2 companies to bid on MBTA contract

BOSTON (AP) - Only two companies have committed to bid on a billion-dollar-plus contract to run the MBTA's commuter rail service, raising concerns that a lack of competition could increase costs or weaken service.

Twenty-five companies initially expressed interest in bidding, and T officials had hoped for at least a dozen competitors.

MBTA acting General Manager Jonathan Davis tells The Boston Globe he's "disappointed" by the lack of bidders but points out that both potential bidders are leaders in the field.

Some think possible bidders were scared off because they think the current operator of commuter rail, the Massachusetts Bay Commuter Railroad, has the inside track, despite criticism of its reliability.

The other company is Keolis America Inc., a subsidiary of a French company.

The new contract takes effect next July 1.