Instructions for Transportation Contract Extensions (Form CE)
A board of education may agree to extend a contract as many times as it wishes; there is no statutory limit. However, a single extension agreement may only cover a period of 1, 2, 3, 4, or 5 school years. The full term of a multi-year extension must be included in a single Extension Form. For example, where an extension covers a 5-year term, the ending date will be June 30 of the fifth school year.
Only contracts that have been competitively bid, or awarded through a Request for Proposals (RFP), may be extended.
Extension must be approved by the Superintendent of Schools and filed within 120 calendar days of the first day of service; otherwise, an aid deduction will be taken for each school day that an extension is late.
Complete SED Code in left-hand corner and Prior Year Contract/Extension Number in right-hand corner.
Complete all information in the address box.
Check the applicable Cost Justification Form boxes that indicate whether the contractor has justified the percentage increase in price and whether the board of education has agreed to a CPI "pass-thru". District must analyze all Cost Justification Forms to determine whether the percentage increase in the contractor's cost is at least equal to the percentage increase in the price of the extension. The Cost Justification Form must be filed with the Department whenever a board of education agrees to pay a contractor in excess of CPI. Where there are no such excess costs, the Justification Form is not filed, but retained in the district for six years.
Complete the contract agreement date of the original contract that is being extended.
Complete all of the remaining entries that are applicable. The first day of service should be the actual day on which service begins.
In the space below the "unit cost" line, enter the prior year contract or extension price(s) and the percentage increase for the current year. If necessary, attach a separate sheet.
The percentage increase in price must not exceed the regional consumer price index (CPI) or the percentage increase in the contractor's cost of operation, whichever is less.
The date the parties executed the extension must be on or prior to the first day of service. NOTE: A deduction will be taken for each school day that the execution date is subsequent to the first day of service.
The date of the Superintendent's Approval must be on or after the Date of Extension and prior to filing.
All signatures must be original.
Mail an original copy of Form CE to the address on the top of the form within 120 calendar days of the first day of service. Retain a copy for your records. The Department will notify your district in writing of all extension approvals.
A contract may not be materially altered when it is extended. However, where the contract specifications include language which authorizes additional service or a change of service, such modifications can be made. The contract bid proposal must include a specific price for the additional service or change of service. NOTE: A letter describing any modifications must be submitted to the Department.
Where extending a contract
that includes a number of bid items, each with a separate price,
attach a list of the various routes or destinations along with
prior year prices, the percentage increase, and current year prices.
On the face of Form CE, write "see attached" where the
extension price normally would be entered. Also, complete the Total
Anticipated Annual Cost entry for the aggregate cost of all the
routes or destinations listed.
Wherever possible, combine in a single contract extension all bid items awarded to a particular contractor through a single bid opening. [Note: Commissioner's Regulation 156.1(c) states that separate contracts shall be awarded for transportation to and from school and for other purposes, including but not limited to field trips and athletic events.]