SPECIAL REPORT


The Evolution of Contracted Transportation Decisions


One school district embraces the traditional model of using a private bus company while another chooses the increasingly popular electrification-as-a-service model


Written by Taylor Ekbatani | taylor@stnonline.com T


he decision to outsource transportation operations isn’t taken lightly. Over half of 120 transportation directors responding to a recent magazine survey stated that they do not


contract out any part of their transportation operations. However, amid the driver shortage and ever-increasing costs, some districts have transitioned to a third-party contractor, either in the traditional sense or to meet the new era of today’s specific transportation needs. Farwell Area Schools in Michigan took the leap in 2019


to contract out with a third-party company, the district was previously running all operations in-house. Deb- bie Schomisch, transportation director, said the school board decided in the Spring of 2019 that it wanted to privatize. A big deciding factor was that the cost of retirement benefits took a sizable jump, as well as the rising cost of purchasing buses. After an RFP process, the private company, Auxilio Services out of Cincinnati, Ohio, started in July that same year. Schomisch shared one of her initial concerns was a


decline in the level of service. However, she noted that Auxilio Services hired all the district’s bus drivers, so the same faces remained behind the wheel for the students. Plus, the drivers received $2 an hour raises, something they would not have received if the district didn’t go pri- vate. Routes were kept the same the first year, but have been cut each subsequent year because of the driver shortage. This was possible due to fuller buses and a decreased student enrollment. There were other changes, she added. An issue that


arose was drivers lost their state retirement benefits. “The district was great because I had three drivers that were within two years of being vested,” she explained, adding that Farwell allowed them to continue working at the district in the kitchen so they could qualify. Schomisch explained that Auxilio Services employees


shadowed the transportation department for the first couple of weeks to see how things were being run. She noted that Farwell started leasing its buses in 2014. There


were an initial 12 leased buses in the fleet at the time it outsourced with three remaining buses owned by the district. During the transition, the district covered the costs of their buses and the company covered theirs. As bus leases expired, Auxilio Services either brought in new buses or purchased the remaining leased buses to join the contractor’s fleet. “To the public, the transition looked seamless,” Scho- misch said. Since the switch, she said operations have been good, adding that it helps that she still works for the district and can serve as the liaison between the district and bus company. “The district knows that I have their best interests in the


forefront all the time,” she said. “I think that makes it easier on the school board and the superintendent. I also take good care of my drivers. I want to make sure that they get what they need to make their jobs as smooth as possible. It does not matter that they work for the private company, they are still mine. I have gone to bat for them with the private company to get them pay increases and make sure that we are competitive with surrounding districts.” Driver wages have risen about $6 since Farwell made the transition to go private in 2019. In 2018, prior to going private, Schomish said the transportation budget was $1.139 million. For the 2022-2023 school year, the budget dropped to $775,000. Meanwhile, Charlotte-Mecklenburg Schools in North


Carolina opted for a non-traditional contract that is becoming more common because of school bus elec- trification efforts. Adam Johnson the executive director of transportation, said the North Carolina Department of Public Instruction approved Highland Electric Fleet’s request to reach out to districts across the state to gauge interest in electricity and partnering. Highland and Charlotte-Mecklenburg began talking


in April 2021, which started an over a year-long process of contract iterations developed by both legal teams. The contract was nailed down to cover infrastructure, sup- port of the buses, maintenance, charging stations and


Communication and questions are key when contracting out operations. Visit stnonline.com/go/ip for information on what questions to ask vendors.


18 School Transportation News • APRIL 2024


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