A consulting firm hired by the UNC system has begun a study of savings that might be achieved by privatizing some services at the system's 16 campuses.
The study, which was ordered by the General Assembly last year, was on track for being completed by the legislature's April 15 deadline, said James Smith, associate vice president for finance for the UNC system.
MGT of America, Inc., a consulting firm based in Tallahassee, Fla., will survey the campuses regarding six functions: housekeeping, grounds maintenance, trash and hazardous waste removal and disposal, central steam plant operations and maintenance, data processing operations and heating, ventilating and air conditioning operations and maintenance.
Smith said the functions included in the study were chosen because they were mentioned specifically in the legislation (housekeeping and physical plant) or were common at all or most campuses.
The consultants will gather information by visiting three institutions--N.C. State, A&T State University and Western Carolina--and by sending surveys to the other schools, Smith said.
The schools chosen for site visits are meant to serve as a representative sample of the system's varying institutions in terms of mission, history and geographic location, Smith said.
Privatization, also referred to as outsourcing, has been used on many UNC system campuses, Smith said. Carolina's food services, like those at most campuses in the UNC system, are operated by a private firm.
"Outsourcing is not a new management tool in higher education," Smith said.
The privatization study will be presented to the UNC system Board of Governors in April just before being delivered to the legislature, Smith said.
It hadn't been determined how detailed the report will be, Smith said, but the legislation calling for the report asked for a study that described the potential for cost savings. The legislation also directed that the study document how much of any savings would be attributed to lower salaries and benefits for employees.
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