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 – 2028 (with 2 year extension) |
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 – 2028 (with 2 year extension) |
TTS |
| Jurong West Bus Package |
PT218B | 1 Sep 2024 – 2029 | SMRT |
| Tampines Bus Package |
PT207 | Sep 2016 – Jul 2026 (with 1 year 10 months extension) |
SBST |
| PT220 | From 5 Jul 2026 | GAS | |
| 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 |
| 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
What I hope to see after 2022/23:
SBST: Jurong West, Bukit Merah, Bishan-Toa Payoh, Serangoon-Eunos, Tampines
GASG: Loyang, Sengkang-Hougang, Seletar, Clementi
TTSG: Bulim, Sembawang-Yishun, Bedok
SMRT: CCK-Bukit Panjang, Woodlands
SBST still remains as the dominant company with 5 packages, GASG as the second largest with 4 packages. Meanwhile SMRT could have a larger share in MRT ops with JRL and CRL added to its operations while having a smaller share of bus ops. SBST on the other hand can continue with those 5 packages and NEL, DTL and SPLRT.
I don’t think LTA would allowed it to happen.SBST with 5 bus packages is less possible unless they’re the choice to run Jurong Region Line.GAS with 4 bus packages is too overkill judging by their resources and planning.TTS manpower deployment is way better than GAS.GAS has too many internal issues with manpower dissatisfaction over ex-SBST staffs that has been put into power.SMRT is guaranteed with either JRL or CRL in future.Sengkang package I believe is being extended for another 2 more years as the bidding date is over unless they announced it will happen next year just like Mandai.If GAS cannot win any bus package they might just left the BCM for good.I would be hoping another European operator replacing them and not award Loyang to current operators.TTS is too flamboyant with their “unique” way but again they have the reputation of sending more buses to storage when they start to maximise their fleets.
SMRT on the other hand keep adding unnecessary buses to their service making the runtime too long and BCs have to crawl on most part of the journey.If GAS are guaranteed with Sengkang or Seletar,Then the chances of staying is high.
My choice for next packages
SBST>Bedok,Woodlands,Bukit Merah,Tampines,Jurong West & Bishan-Toa Payoh.
TTS>Bulim,Sembawang-Yishun & Serangoon-Eunos.
GAS>Sengkang-Hougang,Seletar and Clementi.
SMRTB>Choa Chu Kang-Bukit Panjang & Loyang.
If GAS decide to give up
SBST>Bedok,Woodlands,Bukit Merah,Tampines,Jurong West & Bishan-Toa Payoh.
TTS>Bulim,Sembawang-Yishun,Serangoon-Eunos & Clementi.
SMRTB>Sengkang-Hougang & Choa Chu Kang-Bukit Panjang.
New Operator>Seletar & Loyang.
2023 onwards
SBS Transit Limited:Seletar,Bedok,Bukit Merah,Tampines,Jurong West & Bishan-Toa Payoh.
NEL,SK-PG LRT,DTL & JRL.
Tower Transit Singapore Private Limited:Bulim/Tengah,Sembawang-Yishun & Serangoon-Eunos.
Go-Ahead Singapore Private Limited:Sengkang-Hougang,Woodlands & Clementi.
SMRT/Strides Buses Limited:Choa Chu Kang-Bukit Panjang & Loyang.
EWL,NSL,BP LRT,CCL,TEL & CRL.
SBST buses Int non existent in North Eastern but still have NEL.Jurong Region Line award to them.
SMRTB maintain 2 bus packages with them operate the biggest line in SG>CRL.
I hope GAS will appoint Stellar as their advertising contractor.
From the start LTA should actually be more transparent.
Bulim should be GAS,Then Loyang should be TTS.Seletar should be under SMRT and Bukit Merah stays with SBST.Sembawang-Yishun under GAS,Sengkang award to TTS.From here they can balance who will win what for subsequent biddings.Now GAS desperately need to win to survive.
Sengkang package haven’t announced anything till now.If LTA award to Go-Ahead,Then Hougang Depot will be rationalise for Serangoon-Eunos buses also.If that happens,Expect 3/4 of Serangoon package buses park as a tenant and probably the balance will park at Seletar or Ang Mo Kio Depot.Any other cases LTA just extend 2 more years for SBST to operate till 2023 and probably wait a few months before shifting to Sengkang West Depot.
If GAS take over Hougang package, 103 can move over to SEDEP until KCDEP is ready. EUN routes can park at BNDEP for time being. SER remaining services can go to AMDEP, along with 147 and 156.
Hope GAS happy to take the €5 KUBs permanent on Hougang package routes and respray to green.
Sadly,Bndep doesn’t have the capacity to spare for other buses.
I can think those Serangoon-Eunos buses can park at Sedep and Amdep or LTA allocated 120 lots for them at Hgdep.If SMRT move out from Amdep then the can provide at least 115 parking lots while maintenance can be done at SBST Amdep.
With SMRT losing the Sembawang-Yishun/Mandai Bus Package in less than 2 weeks time, SMRT will be left operating Woodlands and Choa Chu Kang-Bukit Panjang. In my perspective, SMRT may lose CCK-BKPJ to Go-Ahead and in exchange receive the Loyang Bus Package in 2023. SMRT will retain Woodlands. I don’t see SMRT winning any other bus package in 2024. Probably in 2025, SMRT could win Clementi Bus Package if they are committed to operating another bus package. Overall, I believe if SMRT can continue to stay in the bus industry, they are going to have to win over LTA and comply to BCM standards.
LTA knew what’s happening inside SMRT buses management.They just want SMRT to focus more on trains and probably LTA will just award Loyang and retain CCK for them as its useful to activate bus bridging shall any train incident occurred.SBST on the other hand should limited to 5-6 contracts only since JRL might goes to their favour.Let TTS and GAS(Or any Euro replacing operators) win the balance packages.
Sengkang contract might be extended for 2 more years since Sengkang West Depot isn’t ready and Serangoon-Eunos buses also park at Hougang Depot.