SENATE BILL REPORT

SB 5662

BYSenators Gaspard and Nelson;by request of Legislative Budget Committee

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

Senate Committee on Education

Senate Hearing Date(s):February 26, 1987

Majority Report:  Do pass.

      Signed by Senators Gaspard, Chairman; Bauer, Vice Chairman; Rinehart, Vice Chairman; Bailey, Saling, Warnke.

Senate Staff:Don Bennett (786-7424)

                  March 23, 1987

AS PASSED SENATE, MARCH 18, 1987

BACKGROUND:

Fifteen school districts in the state currently contract with private firms to provide pupil transportation services.  By law, these contracts cannot exceed five years in duration.  A district which intends to contract for pupil transportation must notify the Superintendent of Public Instruction that it has determined the cost for contracting will not exceed the projected cost of operating its own pupil transportation for the same term.

According to a 1984 Attorney General Opinion, school districts are not required to solicit bids prior to contracting.  School districts may use any of the following processes to award pupil transportation contracts:  1) competitive bidding, in which the contract is awarded to the lowest bidder; 2) competitive proposals, in which factors other than cost alone may be considered in awarding the contract; and 3) negotiated contracts, in which there is no competition between providers.

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. The LBC also recommended that cost comparisons be made using ten to twenty year periods, depending on the life of school buses and facilities.

SUMMARY:

A school district is required to engage in an open competitive process at least once every five years as a condition prior to entering into a pupil transportation services contract.  "Open competitive process" is defined as either solicitation of bids and the award of a contract under RCW 28A.58.135 or the competitive solicitation of proposals as used for state agency acquisition of personal service contractors.

In determining whether the cost of contracting will exceed the projected cost of providing its own transportation system, a district may compare costs over periods longer than the term of the contract.

Fiscal Note:      available

Senate Committee - Testified: Matt Temmel, analyst, Legislative Budget Committee