Academy Bus is paying NJ Transit over alleged fraud. But it still gets contracts

Yahoo! News - May 12th, 2025

NJ Transit has awarded four bus contracts to Academy Bus, LLC, a company that previously settled a $20.5 million lawsuit over defrauding the agency and stranding passengers. Three contracts were granted on an emergency basis without competitive bidding, and a fourth saw Academy as the sole bidder. Academy's contracts amount to over $156.3 million, despite the company's history of unreliable service and financial misconduct. NJ Transit defends the decision, citing Academy's resources and the need for urgent service continuation amidst a declining private bus market.

The use of Academy Bus by NJ Transit has raised concerns about transparency and competition, as noted by gubernatorial candidate Steve Fulop and policy experts. Fulop advocates for bringing outsourced routes in-house to improve service quality. The shrinking private bus industry has limited NJ Transit's options, leading to increased reliance on companies like Academy. Despite past issues, Academy's recent performance has improved, achieving contract-required on-time rates. The story highlights NJ Transit's struggle to maintain reliable service amid operational constraints and the implications of outsourcing public transportation.

Public Transportation Steve Fulop Fraud Allegations Nj Transit Academy Bus Emergency Contracts Private Bus Industry

Story submitted by Fairstory

RATING

7.8

Fair Story

Consider it well-founded

The article is a well-researched and timely piece that addresses significant public interest issues regarding NJ Transit's contracting decisions and the broader challenges facing public transportation in New Jersey. It provides a balanced perspective by including views from NJ Transit, political figures, and experts, though it could benefit from additional input from Academy Bus. The factual accuracy is strong, with most claims being verifiable and supported by external sources. The article is clearly written and accessible, making a complex topic understandable to a general audience. While it effectively engages readers and has the potential to influence public opinion, it could enhance engagement with more interactive elements. Overall, it is a reliable and informative piece that contributes to ongoing discussions about public service management and accountability.

Accuracy

The article is largely accurate, with most claims being verifiable and supported by external sources. The settlement amount of $20.5 million over allegations of fraud by Academy Bus is confirmed by multiple sources. The awarding of contracts to Academy Bus, despite the allegations, is also consistent with external reports, indicating factual accuracy. The claim about the lack of competition and the emergency nature of some contracts is supported by the context of the declining private bus industry in New Jersey. However, some details, such as the exact reasons for the lack of competition in bidding, could benefit from further verification.

Balance

The article presents a balanced view by including perspectives from NJ Transit officials, political figures like Steve Fulop, and experts such as Marc Pfeiffer. It discusses both the rationale behind NJ Transit's decisions and the criticisms from public officials and experts. However, while the article does mention NJ Transit's reasons for contracting with Academy, it could delve deeper into Academy's perspective or provide a statement from the company to enhance balance.

Clarity

The article is well-structured and presents information in a logical and coherent manner. It uses clear language to explain complex issues, such as the implications of the bus industry’s decline and the impact on NJ Transit's operations. The inclusion of direct quotes and specific examples aids in comprehension. However, the narrative could be tightened in some areas to avoid potential confusion, especially in sections discussing contract details.

Source quality

The article relies on statements from NJ Transit officials and public figures, which are credible sources for the information presented. However, it lacks direct quotes or statements from Academy Bus, which could provide a more comprehensive view. The article would benefit from a wider range of sources, including independent industry experts or analysts, to corroborate the claims made and provide additional insight into the bus industry's dynamics.

Transparency

The article provides a clear context for the story, explaining the background of the settlement and the current state of the bus industry. However, it could improve transparency by detailing the methodology behind the claims, such as how the performance data was obtained or analyzed. Additionally, while it mentions the settlement without admitting wrongdoing, it could explore more about how such settlements typically work to enhance reader understanding.