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?
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
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
Keys to Success
 Management service company’s local
manager
 Governmental entity’s contract administrator
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 2008. Resolicited 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
Custodial
 Contract based on audited square footage
 Prior to outsourcing, district employed 67
custodians
 Currently district has 5 custodians
 Southern Management provides 189
personnel
 Average district custodian wage and benefits:
$43,125
 Average contracted custodian wage and
benefits: $22,491
Food Service
 1997 cost plus fixed fee contract awarded to
Marriott Management Services Corp
(currently Sodexo)
 Current contract began in 2007
 Performance based. Fixed cost per meal
$3.033.
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
Food Service
 District currently employees 17 personnel
 Sodexo provides 173 personnel, 12 of which are
in the Food Service Office, positions we did not
and would not have if Self Op
 Average district food service wage/benefits:
Managers: $42,457
Workers:
$29,379
Average contract food service wage/benefits:
Managers: $26,804
Workers:
$14,563
Types of Food Service Contracts
 Employee only – Staffing Agency
 Food Service Management Contracts
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
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
School Food Authority Responsibilities
7CFR 210.16 (a)
(1) Adhere to the procurement standards
specified in §210.21 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
7CFR 210.16 (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
7CFR 210.16 (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
7CFR 210.16 (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
7CFR 210.16 (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
7CFR 210.16 (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…
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.
Transportation
 Includes 200 routes, buses equipped with air
conditioning, GPS, cameras and two-way
radios
 Durham currently manages 55 board
employees and 234 contract workers
Transportation
 Average district wage and benefits:
Driver Monitor Mechanic -
$37,715
$28,373
$61,871
 Average contractor wage and benefits:
Driver Monitor Mechanic -
$20,822
$16,088
$37,293
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.
Where to go for help!
Santa Rosa County School District
Jud Crane, Director of Purchasing and
Contract Administration
850-983-5130
cranej@mail.santarosa.k12.fl.us
https://www.santarosa.k12.fl.us/purchasing/bids/Mgt_Contract/MgtContract.htm