1. Interuniversity Services Inc. CAUBO Conference 2004 June 12, 2004 R.C. MacDonald, CPP, FPMAC

2. Interuniversity Services Inc. V ision The Company’s vision is “To be a model for university cooperation.” M ission Its mission is “To Identify & Promote Opportunities for Members to Acquire Goods and Services with Enhanced Value & Reduced Costs.” C ore Business Activity The core business activity of ISI is supply and services management, including Contracting, Consulting, Technical Servicing, and Facilitating.

3. Background  Evolved from Desire to Cooperate (3 University Presidents)  Cooperation in Procurement -Had History - Was Non-Threatening  Common Benefits Purchasing & Servicing

4. Objectives  To Reduce Costs  To Leverage  To Bring Professional Approach/Best Practice  To Avoid Duplication  To Try For Minimum 2 Years

5.  Office Formed in September of 1981 by:  Saint Mary’s University  Mount Saint Vincent University  Dalhousie University  1984 Technical University of Nova Scotia Joined  ISI Was Incorporated -- Not-For-Profit Company  1987 Novanet was Added as a Division of ISI  Associate Membership – Early 1990’s  Fee For Service  Reduced Fee  No Direct Management Input  8 Universities Joined  Independent N.B./P.E.I. Study 1993/94  ISI Reorganized  Novanet Inc. As Separate Company History

6. Interuniversity Service Inc.

7. Members Board of Directors Executive Committee  17 Institutions  Senior Administrative Officers  5 Directors Representation:  1 Small University  2 Medium Universities  2 Large Universities Current Structure

8.  Executive Committee  Audit Committee  Supply Management Committee  Employee Benefits Committee  Ad Hoc Committees As Required Structures/Standing Committees

9. Current Cost Sharing Formulas 50%University Operating Revenue (Provincial Grant & Tuition Income) 25% FTE Student 25%Equal

10. Cost Sharing Formula Budget: Provincial, Credit & Non-Credit (CAUBO, 2002) FTE (MPHEC 2002-2003)

11. Core Business Training Academic Dept. Heads Supervisory Management Certificate Risk Management Contract Services Goods Services Novanet 9 Universities NSCC CAUL Technical Services Scientific Repair Customers 11 Universities 3 Hospitals 4 Institutional 3 Private Sector

12. On-Going Results  Full time Staff – Centre of Excellence Available to Members  Procurement  50+ Agreements – Goods/Services  Some Largest Atlantic Canada  Increased Value Add Non-Value Add  Cost Reductions  Improved Contracting  Improved Reporting  Supplier Base Reduced  Low Value – High Transaction

13. On-Going Results  Expanded to Non-Traditional Areas  HR/Benefits  Training  Risk Management – Future  Improved Communication Intra/Inter/External  Model/Focal Point  Coaching/Mentoring

14. Results: $30,000. Cost Avoidance $33,000. Balance Used to Upgrade Equipment No Down Time Return to ISI of 25% Technical Services University Contract with Supplier (Montreal) $ 90,000 / 3 Years $ 30,000 Increase $ 120,000 Full Parts, Labour ISI Contract $ 90,000 $ 57,000 Actual $ 33,000 Balance Parts, Labour & Travel Customize Agreements For The User Cost and Service Effective Example:

15. Academic Department Heads Cost Nationally - $3,000 ISI Costs- $ 850 Benefits Reduced Cost/Fee Reduced Travel Costs Over 120 Participants/Greater Participation Academic Training

16. Employee Benefits  One of the Largest Expenditures  One of the Largest in Atlantic Canada

17. Why Successful  Senior Admin Commitment  Support  Cost Effective/Cost Avoidance/R.O.I.  Has Been Non-Threatening  Flexible (Agreements/Services/In Out)  Consensus & Good Faith  Commitment  User Input/Collaboration  Independent/Impartial  Consistent

18.  1988ISI Received National Recognition – CAUBO Quality & Productivity Award – 2 nd Prize  1994Reorganization Becomes A Model Of Inter- Provincial Operational Cooperation In The Public Sector  1996MacKay Report  1997ISI Receives Regional Award For ISI Net  1997CAUBO – N.P.C.  1999ISI Recognized As “Best In Class” And A Model For The Wider Commonwealth By A.C.U. Study A Few Highlights

19.  Unique - Non Profit  Provides Central Administrative Services  Reduces Overall Costs  Improves Services  Framework Interuniversity Services