Outsourcing Success StorySanta 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 1993 five year contract with optional 5 year

extension awarded to ServiceMaster 2003 new RFP issued, contract awarded to

Southern Management, renewed in 2008. 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

Contract based on audited square footage Prior to outsourcing, district employed 67

custodians Currently district has 5 custodians Southern Management provides 189

personnel 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)

Current contract began in 2007 Performance based. Fixed cost per meal

$3.033.

Food Service Management Contract

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

In Florida, must be a fixed cost contract – contractor pays for all non-capital costs and received a price per meal served

Management provided by contractor Employees may be provided by contractor,

district or combination of both

Food Service

District currently employees 17 personnel Sodexo provides 173 personnel, 12 of which are

in the Food Service Office, positions we did not and would not have if Self Op

Average district food service wage/benefits:

Managers: $42,457

Workers: $29,379

Average contract food service wage/benefits:

Managers: $26,804

Workers: $14,563

Types of Food Service Contracts

Employee only – Staffing Agency

Food Service Management Contracts

Seminole County School District

Staffing agency employees 4 agencies currently being used Employees are not temporary, currently up to

7 years longevity Not used for manager/asst mgr position 45% of food service workers from agency

Seminole District vs Agency Wages

School District Hourly Wage with Benefits

1st year- $18.44

5th year- $19.26

10th year- $20.40

***4 hour and above receive benefits

Average Hourly Rate Agency Employees-$11.48

School Food Authority Responsibilities7CFR 210.16 (a)

(1) Adhere to the procurement standards specified in §210.21 when contracting with the food service management company

(2) Ensure that the food service operation is in conformance with the school food authority's agreement under the Program

(3) Monitor the food service operation through periodic on-site visits

7CFR 210.16 (a) (Continued)

(4) Retain control of the quality, extent, and general nature of its food service, and the prices to be charged the children for meals

(5) Retain signature authority on the State agency-school food authority agreement, free and reduced price policy statement and claims

7CFR 210.16 (a) (Continued)

(6) Ensure that all federally donated foods received by the school food authority and made available to the food service management company accrue only to the benefit of the school food authority's nonprofit school food service and are fully utilized therein

7CFR 210.16 (a) (Continued)

(7) Maintain applicable health certification and assure that all State and local regulations are being met by a food service management company preparing or serving meals at a school food authority facility

(8) Establish an advisory board composed of parents, teachers, and students to assist in menu planning

7CFR 210.16 (a) (Continued)

(9) Obtain written approval of invitations for bids and requests for proposals before their issuance when required by the State agency. The school food authority must incorporate all State agency required changes to its solicitation documents before issuing those documents

7CFR 210.16 (a) (Continued)

(10) Ensure that the State agency has reviewed and approved the contract terms and that the school food authority has incorporated all State agency required changes into the contract or amendment before any contract or amendment to an existing food service management company contract is executed…

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.

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

850-983-5130

cranej@mail.santarosa.k12.fl.us

https://www.santarosa.k12.fl.us/purchasing/bids/Mgt_Contract/MgtContract.htm