Doing More with Less Outsourcing 101 Presented by: Jenny Humphreys, SSC Service Solutions Matt Cooter, SSC Service Solutions The People Company. That Cleans. Jenny Humphreys Matt Cooter (865) (423)
Why outsource? Save money (15%-20% savings are typical) Improve quality (through management and training practices) New or anticipated expansion
Why custodial? Second highest operating cost Most visible contribution to facilities No more headache Better learning environment Protects building investment Student & Staff Health
Do I need it? How clean is your district? How much do you spend? Do you have a void in management? Workers comp problems? Productivity problems? Workers comp and sick time abuse Difficulty disciplining and firing problem employees Resistance to changing shift and procedures in-house Trouble attracting and retaining staff
Common Myths: Locked into a long contract How can a for profit company do it cheaper We will fire all your custodians and hire cheap labor Everything is an extra charge
Check your contract! Do not sign more than a one year contract Do sign a contract with multi-year extensions CPI Increases capped at 5% (except for Federal Minimum Wage increases)
How can a for profit business be less expensive? Higher production rates Training, management, and proper supplies and equipment 80% of our cost is labor and benefits More employees in our labor pool for insurance, workers compensation, etc.
What about current employees? Require contractor to offer positions to current employees – Current wages? Comparable benefits? Total conversion: Be honest and up front, keep who you can – assist with new placements. Best bet for cost savings. Contract the district gradually through attrition. Least amount of political impact.
The Process: Talk about your current operation to determine your needs Complete facilities survey Present survey results, including pricing Craft an RFP and hold a pre-bid meeting Accept proposals from vendors Evaluate proposals Award the contract
Choosing the Right Vendor Check references thoroughly, you want a company with a great reputation! K-12 school experience is a must Focus on current employees and their development and well being Manager assigned solely to your district with an upward chain of command School related activities included in price
How can I make sure to get a good result? Contract at least 350,000 square feet Clearly outline expectations in RFP Communicate clearly and openly to board members and administration – manage expectations Seek Best Value – low-bids often fail to meet expectations, or result in “extra billing”
Is it the right thing for you? Will it allow you to focus more resources on your core function – education? Relieve budget pressures? Have other solutions failed? Is it the best long-term plan?
Questions? Thank you Jenny Humphreys Matt Cooter (865) (423)