Contracting for Service

OUTLINE

Background on Carleton University

Cleaning Services

Campus Bookstore

Capital Program/Project Management

Facility Operations and Maintenance

Carleton University

• Founded in 1942 and is situated on 62hectares of land

• A total of 3,700,006 gross square feet ofbuilding space

• There is 5 km of underground tunnels that link34 buildings

• Total student population is 22,533• Total faculty and staff is 3,402

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Organization Chart

M a na g erC o n s truc tio n S e rv ices

M a na g erS p a ce A d m in istra tion

M a na g erT e ch n ica l S e rv ices

M a na g erA d m in istra tive S e rv ices

P ro jec t M a n ag e m e ntC o n tra c ted

M a na g erM a in te n a nce S erv ices

D a rryl B o yceD ire c to r, D e p t. o f P h ys ica l P la n t

Organization Chart - Maintenance Services

P ro pe rty M a na g e m e ntO ffice r

S u p erv iso rA rch ite c tu ra l a n d G rou n ds

S u p erv iso rC u s to d ia l a n d A n c illa ry

S u p erv iso rE le c trica l a nd

M e cha n ica l

M a na g erM a in te n a nce S erv ices

Custodial Services:

• 12 in-house custodians clean residencesduring the day shift Monday – Friday

• The cleaning of the academic, research,administrative, and athletics buildings isoutsourced to Sodexho:

70 cleaners and 10 lead hands 1 night and 1 day supervisor 1 day manager and 1 Unit Director

Custodial Services - Schedule:

• Cleaning takes place on three different shifts as per theschedule outlined below:

Night (Sunday to Thursday 10:30 – 7:00 a.m.) Day (Monday to Friday 7:00 – 3:30 p.m. Evening (Monday to Friday 3:30 – 10:30 p.m.)

• The majority of cleaning takes place on the night shift

• Some areas are also cleaned on weekends and/or onstatutory holidays

Carleton University monitors customer satisfactionin a number of ways:

• The Office of the Vice-President (Financeand Adminstration has sent out an annualSatisfaction Survey to all faculty and staff

• In conjunction with Sodexho, the Departmentof Physical Plant also sends out an annualCustodial Services Survey to all faculty andstaff, the survey is distributed by thecleaners

• The Director of Physical Plant meets witheach Faculty and Department on an annualbasis

Customer Satisfaction:

Quality Control:

• Quality is monitored by informal inspectionsperformed by the Custodial Supervisor who walksaround the campus on a regular basis and reportsdeficiencies to Sodexho

• Sodexho performs quality control by informal dailyinspections conducted by the Unit Director andthe Manager. This is a constant process not donein conjunction with the Custodial Supervisor

• Formal Rounds are arranged ahead of time withthe District Manager and do not typically includethe client. The goal is to schedule these on amonthly basis

Area being cleaned by Sodexho and FTE

Type of Building GSF (grosssquare feet)*

Total CustodianFTEs*

Total for Research Bldgs 720,789 22

Total foracademic/administrativeBldgs (incl.Sports/entertainmentfacilities)

1,690,528 51

Totals 2,411,317 73

Totals for Classroom Area 123,402 4.5Totals for Office Area 385,362 14Totals for Lab Area 297,843 11

Totals 806,607 29.5

COST OF CLEANING SERVICE:In House Custodial Costs:

Rate of pay $16.00

Benefits @ 22% 3.62

Lost time @ 20% 3.82

TOTAL $23.64 per hour

Contracted Cleaning:Total cost per FTE $13.72 per hour

Cost of Contractor Cleaning:$ .72 per gross square ft.

$ .89 per net square ft.

Cleaning Services

Problems

• With contracted staff paid at the lower end of the

pay scale you can experience high turnover

• The quality of the staff at the front line can be

lower than in-house

• Need good contract administration and

ownership of the problems

• Operating with a mix of in-house and contractor

staff in some areas can lead to finger pointing

Cleaning Services Continued

Advantages

• Large budget savings

• Work generally not affected by short length

absences of staff

• Brings current best practice to the campus on an

ongoing basis

• Large organization to draw on during a special

situation.

Bookstore - BackgroundMay 1998

• The Bookstore, which included a separate ComputerStore, had just reported a loss for the third year in arow.

• Total losses to date were $1.3m on annual sales ofless than $8.5M

• Another $500K in inventory write-offs were notincluded in the above losses

• We employed 2 Managers and two AssistantManagers as well as 16 full-time staff.

Bookstore - Concerns

• Margins on Textbooks varied from 20-28%.

• Coursepack copyright clearance was not always

completed correctly.

• Textbook ordering was a concern as books were not

always on the shelves at the start of each term.

• The store was in need of renovation

• Student line-ups were up to 45 minutes.

Bookstore - Outsourcing

• In August 1998 an RFP was issued for themanagement of the Bookstore

• Three responses were received.

• A contractor was selected and the management ofthe Bookstore was transferred in November 1998.

Bookstore - ResultsWhat happened next……..

• The 4 management positions were replaced by onecontract management person.

• Over the next year seven unionized employees weredeclared redundant, promoted or resigned.

• The staff has been reduced to 12 FTE Carletonemployees, an assistant manager and a Manager.

• The main store was renovated. A year later theComputer Store was renovated. The contractor paidfor both renovations.

• Textbook margins were standardized

Bookstore - Results Continued• A commission cheque is now received each quarter.

• The accumulated deficit was paid off in 6 years

• Customer service improved greatly.

• Sales have increased each year.

• An Advisory Committee meets 3-4 times per year toprovide feedback on performance.

• The store is managed by a professional company thatacts as a guest.

• A Win-Win result.

Project Management Staffing & Costs

In-house staff:

• We have one manager, 3 co-ordinators and one CAD operator

• Standard charge for project management on ancillary or major projects is 10% with design and 4% with contracted design.

Project Management Staffing & Costs

Contracted Project Management:

• We are supported by a senior Project Director (the company president) 2 - 4 on site staff and company office of 15.

• The first major set of projects totaling 68 million was completed for a cost of 1% of total budget.

• The value of the project implemented through this concept has grown to 150 million with an average fee of 1.3%.

CAPITAL PROJECTS VOLUME

Value of Projects in MillionsAnnual Volume Major Project

1998/99 6 0

1999/00 10 3

2000/01 25 19

2001/02 56 50

2002/03 51 41

2003/04 20 12

2004/05 44 36

2005/06 40 – 50 35

Total 267 196

• In-house trades – plumbers, electricians, sheet metal,controls, steam fitters, carpenters, maintenancemechanics

• Engaged Consultant to work with Carleton to prepareRFP documents

• 2001 – contracted Facility Maintenance Services for 2buildings – Leeds Residence (new 400 bedresidence) and Nesbitt (rehabilitated research facility– offices, labs)

• 4 new buildings have been added to portfolio over thepast 3 years – Azrieli Theatre and Classroombuildings (theatres, classrooms, offices), NWRC(research facility – offices & labs) & Prescott (400 bedresidence)

Background of Maintenance & Operations:

Contracts FM – comprehensive mechanical, electrical,

preventative mainetnance & service

Custodial – scheduled cleaning in offices,classrooms, theatres, labs, residences (publicareas)

Excluded work (HV electrical, HP steam,Building Automation, locksmith, elevators,annual fire equipment inspection)

Facility Sq. Ft. 2004/05 Cost $/Sq. Ft.

Leeds House 169,135 $ 91,582 0.54

Nesbitt 68,033 $120,965 1.78

Azrieli Theatre

& Pavilion 87,296 $161,706 1.85

NWRC 60,000 $173,588 2.89

Prescott 135,000 $ 67,183 0.50

Cost of Maintenance ServicesIn-House Operation:

Average trades rate of pay $23.00Benefits @ 22% 6.06Average lost time @ 20% 5.81TOTAL cost without overhead 34.87 per/hr.

Contracted Maintenance and Operation:

Contract Value/number of FTE’s $49.30 per/hr.

This service includes overhead, emergency response,etc.

Maintenance & Operations ServiceProblems

• On site trade availability is limited which can increase

response time

• In-house trades staff have resisted the operation of

the contracted facilities

• Establishing responsibility for building services versus

main campus systems

• Perception that contractor will cut corners

• Need a responsible university person to manage the

contract

• Need a detail specification to cover scope of work.

Maintenance & Operation Services

Advantages

• Contractor has more depth of trades available both internal and through sub-contractors

• At times our in-house trades are not available and the contractor can be used to respond to urgent off hours service requests

• A responding trade will do small amounts of related/non trade work such as clean-up.

• Provides on site benchmarking for Maintenance Services