Increasing pressures on the government at the federal, state, and local levels have impacted public services. The public sector also has a problem of a widening gap between the technology available to provide a service and Intelligent Transportation Systems (ITS) affordability. The pressure to reduce the size of the government and to reduce government spending, while maintaining current levels of service and developing new ways to improve that service, has made it increasingly difficult to serve the public. This problem may be remedied by contracting out to a private firm the provision of the service. This solution is the establishment of public/private partnerships. These partnerships ca provide a means for the public sector to gain public facilities, infrastructure facilities, or both at reduced or no cost to the public. This solution can also create a means for the public sector to create revenue through the development of toll facilities, leasing, and information provision. Although this solution is currently being explored by the public sector, programmatic and institutional barriers limit the capability of public transportation agencies to take full advantage of the possibilities that may be realized by collaborating with a private entity. These barriers, and a lack of interest from the private sector, have slowed what could be a rapid installation and implementation of ITS User Services. This paper will provide some insight into how the private secot may be utilized to its full potential in ITS installation and implementation. It will also examine the possibilities for the public sector to gain revenue and services, and to make private sector firms want to become more involved in the implementation of ITS services.
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