A performance bond, which helps guarantee a contract is fulfilled, was never attained from H & H Transportation Inc. while it operated the university’s shuttle bus.

“A performance bond was required in the shuttle bus proposal,” said Monty Bennett, director of purchasing. “H & H Transportation told us they were in the process of attaining one. The bond was due at signing or 10 days after.”

A contracted company purchases a performance bond from a surety company, so if the contracted company cannot complete the contract, the surety company is required to finish the contract, according to Joseph Barron, university general counsel.

“As I remember it, it was January and it was cold. We could have said `no’ to the bus until the bond was attained, but then there would have been no shuttle bus,” Bennett said.

H & H owner Scott Harrison declined comment on the issue.

Barron also would not comment on the shuttle bus contract’s lack of a bond because he had not seen the contract.

However, Bennett said if H & H had a performance bond when it stopped service the university would probably end up in court trying to get the contract filled.

“It was our decision, and I still think it was a good call,” Bennett said. “I still don’t know why they could not get the bond.”

Norman Mars, a representative from Laidlaw Transit Inc., said his company’s bid, which averaged around $112,000 per semester, was backed by a performance bond.

“I just don’t see how they expected to run two buses at that amount,” Mars said.

Mars said some costs that are bid included two new air-conditioned buses that meet various university specifications, stringent safety standards, adequate pay for the drivers, a reasonable return and training programs for the drivers.

As the deal stands now, Eastern is paying H & H Transportation twice as much as before for half the service.

“We were able to come up with an arrangement, the upside of which is the students have a bus, and the downside is it costs more money,” said Lou Hencken, vice president for student affairs.

The new contract will pay H & H Transportation $42 per hour of service for one bus, which will not be running to Mattoon. Under the previous contract, Eastern was paying about $23 per hour for two buses, one of which had a route to Mattoon.

“Some could say, and I won’t disagree, that the students are getting screwed,” said Adam Weyhaupt, speaker of the student senate. “The fact remains, though, that we had two choices: have a bus or don’t have a bus. I think we made the best choice. I think having a bus is very important to the students.”

The university has let out bids for a three-year contract starting next fall.

“Performance bonds are still required in the new bid,” Bennett said.