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Specific Questions
• INDUSTRY TRENDS
– Strong bias toward outsourcing
– Both stand alone property and system-wide
– Support Services not core business
– Reengineering service resource distribution
• REASONABLE COST/SAVINGS ESTIMATES
– Plant Operations
– Security
– Telecommunications
– Food Service
– Janitorial
– Grounds
Essential Elements
• LOGICAL SERVICE GROUPS
– Engineering
– Housekeeping
– Operations
• GEOGRAPHIC LIMITATIONS
– Metro Area With Large Vendor Base for Competitive Selection
– Sufficient Client Base for Vendor to Thrive
– Service Locations Proximate to Vendor Dispatch/Warehouse
• VENDOR POOL
– Same Industry Qualified
– National Buying Power
– Established Stable Employees
– Union/Non-Union As Appropriate)
• MOTIVATION FOR CHANGE
– Cost Reduction
– Re-Utilize Freed Building Space
– Reduce Employee Count
– Improve/Expand Services
– Reduce Liability/Exposure
– Existing Contracts Terminating
– Time Constraints/Deadlines
– System Standardization
• Cost Considerations
– SAVINGS BREAK POINT TO JUSTIFY CHANGE, OR
– PREMIUM ACCEPTABLE TO ACCOMPLISH NON-COST GOALS
– FACILITY RENOVATION COSTS
– ADMINISTRATIVE STAFF LEFT UNDERUTILIZED
Conversion Issues
• STRANDED ASSETS
– Facilities, Fixtures,Equipment and Supplies
– Displaced Employees
– Build-in Use Via Contract
• MANAGEMENT SKILLS
– Shift From Labor/Staff Focus to Contract Administration
– New Evaluation/Performance Guidelines Required
– New Communications Processes Between Vendor/Users
• OPERATIONS& PROCEDURE
– De-Bug Before Implementation
– Cost Allocation Guidelines
– User Frustration With Change
• DISRUPTION RISKS
– Define and Understand Risks
– Lose Direct Control
– Labor & Materials Disruption
– Establish Disruption Levels
• SERVICE DEFINITION
– Define Exact Services Required
– Define Service Levels Required
– Many Existing Services Lost
– Requires User Group Input
Our Recommendations
• Understand Motivation and Goals
• Understand Consequences to Service, Staff and Administrators
• Identify Outside Assistance Required to Implement Process
• Analyze True Cost and Projected Savings (if any)
• Proceed as Outlined Earlier, IF Above Meet Needs | 
