Hmmm is right! A few things I wonder about myself....
A. OPTION 1 – CONTINUE USING A CONTRACTED SERVICE TO CLEAN CARPETS
"Since 2002, when the contract
began, the annual expenditures for the regular cleaning of carpets and mats as well as
emergency call-outs have never exceeded $190,000 in a year. We should budget $220,000 to accommodate a realistic bid. The current contract for the provision of carpet cleaning services runs until June 30, 2010. The company has indicated they do not intend to renew for another term."
Why wouldn't the contractor want to renew? Sounds like a good contract depending on how much is involved. Maybe they are in over their head or maybe they have no idea their losing the contract Hmmm
B. OPTION 2 – PURCHASE OUR OWN VEHICLES AND CLEAN CARPETS IN-HOUSE
"Cleaning carpets only during the school breaks enables us to be more efficient and therefore we would only
require approximately 3.5 FTE of total labour which works out to be $192,500 per year. In addition we perform emergency call-outs throughout the year due to floods etc. Based onprevious experience we should budget approximately $15,000 per year for these costs. The total on-going labour costs for regular carpet cleaning and emergency call-outs are
$207,500 per year"
$207,500 a year split between 3.5 FTE is alot of coin for part time time work. They say full time but if your cleaning only during the breaks it's PART TIME! Maybe since they would be on call for the occasional "emergency call out" they are considered full time?
It looks to me like the contractor is getting hosed and they wanna keep the dollars in house. I also think it funny how they show they can "save on labor" while doing this.
Steve
EDIT* I just read it again and they plan on using 3.5 fTE total labor hours for the year but using more than 3.5 employees to do the work. That makes more sense but still sounds fishy. Willy, why don't you bid it for 200k a year and sub it out for around 100k a year? Use the "Brian R System" and live like a "Fatcat".
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