Montgomery County, Maryland, school officials were already in the hot seat over the school system’s management of a $160 million contract for a fleet of 326 electric school buses when they shocked members of a county audit committee at a hearing this week.
A July Montgomery County Inspector General’s report found that the school district failed to assess $372,000 in performance fees it could have assessed to its vendor, Highland Electric Fleets, for failures to live up to terms of its contract. Issues cited included the late delivery of buses and periods when buses were inoperable due to charging or other issues.
On Monday, Dana Edwards, chief of district operations for Montgomery County Public Schools, told the members of the county council audit committee that MCPS had “invoiced the contractor” to the tune of $1.5 million.
Montgomery County Inspector General Megan Limarzi didn’t hide her surprise: “I’m only hearing today that the number that has been invoiced is $1.5 million,” and she said an “enormous concern” for her office would be to learn more about the details of the terms. Making sure that the contract is enforced mattered, explained Limarzi, “because the vendor is supposed to make sure MCPS has the buses they need to get the children to school.”
Montgomery County Council Vice President Kate Stewart, who chairs the Audit Committee, told Edwards, “I think we’re all startled by the $1.5 million, but I’m actually more deeply concerned that our IG’s Office was not apprised of that. And while MCPS says that you’re going to be working with the IG’s Office, I want that to be meaningful.”
Edwards was asked about expectations about getting payment of the $1.5 million in penalties.
“We believe that the contractor will pay the $1.5 million. We have been in communication and we are in contract negotiations,” said Edwards, who explained she was “treading a little bit lightly” because she didn’t want to weaken the school system’s negotiating position.
Council President Andrew Friedson, who also sits on the Audit Committee, expressed frustration: “I will say, the $1.5 million should be paid.” Friedson continued, “These are public dollars, they are owed, that is true, full stop.” Finally, he said, “This aspect of it isn’t much of a negotiation. The money is owed, period.”
Council member Sidney Katz asked if there aren’t other vendors that MCPS could consider moving forward.
Michael Lewis, the acting director of transportation for MCPS, told Katz, “That would be a wonderful spot for us to be in,” but, he said, “The infrastructure is built with our current vendor, and so that somewhat limits us (in making a change).”
Several council members suggested the school system rushed into the move to convert the school system’s fleet from diesel to electric, and Friedson told school officials, “I applaud you for the intent, but it’s a failing grade for implementation and it needs to improve.”
Edwards told the council committee, “We’d love an opportunity to follow up with the Inspector General’s Office by the end of this year.”
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