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The New Norm: Contracting and Outsourcing 2013 Massachusetts Parks and Recreation Annual Conference Hyannis, MA Chris Nunes, CPRE Director of Parks and.

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Presentation on theme: "The New Norm: Contracting and Outsourcing 2013 Massachusetts Parks and Recreation Annual Conference Hyannis, MA Chris Nunes, CPRE Director of Parks and."— Presentation transcript:

1 The New Norm: Contracting and Outsourcing 2013 Massachusetts Parks and Recreation Annual Conference Hyannis, MA Chris Nunes, CPRE Director of Parks and Recreation The Woodlands Township

2 Session Objectives Outline the use and development of contracts for services, programs and maintenance. Identify and recognize how to minimize risks in contract development Identify the benefits of contracting

3 Background Information Contracting & Outsourcing Defined: Assigning responsibility for all or a portion of the activity and tasks involved in developing and/or running and maintaining a system to a contractor outside of the organization

4 Background Information IRS – “A general rule is that you, have the right to control or direct the result of the work done by an independent contractor, but not the means and methods of accomplishing the result.”

5 Background Information EmployeeContractor Pro’s Dedicated Loyalty Multiple Roles Improved Work Flow Reduced Overhead No Health Benefits Work On Demand Highly Specialized Staff Con’s Benefits Professional development Overhead Administrative / Personnel Issues Lack of Control No Fixed Rates Lack of Loyalty “Apples to Apples”

6 Background Information Facility – Lifeguards – Pool Maintenance – Security – Laundry – Equipment Maintenance – Pest Control – Concessions Program Management – Instruction – Advertising – Programs – Marketing/Promotion – Event Management Trades – Electrical – Plumbing – Janitorial/Custodial – Landscape/Forestry If you are already doing it, can you expand on the current scope? Types of services that can be contracted

7 Challenges of Contracting Communication Relationships Specifications vs Outcome Control Poorly written contract Poor performance and responsiveness Monitoring Liability/ Indemnification Low Bid Mentality Workplace Restrictions Local Marketplace

8 Benefits of Contracting Is it more economical to contract out? – Price Differential- Self Bid – Staffing Limitations – Service Trade-Offs – Capital Investment – Technical Expertise

9 Benefits of Contracting Self Bid- Janitorial

10 Benefits of Contracting Self-Bid Weekend Trash Key Point- Staff on weekends are able to handle additional duties required-fix toilet, graffiti, etc Weekend Trash # of ParksCost per day In House27$500 Contract13Sat- $1000 Sun- $1200

11 Benefits of Contracting Staffing limitations – Inability to hire staff – Time constraints – Work load balance – Length of time of project

12 Benefits of Contracting Capital Investment How often do you use? Floor Scrubber/Polisher Laundry Equipment Food Service Equipment Paint Sprayer Aerial Lift Aerator

13 Benefits of Contracting Does your organization have the following expertise? Sponsorships Media Relations Legal Specialty Programming Landscape Pool Operations HVAC Chemicals Concessions Planning

14 Keys to a Quality Bid Process Bid Documents – Scope of Work – Specifications – Standards – Expectations

15 Keys to a Quality Bid Process Scope of work: – Custodial/Gate and Facilities Maintenance Provide all labor, materials, equipment, licensing and supervision necessary for custodial maintenance at twenty community parks for 34 months. Length of contract will have an impact on capital investment

16 Keys to a Quality Bid Process Development of Specifications- All cars get you from Point A to Point B, but various features and other factors affect the overall price. CadillacNeon

17 Keys to a Quality Bid Process Scope to Specifications – “Big Picture” ……………..

18 Keys to a Quality Bid Process Scope to Specifications – ………….to Details

19 Keys to a Quality Bid Process Development of Specifications-Two Methods – Outcomes/Performance Based

20 Keys to a Quality Bid Process Development of Specifications-Two Methods – Required Services

21 Keys to a Quality Bid Process Specifications: – Industry Standards – Best Practices – User Needs – Community Needs – How would you do the job? – What else????

22 Keys to a Quality Bid Process How would you do the job?

23 Keys to a Quality Bid Process Standards and Specifications-Christmas Tree Lights Providing information on the maintenance needs of the project Providing specifications on the type of lights, color, etc.

24 Keys to a Quality Bid Process Standards and Specifications-Janitorial:

25 Keys to a Quality Bid Process Specifications-Concessions: Addressing responsibility for trash in the park/facility Addressing ability to place signage in the park/facility

26 Keys to a Quality Bid Process Background Information: – What does a bidder need to know to provide a quality bid and make a profit ??? Historical information Units consumed Rate of use Limitations on work Rate of growth

27 Keys to a Quality Bid Process Background Information-Pool Chemical

28 Keys to a Quality Bid Process Background Information-HVAC

29 Keys to a Quality Bid Process Background Information-Christmas Trees

30 Keys to a Quality Bid Process Vendor Qualifications: – Financial – Bonding – Past law suites – Number of contracts – Expiration of current contracts – Bank information

31 Keys to a Quality Bid Process Bid Tabulation:

32 Keys to a Quality Bid Process Pre-Bid Meeting Bid Time Period Bonds Timeline Conditioning Period

33 Keys to a Quality Contract Contractor Responsibility and Liabilities – State and Federal Laws – Insurance-$1 million/$2 million – Required licenses, certifications – Image Standards – Reporting Detailed Monthly Invoicing – Adherence to Safety of Users – Limitations/Indemnification

34 Keys to a Quality Contract Contractor Responsibility and Liabilities/Insurance

35 Keys to a Quality Contract Contractor Responsibility and Liabilities – Image Standards

36 Keys to a Quality Contract Contractor Responsibility and Liabilities – Detailed Monthly Invoicing

37 Selecting the Right Contractor Do your homework : Check references & previous work completed Professionalism in the bid Low bid contractors will create additional work due to failure to provide “other services.” Analyze all aspects of the bid

38 Managing the Contract Contract Compliance – Dedicated employee to manage the contract (Cost!!!!) – Monitoring tools – Status meetings – Reporting systems – Develop and maintain the relationship

39 Managing the Contract Contractors are resources that need to be managed like any other resource But, don’t micro- manage: – Manage through milestones and completion dates – Build trust, don’t always 2 nd guess

40 Final Thoughts What if bids are too far apart? – Do you have good specifications – Do you have an apples to apples comparison? – What type of business is it- small vs large? – Is this their primary line of business? – Use a third party to analyze – Use industry standards to compare.

41 Thank you!!!!! For further questions or comments Chris Nunes, Ph.D., CPRE, Director of Parks and Recreation The Woodlands Township

42 Exercise …. 15 minutes Get in Groups of 5 people Chose a service that one of your cities does by staff. Create a scenario for outsourcing that service Present


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