Student Laundry Upgrade Presentation

Student Laundry Upgrade Presentation

• 1.
  A strategic procurementprojectForLaundry upgradeCross Functional Team Leader: Rusty Thomas, Procurement ServicesEvaluation Team: Frank Corris, CPO, Procurement Services Bev Wyatt, Residential Housing Bill Fetty, Laundry Coordinator Holly Elliott, Budget Mgr, Shared Services
• 2.
  Current StateVendor: LaughlinMusic and Vending40+ Years of laundry service to OHIOCurrent Equipment is out datedHigh level of student dissatisfaction in that washing cycles do not match drying cycles and students overpay for drying timeCurrent equipment does not meet current energy efficiency ratingsFacilities are not in good conditionDuctwork is clogged and unsafe
• 3.
  Laughlin Revenue HistoryLaughlinproposal drops commissions to OHIO from 67% to 25%
• 4.
  Ohio University LaundryProgramRFP OverviewSignificant research was performed to look for high efficiency equipment to reduce energy consumption and waste effluents Pre-Bid meeting was conducted to tour seven potential bidders through some of the current laundries be they for student use or production equipmentThe three top providers made oral presentations to the evaluation team as well as: Enrique Hermosilla, Residential Coordinator,Josh Bodnar, Assistant Residential Coordinator Brian Stephens, Student. The two finalists where asked to respond to nine clarifying questions and make their “best and final” offers
• 5.
  Proposal No. 1LaughlinVending:Presentation was poor and lacked professionalism exhibited by other vendorsPresenter could not respond to basic technical questionsLocal company with extensive history in the Athens/OU communityProposal raises wash rate to $2.00No formal training or education program for the students No indication that they ever clean dryer ventsHave out grown their ability to serve our needsTheir financial offering was the lowest of the finalists
• 6.
  Proposal No. 2ASI:ASIwas the most organized of the vendorsHeadquartered in Ohio and highly recommendedBest overall presentation: Presentation was geared towards the whole service packageIncluded laundry program an option to increase revenueElectronic access control on laundry doors opposed to opening/closing daily – Smart! Had innovative ideas ie: 25 cent wash weekends, conducts surveys,Routine maintenance & vent cleaningLooking at a GREEN detergent alternative (currently in test)Did their homework on machine/student ratioWould prefer to get away from bill changers and onto a card systemWill switch Bromley over to ASI right away“Catwash” Marketing Campaign with Renovations – InnovativeProposal did not adequately address housekeeping services currently provide by LaughlinNo local representative: Maintenance 1 to 2 hours away “not a full time job”Parent company in bankruptcyResponse to financial questions was vague, financial statements ended March of 2008, liquidly ratios indicated cash flow problems.Requested additional request for information continued to be vague. Response to bankruptcy was misleading and created an air on mistrust with the response.
• 7.
  Proposal No. 3Caldwell& GregorySpent time discussing technical aspects on atheistic improvementsProvided he most capital to be used to renovationsWill allow OU to determine how and where renovation money is spentUnused monies are given to Ohio UniversityThey had outstanding education programs“Included” laundry program an optionPlanned to hire a local maintenance person to service just our campusHousekeeping Services provided and included in pricing and employees two local residentsRoutine maintenance includes expert dryer vent cleaning to improve energy efficiencies Full time Card System “expert” on staff Wants to offer 24/7 service to the students and provided benchmark data to support the concept. Feels that they can increase student usage by 40-50% with a “goal is to get gross revenue to $650,000 per year”Great references with over 80 colleges and universities currently under contractFinancial revue showed full liquidly and ability to serve Ohio University without creating an uncomfortable financial situation.
• 8.
  Revenue Projection vs.Current
• 9.
  Benefits/HighlightsRoom renovations willinclude:New paintNew ductingWasher and dry enclosuresNew flooring in some areasDecaling with OHIO logosNew energy efficient front load washers and double stacked dryers will be provider in all locationsWater consumption and sewage waste water will each be reduced by 4 million gallons per yearSaving on water and sewage equal $50,000/yearWash and Drying times will be closer to 1:1 ratio
• 10.
  Considerations of Decisionbetween ASI/Coinmach Laundry and Caldwell & GregoryBoth had outstanding references, with near 100% satisfaction.Both concentrate on university laundry serviceBoth total financial offering packages are an improvement over current provider plan.ASI/Coinmach’s parent company, Babcock and Brown is currently in “voluntary administration” in Australia The financials submitted by ASI/Coinmach where dated March 31, 2008 and indicated a loss in revenues, and showed no total positive assets compared to liabilitiesGiven consideration to all available information and taking to account the advisement of John Biancamona, Legal Affairs, it was decided not to award to ASI/Coinmach
• 11.
  Recommendation JustificationAward toCaldwell & GregoryFollowing final negotiations with Caldwell & Gregory that resulted in an additional 5% increase in revenues, the Evaluation Team made the unanimous decision to recommend Caldwell & Gregory as the new provider.
• 12.
  Further Recommendations“Include Program”The“Include Program” is a forward thinking practice observation that access each resident student a flat fee for laundry servicesEvery school that has gone to this program has had positive student feedback and benefited the university financially. Recommended annual fee of $100/year doubles the income revenue to the university For the students it allows:Unlimited cycles and eliminates the need for cashEliminates the for expensive monitoring equipmentIncrease hours of operationCan be made available to “off-campus” students with student ID card much like Bobcat cashResult in increased income to Resident HousingRecommend transition to the “Include Program” for school year 2010-11 through the fee structure showing the laundry as a value-add for increase.
• 13.
  Revenue Projection vs.CurrentBecause of a significant change in equipment type, an additional $50,000 /year in water and sewage saving can be value added to the C&G commission.
• 14.
  Post Award Improvements
• 15.
  Before Photo
• 16.
  After PhotoStill toCome:Folding tablesStudy TablesSeating UnitsFramed signs Card Readers