The Bus Contracting Model (BCM), formerly known as the Government Contracting Model (GCM), is a gross-cost contracting model for public bus services in Singapore where Public Transport Operators bid for the right to operate bus routes under the Land Transport Authority.
First announced in 2014 and implemented on 1 September 2016, the BCM brought all public buses and related infrastructure under the ownership of the government. Under this model, LTA assumes the central role of planning bus services, while public transport operators bid for the right to operate the bus routes in a package.
Bus operators are paid to run bus routes according to service standards set by LTA. The competitive tendering process fosters competition in the bus industry, encouraging operators to adopt a low-cost operating model while running a reliable bus service for commuters, with financial incentives awarded based on good performance. The model also encourages operators to invest in areas like recruitment, staff training, and enhancing the professionalism of the bus workforce.
Presently, there are 14 bus packages managed by four operators in Singapore.
Overview
Under the BCM, bus operators are required to:
- Lease operating assets from the Government as specified in the awarded contract.
- Adhere to specified performance standards in operating their assigned bus services.
- Operate and maintain the leased buses and onboard equipment (e.g., fare equipment and fleet management equipment) provided by the Government.
- Operate and maintain the Bus Interchanges and new Bus Depots included in the Route Packages, along with all the equipment and systems provided within.
- Collect and enforce fares approved by the Public Transport Council for travel on the allocated Route Package Bus Services, acting on behalf of the Government.
- Provide bus service information at all bus stops and bus interchanges served by the Route Packages’ Services.
- Offer customer management services, including lost and found services, as well as a hotline for commuter feedback and inquiries.
Additionally, an Incentive Framework is established to encourage operators to deliver quality bus services to commuters and maintain the provided assets effectively. If the operator meets the standards, it can receive a performance payment of up to 10% of its annual service fee. Conversely, if the operator fails to meet the standards, up to 10% of its annual service fee may be deducted. The framework includes five performance indicators covering:
- Bus service reliability, incorporating indicators on Excess Wait Time (EWT) and On-Time Adherence (OTA) as per the Bus Service Reliability Framework.
- First and last bus punctuality to ensure accessibility for commuters.
- Maintenance of the buses provided by LTA.
- Maintenance of the Bus Interchanges and Bus Depots awarded under the Route Packages.
- Maintenance of the Bus Ticketing System.
BCM Route Packages
Bus services were consolidated into 14 route packages, each comprising approximately 300-500 buses, in August 2016. The contracts for these services are set to run for an initial five years, with the possibility of extension for another two years contingent upon satisfactory performance.
Contracts awarded from 2023 onwards allow for LTA to consider extensions ranging from two to five years after the initial five-year term.
The original inception of the Bus Contracting Model in 2014 originally planned for bus services to be divided into 12 packages.
The first three Tendered Contracts (TC) were for the Bulim, Loyang and Seletar Bus Packages, which were announced between May 2014 and June 2016. These packages were awarded to Tower Transit Singapore, Go Ahead Singapore & SBS Transit respectively, ushering in foreign operators into the local bus industry.
The remaining 11 packages were extended under Negotiated Contracts (NC) for periods ranging from 2 to 10 years, commencing from 1 September 2016. Upon the conclusion of these negotiated contracts, the bus services within these 11 packages will progressively undergo a tendering process. This phased transition approach enables LTA to refine and enhance contract management procedures, as well as the tendering and handover processes, while minimizing the risk of service disruption.
See also: Bus industry completes transition to Bus Contracting Model | Land Transport Guru
List of Bus Packages
Contract references and periods reflect the current and upcoming term(s) only.
| Package | Contract Ref | Contract Period | Incum- bent |
| Bulim Bus Package | PT217A | 29 May 2021–2026 | TTS |
| Loyang Bus Package | PT201 | 4 Sep 2016–2026 (with 2+3 year extension) |
GAS |
| Seletar Bus Package |
PT219 | 16 Mar 2025 – 2030 | SBST |
| Bukit Merah Bus Package |
PT218A | 28 Apr 2024 – 2029 | SBST |
| Sembawang–Yishun Bus Package | PT217B | 5 Sep 2021 – 2026 | TTS |
| Jurong West Bus Package |
PT218B | 1 Sep 2024 – 2029 | SMRT |
| Sengkang – Hougang Bus Package | PT206 | 1 Sep 2016 – 2024* (with 3 year extension; further extended for undisclosed duration) |
SBST |
| Choa Chu Kang – Bukit Panjang Bus Package | PT215 | 1 Sep 2016 – 2026 (with 3 year extension) |
SMRT |
| Woodlands Bus Package | PT216 | Sep 2016 – 2026 (with 3 year extension) |
SMRT |
| Bedok Bus Package | PT211 | Sep 2016 – 2023* (extended for undisclosed duration) |
SBST |
| Tampines Bus Package |
PT207 | Sep 2016 – Jul 2026 (with 1 year 10 months extension) |
SBST |
| PT220 | From Jul 2026 | TBA | |
| Serangoon – Eunos Bus Package | PT209 | Sep 2016 – 2025* (extended for undisclosed duration) |
SBST |
| Clementi Bus Package | PT210 | Sep 2016 – 2025* (extended for undisclosed duration) |
SBST |
| Bishan – Toa Payoh Bus Package | PT208 | Sep 2016 – 2026* (extended for undisclosed duration) |
SBST |
Notes:
- Due to periodic contract extensions, the ultimate duration of many existing bus contracts may vary.
- The bus depots and bus interchanges/terminals linked with each package are subject to change, and bus services could be added or removed at LTA’s discretion.
- Service fees provided to bus operators are determined by the awarded sums announced during the contract award. These figures may be adjusted due to inflation and changes in operating mileage resulting from LTA route amendments, new bus routes, or withdrawn bus routes that affect the total mileage covered.
Timeline
Notes:
- Owing to periodic contract extensions, the final duration of many ongoing bus contracts is subject to change.
Former Bus Package Terms
| Package | Contract Ref | Contract Period | Incum- bent |
| Seletar Bus Package | PT204 | 1 Sep 2016 – 10 Mar 2018 | SBST |
| PT214 | 1 Sep 2016 – 24 Mar 2018 | SMRT | |
| PT202 | 11 Mar 2018 – 15 Mar 2025 (with 2 year extension) |
SBST | |
| Bukit Merah Bus Package | PT205 | 1 Sep 2016 – 17 Nov 2018 | SBST |
| Bulim Bus Package | PT200 | 29 May 2016 – 28 May 2021 | TTS |
| Sembawang–Yishun Bus Package | PT213 | 1 Sep 2016 – 2 Oct 2021 (with 1 year extension) |
SMRT |
| Bukit Merah Bus Package | PT203 | 18 Nov 2018 – 27 Apr 2024 (with 5 month extension) |
SBST |
| Jurong West Bus Package |
PT212 | 1 Sep 2016 – 14 Sep 2024 | SBST |
Continued on Page 2:
- Advantages of BCM
- BCM Contract Extensions
- Dual-Depot Arrangements
- New Bus Services
- Rationalisation of Bus Services
- LTA Bus Assets
- Refurbishment of Buses
- Advertising on BCM buses
- Comparison of Old and New frameworks
Hopefully it will stay this way:
Sembawang-Yishun (Go-Ahead Singapore)
Loyang (Pasir Ris-Punggol) – Tower Transit Singapore
Seletar Bus Package (Ang Mo Kio, Yio Chu Kang, Yishun Feeders) (SBS Transit)
Sengkang-Hougang (SMRT Buses)
Serangoon-Eunos (SMRT Buses)
Bukit Merah (SBS Transit) Extension (they’re very good at handling the services under the Bukit Merah Bus Package)
Woodlands Bus Package (SMRT Buses)
Choa Chu Kang-Bukit Panjang Bus Package (SBS Transit)
Bedok Bus Package (Go-Ahead Singapore)
Tampines Bus Package (SMRT Buses)
Jurong West Bus Package (SBS Transit)(Hopefully they’ll get it back)
Bulim Bus Package (Tower Transit Singapore) + Extension
Clementi Bus Package (Tower Transit Singapore)
Bishan-Toa Payoh (SBS Transit) + Extension
Tampines Bus Package suits SMRT Buses since they have not managed buses and bus depots in the eastern region yet.
Clementi Bus Package should be awarded to Tower Transit Singapore (Bulim) since TTS handles a majority of Clementi Feeder Services and has the reliability rated higher than SBS Transit.
Bishan-Toa Payoh gotta remain with SBS Transit as many positive feedback from commuters around that region.
Tower Transit and SMRT Buses honestly sucks with Sembawang-Yishun Bus Package as frequencies are holy low and inconsistent. Go-Ahead Singapore (GAS) should be the incumbent operator as they have excellent customer service and reliability rates comparably with SBST. SBST can still continue operating feeder services out from Yishun though, but as a side business operator.
Sengkang-Hougang Bus Package suits SMRT Buses more as the operator goes beyond managing bus assets and maintenance, but also goes further into the planning process of bus routes (which we especially need most since most of Sengkang-Hougang neighbourhoods are still developing). And of course, effective route amendments.
Serangoon-Eunos also suits SMRT Buses as much of our Route design only conceptualised either within Serangoon or within Eunos, have SBS Transit forgotten about Geylang areas? Well, service is pretty good honestly, but still I would rather SMRT to have Serangoon-Eunos Bus Package.
There is a slight competition between SMRT operating services from Seletar Bus Package and SBS Transit operating the Seletar Bus Package though, but because of excellent quick response incentives and high quality and reliability standards of service, maintenance and operations of the buses and bus depots, SBS Transit will remain operating the 26 bus services under Seletar Bus Package (but it better not de-grade itself welp I hope….)
As for Loyang (Pasir Ris > Punggol), I do think Tower Transit would be the ideal option as it actually can operate a bunch of feeder routes and small (but not major) trunk services (such as Service 84G or 84W), while also providing quality service (just not as perfect as SBS Transit or SMRT Buses) in this case. But TTS needs to give it a shot (a period of a reasonable 4-5 years minimum).
I cannot deny that Bukit Merah Bus Package until this day still remains with SBS Transit for close to 30 years because of their timely and corrective service and maintenance of their assets (they took utmost responsibility for their service and commuters’ safety throughout their contract years), and we have to acknowledge SBS Transit’s every effort for the genuine concern of every moment they serve us. Good Job SBS Transit Bukit Merah Bus Package!
As for Woodlands Bus Package, SMRT Buses should continue into that region as they took history alive at the Woodlands Integrated Transport Hub (WITH) as the Anchor Operator, with their readable history and how their buses evolve till this day, delivery education while also providing excellent facilities and service, and managing their buses whilst planning for the future of Woodlands (such as the introduction of Service 967 and the dual-loop system around the Woodlands region). Good Job SMRT Buses Woodlands Bus Package!
Well, unfortunately, I felt SMRT Buses wasn’t as like-minded as they was for Woodlands, and their service was pretty much degraded by the lack of introduction and useful bus service utilisation within the area (with the exception of Service 920 and 922, which are pretty much good enough). If not for that, SMRT could potentially still be an incumbent operator for another 2-3 years.
It would be nice if Go-Ahead can have Bedok Bus Package as the SBS Transit Service System of managing assets is not really getting higher than it is expected to be, accident records though out that area of interest and no care for passengers (just enter, get the money than bye bye). So, it’s much better to have Go-Ahead to handle the services under Bedok (of course with potential flaws but not as much as the current one).
Well, after much consideration riding SMRT Buses Jurong West Bus Package Services, I do still want SBS Transit to get back on the footsteps to serve commuters around Jurong West, but it could also be due to underlying issues with SBS Transit that made SMRT Buses the ideal choice. Who knows?
Tower Transit Bulim (Jurong East-Tengah) can still operate the respective bus services under the Bulim Bus Package. Due to the great and efficient transit service they made always available and smooth. Frequency wise, is not the best, but good enough for most commuters.
Clementi Bus Package suits Tower Transit more due to the fact that they have prior experience and persistently good records throughout the Western Region (Clementi, Dover, Buona Vista areas), SBS Transit can still be a side business operator.