No competition for school bus contracts poses problem
By
Susan Spencer
Telegram & Gazette Staff
Posted Dec 16, 2017 at 8:00 PM
Updated Dec 16, 2017 at 11:26 PM
School transportation costs hit municipal budgets hard across the
state, and several communities in Central Massachusetts have been
grumbling about an underlying factor as their multiyear contracts for
school buses are about to go out for bid. The problem: There’s no
competition in the market.
Despite having a number of school bus companies operating nearby, district after district contacted by the Telegram & Gazette reported usually having just one vendor submit a bid.
Industry representatives say the problem stems from consolidation, with large bus companies buying out the mom-and-pops that used to provide local service.
And with regulatory requirements for 60 hours of training, paid earned sick time and health insurance assessments for what is a part-time job, “it’s a business that over the years has gotten more difficult to be in,” said David Strong, president of the School Transportation Association of Massachusetts and owner of a family-run bus company in Easthampton.
School bus drivers, who typically make around $20 an hour in suburban districts and $25 to $30 an hour in cities, according to Mr. Strong, are hard to find as the economy improves.
Some school districts have explored partnerships with others or are considering operating their own school bus service.
On Thursday, representatives from five area districts agreed to pursue joint procurement through the Central Massachusetts Regional Planning Commission, as a way of pooling their buying power and negotiating better rates.
The districts working to issue a joint request for bids, to be opened in early February, include Auburn, Dudley-Charlton, Leicester, Oxford and Webster.
A sixth district, Millbury, hopes to join the procurement group when its current three-year contract ends in 2020.
Richard G. Bedard Jr., business manager for Millbury Public Schools,
said that only once in the last several contract cycles did the district
receive more than one bid. That second bid came from a national company
based in Illinois and carried a higher price.
Millbury has contracted with AA Transportation Co. of Shrewsbury since its previous vendor, Atlantic Express, declared bankruptcy in 2013, in the middle of the school year.
“We really try to cultivate anyone we think might be able to respond,” Mr. Bedard said.
In 2016, he sent bid packets to 13 firms, but again only AA responded.
The district spends more than $1 million a year for 11 buses, two 20-passenger shuttle buses and a three-passenger in-district wheelchair bus with a monitor. AA provides buses for athletics and field trips and after-school runs as part of the contract.
Several area vendors attended the bid opening last December for the contract but didn’t submit bids of their own.
AA’s prices in Millbury’s three-year contract increase around 3 percent a year. In the company’s previous contract, for school years ending in 2015 through 2017, annual increases approached 5 percent.
“On the one hand, I want to commend AA for coming to our support
(when Atlantic Express quit),” Millbury Superintendent of Schools
Gregory B. Myers said. “On the other hand, it showed that maybe the
capacity had already been there.”
Despite having a number of school bus companies operating nearby, district after district contacted by the Telegram & Gazette reported usually having just one vendor submit a bid.
Industry representatives say the problem stems from consolidation, with large bus companies buying out the mom-and-pops that used to provide local service.
And with regulatory requirements for 60 hours of training, paid earned sick time and health insurance assessments for what is a part-time job, “it’s a business that over the years has gotten more difficult to be in,” said David Strong, president of the School Transportation Association of Massachusetts and owner of a family-run bus company in Easthampton.
School bus drivers, who typically make around $20 an hour in suburban districts and $25 to $30 an hour in cities, according to Mr. Strong, are hard to find as the economy improves.
Some school districts have explored partnerships with others or are considering operating their own school bus service.
On Thursday, representatives from five area districts agreed to pursue joint procurement through the Central Massachusetts Regional Planning Commission, as a way of pooling their buying power and negotiating better rates.
The districts working to issue a joint request for bids, to be opened in early February, include Auburn, Dudley-Charlton, Leicester, Oxford and Webster.
A sixth district, Millbury, hopes to join the procurement group when its current three-year contract ends in 2020.
Millbury has contracted with AA Transportation Co. of Shrewsbury since its previous vendor, Atlantic Express, declared bankruptcy in 2013, in the middle of the school year.
“We really try to cultivate anyone we think might be able to respond,” Mr. Bedard said.
In 2016, he sent bid packets to 13 firms, but again only AA responded.
The district spends more than $1 million a year for 11 buses, two 20-passenger shuttle buses and a three-passenger in-district wheelchair bus with a monitor. AA provides buses for athletics and field trips and after-school runs as part of the contract.
Several area vendors attended the bid opening last December for the contract but didn’t submit bids of their own.
AA’s prices in Millbury’s three-year contract increase around 3 percent a year. In the company’s previous contract, for school years ending in 2015 through 2017, annual increases approached 5 percent.


