No one knows where fuel prices will be in the next few months, much less in the next several years or decades. But the recent spike in oil prices has focused considerable attention on the escalating cost of fuel and how it’s affecting the country’s transportation programs. Although some school transportation managers have taken a fatalistic approach to the problem (“It doesn’t matter how much we pay for fuel, the buses still are going to run.”), others are investigating practical methods of reducing fuel costs. After all, every dollar saved reduces the chance that other components of the transportation program will be pared during the budget process. Gary Thomsen, transportation manager at Evergreen School District in Vancouver, Wash., says he’s budgeted $350,000 for fuel this year, compared to $250,000 in 1999-2000. He manages a fleet of 213 school buses that travel approximately 2 million miles per year to transport 16,000 students. A $100,000 hike in the fuel budget means a cut somewhere else, but Thomsen isn’t sure where the ax will land. One possibility is to increase the walking distance beyond a half mile, not a move that would be welcomed by the community. “We’re going to have to look at all of our options,” Thomsen says. Although Thomsen believes that he’s already running his 200-plus buses at near peak efficiency, he will push for continued improvements to ease the burden of sky-high diesel fuel prices. This article discusses some of Thomsen’s ideas as well as strategies adopted by other transportation managers across the country.
Volume discounts
Buying fuel in bulk quantities can result in significant savings. Large school districts and contractor operations can take best advantage of volume discounts because they tend to purchase greater quantities of fuel at more frequent intervals than their smaller counterparts. Thomsen says his district buys more than 250,000 gallons of diesel fuel per year. He purchases a 10,000-gallon truckload of diesel fuel through a weekly bid and estimates his savings at 15 to 20 cents per gallon compared to fleets that buy smaller allotments. “If there’s any way for smaller operations to join a co-op or at least be able to order a tankerload of fuel, maybe with a neighboring school district, they should explore that,” Thomsen says. “Some of the smaller districts in our area are taking it in the shorts, so to speak, because they just can’t order the volume that we can.” Vancouver School District, adjacent to the Evergreen School District, has been saving money for several years by purchasing fuel from a cooperative, according to Joe Schoenlein, the district’s procurement manager. The Vancouver district operates 160 school buses and purchased 207,000 gallons of diesel fuel during the 1999-2000 school year. Schoenlein says the district purchases fuel in cooperation with Clark County, the city of Vancouver, Clark Public Utilities, the Port of Vancouver, three local fire districts and two other local school districts. “We feel the cooperative approach [to buying fuel] best serves not only the school district but also the other public agencies by maximizing the size of our orders and increasing our buying power,” Schoenlein says. Bidding for the fuel is done by the purchasing division of Clark County, relieving the school district of that responsibility. “Likewise, we do bidding for other school districts and public agencies in other areas,” Schoenlein says. “We share. We think that’s the right approach in the public arena.” Like the Evergreen School District, Vancouver buys its fuel in large quantities, approximately 9,000 gallons per delivery. “We will not take short deliveries because we would sacrifice a substantial discount,” Schoenlein says. With a 10,000-gallon tank, the timing of the re-ordering can get tricky. Waiting too long increases the risk of running the tank dry. “The timeline can be tight,” Schoenlein concedes. At Crestview Local Schools in Columbiana, Ohio, bus fuel is purchased monthly through a bidding process. “This keeps everyone honest and competitive at a local level,” says Transportation Supervisor Kenneth Floor. “Usually, I get a spread of 10 cents per gallon.” The district goes through approximately 4,000 gallons per month, a much smaller volume than the Evergreen or Vancouver school systems, but Floor believes that he’s getting a good price for his fuel. “We have been doing this for the past eight years, and we believe we are saving a good deal of money,” he says.









