St. Peter's Bus Outsourcing Data
Table 1
Current Route Standards
Trips		2	per day
Avg Distance		72	miles per bus, per trip
Avg Time		3	hours per bus, per trip
Fuel Efficiency		7.5	MPG
Tank Capacity		63	gallons per bus tank
Fuel Cost		$ 3.50	per gallon
School Days		180	days per year
Extracurricular hours needed		750	annual hours
Extracurricular Distance		18,000	annual miles
School Student Body		500	students
Percentage of Students that use Bus		55%	of students use school buses
Make: Maintain In-House Fleet
Buses	New*		$ 85,000	per bus
	Sale of Used*		$ 5,000	per bus
Maintenance	New (0-3 years)		$ 2,000	per year, per bus
	Old (4-6 years)		$ 3,500	per year, per bus
	Maintenance Staff: Cost		$ 41,800	per year, per person
	Maintenance Staff: Size		2.00	staff members
Labor	Busing Supervisor		$ 59,000	per year
	Bus Drivers	Regular	$ 15.50	per hour
		Extracurricular	$ 12.50	per hour
	Labor Rate Increase**		2.0%	per year
Insurance			$ 2,000	per year, per bus
Accident Cost		Likelihood	Cost to St Peter's
	None	95%	$ -
	Minor	3%	$ 50,000
	Major	2%	$ 120,000
Total Buses (and number of drivers):		10
Replacement Schedule*	Year	Number of Buses
	0	5
	3	5
*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:			$ 250	per day	per bus
Number of Bus Routes			10
Income from Selling Fleet
	Old (4-6 years)		$ 5,000
	New (0-3 years)		$ 25,000
Extracurricular Rate			$ 50	per hour
Insurance			$ 7,500	per year
NPV Analysis Information
Period	6	years
Discount Rate	10%

********************************************************************************************************

I NEED THIS FILLED OUT PLEASE. IF YOU COULD SHOW WORK, THAT WOULD BE GREAT

Comparative Analysis of Make Decision
NPV Analysis
Year		0	1	2	3	4	5	6
Purchase of New Buses
Sale of Old Buses
Maintenance	Old
	New
Labor	Supervisor
	Maintenance
	Drivers
Fuel
Insurance
Accident Cost
Total Costs
Present Value Factors
Present Value
Make Decision Present Value