TIVERTON — The School Committee thought it had an agreement on a new school bus transportation contract last month, despite the fact it had to swallow hard to accept a quarter-million dollar price increase.

But the panel learned Tuesday night the First Student bus company now wants a guarantee that if buses are idled because of another COVID-19 school closure, it will be paid at least 50 percent of the daily rate.

“We are essentially paying them for not providing bus service,” said Director of Finance Amy Roderick.

The trade off would be that instead of a five-year contract, the company would agree to a three-year pact with two one-year extensions. That is what the School Committee had originally wanted to advertise for, but a consultant mistakenly advertised the bid for five years instead, leaving the committee with no option but to accept it.

“Essentially, they’re rejecting what we approved,” Committeewoman Deborah Pallasch said. “They bid five years, brought it to us and now they’re saying no.”

The initial bid also had language saying if the buses aren’t used, the School Department does not have to pay.

Roderick said the company is “holding out.” Precedent was set by the state Department of Education that approved a provision to pay full price for bus service, even if the buses weren’t used.

First Student was the only company that submitted a bid to Tiverton, leaving the School Committee “over a barrel. We have no choice,” for bus transportation services, said Committeewoman Elaine Pavao.

Roderick said it leaves the School Department “between a rock and a hard place.”

It’s happened in other municipalities, Roderick said of single bids, even though there are two bus companies operating in the state.

That led Pallasch to say it’s a monopoly and an issue the General Assembly should deal with.

“I have put it in the ear of General Assembly members I know,” said Tiverton Middle School Principal Susan Craven, whose husband is Rep. Robert Craven (D-North Kingstown).

School Committee Vice Chairwoman Diane Farnworth asked Roderick to prepare a list outlining what other districts are doing about paying for unused buses before the committee votes on the requested addendum to the contract.

Committee Chairman Jerome Larkin wondered why the bus company was not bound by the original bid, even though the new contract has not been signed by the bus company. “They are not living up to their commitments,” he said.

“Their attorneys said they can’t in good faith sign a contract where they’re going to lose money,” Roderick said.

Roderick said she was hoping the two sides could come to an agreement before the start of school next Monday, but the committee agreed it would not act on the addendum immediately and set another meeting for Sept. 22.

The cost per day for a regular bus is $416.66. There are 14 regular buses in Tiverton. Three special education buses each cost $509.11 per day, and the one bus to the Newport Area Career & Technical Center in Newport costs $417.45 per day.

If those buses are idled due to a COVID-19 school closure, the cost for each bus per day, according to the addendum, would be $208.33 for each of the 14 regular buses, $254.56 for each of the three special education buses, and $208.73 for the bus to NACTC.