Quantifying the Purchasing Power of Public Transportation in Texas

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L.K. Cherrington, A.S. Edrington, M. Malki, . Beruvides, Mario, J.L. Simonton, N. Waters, S. Chaivichitmalakul, H. Palikhe, J.A. Walewski

Publication Date:

January 2010


This project documented the purchasing power of public transportation and quantified the impact on state and local economies. Researchers identified how cooperative purchasing can reduce costs and administrative overhead for procurement activities. They found that investment in public transportation provides an economic stimulus of as much as $2.11 for every dollar invested by increasing jobs, income, profit, and tax revenue. Cooperative purchasing can save direct costs, generate rebates, and reduce administrative costs. However, many transit providers are not aware of the benefits of cooperative purchasing and have not participated in available programs. The Texas Department of Transportation can expand the opportunities for transit providers in Texas to use cooperative purchasing by actively providing information to more providers.

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