HOUSE BILL REPORT

HB 827

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

Majority Report:     Do pass.  (19)

     Signed by Representatives Ebersole, Chair; Spanel, Vice Chair; Betrozoff, Cole, Cooper, Fuhrman, Holland, Holm, P. King, Peery, Pruitt, Rayburn, Rust, Schoon, L. Smith, Taylor, Todd, Valle and Walker.

House Staff:Susan Patrick (786-7111)

AS PASSED HOUSE MARCH 13, 1987

BACKGROUND:

Fifteen school districts in the state provide pupil transportation services through contracts with private firms.  Current law permits such contracts for periods up to five years in duration.  According to a 1984 attorney general opinion, the law does not require districts to solicit bids prior to contracting.

School districts may use competitive bids, i.e., only cost is considered, and the contract must be awarded to the low-price bidder; competitive proposals, i.e., 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; no competitive process in awarding pupil transportation contracts.

A recent 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 solicitations of bids or quotations and the award of contracts under RCW 28A.58.135 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 duration with the right to renew, extend or terminate the contract.

Fiscal Note:    No Impact.

House Committee ‑ Testified For:     Matthew Temmel, Legislative Budget Committee.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     Following an opinion by the Attorney General it became clear that school districts were not required to use a competitive bidding process in contracting with private providers for transportation services.  The Legislative Budget Committee, as a result of its study of the costs of such contracted services, determined that the competitive process reduces the cost of such service and should be required.  The district may elect to use a competitive bidding procedure or solicitation of competitive proposals.