Outsourcing Success Story Santa Rosa County School District So what are you going to say when your Superintendent tells you the district is considering out-sourcing your department?

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

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

Keys to Success Management service company’s local manager Governmental entity’s contract administrator

Custodial First major function to outsource in 1993 Re-solicited in 2013 with award to Southern Management Current contract amount $4,850,431 Includes management of all personnel, both district and contracted, all equipment and supplies, pest control, medical waste removal, non-athletic grounds and playground inspections

Custodial Average district custodian wage and benefits: $43,125 Average contracted custodian wage and benefits: $22,491

Food Service 1997 cost plus fixed fee contract awarded to Marriott Management Services Corp (currently Sodexo) RFP for next 5 years issued Cost to be based on per meal fee. Contractor responsible for all non-capital expenses.

Food Service Average district food service wage/benefits: Managers: $42,457 Workers: $29,379 Average contract food service wage/benefits: Managers: $26,804 Workers: $14,563

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 $7,930,000 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, including buses.

Transportation Includes 200 routes, buses equipped with air conditioning, GPS, cameras and two-way radios Durham currently manages 55 board employees and 234 contract workers

Transportation Average district wage and benefits: Driver - $37,715 Monitor -$28,373 Mechanic - $61,871 Average contractor wage and benefits: Driver - $20,822 Monitor -$16,088 Mechanic - $37,293

Opportunity for Current Department Heads Research plan which best fits the needs of your district If out-sourcing is best choice, be prepared to assume the role of contract administrator.

Where to go for help! Santa Rosa County School District Jud Crane, Director of Purchasing and Contract Administration