Transcribed Text
St. Peter's Bus Outsourcing Data
Table 1
Current Route Standards
Trips
Avg Distance
Avg Time
Fuel Efficiency
Tank Capacity
Fuel Cost
School Days
Extracurricular hours needed Extracurricular Distance
School Student Body
Percentage of Students that use Bus
$
2 per day
72 miles per bus, per trip
3 hours per bus, per trip 7,5 MPG
63 gallons per bus tank 3,50 per gallon
180 days per year
750 annual hours 18.000 annual miles
500 students
55% of students use school buses
Make: Maintain In-House Fleet
Buses Maintenance
Labor
Insurance Accident Cost
New* $ Sale of Used* $
New (0-3 years) $ Old (4-6 years) $ Maintenance Staff: Cost $ Maintenance Staff: Size
Busing Supervisor $ Bus Drivers Regular $ Extracurricular $
85.000 per bus 5.000 per bus
2.000 per year, per bus
3.500 per year, per bus 41.800 per year, per person
2,00 staff members
59.000 per year 15,50 per hour 12,50 per hour
Total Buses (and number of drivers): Replacement Schedule*
Year
10 Number of Buses
05
Labor Rate Increase**
2,0% per year
$ 2.000 per year, per bus
Cost to St Peter's
None Minor Major
95% $ 3% $ 2% $
- 50.000 120.000
Likelihood
35
*In every 6-year busing cycle, the school replaces 5 school buses every three years beginning at the start of year 1 (time = year 0) and the
end of year 3 (time = year 3)
**The 2% labor rate increase applies to all 3 labor categories: maintenance staff, busing supervisors and bus drivers.
Buy: Contract a Busing Service
Contract Cost:
Number of Bus Routes Income from Selling Fleet
Extracurricular Rate Insurance
$ 250 per day 10
$ 5.000
$ 25.000
$ 50 per hour $ 7.500 per year
per bus
Old (4-6 years) New (0-3 years)
NPV Analysis Information
Period 6 years Discount Rate 10%
Comparative Analysis of Make Decision
NPV Analysis
Year 0123456
Purchase of New Buses
Sale of Old Buses
Maintenance Old
New Labor Supervisor
Fuel
Insurance
Accident Cost
Total Costs
Present Value Factors Present Value
Make Decision Present Value
Maintenance Drivers
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