Considerations for Award of Contract to School Bus Operators and Proposal for Fee Guideline
Ministry of EducationSpeakers
Summary
This question concerns the selection criteria for school bus operators and the proposal for implementing standardized fee guidelines. Mr Melvin Yong Yik Chye inquired about the factors influencing contract awards and whether the Ministry would regulate service pricing. Minister for Education Ong Ye Kung explained that schools utilize competitive bidding based on fares, track records, and the ability to meet specific logistical requirements. He noted that market-driven pricing is preferred over specific fee guidelines to avoid discouraging bidders, though contracted fares are published online for reference. Minister for Education Ong Ye Kung added that the government assists operators in managing operating costs to help maintain competitive fares for parents.
Transcript
45 Mr Melvin Yong Yik Chye asked the Minister for Education (a) how do schools decide on the engagement of school bus operators; (b) what are the main considerations for awarding a contract to school bus operators; and (c) whether the Ministry will consider issuing a fee guideline for school bus operators.
Mr Ong Ye Kung: Schools select school bus operators through a competitive bidding process and award contracts to the operators that best meet their needs. The competitiveness of bus fares proposed is one of the key evaluation factors considered by schools. Other factors include good track records and ability of bus operators to meet the needs of individual schools such as number and capacity of buses, and route coverage. Fares will vary among schools and students depending on routes and distances travelled, and number of students on a particular route.
In January 2015, MOE enhanced the bidding process for school bus services so that schools can reach out to more bus operators to obtain more competitive offers. Schools publish the contracted bus fares of the successful school bus operators on the Information Notice Board for School Bus Services which is available on MOE's website. This serves as a reference and guide for schools in selecting the most suitable school bus operator which offers the best value for money.
As school bus services are customised to meet the needs of individual schools and parents, a specific fee guideline may not help schools in their selection for school bus operators. Moreover, it may discourage bus operators coming forward to bid for the services if there are many restrictions and conditions imposed on them. Therefore, it would be better to let school bus fares be determined by the market. The Government on its part has put in place measures to help school bus operators keep their operating costs low so that they can offer more competitive fares.