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Facilities Management Outsourcing Results in 25% Costs Reduction

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Overview:  

EMS recommended a consolidated approach to this clients outsourced facility management services for a portion of their administrative portfolio, which resulted in more than a 25% savings.  EMS helped the client evaluate the benefits of  consolidating  to a single provider from three providers operating under different agreements and pricing arrangements.  A consolidated approach to this 3.5M SF portfolio included assessing the cost opportunities and vendor management efficiencies that could be accomplished with one provider.

Client:    

This well-respected global pharmaceutical firm discovers, develops, manufactures and markets a significant variety of prescription and over the counter medicines.   They are committed to improving the quality of life of people around the world and helping them enjoy longer, healthier, and more productive lives.

Challenge:

The goals were to reduce costs and maintain service levels.  EMS was retained to develop a bid strategy, define service levels and develop a comprehensive Request for Proposal (RFP) for integrated facilities management services. The initiative was managed by the client’s procurement group with significant input from the three regional facilities managers responsible for this portion of the portfolio.  There were  seven bidders including three incumbents.  During the bid process, two of the incumbents joined forces to present a consolidated solution, and two of the firms that originally provided individual responses, presented a joint approach.

Solution:

• Develop and direct the entire RFP and bid assessment process for this integrated facilities  management services solution
• Clearly define service level agreements, an integrated pricing model and workload volumes, a  master service agreement tailored specifically to the client’s requirements and detailed work plan  questions
• Support the client throughout the bid process with a detailed assessment of the submitted  proposals, facilitation of the bidder interviews and presentations, a full analysis of the proposed  pricing submittals and further refinement of the proposed pricing as compared to baseline costs
• Support the client’s development of an evaluation scorecard and present an independent  recommendation. 

Results: 

• EMS’ industry expertise resulted in refinement of the proposed operating costs, organizational  staffing levels and management fees. 
• Final pricing represented a significant improvement over the baseline, in excess of 25%. 
• Customized service level agreements, along with detailed service level expectations, resulted  in  uniform practices throughout the portfolio. 
• The client recognized operational benefits with consolidated operational & financial  reporting  systems.