# City of Scottsdale Awards Trolley Contract

In May 2026, the City of Scottsdale awarded a nearly $16 million contract for its free trolley service to MTM Transit, a St. Louis-based company, under a two-year term with options for three one-year extensions. This contract replaces the long-term local operator, Dunn Transit, which has filed a lawsuit alleging procedural violations and unfair evaluation in the award process. Despite the legal challenge, the court has permitted MTM Transit to continue operating the trolley service while the case proceeds. This situation highlights the complexities and risks associated with transitioning public transit contracts and the importance of thorough procurement documentation and evaluation processes.

- **Why this matters:** Procurement professionals should note the legal risks when changing long-standing service providers, emphasizing the need for clear, well-documented evaluation criteria and transparent award processes.
- The contract's multi-year structure with extension options offers potential stability but also requires ongoing performance monitoring.
- Vendors should be aware that contract awards can face legal challenges that may not immediately halt operations, affecting service continuity and contract management.
- Agencies considering similar transitions can learn from Scottsdale's experience to mitigate disputes and ensure compliance with procurement regulations.

**Jurisdictions:** sled
**Industries:** Transportation
**Topics:** Contracting Vehicles
**Published:** September 19, 2026

### Government Entities
- City of Scottsdale
- Maricopa County Superior Court

### Vendors
- MTM Transit (prime contractor)
- Dunn Transit (former prime contractor)
- WeDriveU (bidder)

### Key Quotes
> The administrative record reflects a reasoned evaluation, not arbitrary decision-making.
> — City of Scottsdale (court filing)

### Sources
- [Scottsdale picked a new trolley operator. Now it's in court  | Modesto Bee](https://www.modbee.com/news/nation-world/national/article317305461.html) - Modesto Bee