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Home / SG Bus, Government Contracting Model (GCM/BCM), Singapore

In May 2014, Land Transport Authority (LTA) of Singapore adopted Transperth's/Public Transport Authority of Western Australia's gross cost area contract model (and reliability elements from Transport for London's Quality Incentive Contract model) as the basis for Singapore's competitive bus tendering, better known as the Government Contracting Model (GCM). This model is set to reshape Singapore's public bus industry starting from 2016 and liberalizes the market to both local and foreign operators.

Under this new regime all public buses, depots and interchanges will be owned by LTA, and route planning under its control. While improved services has been touted as the goal of the GCM, an important outcome of this gross cost area contract model is to reduce the overall costs of operation borne by the government. This is done through the use of market forces whenever an area contract (or parcel) come up for competitive tender. To the public, the most visible change will be the implementation of a new lush green livery and unified transport identity known as "SG Bus".

Bus fleet procurement are also decided and handled by LTA under GCM, and they intend to add new features for future purchases. LTA has even contracted two bus manufacturers to produce concept bus mockups to experiment with new interior layouts and three-door configurations. After gathering feedback from public events, LTA is expected to introduce new interior features and three-door buses by end-2016 and end-2018 respectively.

A new Intermodal Transport Control System (ITCS) from Trapeze and ST Engineering, that is identical to ACTION Buses in Canberra, Australia, will be utilized as part of its implementation. Each contract is centered around a depot newly built by LTA and lasts for 5 years (renewable once for 2 additional years subject to satisfactory performance). Contracted bus operators will receive a annual fixed sum for the particular parcel tender they have won through competitive bidding, which may be varied depending on their key performance indicators.

The list of contract areas and its current operators are as follows:
- Bulim : Tower Transit Singapore (owned by Transit Systems, Australia) 2016-2026 (renewed once)
- Loyang : Go-Ahead Singapore (owned by Go-Ahead Group, UK) 2016-2021
- Seletar: SBS Transit (owned by ComfortDelgro Group, Singapore) 2018-2023
- Bukit Merah: SBS Transit (owned by ComfortDelgro Group, Singapore) 2018-2023
- Sembawang-Yishun: Tower Transit Singapore (owned by Transit Systems, Australia) 2021-2026