1. Hempfield Area School District
Analysis of Transportation RFP Response

2. Summary of HASD RFP Response
In the Specification we developed, we allowed for three options:
Option A-Propose to handle the daily dedicated big bus routes and the field, activity and sports trips.
Option B – Propose to handle the currently contracted routes, mainly special education.
Option C – Turn-key, one stop shop solution, proposing to handle both.

3. Summary of Responses We had 17 companies request the specification.
We had 11 companies visit us for the pre-bid meeting.
We had 6 eligible responses.
First Student proposed A-B-C
STA proposed option A
AJ Meyers proposed option A
Matthews proposed option B
DMJ proposed option B
PA Coach Lines proposed option B

4. The Grading Criteria
The following Slides will follow the grading criteria passed out to each of you. I recommend using this as a guideline to help you consider all aspects of the proposer, not just the financial criteria.

5. Key Points to Consider CATEGORY POINTS
Board's direct experience with Proposer
Proposer's direct experience in school transportation
Proposer's staff experience
Proposer's references
Proposer's maintenance program
Proposer's hiring and retention programs
Proposer's driver safety and training programs
Proposer's student safety programs
Proposer's routing plan and process
Proposer's proactivity in offering counsel, new ideas
Proposer's financial standing
Proposer's ability to handle additional work
Proposer's insurance coverage and bonding
Proposer's price
Total

6. Board’s Direct Experience w/Proposer
DMJ –Worked with HASD since August 2002.
Matthews - Since 2004
PA Coach – Since 2004
AJ Meyers – Never worked for HASD
STA – Never worked for HASD
First Student – Never worked for HASD

7. Direct Experience in School Transportation
All proposers have experience in school transportation. Some more than others.
First Student is the largest provider of student transportation in the US and UK. A 10 billion dollar company transporting 4 million students.
STA is a multimillion dollar provider of transportation services.
AJ Meyers is a local provider as is DMJ, Matthews and PA Coach Lines

8. Proposers Staff Experience
As to be expected, First Student has an army of staff support. In addition, they have a heavily staffed local office. Evidence of the resources can be seen in the preparation and refinement of the RFP response. First Student’s was the only 100% entirely complete response.
The remainder of the companies offer adequate staffing as provided in their responses. STA, then Matthews, followed by Meyers, PA Coach and DMJ being the smallest.

9. Proposers References First Student provided 40 PA school districts.
Baldwin Whitehall
Brentwood
Allegheny IU
City of Pittsburgh
Jeanette
Fox Chapel
Gateway
Greensburg Salem
Norwin
To name a few….

10. Proposers References STA provided 29 references
AJ Meyers provided 5 references
Matthews provided 6 references
PA Coach provided 5 references
DMJ provided 8 references

11. Proposers Maintenance Program
All Proposers have detailed out their respective maintenance programs some in more detail than others.
All Proposers provide both preventative and regular maintenance.
All Proposers are equipped with trained, certified maintenance personnel.

12. Proposers hiring and retention program
All Option A Proposers specify aiming to hire at least 90% of the current staff.
Both First Student and STA have provided planned compensation schedules:
First Student is offering stepped rates that start at $14.33 per hr to the top tier of $ They also offer safety and attendance bonuses and medical/dental and other fringes.
PA Coach specifies bonuses and co-paid benefits but without specific details.

13. Proposers hiring and retention program
STA offers starting rates at $15 per hr to top tier at $18 per hr.
STA offers a safety bonus of $4 per day.
STA also offers medical/dental and other benefits. STA does not contribute to benefits premiums (abbreviated plan-but helpful).
AJ Meyers does not specify their compensation plan or bonus offerings.

14. Proposers drivers safety and training programs
All Proposers provide regular training around safety and other matters as required by law or good practice.
First Student and STA provide very detailed explanations around driver safety and training. Included with Proposals are curriculum, hours and frequency of training.

15. Proposers safety programs
All Proposers specify student safety programs.
Some offer more detail and explanation than others.

16. Routing Process
First Student was the only Proposer to provide detail analysis around the HASD “Bus Boss” system. First Student will invest in a new, high-end routing system at their cost. See the analysis (taken from the proposal) provided it is very telling info about our current inefficiencies.
STA does not specify if it will continue to use HASD routing system.
Meyers makes note that it may have to buy new system but doesn’t mention at Meyers cost.

17. Proposers Proactivity and counsel.
First Student is the only Proposer to provide a detailed analysis around the current routing.
That analysis led First Student to offer an additional potential district savings of $130,000 per year based on our information as provided.
We will need to clarify the exact details around this additional savings offering.
It should be noted that both PA Coach and Matthews elude to inefficiency in our current management of contracted SE trips, based on the Proposers RFP response; both companies have stated that having insight into “who had what” allowed such reduced pricing.

18. Proposers Financial Standing
First Student and STA are the only two Proposers to offer detailed financial statements. Both companies have strong financial standing as concluded by my review of their financials as well as copy of the external audit response provided.
Both Matthews and PA Coach make mention of strong financial strength but do not offer financial statements.
Meyers and DMJ failed to provide financial strength information.

19. Proposers ability to handle additional work
First Student specifically mentions access to ready resources as they currently provide service to all of the school districts around Hempfield Area SD. They have extensive local resources available.
Both Matthews and PA Coach specifically mention ability to handle additional work but under the Option B specification--only.

20. Proposers Bonding and Insurance
All Proposers have provided proof of insurance adequate for HASD.
First Student, Meyers and STA offer performance bonding without additional cost to HASD.
Matthews, DMJ and PA Coach do not make mention –as requested.

21. Pricing

22. Savings vs. In-House (SAVINGS) / COST First Student STA AJ Meyers
Conventional Rate
$ (51)
$ (24)
$ (33)
Mini-Rate
$ (108)
$ (39)
$ (93)
Athletic , Field and Activity Rate
$ (73)
$ (53)
1st Year Cost (Savings include WC/Gas/Legal/Facility Rental)
$ (956,990)
$ (477,751)
$ (690,690)
4 Yr Total Cost Savings (over contract life)
$ (4,473,878)
$ (1,948,427)
$ (2,706,057)
Add in: Sale of the Fleet
$ (1,885,000)
$ (1,800,000)
$ (1,500,000)
Total 4 year value to district of outsourcing Transportation
$ (6,358,878)
$ (3,748,427)
$ (4,206,057)

23. First Student/PA Coach combo
Option D -Comparison
1st Year
PA Coach "D"
First Student/PA Coach combo
Cost Difference
Fleet Price -
(1,858,000)
Savings or additional cost of Special Ed Trans--at PAC price
(1,180,000)
1,180,000
Cost lease back per bus per day 93 $37 per
619,380
Cost lease per on 93 buses
585,900
Current operating costs-less cost of bus purchases and Maintenance
2,935,964
3,423,500
First Year Cost
2,961,244
2,745,500
(215,744)
Additional Costs of In-House Management of Transportation
Worker Comp rate decrease-see Ned
20,000
(20,000)
Legal Fees savings (assuming on-going issues )
18,000
(18,000)
If we purchase fuel at $2 per gl and charge $3 per gl we save $1 X #Gal
(150,000)
Rental of facility by Outsource Contractor
(54,000)
Additional Ongoing Savings
38,000
(242,000)
Net Savings from Offer D vs. First Student
2,999,244
2,503,500
495,744