Student Transportation Inc. and its subsidiary Student Transportation of America Inc. (STA) have been awarded four new contracts that will start with the upcoming school year.
Two of the contracts are for operations in Connecticut and will reportedly add over $4.6 million in annualized revenues. STA will purchase a new fleet of 80 vehicles as part of the agreement.
The Connecticut contracts, which are both for five years, allow for extensions following the initial term. In addition, both include 100-percent customer-paid fuel clauses.
Officials said STA currently has several longstanding operating locations in Connecticut and the new contracts will integrate well into the existing regional structure.
"We have recently renegotiated some long-term contract extensions and renewals in the state, and all contracts up for renewal this year have been extended,” said Patrick Vaughan, chief operating officer. “These new five-year contract wins complement our local team and add regional density to our base of operations in the state. Our drivers, mechanics and operating staffs have been consistent and do an excellent job at safely transporting our students to and from school."
The other two contracts are for operations in New Hampshire, and they are also five-year agreements. Officials said they include extensions and will add approximately $4.3 million in annualized revenues for the next fiscal year.
STA will provide a new fleet of 80 vehicles as part of the agreement, and both contracts contain fuel price mitigation. One of the contracted customers will supply all fuel requirements; the other contract includes a fuel price escalation clause in the event of higher fuel costs.
Of these recent bid wins, Vaughan said, "We are thrilled to be awarded these new contracts in New Hampshire. References from our existing customer relationships in the state played a significant role in our proposals meeting the needs of the districts, as they were seeking to improve customer service levels and vehicle age."
He also said that the company is already preparing for the start-up to have a smooth beginning of the school year.