This report provides a procedure by which the educational administrator can select from available alternatives the best method for transporting students and can evaluate at intervals the success or failure of the method selected. The report outlines the methodology used to analyze the problem, defines the range of alternatives called the "contract-purchase mix," and explains the use of qualitative measures in the selection process. A costing structure, or model, is then designed for making comparisons, the details of applying the procedure are discussed, and some fundamental aspects of the decision problem are reviewed. A related document is EA 002 900. (Author/JF)