Performance indicators are quantitative measures that enable managers and policymakers to monitor the current position of an agency and outline strategies to improve performance. Because public services have many different dimensions of performance, a large number of performance indicators are normally used. In this paper a conceptual model is used to help select a few performance indicators that represent all the improtant performance concepts. Data were obtained from a national sample of 311 urban bus transit systems in the first year that data were reported under Section 15 of the Urban Mass Transportation Act of 1965, as amended. The steps in the performance-evaluation procedure involve defining a conceptual model of performance and designing a balanced set of performance indicators that represent all performance concepts. Factor analysis is then used to select the indicators that best represent all dimensions of performance. This small, representative set of performance indicators is used to analyze performance and to establish peer-group rankings.