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Council panel, inspector general dissect MCPS electric-bus contract; district invoices vendor $1.5 million
Summary
The Montgomery County Audit Committee reviewed an OIG probe into MCPS's 2021 electric-bus lease. The report found missed deliveries, weak enforcement of contract remedies (an estimated $372,000 in unassessed penalties), and the district has invoiced the vendor $1.5 million as negotiations continue.
The Montgomery County Audit Committee examined an Office of Inspector General report that found gaps in Montgomery County Public Schools’ management of a March 2021 contract to lease 326 electric school buses.
Inspector General Ms. Lamarzi told the committee the contract called for phased delivery of 326 buses (108 for special education) over four years, with roughly $160,000,000 in contract value and 12 years of maintenance and support. The OIG found MCPS did not receive all scheduled buses by the annual August 1 delivery dates and did not consistently enforce contractual remedies; the office estimated about $372,000 in penalties could have been assessed but were not.
“MCPS did not receive all the buses they were supposed to receive by that August 1 date,” Ms. Lamarzi said, and the office focused its review on MCPS’s management and enforcement of the contract rather than on the policy decision to electrify the fleet.
MCPS officials responded that the district has taken steps to strengthen oversight. Dana Edwards, MCPS chief of district operations, said the district invoiced the contractor $1,500,000 for late delivery, downtime and readiness issues identified in the OIG’s review and has hired a dedicated electric-vehicle manager to oversee operations and vendor relations.
“We invoiced the contractor shortly after we received the report,” Edwards said. She added the district meets frequently with the vendor, is negotiating contract amendments to clarify operational and readiness requirements, and wants to review its changes with the OIG by year-end.
Committee members pressed for clarity on whether termination rights and fee assessments remain available. MCPS said contract provisions for termination and penalties exist and that termination was not pursued earlier because the district was still expanding its EV fleet and operating a mixed diesel/electric system.
Council members emphasized collection as well as invoicing. Council President Friedson said the district should make clear to the vendor that ‘‘the money is owed, period,’’ and members asked for documentation supporting the $1.5 million invoice and a timeline for completion of negotiations. MCPS told the committee it aims to complete negotiations within about a month.
The OIG noted that in October 2023 the board approved a supplemental $14,000,000 contract for 90 diesel buses while the electric contract remained in effect, a development the committee discussed as part of broader concerns about operational continuity and fiscal stewardship.
The Audit Committee did not take a formal vote but directed MCPS to share the invoice and negotiation outcomes with the inspector general and return to the committee with updates. The committee also urged MCPS to document and apply lessons from this contract across procurements to ensure contract terms are enforced going forward.
Provenance: The topic is introduced in the inspector general’s report presentation and discussed in follow-up questions and MCPS responses.
