FINAL BILL REPORT

HB 827

                                  C 141 L 87

BYRepresentatives Holland, H. Sommers, Jacobsen, L. Smith, Betrozoff, Valle, May, Wineberry, Moyer, Silver and Schoon

Requiring school districts to solicit competitive bids or proposals when contracting for pupil transportation services.

House Committe on Education

Senate Committee on Education

SYNOPSIS AS ENACTED

BACKGROUND:

Fifteen school districts in the state provide pupil transportation services through contracts with private firms.  These contracts are permitted to be up to five years in duration.

According to a 1984 attorney general opinion, school districts are not required to solicit bids prior to contracting transportation services.  School districts may use:  1) competitive bids, in which only cost is considered, and the contract must be awarded to the low-price bidder; 2) competitive proposals using a formal, public process in which the district solicits proposals and may award a contract based on various criteria, such as cost rates per bus, quality of service and efficiency in routing and scheduling; or 3) no competitive process in awarding pupil transportation contracts.

A 1987 study by the Legislative Budget Committee (LBC) questioned the practice of negotiating long-term contracts for pupil transportation.  The LBC recommended that districts be required to engage in an open competitive process at least once every five years prior to entering into a pupil transportation contract.

SUMMARY:

School districts may contract for pupil transportation services with a nongovernmental entity so long as the costs do not exceed the projected costs of operating their own pupil transportation.  To contract for these services the following conditions must be met:  1) the district engages in open competitive bidding at least once every five years, and 2) competitive bidding means either the solicitation of bids or quotations and the award of contracts to the lowest bidder or competitive solicitation of proposals and their evaluation consistent with Office of Financial Management procedures and criteria. The district may enter into contracts for less than five years with the right to renew, extend or terminate the contract.

VOTES ON FINAL PASSAGE:

      House 92   0

      Senate    45     0

EFFECTIVE:July 26, 1987