1. June 20, 2012 Outsourcing Physical Plant Should I ???

2. Andra Cantrell Jim Swan

3. Current Issues How do you deal with current issues Reasons for Outsourcing Physical Plant Cost Saving Opportunities Outsourcing Benefits Decision Time What’s Next? What are the issues? Contract Negotiations Transition Period Implementation Questions & Discussion AGENDA

4. Budget Reductions Increased Enrollment Decreased Funding Employee Insurance Costs Increased Deferred Maintenance Capital Improvements on Hold Decreasing Reserves Increasing Security Requirements ??? Current Issues Quality of Work Declining Staffing Capabilities Lack of Proper Training Staffing Availability Lack of Leadership Reliability New Systems more Technical Attendance Issues ??? Cost Related Quality Related

5. Revenue Enhancements Cost Reductions $ Operations Budgets How to deal with these issues?

6. Revenue Enhancements Increase Tuition Increase Fees Increase Taxes Alternative Funding Sources Grants Strategic Business Partners How to deal with these issues?

7. Cost Reduction Opportunities “T ighten the Belt” Reduced Hours of Operation Program Elimination Personnel Reduction Leveraging Technology Alternative Funding Solutions Purchasing Co-Ops Outsourcing Solutions How to deal with these issues?

8. Do you really know what your true costs are for operating your campus? Do you really know where all of your true costs are accounted for in your campus operations? Key Questions to Ask

9. Physical Plant Budgets Salaries Insurance & Benefits Workers Comp Training & Certification Equipment Tools Supplies Office Expenses Equipment Rental Vehicles Fuel Repairs Deferred Maintenance Capital Projects Contractors Service Contracts State Inspections Safety

10. Are you willing to think outside of the box? Should I Consider Outsourcing?

11. Focus on core competencies Save administrative time Reduce downtime; increase asset life Greater accountability Risk management/Liability Budget control Cannot attain desired results Lack of quality control HR issues – cannot retain/attract qualified staff Complexity of systems and aging facilities requires more specialized skills More predictable costs Reasons for Outsourcing

12. Budget stability/predictability Guaranteed performance (valued outcomes) Fixed and Guaranteed pricing Use best-in-class technologies, processes and tools to support service delivery Value reporting to validate value created in the partnership Based on Mutual Trust & Common Goals Benefits of Outsourcing

13. You Have Made the Decision to Adopt an Outsourcing Strategy. Decision Time Are you ready to hand over the keys to your campus?

14. Communicate to Board, Faculty & Staff Get buy in and acceptance Follow the Process Negotiate in Good Faith with a good partner Be comfortable with the opportunity & support it Service Cost Contract What’s Next?

15. Employee Relations Faculty / Staff Relations Community Relations Notification of Vendors / Contractors What will be the difference on campus? Expectations & Outcomes Budget Items What are the Issues?

16. Existing employee concerns Clear and open communications Define scope and outcomes desired Terms of agreement Adjustments or changes Contract Negotiations

17. Take it slow and do it right! Communicate at all levels Be part of the process Cover all of the bases Know who you will be working with Have input in selection Transition Period

18. Work together as a team Work toward a common goal Support each other Be a Team Be a Family Implementation

19. Questions & Discussion TACCBO 2012