WASHINGTON, June 9 - Riders on Amtrak may think that the $3.25 hot dog and the $1.50 bag of chips in the cafe car are no bargain. Neither does Amtrak. It is spending just over $2 for each dollar of food it sells on its trains, according to auditors.
http://www.nytimes.com/2005/06/10/national/10amtrak.html
Amtrak lacks a meaningful strategic plan that provides a clear mission and measurable corporatewide goals, strategies, and outcomes to guide the organization. Also absent is a comprehensive strategic planning process, characteristic of leading organizations GAO has studied. Also, while Amtrak has recently taken steps to improve its acquisition function, GAO found that some major departments independently made large purchases and did not always adhere to AmtrakÂ’s procurement policies and procedures. Amtrak lacks adequate data on what it spends on goods and services, preventing it from identifying opportunities to leverage buying power and potentially reduce costs. Similarly, while Amtrak has recently reduced costs, revenues are declining faster than costs, leading to operating losses exceeding $1 billion annually. These losses are projected to grow by 40 percent within 4 years; no effective corporatewide cost containment strategy exists to address them.
• Financial reporting and financial management practices are weak in several areas. Financial information and cost data for key operations, while improved, remain limited and often unreliable. For example, Amtrak’s on-board food and beverage service lost over $160 million for fiscal years 2002 and 2003. Amtrak’s poor management and enforcement of its food and beverage contract (an outside contractor is responsible for procuring and distributing food and beverages for most of Amtrak’s trains) may have contributed to this loss. Regarding financial reporting, GAO found that Amtrak had omitted or misallocated key expenses in several areas, substantially understating operating expenses in reports that managers use to assess performance. Similarly, Amtrak has not developed sufficient cost information to target potential areas to cut.
http://www.gao.gov/new.items/d06145.pdf
Thats an even better example of a Govt. owned and operated business.