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Managing your Auxiliary Service Contracts
Bob Brown
Vice President
for Business & Administration
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Based on a mail survey of 1,618 colleges and universities that
belong to the National Association of College Auxiliary Services…
*The Chronicle of Higher Education, January 28, 2005. Response rate was 20%, (325 institutions).
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Areas Currently Outsourced
87% Food Service
81% Bookstore
44% Landscaping/grounds
36% Housekeeping/maintenance
29% Parking/security
12% Housing
4% Computer services
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Primary factors in determining whether to outsource an operation:
90% Cost Savings
85% Revenue generation
79% Service/quality
72% Management expertise
66% Personnel issues
56% Institutional funding
17% Political pressure
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Primary concerns considered by institutions in determining whether to
outsource
92% Loss of institutional control
88% Loss of potential revenue
86% Employee morale
61% Security/liability
44% Slow reaction to problems
22% Local management
10% Competition
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Will continue to use outsourcing and search for additional areas for
outsourcing:
51% Definitely yes
37% Probably yes
8% Unsure
4% Probably not
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Outsourcing does not relieve the college of the responsibility for
successful operations.
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Successful contract management adds quality to the services of the
provider.
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Monitoring Book Store Contracts• Contract compliance = better college
store operation• Increased customer service • Resolution of issues as they occur• Regular meetings for open communication• Expectations are shared and understood • Improved RFPs by both parties
Maximizing Results in College Store Management and Outsourcing, 2005 Seventh Edition.
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Customer Log
• Log all feedback – good and bad
• Maintain file with documentation
• Review and discuss as soon as possible after incident
Maximizing Results in College Store Management and Outsourcing, 2005 Seventh Edition.
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Customer Surveys
• Completed not less than each term
• Gather input from students, faculty, staff, alumni and visitors
Maximizing Results in College Store Management and Outsourcing, 2005 Seventh Edition.
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Price Comparisons
• Compare prices with competing college stores, and local market
• Include margin check with contract terms, both new and used books.
Maximizing Results in College Store Management and Outsourcing, 2005 Seventh Edition.
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Payment History
• Report on sales monthly
• Audit against college store financial statements and rent payments to the institution
Maximizing Results in College Store Management and Outsourcing, 2005 Seventh Edition.
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Used Book Mix and Percentage
• Examine how many books are bought back from students vs. wholesalers
• Analyze what price is paid – students vs. wholesaler market
Maximizing Results in College Store Management and Outsourcing, 2005 Seventh Edition.
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Support from College Store
Recognize college store donations, advertising and support to campus groups
Maximizing Results in College Store Management and Outsourcing, 2005 Seventh Edition.
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Staff Longevity
• History of staff turnover
• Degree of job satisfaction
• Professional development
Maximizing Results in College Store Management and Outsourcing, 2005 Seventh Edition.
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Maximizing Results in College Store Management and Outsourcing
From Self Operation to Outsourcing Success
2005 Seventh Edition, Collegiate & Management Resources.
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Managing Food Service Contracts
• Imperative to understand the organizational structure
• Provide written standard operating procedures
Administering Food Service Contracts, 1999, National Association of College & University Food Services.
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Program Assessment• Ongoing assessments for quality of service• Respect security and internal control systems • Coordinate periodic audits
• Financial audit• Operational audit• Food safety audit• Solid waste management audit• Personnel safety and security audit
Administering Food Service Contracts, 1999, National Association of College & University Food Services.
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Financial Management & Analysis
• Review operating budgets
• Learn terminology for income and expense items in financial statements
• Specify required financial reports and due dates
Administering Food Service Contracts, 1999, National Association of College & University Food Services.
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Contract Parameters• Contract should specify:
• Menu offerings• Levels of service• Quality standards• Prices• Promotional programs• Internal controls• Operational details
Administering Food Service Contracts, 1999, National Association of College & University Food Services.
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Managing Human Resources
• Client reserves the right to approve key management personnel
• Food service employees are employed bythe management company Contractor responsible for employees
Administering Food Service Contracts, 1999, National Association of College & University Food Services.
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Contract Changes• Negotiate changes
• Major changes require high levels of involvement
• Include framework to renegotiate when market changes occur
Administering Food Service Contracts, 1999, National Association of College & University Food Services.
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Administering Food Service Contracts
A Handbook for Contract Administrators in College and University Food Services
1999 Edition, The National Association of College & University Food Services.
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Contract Management Resources Abound!
1. Professional Organizations by Type of Service
2. NACAS
3. CCBO