competitively selecting projects derived from a locally developed, coordinated, public transit-human service transportation plan. Private operators can participate in the local planning process and as service providers. Private operators can contact the FTA Regional Office to identify the designated recipient and the lead agency for the planning processes in any area.
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New Freedom. This program funds new public transportation service and alternatives to public transportation that go beyond the requirements of the ADA to help individuals with disabilities participate more fully in the community. Funds are made available directly to large urbanized areas (over 200,000 population), and to the states for all other areas. Each area designates a recipient responsible for managing the program and competitively selecting projects derived from a locally developed, coordinated, public transit-human service transportation plan. Private operators can participate in the local planning process and as service providers. For example, funds may be made available for private providers to acquire accessible taxicabs for service in the community. Private operators can contact the FTA Regional Office to identify the designated recipient and the lead agency for the planning process in any area.
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