BOE Balks on Outsourcing

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“There are so many different factors when you’re comparing this”The BOE will not outsource its transportation operations at this time. This was the recommendation Superintendent Ben Desper made to the board last Thursday night at a special called meeting. In May, facing rising health costs and other budgetary constraints, Desper introduced the idea to the board of outsourcing the district’s transportation services. At the time, the board explored two options; 1) outsourcing the entire transportation operations 2) outsourcing only personnel. Over the last three months the board received several bids and met with various transportation companies to discuss the matter.

Previously, the board announced a RFP (request for proposal) and received four bids in response to the request. Transportation Director of Operations Rick Little said he had met with the companies in a pre-bid meeting. Based on these discussions, Little said he did not see the benefit in outsourcing at this time. During Thursday’s meeting, Board Member John Trammell asked why Little felt it wouldn’t be beneficial. Little said it was a combination of factors. The primary reason is overall cost.

“Over the life of the (five year) contract,”

Little said,

“it would be over $100,000”

cost to the county. The lowest bidder, he explained, was approximately $2.6 million, while Pickens’ budget was $2.5 million.

“There are so many different factors when you’re comparing this,”

Desper commented,

“It’s hard to factor in how much we’re going to spend on workers’ comp this year—those kind of things. Those are items that you couldn’t factor into the budget.”

Regarding cost, Little added the lowest bidder also charges more per bus per year to operate than does Pickens County.

Other reasons included the sale of the bus fleet and sacrificing control of operations to the company. Here, Desper suggested that if they wanted to break the contract with the company, the district would likely have to replace the fleet. Although the companies, he said would offer a buyback deal, it would not work out to the county’s financial advantage.

“I don’t think it would be prudent,”

Little mused,

“to say, ‘we’re going to do the same thing for more money and not have control over it.”

Additionally, Little said he thought the companies approach to running the service was

“dogmatic,”

which he said he found unsettling. Desper explained that the companies expected a

“total turnkey”

operation, where they controlled the transportation director, all the staff, and the fleet maintenance, including cars and trucks. Desper and Little also expressed concerned about personnel. According to Little, the companies assume authority over the bus drivers as well. Here, the concern was for drivers who are close to retirement. Desper and Little suggested that these drivers could possibly be released from their positions prior to retirement and lose retirement benefits in the process.

Transportation Director Bruce Godfrey interjected, saying he had a problem with the way the companies planned to handle the public.

“My protocol,”

he said,

“is being able to establish relationships with kids and parents and they (the companies) didn’t want to do that; they wanted to leave those steps out.”

In the end, the board voted unanimously to accept Superintendent Desper’s recommendation not to outsource transportation services, however, he said if things change the board could vote on the possibility to accept an outsourcing plan in the future.

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