Mat-Su school bus operator docked more than $1.5 million in ‘lost’ contract revenues since August

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Mat-Su school bus operator docked more than $1.5 million in ‘lost’ contract revenues since August
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The new company providing school bus service in Mat-Su is facing a possible driver strike and is down more than $1.5 million in anticipated revenue after failing to meet contract specifications.

Durham was supposed to receive nearly $16.7 million from the district in its first year of service, according to the company’sSo far, however, Durham’s “lost revenue” this school year totals nearly 10% of that, or more than $1,578,760, according to information provided by district spokeswoman Jillian Morrissey in response to a records request.

The company’s losses from August through October totaled more than $1.2 million, with nearly $169,000 reflecting “liquidated damages” — a predetermined amount of money Durham and the district agreed the bus company would pay in case of deficient performance — and the remainder due to “services not being performed,” Morrissey said in an email.

A spokesman for Durham parent company National Express confirmed the district’s figures in a statement last week. “It is accurate that there was lost revenue for our company during the months mentioned as we do not get paid for services that are not performed. This includes snow days,” spokesman Edward Flavin wrote.

Morrissey in an email, however, said the lost contract revenue did not reflect weather cancellations “but are for routes that have not been operable due to bus shortages and driver shortages primarily. Durham has not suffered a loss of revenue for days in which the District has decided to have remote learning due to inclement weather.

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