Outsourcing of school transportation service is one of the fastest-growing areas in government contracting, according to a new report by Onvia.

The finding comes in the 2017 edition of the commerce intelligence company’s annual "10 Hotspots in Government Contracting" research. The report uses current, future, and historical government transaction data from Onvia's B2G Intelligence System to show the most significant rates of growth in published solicitations.

In the area of pupil transportation, Onvia’s B2G Intelligence System found that from 2015 to 2016, there was a 10% increase in school bus service bids and requests for proposal (RFPs) issued by public districts.

The report also highlights the top 10 states for school bus service bids and RFPs, with New Jersey and New York at the front of the pack.

“While privatized educational services have their share of critics, school funding difficulties will continue and there is a more business-friendly administration at the federal level,” Onvia says in the report. “In this environment, there is a strong potential for further growth in private bus services in the coming years.”

Other government contracting hotspots identified in the Onvia report include providing clean water, serving people with disabilities, strengthening disaster services, and innovating education.

Vendors and buyers can request a free copy of the Onvia report here. The company also recently published a blog post about the increase in school bus service bids.

Meanwhile, a separate study released last year by the Mackinac Center for Public Policy shows long-term growth in outsourcing school transportation services in Michigan. The number of school districts contracting out for busing has risen from 21 districts in 2005 to 137 districts in 2016, according to the center's Michigan School Privatization Survey 2016.

That Mackinac study is available here.