Bus Contracting Model (BCM)

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:

  1. Lease operating assets from the Government as specified in the awarded contract.
  2. Adhere to specified performance standards in operating their assigned bus services.
  3. Operate and maintain the leased buses and onboard equipment (e.g., fare equipment and fleet management equipment) provided by the Government.
  4. Operate and maintain the Bus Interchanges and new Bus Depots included in the Route Packages, along with all the equipment and systems provided within.
  5. 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.
  6. Provide bus service information at all bus stops and bus interchanges served by the Route Packages’ Services.
  7. 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:

  1. Bus service reliability, incorporating indicators on Excess Wait Time (EWT) and On-Time Adherence (OTA) as per the Bus Service Reliability Framework.
  2. First and last bus punctuality to ensure accessibility for commuters.
  3. Maintenance of the buses provided by LTA.
  4. Maintenance of the Bus Interchanges and Bus Depots awarded under the Route Packages.
  5. 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
PT202 11 Mar 2018 – 15 Mar 2025
(with 2 year extension)
SBST
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
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

133 thoughts on “Bus Contracting Model (BCM)

  • 21 May 2024 at 11:37 PM
    Permalink

    I feel that LTA is overprotective of SBST & SMRT.To be fair multi-modal operators should have control more bus packages.

    2025,Award Seletar to RATP.Award Sengkang to SMRT.
    2026,Kick Go Ahead out and award Loyang to TTS.
    2026,Award Bulim to RATP,Award Mandai to SBST.
    Award CCK to TTS & retain Woodlands to SMRT.

    SBST should retain Bt Merah,Bedok,Tampines,Serangoon & Bishan.
    Clementi should award to TTS in 2028.

    Reply
  • 6 February 2024 at 3:51 PM
    Permalink

    The 3 north region bus packages have the weirdest service allocations tbh. Take YITH for example, SBST controls majority of the services despite being allocated to SBW-YIS under TTS. TTS only has 1/3 share of the bus services despite being the anchor operator of YITH. Even if you break down the services to the packages, Seletar services that operate out of YITH outnumbers SBW-YIS services. Why is this so?

    Woodlands package seems to be given the short end of the stick. It has way less services than SBW-YIS and the latter package eats up most of the long distance 96x services that were originally under SMRT. Why the heck is 963/e and 966 even in SBW-YIS when its catchment is in the north-west area?

    Personally, I feel that the services in the packages need reshuffling. The anchor operator of an interchange should control majority of the services in the interchange in my opinon. Feeder services should be operated by the anchor operator of the interchange since its catchment is obviously going to be in the strictly within the area of the bus interchange.

    My suggestions for the reallocation of the services:

    1. All YITH feeders, 800, 803, 804, 805, 806, 807, 811, 812 transferred from Seletar to Sembwang-Yishun. I contemplated adding the other Yishun Seletar trunk services for the sake of consistency but this will create a severe imbalance in the depot allocation. SBW-YIS will be overcrowded with too many services and Seletar package will also lose way too many services. Besides, 851/e and 852’s catchment is in the AMK area while 860 already operates from a Seletar-anchored bus int (YCK) so it makes more sense for just the feeders to go to SBW-YIS instead.

    2. 169 and 825 transferred from Sembawang-Yishun to Seletar. 825 is a no-brainer choice since it operates out of YCK int as for 169, it can be argued at Woodlands package will be suitable as well but if Seletar has to sacrifice all the YIS feeders, then I guess Seletar can take in 169 to make up for the shortfall.

    3. 963, 963e, 965, 966, 969 transferred from Sembawang-Yishun to Woodlands. All 96x trunks are better off being consolidated in Woodlands package for consistency. 858 can remain with SBW-YIS for consistency with other SBW-YIS 85x numbered services.

    4. 110 transferred from Woodlands to Seletar. Since 110 buses park at SEDEP anyway so might as well give 110 to Seletar. Sengkang-Hougang seems to be the more appropriate choice but I suspect 110 was given to Woodlands in the first place because Sengkang-Hougang already has a lot of services in its plate. Alternatively 161 can be swapped out to Woodlands while Sengkang-Hougang intakes 110.

    With the reallocation, SBW-YIS will have a net gain of 1 service, Woodlands will have a net gain of 3 services, and Seletar will have a net loss of 6 services. Despite SBW-YIS gaining 1 more service, it is more resource efficient as the feeder services combined requires fewer buses to run than the long-haul trunks given to other packages. SEDEP will also be freed up and the designated operator can dedicate more resources in its core area, namely AMK.

    Reply
  • 10 December 2023 at 7:32 PM
    Permalink

    Would prefer GAS intake Bulim & Sengkang-Hougang
    TTS intake Loyang & Choa Chu kang-Bukit Panjang
    SMRTB operates Jurong West,Seletar & Woodlands
    SBST remaining Bukit Merah,Sembawang-Yishun,Bedok,Tampines,Serangoon-Eunos,Clementi & Bishan-Toa Payoh.

    Reply
  • 1 December 2023 at 4:35 PM
    Permalink

    The BCM should split Sengkang-Hougang packages. 32 services is too much. Get at least 15 services to Hougang and 17 to Sengkang.

    Sengkang – Buangkok should be in Sengkang Bus Package
    Hougang bus svcs should be in a separate bus package called Hougang Bus Package.

    Reply
  • 15 October 2023 at 4:10 PM
    Permalink

    2024:Sengkang~Hougang Package>Go-Ahead SG
    2025:Seletar Package>SMRT Buses
    2026:Bulim Package>Go-Ahead SG
    Sembawang~Yishun Package>SBS Transit
    Loyang Package>Tower Transit SG
    Woodlands Package>SMRT Buses
    Choa Chu Kang~Bukit Panjang Package>Tower Transit SG

    2027 onwards
    Bedok,Tampines,Serangoon~Eunos,Clementi,Bishan~Toa Payoh & Bukit Merah Packages>SBS Transit.

    Jurong Region Line>SMRT Trains
    Cross Island Lines>SBS Transit Rails

    Reply

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