Politics

School Bus Operators Accuse Puerto Rico’s General Services Administration of Biased Bidding

Published Oct 21, 2026, 4:15 AM ASTvia San Juan Daily Star

At a glance

  • The ASG awarded school bus contracts on September 11, excluding 81 companies and partially awarding 18 others, according to federation president José "Pepe" Rosado.
  • The federation filed a reconsideration request on September 19 before the ASG’s Review Board, created under Law 48 of 2024.
  • Rosado says about 18,000 students and more than 2,000 routes could lack service in January, including many special education students.

Why this matters: If the awards stand, nearly half the island’s students who rely on school buses, including special education students, could lack service when classes resume in January.

The Puerto Rico Federation of School Transportation Providers is challenging a school bus bidding process run by the General Services Administration (ASG), alleging irregularities that could leave some 18,000 students without transportation when classes resume in January. Federation president José "Pepe" Rosado said on the "Normando en la Mañana" radio program on Tuesday that 81 companies were excluded from the new contract process and another 18 were only partially awarded routes.

The process began in March, proposals were submitted in April, and contracts were awarded on September 11. The federation filed a request for reconsideration on September 19 before the ASG’s Review Board, an appeals body created under Law 48 of 2024. Rosado said dozens of companies were disqualified over a federal registration document known as an S Number, despite prior ASG guidance that it was not required.

He also alleged at least two companies were allowed to correct bid bond deficiencies while others were not. He said the excluded operators are about one-third of participants but include many of the island’s largest providers, serving nearly half of students who use school transportation. "We’re talking about more than 2,000 routes without service," he said, adding that thousands of the affected students are in special education.

Rosado said the ASG’s Bid Board issued an amended resolution awarding routes to five more companies, but the Review Board then dismissed about 80 reconsideration petitions. He alleged the process appears designed to benefit a specific company, comparing it to a 2014 Bayamón-region case in which a $3.5 million contract was amended to $11.5 million for Transporte Sonel; he claimed the company could now receive about $29.5 million annually.

He also said the Puerto Rico Department of Education owes payments to dozens of providers for services since April and May. The federation plans to return to the Review Board and seek relief from the Puerto Rico Court of Appeals.

In context

SourceSan Juan Daily Star

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