Current Status Bill Number:118 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19950110 Primary Sponsor:Rose All Sponsors:Rose Drafted Document Number:GJK\21088SD.95 Residing Body:Senate Current Committee:Education Committee 04 SED Subject:Pupil transportation, provisions
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
Senate 19950110 Introduced, read first time, 04 SED
referred to Committee
Senate 19941003 Prefiled, referred to Committee 04 SED
View additional legislative information at the LPITS web site.
TO AMEND CHAPTER 67 OF TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TRANSPORTATION OF PUPILS, BY ADDING ARTICLE 7, THE PUPIL TRANSPORTATION COST EFFECTIVENESS ACT, SO AS TO REDUCE SCHOOL BUS EXPENDITURES THROUGH THE USE OF COMPETITIVE CONTRACTS WITH PRIVATE COMPANIES SPECIALIZING IN SCHOOL PUPIL TRANSPORTATION AND TO PROVIDE FOR THE MANNER IN WHICH AND CONDITIONS UNDER WHICH SUCH TRANSPORTATION SERVICES ARE PROVIDED; AND TO REPEAL SECTION 59-67-460 OF THE 1976 CODE RELATING TO CONTRACTS FOR SCHOOL TRANSPORTATION SERVICES WITH PRIVATE INDIVIDUALS OR CONTRACTORS.
Whereas, school pupil transportation services are provided for the fundamental purpose of transporting pupils to school by reason of distance, physical handicap, or hazardous conditions; and
Whereas, it is in the public interest for school pupil transportation services to be provided subject to high safety and quality standards; and
Whereas, it is in the interests of the taxpayers that school pupil transportation services be provided at the lowest possible cost consistent with high safety and quality standards; and
Whereas, private companies are provided school pupil transportation services cost effectively under competitive contracts; and
Whereas, decisions on whether school pupil transportation services should be operated by a school district itself or by a private company should be made on economic considerations rather than on institutional considerations; and
Whereas, school districts should routinely examine all available options for improving the cost efficiency of school pupil transportation services.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 67, Title 59 of the 1976 Code is amended by adding:
Section 59-67-800. As used in this article:
(A) `Make or buy analysis' means a periodic process in which a school district arranges for the most cost-efficient provision of the school bus service that it administers. Make or buy analysis includes:
(1) issuance of a request for proposals for school bus service;
(2) qualification of private companies for eligibility to provide school bus service;
(3) evaluation of proposals received in response to the request for proposals; and
(4) award of a contract for the services described in the request for proposal to either the school district transportation division or a private company.
(B) `School district transportation division' means the school pupil transportation department of the school district issuing the request for proposals.
(C) `Qualified and responsive proposer' means a private company or school district transportation division that meets the qualifications set by the school district and has submitted a proposal that demonstrates sufficient capability and understanding to provide the school bus service according to school district service specifications.
(D) `Proposer' means either a private company or the school district transportation division.
(E) `Contractor' means a private company with which the school district has executed a contract for school bus service.
(F) `Unit cost' means any reasonable indicator of cost used by a school district in requesting and evaluating proposals as a part of make or buy analysis, including, but not limited to, cost for each mile, cost for each hour, cost for each transported pupil, and cost for each school bus.
(G) `Fully allocated cost' means the cost of school bus service provided by a school district transportation division, including all direct, indirect, and allocated costs, and all attributable school district administrative costs.
(H) `Attributable fully allocated cost' means the fully allocated cost of school bus service provided by the school district transportation division, minus the cost of any function not considered for procurement in the make or buy analysis.
(I) `Department' means State Department of Education.
Section 59-67-810. (A) Each school district shall complete the applicable make or buy analysis requirements above by a deadline determined as follows:
(1) Within two years of the effective date of this act, with the exception that the deadline must be extended to the expiration date of the labor contract under which the corresponding school bus service is operated if:
(a) the labor contract was executed before January 1, 1995;
(b) the labor contract expiration date in effect as of January 1, 1995, is more than two years after the effective date of this act; and
(c) the labor is not extended beyond the expiration date that was in effect on January 1, 1995.
(B) Make or buy analysis must be repeated for applicable school bus services at least once each five years.
(C) In the event of a contract award to a contractor, all school district owned buses assigned to the corresponding service must be sold within eighteen months, or leased to the contractor for use in the school bus service.
(D) Contractors shall reasonably consider displaced school district employees for employment.
(E) School bus services operated by private companies under contract on the effective date of this act or after are subject to make or buy analysis within five years.
Section 59-67-820. (A) Each school district shall develop reasonable qualifications with respect to experience, safety records, and financial responsibility by which proposers can be eligible to provide school bus services pursuant to this act. Such standards are not designed to restrict the number of eligible participants in make or buy analysis.
(B) Proposers must comply with applicable federal and state school bus laws and regulations to be eligible to provide school bus services pursuant to this act.
(C) Each school district shall prepare reasonable service specifications which must be included in a request for proposal for school bus service and a contract for school bus service. The service specifications shall describe minimum standards with respect to, but not limited to:
(1) passenger comfort, safety, and vehicle maintenance standards;
(2) qualification, training requirements, and safety records for school bus drivers;
(3) school bus safety programs and records;
(4) requirements for insurance protecting the school district from liability for the acts, negligence, or omission or private companies, their agents, and their employees;
(5) reliability and on-time performance;
(6) school bus vehicles;
(7) maintenance and preservation of school buses or other assets owned by the school district and leased to contractors; and
(8) remedies with respect for unsatisfactory performance and contract termination provisions.
(D) A school district may revise its qualification standards and specifications as warranted by the public interest.
(E) No school district may establish a requirement relating to the wages, benefits, or union organization of contractor employees. All contractors shall comply with and give adequate certification of compliance with all applicable federal and labor laws.
Section 59-67-830. (A) Each school district shall maintain a list of interested companies and advertise for additions to the list at least annually in accordance with its procurement policy.
(B) Each school district shall seek the widest reasonable distribution of each request for proposals, and at a minimum shall send each request for proposals to each company on the list of interested companies and to a private company requesting the request for proposals.
(C) A school district may require private companies to submit qualification information either reasonably in advance of proposal submittal or as a part of the proposal.
(D) Each request for proposals shall specify the school bus services sought by the school district, qualifications, service specifications, and any other information necessary to a complete understanding of the school bus service being requested and the proposed terms and conditions.
(E) Each request for proposals shall specify the district owned school buses and capital facilities that will or may be made optionally available under lease for use in the specified services.
(F) Each school district shall require that private company costs be proposed in such a format that only the costs of qualified and responsive private companies are reviewed, and that any cost submittal by private company determined not to be qualified and responsive be returned unopened to the private company.
(G) Each school district shall require that costs be proposed as:
(1) fixed costs based upon unit costs for each year covered by the proposal, including option years; and
(2) fixed costs based upon unit costs for the first year with subsequent year unit costs adjusted based upon the change in appropriate and broadly accepted indicators of the change in prices, such as the Consumer Price Index.
(H) The school district shall ensure that adequate time is provided for private companies to prepare proposals in response to any request for proposals.
(I) A private company may participate in make or buy analysis.
(J) Each school district shall ensure that disadvantaged business enterprises, as defined in Part 23 of Title 49 of the Code of Federal Regulations, as amended, or in other applicable provisions of federal law or regulations, have the greatest possible opportunity to respond.
Section 59-67-840. (A) With respect to each request for proposals, the school district shall award a contract to the qualified proposer whose responsive proposal offers the lowest public cost.
(B) The contract term and renewal option terms added together shall not exceed five years for a school bus service subjected to make or buy analysis.
(C) Payments for school bus service shall not exceed the unit cost rates contained in the proposal that was the basis for contract award and must be in conformance with Section 59-67-830(G).
(D) No change in contract payment rate must be made except as specified in the contract, in accordance with the unit costs in the proposal of the organization awarded the contract.
(E) No private company may be awarded a contract or contracts covering more than fifty percent of the school bus service administered by a school district with a school transportation system requiring more than three hundred twenty-eight school buses.
(F) A school district may execute contracts with private companies to operate a service on an interim basis in the event of an emergency that does not permit sufficient time for make or buy analysis. A service operated under an interim contract is subject to make or buy analysis at the earliest reasonable opportunity.
Section 59-67-850. (A) The school district transportation division shall submit a sealed proposal and be awarded a contract subject to the following conditions:
(1) that the school district transportation division shall submit a sealed proposal before the deadline specified in the request for proposals;
(2) that the school district transportation division proposal not be altered after that deadline;
(3) that the school district transportation division proposal be opened and made public at such deadline and be fully disclosed to any interested party;
(4) that the school district transportation division unit cost proposal be not less that the attributable fully allocated costs and attributable fully allocated costs be listed and described and that the school district transportation division unit cost proposal be consistent with currently adopted budgets and financial plans; and
(5) that the school district transportation division be bound by the same terms, conditions, service specifications, and other requirements as would have applied to a private company awarded contract under the request for proposal.
(B) Each school district shall take reasonable and necessary steps to ensure an objective and fair evaluation process including, but not limited to:
(a) prohibition of participation by personnel or departments involved in preparing the school district transport unit proposal;
(b) prohibition of participation by any personnel employed within or directly managing the school district transportation division;
(c) each school district awarding a contract to the school district transportation division shall annually examine the school district transportation division costs to determine conformity with the costs which were the basis of any contract award; and
(d) if the school district transportation division costs are determined to be greater than proposed, the school district shall cancel the contract with the school district transportation division and commence make or buy analysis for the service at the earliest reasonable opportunity.
Section 59-67-860. (A) Notwithstanding another provision of law, no state financial expenditure or reimbursements for school pupil transportation shall result in a preference for operation of school bus service by school district transportation divisions over operation of school bus service by private companies.
(B) Notwithstanding any other provision of law, no state policy or regulation relating to school pupil transportation shall result in a preference for operation of school bus service by school district transportation divisions over operation of school bus service by private companies.
Section 59-67-870. (A) The department shall adopt, within two years of the effective date of this act, uniform costing procedures for the determination of the fully allocated costs and attributable fully allocated costs of school pupil transportation services.
(B) The uniform costing procedures shall include at least the following:
(1) required procedures for determining fully allocated costs;
(2) required procedures for determining attributable fully allocated costs;
(3) required procedures for reconciling and describing the differences between fully allocated costs and attributable fully allocated costs;
(4) sample forms for cost proposal formats; and
(5) recommended procedures for analyzing longer term opportunity costs.
(C) The department shall appoint a uniform costing procedures advisory committee to provide assistance in the development of uniform costing procedures. The uniform costing procedures advisory committee includes representatives of school districts, private school bus companies, state fiscal officers, trade organizations of school districts, and trade associations of private school bus companies.
(D) The department shall contract with a qualified accounting firm to provide professional advice on the development of the uniform costing procedures. The department shall consult with the uniform costing procedures advisory committee on:
(1) the development of the requirements and scope of work for the accounting firm;
(2) selection of the accounting firm; and
(3) review of accounting firm products.
(E) Upon adoption of the uniform costing procedures, each school district shall develop all school district transportation division cost proposals considered in make or buy analysis in conformity with the required procedures contained in the uniform costing procedures.
Section 59-67-880. The planning of all school bus maintenance facilities, operations facilities, and garages includes a thorough review of alternatives available for efficient development, management, and operations for the facilities. The planning process includes consultation with private school transportation companies.
Section 59-67-890. No school district shall make or be bound by any contract, agreement, or assurance entered into subsequent to the enactment of this act that restricts its ability to comply with this act in any respect."
SECTION 2. Section 59-67-460 of the 1976 Code is repealed.
SECTION 3. This act takes effect upon approval by the Governor.