Previous studies have shown that competitive tendering is
associated with cost reduction for the procuring authority.
This report analyses its effects on service level in rural
areas and on administrative costs.
It is shown that during the last 5-10 years, service levels have increased more in
urban areas than in rural ones, and seemingly more so in
areas relying on competitive tendering.
Rising service levels in cities, however, are mostly due to political
subsidy priorities in favour of urban areas during the last
10 years, agreed on both local and national level.
The analyses also show that competitive tendering is
associated with rising administrative costs for the local
government.
The cost increase is, however, closely
connected to the shift from net cost to gross cost contracts,
and to the authority’s take-over of planning and design
responsibilities.
Competitive tendering in local bus services. Effects on rural service levels and on
administrative costs. TØI report 927/2007. Language: Norwegian
