TOP STORY
In the Driver’s Seat Contracted student transportation services are steering a steady course, companies say
By Art Gissendaner P
rivate student transporters say the industry is prospering despite having to travel the same tough economic roads as their public counterparts. Some industry experts even
credit the uncertainty of the economy for the increase in business. “(Contracting) is growing and the primary reason is because of
the economics of the time,” said Barry Stock, principal of Land- mark Student Transportation. “Over the past seven years there have been more school districts than ever looking at outsourc- ing. Of those that have done it, 99.9 percent say they would never go back to in-house.” Like his counterparts, Stock, a past president of the National
School Transportation Association (NSTA), said contract trans- portation’s popularity is actually accelerating. Opting for private carriers frees up school districts to concentrate on teaching stu- dents instead of transporting them. Escalating bus replacement and maintenance costs can also be left to contractors. “Te core business for educators is educating students,” Stock
said. “Our core business is transporting students. Within a school district, a bus driver is an employee. To a bus driver employed by a contractor, the school district is a customer and the bus driver must take care of that customer. From a labor perspective, not having to deal with grievances and other labor issues is a bonus to the district.” John Gillie, senior vice president of commercial development
for First Student, takes the contracting advantage a step further. “We regularly hear from our district partners that they will never
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waste resources outside the classroom.” Conversely, one example of a school district bucking the trend
and taking back its bus service from private contracting can be found near Fresno, Calif. Charlie Ott, transportation director for the Clovis Unified School District, said regaining transportation came with startup expenses and additional work for him and his staff, but he expects to save more than $400,000 in operating costs this year alone by getting the right kind of equipment and operating efficiently. “I get the satisfaction of knowing that my district is saving $400,000 a year that is going back into the classroom,” Ott said.
We’re not going to land every bid conversion or acquisition, but we
want to grow at a pace where we can protect the integrity and quality of our service. ❞
— Patrick Vaughn, Student Transportation of America
go back into the bus business,” Gillie said. “Contracting bus ser- vice provides key district personnel with many freedoms they enjoy — with budget being only part of the equation. Districts choose the level of control or freedom from the contractor/dis- trict relationship. Te contractor provides a customized solution that addresses a variety of daily transportation challenges.” Rick Klaus, vice president of sales for Durham School Services
agreed saying school districts look at contracting as a viable op- tion and not as a means of survival. “Contracting allows school districts to focus on their core competency of education and not
22 School Transportation News Magazine June 2012
“Contractors are a for-profit business. All we have to do is pay our expenses.” Tis is the second school district Ott has retrieved from
conversion. He cautioned that school districts considering out- sourcing should fully access their needs and maintain oversight with a savvy contract manager. Still, all contractors interviewed for this article agreed that any
increase in the popularity of outsourcing has raised the competi- tive bar and numerous companies large and small are getting into the game. “Te market is highly competitive,” added Gil-
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