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Cooperative Transportation Bids

    There has been some confusion and misunderstanding concerning the use of cooperative bidding for pupil transportation services. This guideline will clarify the procedures to be followed commencing with the 2006-2007 School Year.   It may necessitate that your district competitively bid some pupil transportation services.

    Under the provision of §119-o of the General Municipal Law, school districts and BOCES have the power to enter into agreements among themselves to do jointly all that which they are empowered to do individually.   School districts and BOCES may develop cooperative bids and enter into contracts with private vendors for the provision of pupil transportation services.    However, only those school districts and boards that have participated in the original cooperative bid are authorized to enter into such contracts or extensions.

    There are very specific requirements.   Section 119-o of the General Municipal Law permits school districts and BOCES to jointly purchase services by cooperatively preparing specifications, advertising for and opening bids and awarding contracts. Generally, in a cooperative bid, one of the parties to the co-op bid acts as lead or agent, coordinates the specification writing, receiving of bid proposals, and provides the place for opening the bids. 

     Cooperative purchasing is the procedure of submitting written specifications and quantity needs to vendors to obtain the advantage of volume buying.  All participants to the cooperative bid must have defined quantities in order to make an award.   When the volume purchase equals or exceeds the limits established by General Municipal Law §103 requiring formal bidding, it is the responsibility of each individual member of the cooperative purchase arrangement to ensure that the advertisement for the solicitation of bids is placed in the "official" newspapers of the district and the governing body of each of the participants is responsible for awarding their portion of the bid by resolution at a public meeting. 

    Going back to the provision of §119-o of the General Municipal Law we find a common misunderstanding.   School districts and BOCES only have the power to enter into agreements jointly to bid that which they were empowered to bid and award individually.  School districts and BOCES do not have the legal authority to enter into a service contract with a vendor for the provision of no services at zero cost.  Such a document will not be considered to be a valid contract since it lacks an offer of service and acceptance of specific services, and consideration.   Any district or board action to extend such “no service, zero cost contracts”, will not be considered to be valid nor eligible for transportation aid.

See Cooperative Purchasing for additional information