School transportation providers allege bias in bid process
Warn thousands of students could lose service
By THE STAR STAFF
The organization that represents Puerto Rico’s school transportation industry is challenging a recent bidding process overseen by the General Services Administration (ASG by its initials in Spanish), alleging irregularities that could leave some 18,000 students without transportation services when classes resume in January following the winter holiday break.
José “Pepe” Rosado, president of the Puerto Rico Federation of School Transportation Providers, said 81 transportation companies were excluded from a new school bus contract process administered by the ASG for the upcoming academic year. Another 18 companies were only partially awarded routes, Rosado said.
Speaking on the “Normando en la Mañana” radio program on Tuesday, Rosado said the bid process began in March, proposals were submitted in April, and contracts were awarded on Sept. 11. The federation subsequently filed a request for reconsideration on Sept. 19 before the ASG’s Review Board, an appeals body created under Law 48 of 2024.
Rosado contends that dozens of companies were disqualified over issues related to a federal registration document known as an S Number, despite what he described as prior guidance from the ASG indicating the document was not required. He also alleged inconsistent treatment regarding bid bond requirements, claiming at least two companies were contacted by the ASG and allowed to correct deficiencies, while other firms facing similar circumstances were not.
The federation argues that the consequences of the awards could be far-reaching. Although the disqualified operators represent roughly one-third of the participating companies, Rosado said many are among the largest transportation providers on the island and collectively serve nearly half of Puerto Rico’s students who rely on school transportation.
“By January, we have about 18,000 students who do not have guaranteed service, thousands of them special education students,” Rosado said. “We’re talking about more than 2,000 routes without service.”
Rosado said the bid appeals process took another turn after the ASG’s Bid Board issued an amended resolution awarding routes to five additional companies after attorneys for the federation identified alleged errors in the original evaluation. However, he said the following day the Review Board dismissed some 80 reconsideration petitions filed by transportation providers.
The federation leader also alleged the process appears designed to benefit a specific company, drawing comparisons to a 2014 controversy involving school transportation contracts in the Bayamón region that ended up before the Puerto Rico Court of Appeals.
Rosado said a contract initially valued at $3.5 million in that case was later amended to $11.5 million in favor of Transporte Sonel. He claimed that the company could now receive approximately $29.5 million annually under the current procurement process.
“Everything is public,” Rosado said.
In addition to concerns about the bidding process, Rosado said the Puerto Rico Department of Education continues to owe payments to dozens of transportation providers, with many reportedly awaiting compensation for services rendered since April and May. He said payments that providers were told would be issued last week had not yet been received at the time of the interview.
“This is outrageous,” Rosado said. “What they’re doing to this industry is intimidation and abuse.”
The federation plans to return to the ASG’s Review Board while simultaneously seeking relief before the Puerto Rico Court of Appeals in an effort to halt what it characterizes as an unlawful procurement process.
