Student Transportation Contract Terms Lengthened, Particularly for EVs

Public Act 103-0430, which took effect on January 1, 2024, makes several changes to the School Code provision concerning the length of student transportation contracts. Specifically, the following revisions were made:

  • School boards may enter into student transportation contracts for any period deemed appropriate by the school boards, up to ten years, including any proposed renewals.
  • Student transportation contracts with terms longer than five years must include a termination option after five years unless the contract includes the use of electric vehicles for student transportation.
  • Student transportation contracts may include up to a 15-year term, if a “a significant percentage” of electric vehicles will be used, and the contract relies on capital or infrastructure purchases or improvements that cannot be reasonably justified in a shorter-term contract.
  • The current requirement to re-bid the contract upon a competitor’s request has been eliminated.

School boards now have additional flexibility to determine the appropriate length of student transportation contracts. Keep this new flexibility in mind while preparing bid documents for soliciting student transportation bids. As a reminder, student transportation contracts must be advertised in the same manner as competitive bids and awarded by first considering the bidder or bidders most able to provide safety and comfort for the pupils, stability of service, and any other factors set forth in the request for proposal regarding quality of service, and then price.

Source: P.A. 103-0430