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A University steering team recommended keeping residence hall housekeeping and
printing services in-house because outsourcing the programs would not save any
money.
The Outsourcing Steering Team made the recommendations April 12 after hearing
reports compiled on the potential savings, and costs, of privatizing the
University's residence hall housekeeping and printing functions.
"We're recommending to the Chancellor's Office that both of those services be
retained in-house because they are cost effective," said Bruce Runberg, chair
of the Outsourcing Steering Team and associate vice chancellor for facilities
services.
On housekeeping, the consulting firm of Roesel, Kent & Associates
determined that privatizing the residence hall services would cost the
University $59,620 a year.
An in-house study of printing services determined that outsourcing the
operation would cost at least $22,946.
The final decision on all outsourcing matters rests with the chancellor.
In regard to housekeeping, the consultants reached their conclusions after
studying the work done by the Housekeeping Department and comparing the
University's services to two south Florida campuses where private companies
have been hired for cleaning services.
Those two schools - the University of Miami and Nova Southeastern University -
have lower costs for cleaning services, consultants said, but those savings
come from lower wages and fringe benefits, not more efficient service.
In addition, consultants observed that Carolina's housekeepers must clean "a
far greater number of common-use rest rooms and showers" when compared to the
cleaning staffs at the two Florida schools. Cleaning such rest rooms and
showers means a lot more work, the report said.
The consultants' report complimented the University's housekeepers for making
"significant effort to improve the competitiveness" of the department.
That improvement came through restructuring the department, focusing on the
customers and improving service methods and procedures, according to the
report.
There remains room for improvement in the level of service from the
housekeeping staff, the consultants said, but the housekeepers are making great
strides in such services.
"The employees providing these housekeeping services have shown considerable
interest in improving competitiveness, customer satisfaction and quality and
have participated in employee involvement teams to achieve these goals," the
report said.
Runberg said that the changes in residential housekeeping would be applied to
housekeeping for academic and health affairs, two areas scheduled for future
outsourcing study but that the Outsourcing Steering Team will recommend against
studying thanks to the residential housekeeping report.
The examination of printing services determined that the department:
* Provides the lowest price on "digital quick copy printing" when compared to
private vendors.
* Has won numerous national awards for its high quality of work.
* Allows for greater efficiency as a University function by having services
such as automated billing.
* Already contracts out 40 percent of printing work campuswide. This is work
where private companies do provide the University with a lower cost.
The Outsourcing Steering Team started work in 1996 after the state legislature
mandated the state's public universities to study if outsourcing would cut
costs. That mandate started the steering team's review of 50 separate functions
to determine if privatization would save money.
Many of the services already were handled by private contractors and others
were found not to need further study. Of the three examined in depth so far
(grounds, vehicle maintenance and HVAC repair units in Facilities Services),
none have been recommended for outsourcing.
Two functions currently outsourced -- asbestos abatement and asphalt paving --
will be studied in 1999-2000 to see if money could be saved by doing the work
in-house.
The University already uses outside workers for a variety of services through
260-plus contracts valued at more than $52 million.
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