Fairbanks North Star Borough v. Tundra Tours, Inc.

OPINION

COMPTON, Justice.

FACTUAL AND PROCEDURAL BACKGROUND

In December 1979, the Fairbanks North Star Borough School District (school district) awarded Tundra Tours, Inc. a five year contract 1 to provide bus transportation for school children in the Fairbanks and North Pole areas. Tundra Tours’ bid proposed $12,208 per day for basic contract services, nearly a $10,000 per day reduction over the previous Fairbanks school bus contractor.

With this reduction in cost, however, came a reduction in the bus service provided. In awarding the bid to Tundra Tours, the school district chose to purchase…