equipment maintenance management insurance program (emmp)
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Equipment Maintenance Management Insurance Program
(EMMP)
As part of DGS’ strategic Plan, each office was tasked with finding efficiencies within their business models.
In 2009 a need was recognized to provide cost savings for post warranty equipment maintenance contracts.
As a result, ORIM partnered with Alliant Insurance Services (the State’s contracted insurance broker) to develop an insurance based program that meets this need.
The EMMP Pilot program began with DGS for the 10/11 FY. Significant and measurable cost savings of almost $200,000 were realized for
the 10/11 FY. The program opened to all State agencies effective July 2011.
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8 Participating departments include DGS, CDCR, CDPH, CTA, DOJ, Fish & Game, Water Boards and Parks and Recreation.
Covers 2348 equipment assets (IT, Medical, Scientific, General Office, Other) in offices throughout the State.
Hard dollar savings of almost $1,000,000 since inception of EMMP.
Over 1,300 scheduled maintenance events / repairs have been completed on covered equipment.
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Guaranteed 25% savings: Current Original Equipment Manufacturer (OEM) service contract or extended warranty maintenance pricing is discounted 25%.
Reduction of administrative burdens: One Master Insurance program eliminates multiple
service contracts or extended warranties. Eliminates need for Bids/RFPs. ORIM has already
met the requirement. One insurance premium paid annually at coverage
inception in lieu of multiple billings. 4
Maintenance service is performed by the manufacturer or any qualified service provider that is deemed acceptable by the end user.
Repairs and scheduled preventive maintenance including parts, travel and labor with 24x7 service available are paid through program.
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Equipment can be added and deleted at any time during the program term.
A pro-rated credit is received by the department that deleted the asset.
Online reporting provides equipment tracking & maintenance activity at the asset level: Reports can be sent to end users to remind of
the need for PM’s which extends equipment life by ensuring it is maintained properly in compliance with manufacturer recommendations.
Access to all vendor’s service reports (per asset) available online.
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Current Service Contracts
Departments provide copies of existing maintenance service contracts purchased from the OEM or dealer/reseller to ORIM. REMI analyzes and prepares a cost reduction proposal which specifies cost savings, maintenance coverage and annual costs.
Once quote accepted by department, asset is transitioned into program as warranties expire.
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No Service Contract
Provide copies of original PO (if available) along with equipment serial number, make, model and service level information. REMI issues an annual quote based on industry standards and requested service levels.
Upon acceptance of quote, the State department will request ORIM to add onto the program.
Once asset is added to program, service can be requested.
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QUESTIONS??
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Donna SandersonAssociate Risk AnalystOffice of Risk & Insurance [email protected]
Carrie WillsonStaff Risk Manager Office of Risk & Insurance [email protected]
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