Case Study: Janitorial and Custodial Services

Case Study: Janitorial and Custodial Services

Case Study

A major non-profit slashes costs for janitorial services.

PROBLEM

While reviewing areas in the operation budget for high costs, OTP uncovers a significant red flag. The due diligence for janitorial services had not been up to par which had led to a huge over-charging in this budget item. The OTP project manager discovered that there had not been an RFP instituted for a number of years in this category.

RESULTS

After receiving competitive bids it became evident that the current vendor was currently charging 45% more than the competition. OTP experts negotiated an annual savings of $32,000 for the same level of janitorial services to the non-profit.



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