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I'm writing because a question published in the
May 2001 issue of Staff Notes Monthly
appeared to be
unaddressed in the official response. The questioner wrote, "How much do we
really save by contracting out custodial services? Please factor in the
cost of 'managing' the contractor, as we've had to do rather extensively
all along and propose to do even more now."

I thought the question was very clear. But the official response failed to
answer it.

Surely, someone in this organization quantified the difference between the
old in-house custodial costs (adjusted for inflation) and those associated
with the contracted service. Otherwise, the decision to eliminate the
former for the latter would never have been made. I would appreciate it if
our organization provided a more complete and appropriate response to
Delphi Question #469.

Answered on June 29, 2001


As reflected in our earlier answer, a cursory analysis shows that the
dollar savings and efficiencies gained by using contracted services are
considerable, including the UCAR management overhead. It is difficult to
assign specific dollar and efficiency savings, given that the space
occupied has grown significantly and, therefore, the work for the custodial
staff has also. Turnover in this function is high, so we would also have to
estimate the cost of hiring and training personnel, a cost now borne by the
contractor. Given that a detailed analysis would be difficult and
definitely not cost effective, we stand by our decision to contract out
custodial services.

-Katy Schmoll, Vice President, Finance and Administration