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Transportation RFQ returns single bid from First Student with double-digit rate increases
Summary
A transportation request-for-quote returned one response (First Student). The base bid represents a 35.25% increase over current rates for 2025–26; an alternate price schedule showed 28.5% initial increase with steeper increases in later years. District staff will model dollar impacts and present findings to the finance committee.
The Winona Area Public School District reported results of a transportation request-for-quote at its May 1 meeting: the district received a single bid from First Student.
Director Slavi and Director Indra told the board the RFQ sought pricing for the district\'s current two-tier bell schedule and an alternative single-tier schedule for planning purposes. First Student submitted a "base" quote and an alternate. The base quote represents a 35.25% increase over current rates for the 2025–26 year with a 3% escalation in each of the following four years, according to the summary provided to the board. The alternate quote showed a 28.5% increase for 2025–26, then larger increases in subsequent years (the vendor\'s alternate schedule included an 8% increase for 2026–27 and a 5% increase for 2027–28 with declines in later years in the proposal).
Staff said the per-route round-trip base price in the First Student quote equals about $507.44 for a single round trip using the stated $25.26 hourly rate in the packet. Board members asked clarifying questions about the components of the bid (charter and per-mile rates, hourly rates for extra services) and whether technology and routing apps were embedded in the price; staff said they would parse the 200+ pages of vendor materials and bring detailed dollar comparisons using the district\'s actual routes to the finance committee and to the May 15 board meeting.
Board members asked whether changes in state legislative treatment of nonpublic transportation aid might alter routes or cost allocations; staff said those factors are not yet predictable. Several trustees raised the policy question of whether contracting remains more cost-effective than operating an in-house bus fleet and said staff should model a high-level comparison of in-house costs (buses + drivers + insurance + maintenance) versus contractor pricing.
Next steps: staff will compute the district\'s actual dollar exposure by applying the First Student quotes to the district\'s route inventory and will present a financial comparison at the finance committee meeting and the May 15 board meeting. The district will also confirm whether routing and communications software included in the vendor bid or will be priced separately.
Ending: The RFQ closing received one submission; staff will return with detailed analysis and potential negotiation points.
