By Adam Pagnucco.
MCPS is partially terminating its problematic electric bus contract. The contract, which has been the subject of an inspector general report and multiple lawsuits, has not generated the results once touted by former Superintendent Monifa McKnight and MCPS has had to acquire more diesel buses. Last fall, MCPS representatives told the county council that the contractor owed the school system $1.5 million in fees but they nevertheless intended to renegotiate it.
That’s not going to happen now.
In a letter sent today, Superintendent Thomas Taylor notified contractor HET MCPS, LLC, an affiliate of Highland Electric, that the district is partially terminating its service agreement pertaining to the electric buses. An MCPS spokesperson wrote me the following:
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One of MCPS’ top priorities is to secure and maintain a fleet of reliable buses. We believe this is crucial to provide the best possible transportation services for our students. Following the delivery of 50 EV school buses anticipated for July 2025, we have determined that it is in our best interest to terminate the remainder of our contract with Highland Electric. MCPS will continue to have a business relationship with Highland Electric in order to maintain our fleet of 285 EV school buses after accepting delivery of the last order of 50. This decision is based on several factors, among them:
Operational Challenges: We continue to encounter operational difficulties. A growing number of buses are experiencing extended periods of service interruption, particularly during colder weather conditions, due to charging challenges and part issues. This impacts our ability to ensure consistent and reliable transportation for our students.
Special Education Needs: Our district has an increasing need for special education buses. The current product does not adequately meet the mileage requirements necessary to effectively serve our students.
Industry Instability: The current state of the EV school bus industry, characterized by recent financial instability among a manufacturer, presents possible long term concerns. Moreover, the recent changes to withhold federal grant funding related to alternative and sustainable vehicle and infrastructure purchasing may pose constraints on the EV school bus industry at large.
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Taylor’s letter to the contractor is reprinted below.
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January 31, 2025
VIA EMAIL
HET MCPS, LLC
195 Defense Highway
Annapolis, Maryland 21401
Attention: Duncan McIntyre (duncan@highlandet.com)
Richard Matteo (richard@highlandet.com)
Dear Mr. McIntyre:
As the superintendent of schools, I have determined that it is in the best interest of the Board of Education of Montgomery County, operating Montgomery County Public Schools (“MCPS”) to partially terminate for convenience the Transportation Equipment Services Agreement (the “TESA”) dated as of March 1, 2021, between MCPS and HET MCPS, LLC (“Provider”). Accordingly, the MCPS notifies Provider that the TESA is hereby terminated in part for convenience pursuant to and in accordance with Article 12 (“TERMINATION FOR CONVENIENCE”) of Exhibit 3 (“MCPS General Contract Articles”). The partial termination will be effective on the tenth day following the date of this Notice of Partial Termination and affects and rescinds any obligation to receive or accept delivery of, or become financially liable for, the forty (40) buses referred to by the parties to the TESA as the “Batch 6” buses previously slated for delivery in advance of the 2026-2027 school year.
MCPS reserves all rights, without prejudice, including the right to redesignate or convert this Partial Termination for Convenience pursuant to Exhibit 3, A1ticle 12 of the TESA into: (a) a Partial Termination for Convenience pursuant to another applicable provision, or (b) a Termination for Cause on any/all appropriate alternative grounds.
Notwithstanding this Termination, MCPS recognizes the value in the parties’ continued relationship with respect to charging stations, chargers, and charger-related equipment, communications equipment, maintenance and support provisions necessary or expedient to the effective utilization of the buses delivered and to be delivered under the parts and provisions of the TESA not hereby terminated (herein, the “Delivered Buses”), and MCPS expects to work with Provider on adjustments or revisions to other terms of the TESA commensurate with and supportive of an ongoing relationship with respect to the Delivered Buses.
Sincerely,
Thomas W. Taylor
Superintendent of Schools
