In-House and Outsourced Programs

State RTAP Manager's Toolkit

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In-House and Outsourced Programs

Making the decision


When choosing the delivery method for a State RTAP, managers have three options: running the program in-house, contracting the program out to a third party, or a combination of the two. In 2022, 51 percent of the states provided the program in-house. In-house state programs are primarily operated by Department of Transportation staff or in the case of Maryland by an imbedded consultant. Twenty-four percent (24%) of programs are outsourced to a consultant, transit association or university transportation center. The remaining 25 percent outsource a portion of their program, typically the training component. Of the 49 percent or 25 states that outsource all or part of their program, 3 use state transit associations, 5 use university transit centers and 17 use a private consultant or combination of providers.
 
See the 
Program Status and Trends page for more information. 


The following is an inventory of the self-reported program delivery models for states that responded to the 2022 survey:


States That Run Programs In-House States That Contract Out Programs States That Run A Combination
Alaska Alabama Florida
Arizona Arkansas Iowa
Delaware California Massachusetts
Georgia Colorado Minnesota
Hawaii Connecticut Nebraska
Idaho Illinois New Hampshire
Kentucky Indiana New Mexico
Lousiana Kansas New York
Maryland Missouri North Carolina
Maine Pennsylvania Ohio
Mississippi Utah South Carolina
Montana Wisconsin Tennessee
Nevada
New Jersey
North Dakota
Oregon
Rhode Island
South Dakota
Texas
Vermont
Virginia
Washington
West Virginia
Wyoming
Guam
Northern Mariana Islands


The method chosen will be based on many factors, and each state will prioritize factors differently. During a session at the 1st Technical Assistance and Tribal Transit Program Conference & Roadeo in March 2012, representatives from the Minnesota and Pennsylvania State RTAPs recommended that State DOTs consider the following questions when choosing their delivery methods:


  • How involved does the manager want to be in the daily activities associated with program delivery?
  • How much time does the State DOT staff have to spend on the RTAP?
  • What kind of staff resources does the program have?
  • What are the state subrecipients’ needs?
  • What is the budget for the program?
  • Is there another entity in the state that would be a natural fit to deliver the State RTAP?
  • Does the state have travel restrictions that would prevent State DOT staff from visiting training sites?


If the manager finds that running the State RTAP in-house is the right decision for the state, someone on the State DOT staff will be responsible for carrying out all of the tasks associated with administering and delivering the program. Advantages to running the program in-house are that managers have direct influence over how the program is delivered and regular contact with the subrecipients who request assistance. There are many best practices and samples in this toolkit that can assist with designing the program. However, administering and delivering the program in-house is not right for every state, and if contracting out some, or all, of the program is the best fit for a state, the following section will help the manager develop the structure of that relationship. 


Outsourcing the program

If the manager decides to contract out the State RTAP, the first step is to inventory the organizations and entities in the state or region that might be a natural fit to take on this role. Are there entities that already provide training, have a relationship with local transit providers, or have specific rural and/or Tribal transit expertise? Examples of common State RTAP contractors are state transit associations, universities, and private consultants.


Although contracting out a State RTAP may not meet the federal 
procurement threshold requiring competitive proposals (now $150,000), obtaining multiple bids is an important way to find a qualified contractor. Before the manager can develop the request for proposals, they must also have an idea of what the State RTAP will do and which of those tasks they would like to contract out. If the manager intends to contract out the entire program, every activity for the program should be reflected in the scope of work. If the manager would like to have a combination of administering the program in-house and contracting out particular tasks, they should be very specific about what which tasks the contractor will be responsible for, how the contractor will report to the manager, and how the contractor’s performance will be measured. 


There are many different ways to design the delivery of the program, and the following are examples of how respondents of the 2022 Survey of State RTAP Managers structure their programs: 


  • The RTAP is outsourced to a state-run university with expertise in training and educating various staffing necessary to offer a successful public transportation program.
  • Drug and Alcohol Education, Training, and Testing are outsourced. Technical assistance for education and training is online and in-person training.
  • Training, technical assistance, scholarships are outsourced.
  • The program administration is outsourced. 
  • Our Transit Association puts on three training conferences each year. Everything else is run in-house.
  • All aspects of the RTAP services are contracted out including training, technical assistance, scholarship administration among other tasks.
  • The driver training program is conducted via a third-party contractor. The State RTAP Manager conducts a small, state-funded grant to assist rural transportation providers with small capital needs (i.e., computers, tires, flyers, etc.) and processes all scholarship requests for training/conferences not offered by our RTAP. 
  • Our transportation associations assist with the training programs.
  • The day-to-day RTAP management is managed by a private consultant team, with coordination and leadership oversight from the State RTAP Manager.
  • PASS Training and possibly future outsourced training.
  • Driver training is outsourced to a university. 
  • In-house: RTAP Manager, oversees a consultant for technical assistance and training. 
  • Annual conference(s) and quarterly trainings are outsourced. State DOT provides training at the conference, and additional technical assistance using RTAP funds, as needed or requested.
  • Training scholarship administration is done in-house. Sub-recipient training is provided by consultants. We support the annual transit association conference as well.
  • Financial and RTAP management administration is done in-house. A third-party contractor is utilized to provide training, technical assistance, and a wide variety of transit development plans. Although a contractor is utilized, the State DOT remains involved in all processes from beginning to end.
  • We use our Transportation Association to provide most resources. The department is intimately involved for most matters, however.
  • Our State DOT partners with a consulting firm to provide administration of the program and conduct trainings. We are actively involved in the planning of RTAP offerings in the state and identifying opportunities for technical assistance through compliance reviews and oversight activities.
  • Training, conference, Roadeos and webinars are outsourced.
  • All program aspects are performed by our contractor.

 
States that contract out some, or all, of their programs have cited many benefits. During a networking webinar that National RTAP hosted for state RTAP managers in January 2012, representatives from Florida, Pennsylvania, and Idaho presented the benefits their State DOTs and subrecipients gained by having a third-party deliver the State RTAP:

  • State DOT does not incur the costs of hiring new employees (salary and benefits), as this would need to come out of non-RTAP funds. 
  • State DOT staff members have time to work on other projects. 
  • State DOT does not have to hire new full-time people to manage the program nor does it have to add to its staff’s increasingly large workload.
  • Contractors can have more flexibility than State DOT employees to travel to conduct on-site training and build greater knowledge of training sites’ needs.
  • The right contractors will already have expertise needed to run the program well.
  • It can give subrecipients direct input into the RTAP program planning, giving them ownership over the program. 
  • Contractors are often able to respond to needs more quickly than a State DOT. 
  • When there are not enough resources in a State DOT to deliver a good program, the subrecipients might receive a better overall program through a contractor.
  • Often times the contractors are ‘closer to the ground’ and can understand the needs of subrecipients better than a State DOT. 
  • Having the program delivered by a third-party gives recipients another resource in addition toa State DOT to turn to for training and technical assistance.


When the manager puts the program out to bid, they should advertise the opportunity and solicit as many proposals as possible to ensure that there is a competitive process. The more proposals that are available to review, the more likely the manager will be able to find the right fit for the state’s needs. New Hampshire outsourced their program, and has shared the RFP and related document. After the manager hires a contractor, they are responsible for ensuring that the contractor is in compliance with all of the requirements that apply to receiving federal funds. While not all of the Section 5311 requirements will apply, the RTAP and the contractors will be responsible for some of the requirements, such as procurement, Disadvantaged Business Enterprise (DBE), and others related to program administration. For more information about what requirements Section 5311 subrecipients must meet, see the Transit Manager's Toolkit.


Whether the State RTAP is administered and delivered in-house or outsourced, this toolkit can be used to find new ideas to implement at the State DOT or share with the third-party contractor.

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Updated May 3, 2022

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