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Conversion
and Outsourcing
 Outsourcing
has proved successful in almost all cases where schools have partnered
with private companies to provide transportation. While maintaining
control over transportation through contract stipulations, school
administrators who convert to contracted transportation are able
to redirect both energies and resources to their core function,
education.
The reasons
that districts consider contracted transportation vary, but often
fall into one of the following categories:
-
The district fleet is aged, and funding is not available to upgrade
it;
-
New equipment regulations and safety or environmental innovations
make new buses desirable, but the district replacement schedule
does not allow for rapid turnover of the fleet;
-
Transportation cost increases have outpaced funding;
-
Economies of scale are not always available and costs are out
of line with similar districts;
-
System inefficiencies have resulted in overextended resources
and scheduling difficulties;
- Federal,
state, or administrative changes and additional responsibilities
(redistricting, addition of interdistrict magnet schools, parental
choice prerogatives) challenge the system;
- Administrative
headaches (dealing with parents, employee absenteeism, drug and
alcohol testing, mandated paperwork) require an inordinate share
of administrators’ time and attention.
Outsourcing
can solve any and all of these problems. Private contractors whose
primary business is pupil transportation have a single focus: to
provide school bus service in the most efficient and cost-effective
way possible while maintaining the highest levels of safety and
reliable service. Just as school districts are experts at providing
education, private school bus companies are experts at providing
transportation.
Through contracting,
a school district can upgrade or completely replace an aging fleet
with new buses equipped as the district chooses (within the boundaries
of state law) without making a capital investment. It can control
transportation costs and accurately predict those costs through
the life of the contract. It can protect current employees’
wages and benefits through contract specifications or reduce inflated
employee costs by allowing the contractor to use market standards.
Contractors
have expertise in planning, routing and scheduling that often results
in more efficient service and lower costs. In many cases, they can
take advantage of economies of scale, coordinated services, shared
facilities, and dedicated personnel to improve both efficiency and
the bottom line.
Cost
Comparisons
When a district
compares its current costs to the cost of contracted transportation,
it is important to recognize all expenses. In addition to the obvious
direct costs of driver and mechanic wages and benefits, vehicles
and parts, maintenance, fuel, insurance, garage and parking facilities,
there are indirect or hidden costs that also must be considered.
Many times, expenses that are related to transportation are included
in another department’s budget or in general administration,
or are simply overlooked. These might include payroll taxes, clerical
and support services, utilities, legal fees, fuel tank testing and
repair, workers’ compensation premiums and losses, depreciation,
office supplies, hazardous materials disposal. In addition, outsourcing
frees up capital for investment in other areas, and may provide
revenue from leasing land or buildings for bus parking, maintenance,
and terminal offices.
Avoiding
Pitfalls
A change as
significant as outsourcing transportation does not always occur
easily. It requires advance preparation, diplomacy, and sensitivity
to those who will be affected by the change—drivers and other
personnel, parents, members of the board of education, and taxpayers.
Pupil transportation contractors are aware of the concerns of the
stakeholders and know that a full understanding of the process is
imperative.
Boards of education
are most concerned with maintaining control over transportation.
This is easily accomplished through contract specifications, including
detailed requirements for equipment, personnel and service, and
enforcement provisions. Furthermore, a district that is dissatisfied
with a contractor can change service providers. This competition
aspect encourages high levels of service and efficiency among contractors.
Driver resistance
is probably the most difficult barrier to overcome. Drivers mistakenly
worry that outsourcing means their jobs are at risk. In fact, contractors
view the district’s drivers as their most valuable asset.
Drivers’ experience and goodwill in the community are invaluable
to the contractor, who will hope to capitalize on those assets.
A district can assure that drivers maintain current levels of wages
and benefits by writing those specifications into the contract.
In addition, drivers often benefit from the opportunity to pick
up extra work driving charters or other coordinated transportation
for the contractor, and in some states from the ability to collect
unemployment compensation during school vacation periods. In many
cases, drivers benefit in more subtle ways as well, through more
professional training and more direct influence on operations.
Once the parties
fully understand the advantages of outsourcing, they rarely reverse
course. It is highly unusual for a district that has contracted
transportation to take that function back in house.
Conclusion
Outsourcing
is a successful strategy for solving a variety of transportation
problems. Partnering with a private school bus company whose expertise
is pupil transportation allows the school administration to concentrate
on their primary function, educating students, and at the same time
provides service which is safe, efficient, and cost-effective.
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