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
If TTS wins both Sembawang~Yishun & Bulim,Then SMRT might either bag Loyang and retain Choa Chu Kang~Bukit Panjang & Woodlands.SBST will confirm get Sengkang~Hougang,Seletar,Bukit Merah,Tampines,Serangoon~Eunos,Clementi & Bishan~Toa Payoh.
New operators suchs as RATP or Keolis will be awarded Bedok & Jurong West.
There is no way LTA want to give foreign operators win more than 2 packages and SMRT more than 3..
Don’t think too much as we know how government operate thing here.Although TTS doesn’t have any rail operating experience beside ferry operations,They have participated in many local events which most of us didn’t realise d and also they have engaged in their own advertising company Mediataurusnand also have slight stake in Transcab.Go-Ahead rely too much on SBS Transit at the expense of engaging MooveMedia for advertising.So my prediction will be GAS out next year and only in 2023 a new European operator will win a package during that year to replace GAS.
My prediction will be SMRT retain Sembawang-Yishun & Woodlands but will lose Choa Chu Kang-Bukit Panjang to SBS Transit in place of either Jurong West or Clementi.
Tower Transit will retain Bulim and win Loyang and also will be winning Seletar in 2023.
SBS Transit will definately retain Sengkang-Hougang as it’s important for Hougang Depot to house Serangoon-Eunos package until Sengkang West & Kim Chuan Depot is ready in 2023 & 2025 respectively.They will lose out Seletar but gain Choa Chu Kang-Bukit Panjang,Bukit Merah,Tampines,Serangoon-Eunos & Bishan-Toa Payoh.
A new European operator will get Bedok together with either Jurong West or Clementi.
It is better to award to multi-modal foreign operators who is familiar with both bus & rail operations.Increase the 5 years to 7 & and extension of 3.5 years upon good conduct.Or simply make like this chart.Both way LTA can save more cost.
No more such things as incumbents Rail & Bus depot has to be together.
SBS Transit Ltd.
Bus Packages:Sembawang—Yishun/Bukit Merah/Tampines/Jurong West/Serangoon—Eunos & Bishan—Toa Payoh.
Rail Packages:East West Line/North East Line & Sengkang—Punggol LRT.
SMRT Corp Ltd.
Bus Packages:Bulim/Bedok & Woodlands.
Rail Packages:North South Line/Circle Line/Jurong Region Line/Cross Island Line & Bukit Panjang LRT.
Arriva Singapore
Bus Packages:Loyang/Seletar & Clementi.
Rail Package:Downtown Line.
Keolis Singapore
Bus Packages:Sengkang—Hougang & Choa Chu Kang—Bukit Panjang.
Rail Package:Thomson—East Coast Line.
How about it?
Nahh..I think for this package is either TTS bag both packages or SMRT retain Mandai and TTS retain Bulim although my preference is different.
Sembawang~~Yishun=Tower Transit
Bulim=Tower Transit
Sengkang~~Hougang=SBS Transit
Loyang=SMRT Buses
Seletar=SBS Transit
Bedok=New operator
Choa Chu Kang~~Bukit Panjang=SMRT Buses
Woodlands=SMRT Buses
Bukit Merah=SBS Transit
Tampines=SBS Transit
Jurong West=SBS Transit
Serangoon~~Eunos=Tower Transit
Clementi=New operator
Bishan~~Toa Payoh=SBS Transit
I prefer if SBST won only 6,SMRT & GAS 3 each while TTS or new co 2.Dawn or new era.
SBST={Sengkang-Hougang,Choa Chu Kang-Bukit Panjang,Bukit Merah,Tampines,Serangoon-Eunos & Bishan-Toa Payoh}.
SMRT={Loyang,Woodlands & Jurong West}.
Go-Ahead={Sembawang-Yishun,Bedok & Clementi}.
TTS or New Operator preferably from France={Bulim & Seletar}.
SBST is just average over the years unlike 7 years or more ago when they’re juggernaut.Their level has slightly reduced and don’t forget if not because of LTA giving them face,They will lose out more packages.They also have two rail & lrt contracts.So 6 is more than enough.
SMRT overall is also just average with more feedbacks coming from too slow drivings because of the massive bus additions over the years.Their MRT/LRT also doesn’t impress many at all.Probably because of their parent company that they still survived.Anyway 3 bus contracts taking over 160/170 is more than enough.
Go-Ahead minus the first year has slightly improved by a notch.Discipline system almost like SBST.Except for a few hiccups,I think they’re much better than SMRT and they’re also multi-modal operator which can operate rail as well.Only thing they have to stop hiring ex-SBST staffs for good.
TTS over the years has been ups and downs.Bus maintenance is quite bad due to having maximising fleet systems which won’t do any good in Singapore.The only operator which doesn’t lease any new Euro V A95 & Euro VI A22/A95.Great thing about this company is their family oriented style and they listen well to most of their employees.Joyful and vibrant company but again have to improve on fleet management.They are now under Sea Link Travel group and they somehow have to start buying rail company in Europe to obtain multi-modal status.Its either they’re given chance of kick out.