Pursuing public work

Q. We approached a quasi- state-run agency about submitting a bid for its landscape operations. This agency currently has a four-man seasonal crew that takes care of all landscape operations. It takes this four-man crew two weeks to complete one total mow and all crew members work 40 hour weeks. I have no way to verify if they have inefficiencies/poor machine choices, poor work practices, etc. The areas the crew covers are massive and complex. If the agency does like our offer, it would have to put it out to bid. I need some serious advice. I would rather walk away than make a mistake this size.

A. To pursue public work that is currently being performed by public employees is a contemporary idea that has merit. With the increased pressure on many government agencies from squeezed budgets and the current anti-political environment, there should be more opportunities for contractors to provide better service at less cost.

First, determine the following:
What is the motivation for the people you are speaking with? What is the decision-making process? How much time are you willing to spend pursuing this? Is there a scope of work? Are there prevailing wage requirements such as Davis Bacon? Is it necessary for this to go out for bid? If this goes out for bid, is there a way to give yourself an edge, perhaps by requiring bonding or PLANET certifications, pesticide license, or other methods to minimize the bidding by unprofessional operators? What are the impacts to the agency if they out source? What happens with the personnel and equipment? What is the time line for making a decision?

What data is available from the client such as site maps and measurements, current equipment and manpower, payroll and benefit costs and support cost, such as repairs and maintenance? Under the Freedom of Information Act, you might be surprised at how much information you can obtain just by asking. Factor in work rules and the inefficiencies of public employees compared to private contractors, and this makes outsourcing pretty attractive.
If this is worth pursuing, you’ll need to put together a compelling proposal. I suggest the following:

Have a few of your knowledgeable operators closely inspect the work area(s). They can identify the functions that are necessary, such as mowing by type and size of mower, string trimming, debris removal, blowing off, traffic control, pruning, etc. Identify risks, such as dangerous slopes, protecting workers from traffic, parking and debris issues that will slow work. Is there highway debris that can become dangerous projectiles with string trimmers and rotary mowers that will cause insurance claims or worse? Are there opportunities to reduce labor with growth regulators or vegetation control?

If possible, observe the work of the government employees and the equipment used. Are there efficiencies you can bring to the job? Are there ways you can improve safety or reduce the environmental impact?

Prepare an estimate. Start with the number of hours it will take to do the work plus the cost of equipment. Be sure to factor in the safety risks involved with working along a highway. Most agencies have all the information you need to measure the site, such as site plans. If not, you can get a rough estimate by using Google Earth. Focus on making a compelling case for outsourcing and save the detailed estimating until the client is ready for an exact bid.

Provide a scope of work. Will the client write it, or would it be wise for you to volunteer to do so? If you do, be careful not to insult the client by painting its staff as being inept. Instead, emphasize how you can help solve the problem(s). Collect some articles and case studies showing the benefits and methodologies of outsourcing.
If you aren’t comfortable or familiar with performing projects of this size or type, consider sharing your estimate information with a PLANET Trailblazer or have another company with municipal maintenance experience review your assumptions. Be sure it is someone you can confide in that isn’t a competitor.

You may also want to look for people who have influence in the process that might even be more motivated to outsource such as your mayor or state senator. Try to get their input and possible endorsement. Assuming you have convinced the prospect that outsourcing is beneficial and the project is defined and ready to price, you will undoubtedly know if it has to go out for bid.

Assuming it does, this is where the marketplace will determine how much it will cost to perform this work.
Advise prospects of the risks of open bidding and, hopefully, they will use criteria other than simply the lowest price to determine the contractor. L&L

Kurt Kluznik,
Yardmaster, Inc.

 

July 2011
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