At some point, almost every school district faces the need to outsource transportation services or switch providers. This process is often accompanied by issuing a Request for Proposals (RFP)—a formal mechanism to solicit bids from qualified vendors. While it ensures transparency and competition, the RFP process carries significant implications for both district operations and budgets, particularly in today’s erratic market. 

Districts must carefully weigh multiple factors—rising costs, service reliability, and long-term planning—while navigating this process. A successful RFP not only helps secure a transportation partner but also lays the foundation for cost management, operational stability, and student safety for years to come. 

Considerations Before Starting the RFP Process 

Rising Costs

One of the most immediate concerns for districts considering beginning the RFP process is the financial impact of rising costs across the transportation sector. Post-Covid, several factors such as escalating labor rates, higher insurance premiums, higher bus prices, fuel price volatility, and most recently tariffs have forced providers to increase their rates. Budgetary pressures may be driving districts to seek other transportation alternatives, but they should be prepared for those higher costs to be reflected in the pricing proposals submitted by contractors, especially if new vehicles are needed to meet districts’ demands. 

Asset Delays

Not only have bus prices surged due to increased manufacturing and labor costs, but material shortages and delays in parts availability due to supply chain disruptions have caused lead times for new buses to increase dramatically. The industry is currently experiencing unprecedented increases in production and delivery timelines for buses and vans. Certain models now require 12 to 18 months or longer for delivery.  Anticipating these delays, school districts should plan to begin the RFP process 4-6 months earlier than historically expected.  Releasing the RFP in the fall and finalizing a decision by year-end will allow the provider sufficient time to procure the necessary equipment to ensure a successful school start.  

Considerations While Crafting Your RFP 

Stakeholder Participation 

Involving stakeholders in the RFP process ensures that decisions reflect the district’s operational realities and priorities. Key participants should include district transportation directors, procurement officers, school administrators and/or teachers, parents, community members, and legal representation, particularly when it comes to contract negotiations.  

Needs Assessment & Prioritization

It is crucial to gain a clear understanding of exactly what the district needs from a transportation provider. Key stakeholders should spend considerable time conducting a comprehensive needs assessment, and determine which needs are highest and lowest priority. A template to guide the group in conducting this assessment is helpful and may even be provided by the district. 

Content of the RFP 

In today’s environment, a well-crafted RFP must address cost pressures while maintaining a focus on service delivery and reliability. The document should include: 

• Scope of Services: Clearly defined service expectations, including requirements for fleet age, alternative fuel options, and performance standards. 

• Equipment Requirements: A detailed breakdown of each piece of equipment required to successfully operate the school district’s contract. 

• Evaluation Criteria: Clearly defined criteria of how districts intend to weight proposals to balance cost with innovation and reliability. For example: giving extra weight to contractors who offer creative solutions for managing costs while maintaining high-quality service. 

Considerations When Choosing a Proposal 

Balancing Costs with Service Delivery 

Balancing service quality and cost is always a challenge, but in a high-cost environment, it becomes even more critical. Contractors will often include cost-saving proposals in their bids—such as optimizing routes or adopting new technology—but not all strategies are created equal. 

Here are some service-enhancing programs to look for in a proposal:  

• Routing Optimization: If the contractors are providing the routing services.  Investing in advanced routing software can reduce fuel and labor costs by eliminating inefficiencies. Ask proposers to demonstrate their routing technology and how they plan to apply it to your district. 

• Fleet Modernization: Providers offering newer, fuel-efficient buses can reduce maintenance costs and improve safety in the longer term. 

• Communication Tools: Parent communication apps can improve transparency, reduce complaints, and enhance overall service satisfaction. 

Safety and Reliability 

Proposals should include details about the provider’s driver hiring standards and training, vehicle maintenance procedures, safety records, warranties, and compliance with state standards and guidelines.  

Reputation & Relationship 

A transportation provider is not merely a vendor, but a long-term partner. It’s important to ensure reputational excellence by checking all references. Also consider that providers who promise unrealistic outcomes may not be as reliable as those who are upfront about their capabilities and limitations.  Look for a contractor that is collaborative, solution oriented, and partnership focused.   

Fleet Plans 

When evaluating RFP responses, districts should also focus on each bidder’s fleet plan. Ensure the vendor has access to reliable, well-maintained vehicles that meet your district’s needs, even in the face of delivery delays.  

Considerations When Negotiating a Contract 

Long-Term Contracts 

While many districts have traditionally favored shorter-term contracts (e.g., three years with optional renewals), the current market environment makes longer-term contracts increasingly appealing. Extending contract durations to five or even seven years can create significant advantages for both districts and providers. These advantages include: 

• Cost Stability and Predictability: Vendors can offer more competitive pricing when they spread costs over a longer period, helping districts avoid sudden budget spikes. 

• Investment in Fleet and Technology: Longer contracts encourage providers to invest in newer buses and innovative technology, knowing they have time to recoup those investments. 

• Stronger Partnerships: Building a long-term relationship with a transportation provider can lead to better service outcomes, as both parties have more incentive to collaborate and solve problems. 

Operational and Timing Considerations 

The timing of the RFP process can have a significant impact on operations. Switching providers too late in the year can create logistical challenges as the new vendor scrambles to recruit drivers, secure buses, and set up routes. Here’s a suggested timeline for managing the process: 

• January–October: Assemble your committee and conduct a needs analysis. Draft your RFP. 

• September–October: Publish the RFP and hold a pre-proposal meeting. 

• November: Review submissions, interview candidates, and select a finalist. 

• December–January: Present your choice to the school board and finalize the contract, giving the provider time to prepare for the upcoming school year. 

Proper timing not only reduces operational disruption but also gives providers enough lead time to ensure a smooth transition. 

Conclusion 

The RFP process is a powerful tool for school districts to secure the best transportation provider, but it comes with significant implications for budgeting, operations, and long-term planning. In an era of rising costs and increasing complexity, districts must balance cost management with service delivery to ensure the safety and well-being of their students. 

Contact Us

Ready to learn more about how ASTP is driving the future of student transportation? Reach out to us.  

American Student Transportation Partners (ASTP) is a national network of reliable student transportation providers, ensuring better access to education through safe, dependable student transportation programs. Exceptional bus operators choose ASTP because of our innovative approach to partnership, as well as the resources we provide to help “future-proof” their operations. 

To learn more about partnering with ASTP, contact Nick Tierno, Director of Corporate Development, at [email protected].