Chapter 7: Paratransit Cost-Allocation Model Adjustments to Promote Agency Ridesharing and Vehicle Timesharing

This chapter applies the Consortium for Advanced Management, International (CAM-I) Activity-Based Cost Management (ABC/M) tool to paratransit. The intent is to enable agencies sponsoring rides to save money through sharing rides and vehicle-time.

Several paratransit cost-allocation models from Transit Cooperative Research Program (TCRP) and other sources are reviewed and one is adapted to the ABC/M methodology, based upon the author’s previous work proportionately allocating ride time among sponsoring agencies at a consolidated human service transportation agency and the price sheets used in contracted operations to minimize financial risk.

Through application of the principles of ABC/M, paratransit providers can properly allocate costs, determine the costs of providing proposed new services, plan for future vehicle acquisitions, and motivate their customers to tailor their transportation needs in a manner that will save them money and boost efficiency.

University-based transportation studies programs may be motivated to apply these strategies to urban and rural paratransit providers that serve several customer agencies.

If agencies sponsoring paratransit rides understand that funds can purchase more rides during off-peak hours or if rides are shared with clients of other agencies, then paratransit resources can be used more efficiently and to the benefit of more individuals.

By enabling the provision of more rides, a greater number of riders will be enabled to reach necessary services and participate in community life.

This is the first application of the ABC/M methodology to paratransit (and transit) and possibly to social services.