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Outsourcing Success Story Santa Rosa County School District How Purchasing Professionals can enhance their careers through contracting services.

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Presentation on theme: "Outsourcing Success Story Santa Rosa County School District How Purchasing Professionals can enhance their careers through contracting services."— Presentation transcript:

1 Outsourcing Success Story Santa Rosa County School District How Purchasing Professionals can enhance their careers through contracting services

2 Major objectives for all management service contracts Reduce costs Increase expertise within the contracted function Reduce number of employees only by attrition - no forced lay off of current employees Relieve school administrators of responsibility for non instructional duties

3 Important factors prior to contracting for management services Must have support of entity head and governing body Must have support of current function department head Must have a compelling need for the management service Must have involvement of purchasing professional in administering Bids/RFPs

4 Keys to Success Management service companys local manager Governmental entitys contract administrator

5 Custodial First major function to outsource 1993 five year contract with optional 5 year extension awarded to ServiceMaster 2003 new RFP issued, contract awarded to Southern Management, renewed in 2008 Current contract amount $4,378,905 Includes management of all personnel, both district and contracted, all equipment and supplies, pest control, non-athletic grounds and playground inspections

6 Custodial Contract based on audited square footage Prior to outsourcing, district employed 67 custodians Currently district has 10 custodians Southern Management provides 205 personnel Average district custodian wage and benefits: $40, Average contracted custodian wage and benefits: $19,922.22

7 Food Service In accordance with the National School Breakfast and Lunch Program, contract must be for 1 year with option to renew on an annual basis for up to 4 additional years 1997 cost plus fixed fee contract awarded to Marriott Management Services Corp (currently Sodexo) Current contract began in 2007 Performance based. Fixed fee per meal $.0992.

8 Food Service District currently employees 30 food service workers Sodexo provides 177 personnel Average district food service wage and benefits: $32, Average contracted food service wage and benefits: $16,152.00

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10 Transportation 1998 contract awarded to Laidlaw Educational Services for 5 year term, renewable for 5 additional years 2008 contract awarded to Durham School Services Current contract $7,094,744 Contract includes management of all aspects of transportation function, including routing, maintenance of all vehicles, training, substitute employees, and the purchase of all supplies and equipment.

11 Transportation Included 209 new buses, equipped with air conditioning, GPS, cameras and two-way radios Durham currently manages 80 board employees and 283 contract workers

12 Transportation Average district wage and benefits: Driver - $36, Mechanic - $60, Average contractor wage and benefits: Driver - $24, Mechanic - $38,539.82

13 Opportunity for Purchasing Professionals Take charge of the RFP process Be the lead contract negotiator Be prepared to assume duties as contract administrator when the opportunity arises


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