We set up a macroscopic model of bacterial growth and transport based on a dynamic preferred direction-the collective velocity of the bacteria. This collective velocity is subject to the isotropic-nematic transition modeling the density-controlled transformation between immotile and motile bacterial states. The choice of the dynamic preferred direction introduces a distinctive coupling of orientational ordering and transport not encountered otherwise. The approach can also be applied to other systems spontaneously switching between individual (disordered) and collective (ordered) behavior and/or collectively responding to density variations, e.g., bird flocks, fish schools, etc. We observe a characteristic and robust stop-and-go behavior. The inclusion of chirality results in a complex pulsating dynamics.