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Draft Report

Procuring, Managing, and Evaluating the Performance of Contracted TMC Services

Chapter 3 –

Managing Contracted TMC Services

Chapter Overview

This chapter discusses the management of TMC services that are outsourced or contracted to a public or private entity.  The management of the contract and management of the contracted employees are important to the success of an outsourcing relationship.  How a contract for TMC services will be managed must be thoroughly investigated prior to procuring these services.  This chapter outlines many of the issues to consider while establishing the management of the contracted services.  This chapter also discusses the advantages of different management structures and tools for performance monitoring.  

Management Structures

As described in the previous chapter, there are some critical questions that should be asked by the agency planning to contract for TMC services.  Answers to these questions will assist in establishing a framework or structure for managing a contracted services contract.  These questions are as follows:

What are the overall goals the agency is trying to accomplish?  How do these goals relate to the agency’s strategic plan or vision?

What are our agencies core functions (in general and as they apply to a TMC)?  Core functions can be considered those functions that must conducted by the agency.

What are the challenges facing the agency in terms of staffing and carrying out TMC functions?

What are the relationships with other transportation agencies?  How do these relationships impact TMC operations or a specific TMC function?

What will be the responsibilities and roles of the agency in relationship to the agency/firm carrying out the contracted services?

What physical resources are owned by the primary agency?  

There are many effective management structures and techniques that can be applied to contracted TMC services.  One structure is not necessarily better than another.  A management structure should support the functions being conducted in the management center and reflect the relationship of the stakeholders or agencies involved in running the TMC.  For the purposes of this chapter, it is assumed that there is a primary agency responsible for the TMC operation or a specific TMC function.  Furthermore, it is assumed that the primary agency is considering contracting out for the performance of the TMC operations or a specific TMC function.  The typical functions in a TMC are highlighted in Table 5.  Consideration must be given to which functions are being provided in the TMC, by which agency, and how contracted staff will interface with agency staff overseeing the TMC functions.

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