WARNING LIGHTS
Procurement watchdog raised concerns, cautioned ministry while approving $1.4b school bus contract
Published:Sunday | February 22, 2026 | 12:09 AMKimone Francis - Senior Staff Reporter
The watchdog signed off — but not before it barked.
Access to Information documents obtained by The Sunday Gleaner reveal that the Public Procurement Commission (PPC) warned the transport ministry against handpicking contractors even as it endorsed the $1.4-billion deal for controversial used school buses last year.
The green light came with a flashing amber signal.
At the time, the ministry – then known as the Ministry of Science, Energy, Telecommunications and Transport (MSETT) – had awarded the contract to ELHYDRO Limited through a single-source method based on an unsolicited proposal. There was no competitive bidding process.
In its notice of endorsement to Cabinet, the PPC made its position plain, raising several points of contention, outlining strict conditions and issuing a warning.
“The MSETT should not attempt any future direct award and must commence planning now for future acquisitions using competitive methods as far as practicable,” the commission noted.
And where competition was deemed impracticable, it warned, “a far more compelling justification must be offered, complete with credible data and information concerning the supply market for school buses”.
The PCC has not responded to Sunday Gleaner questions inquiring about the factors or considerations that ultimately influenced its decision to endorse the award and the concerns it had with the ministry’s approach to the procurement process.
If the ministry could clear those hurdles, the commission said, it would still require a “clear and substantive” justification for accepting the unsolicited proposal – including a rigorous life cycle cost analysis and a comparison with alternative solutions, both new and used.
The ministry, in an undated response, insisted the criteria had been met.
It argued the proposal “presented a unique solution that addressed both the ministry and Government’s need to provide an efficiently and timely movement of students to and from school in a safe and comfort manner, and to bring some relief to the cost of commute”.
Officials said ELHYDRO had exclusive access to acquire “high-quality, low-mileage” buses from US federal government sources. They also maintained that the proposal did not resemble any current or pending tender, noting that previous plans for the Rural School Transportation System (RSTS) focused on subsidising private operators rather than the Government owning its own fleet.
An earlier 2023-24 model – centred on private operators providing buses while Government subsidised fares at an estimated $10.6 billion annually — was scrapped after Cabinet withdrew a submission over concerns that the projections were “overly conservative”.
Time, the ministry argued, was now the enemy. With a September 2025 launch looming, competitive tendering was too slow.
Though it conceded that the pilot period was too short to yield meaningful operational statistics, it said the bus had won strong stakeholder acceptance and improved punctuality. The used buses, it added, could be delivered for roughly half the cost of new American school buses and at 2.5 to 3.5 times less than European mass transit models.
Mechanical assessments, the ministry said, showed more than 80 per cent of useful life remaining. The package also included a one-year supply of spare parts, three years of maintenance and management software.
‘WHAT IS THE JUSTIFICATION?’
The PPC was unconvinced.
“In light of your response that states that ‘the time period has been far too short to provide any meaningful data’, regarding the ‘operational statistics’ of the bus provided as proof of concept, what is the justification for proceeding with this procurement without allowing sufficient time to receive and analyse meaningful operational data?” the commission asked in a May 27, 2025 letter.
It noted the ministry’s report on the proof of concept bus, but suggested that the information submitted was anecdotal and lacked fuel efficiency data, actual repair costs over the trial period and concrete per-student cost comparisons.
It said the life cycle analysis provided “does not include any satisfactory analysis of the remaining life cycle costs of the proposed solution vis-à-vis an alternative solution (new or used),” and demanded “further and better particulars”.
The commission also pressed for proof that ELHYDRO’s US supply arrangement was truly a “unique capability” that could not be accessed through a competitive tender.
In a same-day response, the ministry doubled down, citing a mandate from Prime Minister Dr Andrew Holness to provide civilised transportation for rural students.
“While there is not enough operational data locally to give the substantive analyses that the PPC required, there is certainly enough from the US market where these buses have been used for decades and are tried and proven with all types of terrains,” it said.
“In addition, with the Government’s position and the prime minister’s mandate that it is time for students in rural areas to be afforded travel to and from school in a civilised manner, to reduce the death and injuries and the non-attendance at school, the ministry felt it was opportune to make this procurement,” the ministry said.
The back-and-forth grew more granular. The PPC raised concerns about mid-life refurbishment thresholds, unknown mileage on seven buses, and 26 buses with fewer than 100,000 miles left before major refurbishment.
“What is the justification for acquiring these buses, and how can we be satisfied that the acquisition of these buses will give the public value for money?” asked the PPC.
The ministry countered that there was a “level of misunderstanding”, arguing the buses remained within their useful life. It attached a performance assessment of a 2009 Thomas model operating in Portland – represented in Parliament by Transport Minister Daryl Vaz – describing “resounding success” with more than 11,000 monthly passengers and no reported mechanical downtime despite frequent overloading.
A spreadsheet followed. It validated the ministry’s analysis – but noted no provision for mid-life refurbishing costs.
It also confirmed that the three-year maintenance and servicing agreement was envisioned to begin in fiscal year 2026--2027.
ENDORSED – WITH RESERVATIONS
On June 2, the PPC endorsed the award, while still flagging its initial concerns.
Cabinet approved the contract the same day for 110 buses.
At a press conference last Tuesday, Vaz defended the acquisition – even as he acknowledged that several used buses had experienced mechanical problems, including unexpected shutdowns.
“Truth be told is that the buses that we bought are performing. Yes, there are some issues in terms of road conditions, but all in all, we are rolling out over 80 buses [daily],” said Vaz.
“The bottom line is that there were technological challenges in terms of the computer and the process used. There is a safety mechanism that shuts it down for the slightest little thing. Ideally, we are where we are in terms of new buses. We are well advanced in that, and as we move along you will be kept abreast as to the stages where we are. It is a learning curve,” he said.
In a notable policy pivot, Vaz announced that 100 new buses – not used ones – will now be procured in the 2026-27 fiscal year as phase two of the programme. The original plan had been for 150, later reduced after consultations with the Ministry of Finance.
“So we are moving from the used school buses [to] purpose built. We have gone through expressions of interest. We have concluded on the specifications, based on all our due diligence across Asia, America, Europe. The responses to that expression of interest have brought us information to be able to develop the specifications.
“ ... We are now preparing to go to PIAB (Public Investment Appraisal Branch) of the Ministry of Finance, which, I know, based on urgency, we will be able to expedite, and then we will be able to go to an international tender of those persons who met the criteria in expression of interest,” said Vaz.
Chronology of the $1.4-bllion bus deal
March 26, 2025: Unsolicited proposal – ELHYDRO submits the initial proposal to MSETT
April 7-22, 2025: Internal review – Proposal reviewed by MSETT, JUTC, and the Ministry of Education
May 7, 2025: Methodology approval - The Permanent Secretary approves the use of the Single Source procurement method
May 14-15, 2025: PPC submission - The recommendation to accept the proposal is sent to the Public Procurement Commission (PPC) for endorsement
May 22, 2025: PPC inquiry - The PPC asks the ministry to prove the proposal offers a “unique concept” not otherwise available
May 27–28, 2025: PPC makes additional requests – The PPC flags missing data/information, while the ministry cites a prime minister’s mandate for urgency.
May 30, 2025: Meeting between PPC and ministry – The ministry submits additional documents for consideration including spreadsheet providing verification/value for money analysis presented at the meeting
June 2, 2025: PPC issues endorsement – The PPC endorses the award; Cabinet approves the contract for 110 buses on the same day