Public and Private Partnerships for School Bus Transportation Case Study

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. Provide an overview of the options for bus contracting (may need to talk with others who have already actually done this)The are many options related to the bus contracting. The first option would be to all bus operators to bid for contracts to operate bus services on behalf of the public-school board. This option is viable as it allows the free market system to dictate pricing as oppose to simply budgeting a set amount towards transportation which has been historically done. This competition can also increase quality of busines transportation as bids may be higher priced by offer much more reliability and value relative to traditional methods. The assets will still be owned by the school district, thus lowering the barriers to entry in the market. This is because potential operators will not need to invest large sums of money into buses but can instead leverage the existing assets more efficiently, thus allowing more competition as it relates to pricing. In exchange the boss operators selected will be paid a fixed fee with additional incentives related to performance, timeliness, cleanliness and so forth (Allen, 1976).Another option would be to allow bidders to own the entire transportation value chain. Here, the operators will fully mange and operate the entire system, and will be contractually accountable for its performance. This oversight will include elements such as vehicle maintenance, procurement, communication, scheduling, and finance. In this option, the school district will set the set the budgets, services standards and other policy matters. The option provides the best transportation system possible as the private sector, which has more efficiency and financial incentives, can ultimately provide better services. They will be much more cost efficient, more reliable, and offer better services through innovation. In exchange however, these options will cost the school district more, being slightly offset by not having the existing vehicle maintenance and labor costs.2. Identify several possible vendorsAccording to Schoolbusfleet.com (Source: https://www.schoolbusfleet.com/custom-content/10050084/top-40-contractor-fleets-of-2018) the top 4 vendors for ABC district are· First Student – Existing fleet of 44,000 buses with 1,100 district contracts, transporting roughly 2.5 million students· National Express LLC – Existing fleet of 21,500 buses, serving 550 districts, and transporting 1 million students· Student Transportations Inc. – Existing fleet of 13,500 buses, servicing 290 school districts, and transporting 1.2 million students· North American Central School Bus – Existing fleet of 3000 buses, servicing 115 school districts and transporting 205,000 students.3. Identify the potential legal issues including negotiations.There are several legal issues that can impact overall negotiations which all have a residual impact on costs. The first legal issue will be related to distance limitations. How far from the school will the buses be required to travel to transport students? In accordance with Education Law section 3635, districts must provide transportation to students who reside within 15 miles of the school. However, will ABC school district need services beyond this 15-mile threshold? What about student who live less than 1.5 miles away from school, should they be eligible for transportation services.

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The legal issues here related to access and denial or services within a given radius (Miller, 2001).Another legal issue, although infrequent, is bus strikes. Here the district must examine remediation tactics which can include one-month emergency contracts which are detailed in Education Law section 305(14)(b). In addition, the district has the legal right to contract specifically with parents as it relates to transportation for the children to and from school. In addition, the legal language must be outlined on how the school district can replace the existing provider in the event of a strike.4. Using the four frames of leadership,…

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…a very good option of communicating the coming change. Admittedly, the meetings will be contentious as a few members of the board are heavily involved in the transportation sector. The goal here is communicate frequently and engage with all stakeholders so that they understand the change.11. What would your recommendation be regarding moving forward?My recommendation would be a transition to the second option detailed in question 1 above. This would a full transition of all services to a third-party vendor. Within that transition, I would provide financial assistance for 6 months to workers who have been harmed through the transition. This will allow them adequate time to find a new job without significantly harming their income or their financial lives in the process. The recommendation further helps to lower the administrative burden and costs related to the ABC district. Under this plan no longer will the district be required to maintain a large amount of business inventory. It will also no longer need to pay for other ancillary items such as insurance or gasoline. Likewise, the plan will increase inefficiencies both financially and operationally. From the financial perspective the risk is now heavily transferred to the operator who is willing to accept the risk as long as they are being adequately compensated. Through the bidding process, the free market can better determine the overall costs as oppose to simply having a budget. Next, operationally, vendors have an incentive to perform well in order to maintain the contract. Here again the free market system allows for improvements and competition to enhance the overall services being rendered to students. This ultimately improvement reliability, efficiency and costs. Those vendors who continue to improve operations and innovate are much more likely to receive a contract from the district thereby creating competition. The beneficiaries are the….....

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