HomeNewsTotal Cost of Ownership

Total Cost of Ownership

It’s farther down the road for schools buses to adapt technologies that are becoming commonplace in the consumer automotive sector — such as next-generation connectivity and sensing leading to autonomous vehicles. But advanced technologies are already proving themselves for the school transportation niche and helping fleet operators drive down costs. 

Vehicles carry an array of OEM-equipped technologies such as routing, GPS and telematics as well as aftermarket tools aimed at increasing safety and lowering the total cost of ownership (TCO), a concept that weighs the metrics of fuel economy, maintenance costs, capital costs and financing in a vehicle’s life on the road. Real field data is pointing to the winning investments and strategies for operating efficiently. 

While safety is job one for all, fleet operators have different definitions for what they consider a successful fleet operation. They focus on different key performance indicators (KPI) to get a better total cost of ownership for their particular needs.

Many organizations retain vehicles far past their optimum economic life, which can result in excessive maintenance costs, increased fuel costs and lower utilization. 

Advertisement

“Reducing vehicle lifecycle cost requires a strategy. Fleets should renew to correct replacement cycles. The problem is fleets are competing for money, and they often fail to make the business case for the funding that would allow better replacement cycles and lower total cost of ownership,” said Gary Hatfield, vice president of Mercury Associates, a consulting firm pecializing in fleet management.

KPIs At Work

In a recent survey conducted by School Transportation News, 220 superintendents weighed in on what KPIs they’re managing to identify efficiencies, meet budgets and prepare for cutbacks. The range is expansive.

At the Patchogue-Medford School District in New York, Transportation Supervisor Carol Sicignano said changing contractors and an investing in cloud-based Versatrans software has helped exceed the goal of transporting 6,700 students on 113 buses. 

“The new system helped us identify efficiencies in routes and seating capacity. We were able to cut seven buses in the first year of use,” she said.

Bethlehem Consolidated School District in Delmar, New York, tracks as many as 20 KPIs for its 124-bus fleet. The transportation department breaks them down to determine unit costs per student, bus, route and mile. For additional efficiencies, the district is considering propane-powered school buses for its next purchases.

Meanwhile, out West in California’s Sonoma County, performance is measured across 16 school districts, as well as individually. “We review our cost per mile and cost per pupil to compare with other districts in the state.  Internally, we look at important data such as absenteeism, staffing levels, fuel mileage and many other metrics,” explained Executive Director Michael Rea of West County Transportation Agency, which manages 77 buses to transport 2,100 students.

Rea said other California districts have gone as far as eliminating the transportation program to meet budgets. Having faced cuts over the past two years, West County Transportation Agency is considering CNG buses as an efficient way to stay in business.

Sixty-five other STN survey respondents said they are also interested in alternative-fuel vehicles for their next school bus. Propane has the most interest, followed by CNG, biodiesel and electric. Auto companies and early adapter fleets are coming back from the field with evidence of the low TCO potential of alternative fuels.

Road-Tested Alternatives

Short of eliminating buses all together, these alternative vehicles are providing an opportunity to reduce lifecycle costs and gain fuel efficiencies. 

“Fuel cost is the driver in this industry. We have so much propane in the states. It’s lean with good range and a lower cost than diesel. It could help put money back into the classroom for the curriculum,” said Todd Mouw, VP of sales and marketing for ROUSH CleanTech, which creates and installs propane autogas fuel systems for Type A Micro Bird and Type C Blue Bird school buses. 

ROUSH CleanTech analyzed hard data from customers operating 4,000 propane school buses in cold and hot weather cycles over the past three years. 

One TCO success story is the Alvin Independent School District in Texas, which decided five years ago to have both diesel- and propane-powered buses as a way to overcome energy supply shortages and price spikes. It now operates more than 100 propane autogas school buses that travel nearly 1 million miles each year combined. The result is 60 percent fuel savings per gallon when compared to diesel fuel, plus 152,700 fewer pounds of carbon dioxide emitted per bus, per year. 

“It’s very easy for mechanics to service the propane buses in a short period of time. With our diesel buses, there are additional filters to change and more components to look at,” said Juan Mejias, fleet manager for Alvin ISD.

Propane users and suppliers also point to the lowest infrastructure costs, as school districts can realize no upfront costs for propane tanks and fueling stations if they sign a long-term contract.

Other early adaptors are gaining benefits from 2,500 CNG buses in school districts across the country. The Los Angeles Unified School District operates the largest fleet of CNG school buses in the country with 475 out of the 1,600-vehicle fleet. 

“It’s a good product, it’s good for the environment and it serves us well,” said Donald Wilkes, LAUSD’s transportation director. SoCalGas partnered with the district to deliver CNG and to help build the infrastructure.

Technology Filling the Gaps

Cloud technology is enabling both OEMs and independent software providers to build more advanced tools for fleet managers to drive down costs. Thanks to GPS and telematics, data is collected and analyzed to find optimum performance.

“Each fleet needs to consider their unique situation. Routing software can help reduce routes and fuel use. GPS and telematics can help monitor speed and the use of vehicles. Maintenance can be tracked and data collected to better manage the fleet. It also can help to reduce crash costs,” said Hatfield.

A year after launching its on-board remote diagnostics system, Navistar says its OnCommand Connection is proving itself out in commercial fleets, and is available for school buses. 

“Our customers are seeing tangible financial benefits by proactively implementing the system, so we are now turning our sights to expansion across all segments of our business,” said Mike Cerilli, VP and GM of the  Navistar Connected Vehicle Business.

Taylor Truck Lines has more than 300 trucks using the system as a way to achieve more efficient repairs and maintenance, better lifecycle value and an overall lower total cost of ownership. They’ve remotely identified vehicle issues before the truck breaks down and requires towing.

“After the first two months, we’ve reduced roadside breakdowns and towing bills down to less than one per month—the system pays for itself,” said Matt Otte, director of maintenance of Taylor Truck Line.

Blue Bird was the first to market two years ago with its own factory-installed GPS and telematics solution in partnership with Everyday Solutions. 

Last year, Thomas Built Buses and Zonar announced a partnership to deliver their own GPS and telematics as standard equipment in the Saf-T-Liner C2.

“It’s important for customers to be able to monitor every mile in real time to try and minimize budget drains such as idle time, driver behavior and unwanted downtime,” said Mario DiFoggio, manager for Thomas’ Center for Education and Marketing, “Having an advanced telematics platform like Zonar on board is a real asset when a district or fleet is looking for smart ways to lower their total cost of ownership. It is amazing what just a few small changes can do to your bottom line when you have access to all this information at your fingertips.”

November 2024

Meet the 2024 Transportation Director of the Year, Craig Beaver, director of transportation at Beaverton School District in Oregon....

Buyer’s Guide 2024

Find the latest vehicle production data and budget reports, industry trends, and contact information for state, national and federal...
Advertisement

Poll

Does your operation provide staff with end of the year performance evaluations?
49 votes
VoteResults
Advertisement