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 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 3 custodians Southern Management provides 176 personnel Average district custodian wage and benefits: $44,932 Average contracted custodian wage and benefits: $24,961

Food Service 1997 cost plus fixed fee contract awarded to Marriott Management Services Corp (currently Sodexo) Current contract began in 2014 Performance based. Fixed cost per meal $3.22.

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 11 personnel Sodexo provides 187 personnel, 12 of which are in the Food Service Office, positions we did not and would not have if Self Op Average manager wage/benefits: District: $41,453 Contracted: $28,579 Average food service worker wage/benefits: District: $27,596 Contracted: $13,209

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 Responsibilities 7CFR 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 40 board employees and 220 contract workers

Transportation Average driver wage and benefits: District - $37,715 Contracted - $20,822 Average monitor and benefits: District - $28,373 Contracted - $16,088 Average Mechanic wage and benefits: Mechanic - $61,871 Contracted- $37,293

Temporary Staffing Services 2014 - Request from Asst. Supt. Human Resources to contract management of substitute services for teachers and non-instructional personel Request for Information (RFI) Issued Contract awarded to PESG based on piggyback contract. Wages set by district. Contractor fee based on wage percentage 19.95%

Temporary Staffing Services Contract includes: Recruitment and training of substitute teachers and clerical workers All labor expenses: SSI, worker’s comp, unemployment, compliance with ACA On-line substitute management system – to include leave management for all employees of all classifications, including those not needing substitutes (administrators, blue collar, management, etc)

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