1. 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?

2. 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

3. 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

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

5. 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 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

6. 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

7. 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.

8. 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

9. 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

12. Types of Food Service Contracts
Employee only – Staffing Agency
Food Service Management Contracts

13. 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

14. 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

15. School Food Authority Responsibilities 7CFR 210.16 (a)
(1) Adhere to the procurement standards specified in § 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

16. 7CFR (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

17. 7CFR (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

18. 7CFR (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

19. 7CFR (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

20. 7CFR (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…

21. 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.

22. 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

23. 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

24. Temporary Staffing Services
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%

25. 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)

26. 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.

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