Octa's transportation blog

Cost-Saving Contract to Continue Providing More OC Bus Service

A new contractor will begin to operate up to 40% of the OC Bus fixed-route service beginning in June.

The change in contractor will continue to save taxpayer money while allowing for additional bus service in the future. The transition will likely go unnoticed by the tens of thousands of Orange County residents, workers and visitors who rely on the bus service daily. The buses and the coach operator staff will remain mainly the same.

Om March 13, OCTA approved Keolis Transit Services, LLC, to provide the management, operation and maintenance of the contracted fixed-route bus service. Keolis will take over from First Transit, Inc. which has operated the contracted service since 2015.

The $286.3 million contract begins June 11, 2023, for an initial term of four years, with two options to renew the contract for an additional two years each.

“Our contracted bus service plays an essential role in keeping taxpayer costs down while at the same time providing the high level of customer service and reliability that the people of Orange County count on,” said OCTA Chairman Gene Hernandez, also the Mayor of Yorba Linda. “We are committed to making this a smooth transition to keep our OC Bus passengers moving safely and efficiently.”

For more than a decade, OCTA has contracted with a third-party provider for the operation and maintenance of a portion of transit service. In 2009, the portion of service operated by the third-party contractor was approximately 6%. The most recent contract, awarded to First Transit in 2015, included about 30% of overall service, which eventually grew to approximately 39%. The limit of contracted service is 40%.

OCTA’s decision to contract a portion of bus service is a cost-saving strategy that is helping provide an additional 150,000 revenue vehicle hours – equivalent to approximately 10% of OCTA’s bus service overall.

The current contract was awarded under a competitive bidding process, taking into account several factors, including qualifications of the firm, staffing and project organization, work plan and cost.

The contracted fixed-route service will continue to operate and maintain vehicles out of the Anaheim and Irvine/Sand Canyon bases. Keolis’ work plan calls for retaining employees under the current contract, so the vast majority of contracted coach operators who bus riders have come to know and rely upon will remain the same.

For more information on OC Bus service, visit www.ocbus.com.