10 Jul Janitorial and Custodial Services
Major non-profit slashes costs on its Janitorial Services
Current State and Challenges
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 by the vendor in this budget item. The OTP project manager discovered that there had not been an RFP, or a sound procurement strategy instituted for a number of years.
OTP created a detailed scope of work based on all the client’s needs and requirements. OYP identified, vetted and included several vendors in the RFP process including the incumbent. OTP conducted several interviews and evaluation meetings with several vendors.
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. This led the non-profit to implement a new policy requiring OTP to administer an RFP on all large budget items.