What Happened?
Colorado Springs is considering outsourcing its fleet services in an effort to reduce costs without sacrificing quality services to residents. The proposed strategy is estimated to save the city $2 million over three years.
The Goal
Research suggests partnering with the private sector to take care of vehicle usage and maintenance could improve efficiency and residential value. The Colorado Springs city council proposed five outsourcing options to reallocate the financial burden of taking care of 4,500 pieces of equipment and cost of 70 city employees.
Of the projected $2 million in savings the outsourcing strategy could provide Colorado Springs, 60 percent will be sourced to city expenses and 40 percent to utilities departments. While the 70 current employees servicing the city’s fleet would lose their positions if outsourcing is agreed upon, the majority of the workers would likely be hired by the private sector company contracted by Colorado Springs. You can view the original RFP, or we provide a link to all the RFP documents including exhibits, addendums, and more (it’s the 8th listing from the top of page).
School Bus Strategies
The school district in Wyandotte, Michigan, recently signed a contract with Trinity Transportation to provide transportation services to students for the next three years. The school board also approved the sale of its bus fleet to Trinity Transportation for $275,000 to help cover the cost of the partnership for the first year of the contract. Outsourcing transportation demands will cost the school district an estimated $283,360 for the 2014-2015 school year and $291,640 for the 2015-2016 school year.
Under the new contract, the local maintenance, transportation and custodial union employees will be hired by Trinity Transportation or placed in the school district’s operations department so no jobs are lost in the transition. In outsourcing school district transportation duties, the school board hopes to save on vehicle maintenance, wages and employee benefits, as well as insurance and fuel expenditures which can reach $800,000 annually.
Similarly, Panama City, Florida, is adjusting its school bus fleet to improve the safety and efficiency of transporting students in the district. The local school board recently purchased surveillance devices for school buses including digital cameras, recording devices and global positioning tracking technology.
The GPS devices will scan a barcode on the backpack of each student to monitor when he or she gets on the bus and where the child is dropped off. This will allow parents and district employees to locate a missing child faster. Vehicle tracking technology will also be deployed to help bus drivers navigate more efficiently through traffic.
The new on-board technology upgrades are part of a long-term strategy to improve district transportation operations that also includes converting fleets to run on natural gas for reduced fuel costs and carbon emissions. The district plans to purchase 10 new buses annually for a few years, all equipped with the surveillance technology as well as wheel chair lifts to better serve the community.
Outsourcing Success
Gov1 has reported on several outsourcing strategies in school districts that are generating hundreds of thousands of dollars in savings. By working with private service providers, municipalities are reducing budget deficits and freeing up capital for other investments.