Abstract
This paper contains a review of available evidence on transit service contracting with a particular focus on: (a) the extent of service contracting, including who practices it and the types of services involved, (b) the motivations for contracting, (c) the estimated costs and subsidy savings that can be realized from contracting, and (d) the major obstacles to this strategy. Available information indicates that transit contracting is a widely used strategy for supplemental DRT service and for small transit systems in states where state funds are available to subsidize transit.