Bus service price benchmarking

Meeting: 
MQT on 2009-02-25
Session date: 
February 25, 2009
Reference: 
2009/0484
Question By: 
Valerie Shawcross
Organisation: 
Labour Group
Asked Of: 
The Mayor

Question

How does TfL benchmark the cost of running bus services to ensure that Londoners are getting a value for money service from private bus companies?

Answer

Answer for Bus service price benchmarking

Answer for Bus service price benchmarking

Answered By: 
The Mayor

Over the past 25 years of competitive tendering, TfL has developed a comprehensive set of parameters for assessing, comparing and updating the costs associated with operating bus routes in London.

Benchmarks include the cost per mile, the cost per vehicle operated, together with an in-depth analysis of tendered labour costs, fuel, equipment, parts and general maintenance expenditure. Company/garage overheads are also taken into account as are supervision and cleaning costs.

Comparisons with TfL's estimates are also made to ensure that good value for money is being obtained in the competitive market and in the negotiations with the bus companies.