First Student closer to bus contract renewal

Local school bus company B & L Transportation Inc. has raised claims it can save the Terrebonne Parish School District oodles of money on the cost of renting buses – a little more than $200,000, according to official documents.

But those claims were quickly dismissed in a Buildings, Food Service and Transportation Committee meeting Monday, where school board officials voted in favor of negotiating a new contract with their current school bus provider, Slidell-based First Student.

Tony Vidrine, a regional manager for the company, said his company would be willing to hash out terms on a deal that would be cost effective for the district. “We’re very flexible,” he explained.

The large company has worked with Terrebonne Parish schools for nearly 10 years and, according to Terrebonne Parish Superintendent Philip Martin, has a history of success. “A 10-year track record means something, or at least it does to me,” he said.

“Many times we’ve needed things and no matter what our needs were, [First Student] provided a service,” recalled board member Roger DeHart of past times.

First Student operates 60,000 buses in more than 40 states and has gross revenue of $4.8 billion, according to documents presented during the meeting.

“There is some safety in these numbers,” claimed Martin. “With the corporate strength…I feel comfortable. And all things considered, things are not even.”

On the other side of the spectrum is Billy Schwertz and his wife Leslie, who have owned and operated B & L since its formation in 1989. Schwertz is an ASE certified master school bus technician and has more than 20 years of experience in maintaining bus fleets; everything from charter to school buses. Schwertz’s company is based in Larose but maintains a portion of its fleet at a site in Galliano, about a 40-minute drive from Houma. And although some call the small company a “mom and pop” operation, it’s currently in its eigth year with Lafourche Parish School Board, which rents over 150 buses.

In recent days, both companies had entered what resembled a bidding war in hoping it could secure a multi-million dollar contract with the district. One of Schwertz’s biggest concerns was that he didn’t get a chance to submit a second proposal to officials in Terrebonne before the regular board meeting last week. However, from what officials are saying, the playing field doesn’t necessarily have to be equal.

“It’s not a bid, it’s none of that,” explained Martin. “It’s the board’s prerogative to pick who they feel is going to be best.” When the board seeks a service, it issues a request for proposals, not bids, he said.

While the process of bidding varies by establishment, often times bidders are selected based on price — the lowest wins. With proposals, price doesn’t necessarily have to be a major player. In this case, if the board deems the highest proposal the best, it’s a done deal.

Essentially, moves to approve a renewal contract with First Student were derailed last week by a request from Schwertz to consider a revised, less-costly proposal. A deal he claimed would save the district $260,460 when compared to First Students’ most recent proposal.

The measure presented to the board was the second released from Schwertz’s company; a first was submitted to the school board in November 2009 and came in about $5 million cheaper over a 5-year period than First Students’, which was originally submitted in August.

With the motion, the local business owner was able to delay the board’s decision and send the recommendation back to the transportation committee for review, where DeHart claimed the difference in costs between the two contracts was “…no longer an issue.”

Board members Roger DeHart, Donald Duplantis and Hayes Badeaux originally voted against the measure. Officials from First Student said the proposal submitted in August included replacing a large portion of the district’s buses with air-conditioned units, which accounted for the increased price.

In what Schwertz said was a response to his offer, First Student submitted a second proposal to the district in January, with an overwhelmingly reduced price tag.

However, the number of air-conditioned units the company would provide dropped from more than 40 the first year to 19, matching B & L’s numbers.

It’s not clear what the new contract will look like, but pending approval from the board at its Feb. 23, First Student will continue it’s relationship with Terrebonne Parish schools.