What is more advantageous to Patos de Minas City: maintains its rural school public transport private or outsources it? A case study

Abstract

The main objective of this article is to investigate the most advantageous method to Patos de Minas Municipality: outsources or maintains its own rural public transport service. This work is warranted on generating knowledge about rural school transportation costs; increasing the number of empirical studies published for the public sector and presenting to the population how their resources are being employed. The approach is quantitative, for objectives, it is a descriptive research, and as it studies the Patense City hall, it is featured as a case study. It is fundamental emphasizing that, until June 30, 2013 the values are real and from the first of July 2013, they are estimated. Four transportation routes were used in the analysis, two private and two subcontractors, in each of them there are two vehicles, a van and a bus. The values for the outsourced vehicles were made available by the municipal office purchase and bid sector. As for the figures related to their own means of transport, these were determined by calculations performed using data transferred by that public entity transport sector. The investigation was divided into: fixed costs and variable costs. The results show the bus outsourced rural school transport is more advantageous to the city, and if the van is kept as its private transport vehicle it will be better, considering the unitary kilometer driven factor.