Are You Screening Your Vendors? NJ Bus Company Case
A New Jersey school bus company skipped required background checks and hired drivers with criminal records, a cautionary tale for vendor screening.
Background checks for employees are commonplace across many highly regulated industries such as education, government, and healthcare, but comprehensive screening of a contractor or vendor is much rarer. Naturally, when a bid for a project is received, buyers expect the provider to be honest about the scope of their services and whether they meet requirements. Unfortunately, many employers are learning the hard way that businesses are not always as honest as they seem, and that upfront due diligence is the best way to weed out bad actors.
For example, a New Jersey school bus company operated unsafe buses, failed to conduct required background checks, and hired drivers with criminal records. According to the article, the company falsified documents it provided to school districts to cover its tracks, and a surprise inspection by state investigators found so many violations that a large number of the buses were impounded and not allowed to leave school property. Additionally, fingerprinting, motor vehicle reports, and DOT drug testing were not being completed as required by New Jersey schools. Because criminal records were allegedly not being checked, the company employed drivers who otherwise would have been disqualified during the screening process. A registered sex offender was able to slip through the cracks and be employed as a driver, and two drivers were charged with driving buses with children aboard while under the influence of narcotics. As a result, the vendor's owner and manager faced criminal charges.
As a rule of thumb, running a thorough background check on a potential vendor and its subcontractors is recommended prior to awarding a contract. PBSA-accredited companies like CRC have access to civil court records at the state and federal levels to screen owners, operators, and the company itself for a history of litigation. Additionally, checking a company's reviews on sites like Glassdoor, Yelp, and the Better Business Bureau can provide insight into how they operate and whether allegations of deceptive business practices are common. Depending on the type of services and information available to the contractor, an independent third-party inspection of the vendor's site may yield important insight into how they handle, store, and dispose of sensitive materials.
If you are interested in vendor and contractor screening services, contact a CRC representative for more information.
This case remains a useful reminder of the risks of skipping vendor due diligence, based on reporting available at the time of original publication in March 2021.
