OUTSOURCING

Cost of Transportation Service Analysis

Outsourcing transportation is a complicated and often fateful decision, and a decision that is often reached without a full understanding of the potential benefits or risks involved. Particularly in times of financial distress, it is imperative to take a measured approach and make a well reasoned decision. MPS can help assess both the potential cost savings and what operational changes might be required to realize those savings.

We have established a multi-step process that begins with a feasibility assessment and moves all the way through the process to hands-on contract management. The modular approach allows our clients to choose what services best meet their needs, and to set aside those elements that are not needed. The individual service modules include:

• Transportation Outsourcing Feasibility Assessment – MPS develops a long-term projection of the probable cost differences between district-operated and outsourced services. This is coupled with a qualitative assessment of the likely operational and managerial implications associated with making the change. The results are presented in a series of detailed discussion sessions and are documented in a formal report that together provides a detailed and comprehensive assessment of outsourcing feasibility. This service helps ensure that the potential for a one year savings windfall does not result in a bad long term decision.


• School Bus Transportation RFP Development – Deciding that you will outsource school bus services is the first big decision. This decision is immediately followed by the need to design an RFP or bid document that reflects your needs, your expectations, and your requirements. Experience shows that ordinary bid documents pulled from peer operations or internet searches cannot sufficiently describe each of the unique aspects of your operation that are so critical to a successful outsourcing of school bus services.
  
  MPS develops a customized set of bid specifications that will clearly and concisely summarize the service requirements of your transportation program and the desired outcome of the solicitation process. Our clients receive specifications that promote a positive relationship with the contractor while maintaining operational flexibility and a high degree of financial and operational oversight. An added benefit to MPS' participation in the process is the elimination of any concerns about potential bias, leading to greater participation by, and more competition among vendors.


• Contract Management – Once transportation has been outsourced, it is imperative that the school district provide for contract oversight to ensure it is receiving the quality services it is paying for. This requires a structured approach to contract management and auditing. Passive monitoring, or relying on the contractor to self regulate and report instances of non-compliance with contract terms does not provide an adequate level of oversight for such an important and expensive program.
  
  MPS develops a structured oversight, reporting, and contract audit program. Using a combination of active route audits, reporting, and passive data analysis, our clients are able to assure their Boards, administrators, and the public that bus contractors are complying with all contract terms and conditions, and are providing safe, effective, and efficient transportation services.

Our staff members use their experience as transportation directors, contract managers and project managers to provide our clients with a comprehensive analysis of all the cost and service implications of the outsourcing decision, and the tools necessary to ensure a successful transition. Partnering with MPS lets you make decisions in the best interest of students and the education mission of the school district.