1. Equipment Maintenance Management Insurance Program (EMMP)

2.  As part of DGS’ strategic Plan, each office was tasked with finding efficiencies within their business models.  In 2009 a need was recognized to provide cost savings for post warranty equipment maintenance contracts.  As a result, ORIM partnered with Alliant Insurance Services (the State’s contracted insurance broker) to develop an insurance based program that meets this need.  The EMMP Pilot program began with DGS for the 10/11 FY.  Significant and measurable cost savings of almost $200,000 were realized for the 10/11 FY.  The program opened to all State agencies effective July 2011. 2

3.  8 Participating departments include DGS, CDCR, CDPH, CTA, DOJ, Fish & Game, Water Boards and Parks and Recreation.  Covers 2348 equipment assets (IT, Medical, Scientific, General Office, Other) in offices throughout the State.  Hard dollar savings of almost $1,000,000 since inception of EMMP.  Over 1,300 scheduled maintenance events / repairs have been completed on covered equipment. 3

4.  Guaranteed 25% savings: Current Original Equipment Manufacturer (OEM) service contract or extended warranty maintenance pricing is discounted 25%.  Reduction of administrative burdens:  One Master Insurance program eliminates multiple service contracts or extended warranties.  Eliminates need for Bids/RFPs. ORIM has already met the requirement.  One insurance premium paid annually at coverage inception in lieu of multiple billings. 4

5.  Maintenance service is performed by the manufacturer or any qualified service provider that is deemed acceptable by the end user.  Repairs and scheduled preventive maintenance including parts, travel and labor with 24x7 service available are paid through program. 5

6.  Equipment can be added and deleted at any time during the program term.  A pro-rated credit is received by the department that deleted the asset.  Online reporting provides equipment tracking & maintenance activity at the asset level:  Reports can be sent to end users to remind of the need for PM’s which extends equipment life by ensuring it is maintained properly in compliance with manufacturer recommendations.  Access to all vendor’s service reports (per asset) available online. 6

7. Current Service Contracts  Departments provide copies of existing maintenance service contracts purchased from the OEM or dealer/reseller to ORIM.  REMI analyzes and prepares a cost reduction proposal which specifies cost savings, maintenance coverage and annual costs.  Once quote accepted by department, asset is transitioned into program as warranties expire. 7

8. No Service Contract  Provide copies of original PO (if available) along with equipment serial number, make, model and service level information.  REMI issues an annual quote based on industry standards and requested service levels.  Upon acceptance of quote, the State department will request ORIM to add onto the program.  Once asset is added to program, service can be requested. 8

9. QUESTIONS?? 9

10. Donna Sanderson Associate Risk Analyst Office of Risk & Insurance Management 916-376-1621 donna.sanderson@dgs.ca.gov Carrie Willson Staff Risk Manager Office of Risk & Insurance Management 916-376-5278 carrie.willson@dgs.ca.gov 10