Category Archives: Insourcing/municipalization

Transportation to federalize some IT contractors

Source: Andy Medici, Federal Employees News Digest, Vol. 50 no. 14, August 25, 2014
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The Transportation Department will be federalizing some of its IT contractor workforce in order to save money and invest in new programs, according to its Chief Information Officer Richard McKinney. He said at the 2014 Federal Forum in Washington Aug. 13 that there are about 50 federal employees and 250 contractors running its shared services and common operating environment platforms, and that contractors cost significantly more money. Part of that cost was passed on to component agencies, raising the cost of shared services….

Castro Valley: Waste Management ending trash service to rural canyons

Source: Rebecca Parr, Daily Review, September 9, 2014

Residents in the rural canyons east of Castro Valley are wondering where they’ll dump their trash after being told that their hauler no longer wants to send its garbage trucks onto their narrow, winding roads.
The area, informally known as Canyonlands, lies outside any city or sanitary district where residents can choose their hauler. Waste Management has been doing the weekly trash pickup — until now. When residents complained earlier this summer about a rate hike, Waste Management agreed to roll back some of the increase until the end of the year, when it will leave Canyonlands on its own. …. Canyonlands residents’ troubles began several years ago when they asked for recycling service. Although that didn’t pan out, Waste Management looked more closely at the area, said Bob Swanson, of county Supervisor Nate Miley’s office. …. Waste Management notified residents that their rates would go up in June, from $17.68 a month for a 32-gallon container to $45.99. …. Alameda County and Castro Valley Sanitary District are trying to determine if it’s feasible to annex the area into the sanitary district to take away its trash. But annexation could not happen by the end of the year, said county planner Liz McElligott. ….

Our Best Line of Defense: Taking on Privatization at the Bargaining Table

Source: Canadian Union of Public Employees, ISBN 9780980929676, September 2014

This guide gives an overview of the privatization, contracting out and contracting in issues CUPE members face – along with sample collective agreement language for local bargaining committees, bargaining councils and staff representatives.

There are four major areas to look at when drafting and reviewing collective agreement language:
1. Getting ahead of privatization: notice, disclosure and consultation
2. Preventing privatization: language on contracting out
3. Reversing privatization: language on contracting in
4. Protecting benefits from privatization or delisting
Each section of this guide includes a brief overview and a list of issues for negotiations, as well as sample CUPE collective agreement language from a variety of sectors and regions. Articles dealing with contracting out are strongest when they are clauses within the body of the collective agreement, as they roll over into future agreements unless they are changed during bargaining.

Room service hospital meals help Kaiser Permanente Hawaii save $1.5M a year

Source: Matt Tuohy, Pacific Business News, August 20, 2014

Kaiser Permanente Hawaii’s Moanalua Medical Center has been saving about $1.5 million a year in food costs by bringing meal preparation in-house and allowing patients to choose when and what they want to eat as the first hospital in Hawaii to offer a room-service menu. The hospital, which until two years ago outsourced meal preparation to Aramark, changed its policy on food, along with other Kaiser hospitals across the country, to make sure patients got the food they wanted, when they wanted it.
The end result was a new kitchen and staff that take orders over the phone and prepare the meals as they’re needed. The hospital now spends about $1.1 million per year operating the kitchen, with about 18 full-time employees who take down orders from patients in a separate room and hand them off to the cooks who put the food together in an assembly line fashion. …

Augusta set to bring outsourced human resources services back in-house

Source: Susan McCord, Augusta Chronicle, August 4, 2014

Four years after city leaders pushed to outsource the government’s health and welfare benefits administration to global outsourcing firm Automatic Data Processing, the service might be headed back in-house. According to Human Resources Director Tanika Bryant, despite ADP’s contract to handle most benefits-related calls from current and retired employees, the two city benefits representatives are still swamped with calls. It would be cheaper to replace the benefits administration portion of ADP’s contract with three additional city staffers, she said….
$1 million price tag, internal memo listing ‘ADP Issues’ may doom privatization plan
Source: Chris Thomas, News 12, January 25, 2012

Commissioners recently all but rubber stamped a plan to privatize Augusta’s Human Resources and payroll department….We got our hands on two pages of supposed issues with ADP that were compiled by the city administrator’s office….The list makes mention of workers dropped from health care coverage.

Osceola may hire private firm to handle inmate health care

Source: David Breen, Orlando Sentinel, July 20, 2014

Osceola County is working on a deal to hire a private health-care company for jail inmates that has been sued elsewhere over alleged poor care and, in one case, the death of a prisoner. Commissioners have voted to begin negotiations with Miami-based Armor Correctional Health Services. They did so over the objections of several members of the jail’s health-care staff who raised objections about quality of care, liability issues and whether the deal would end up proving more expensive to taxpayers. … Privatized health care for jail and prison inmates is widespread in Florida. The state has contracted out health care for many prison inmates. And Armor has contracts to handle health services at jails in 16 Florida counties, including Lake and Brevard, as well as in seven other states. …But the reviews for Armor haven’t all been positive. The company, along with Hillsborough County, had to pay $1 million to the family of a Hillsborough man who fell into a coma and died after suffering a stroke in 2012. … And in May of this year, the Pinellas County Sheriff’s Office terminated its contract with Armor after only seven months. Sheriff Bob Gualtieri said Pinellas’ situation was unique because it was a hybrid system in which nurses remained county employees, while Armor supplied doctors. But he noted that Armor racked up fines of more than $150,000 for failing to fill staff vacancies or ensure timely care to inmates. And he was angered that Armor moved the man who had overseen Hillsborough jails during the Hicks incident to Pinellas. Gualtieri said he would not pursue privatization again in the future. “Based on this experience we’re going back to doing it in-house, and we’re not going down that path again,” he said….

McAuliffe orders review of state’s contracted labor

Source: Olympia Meola, Richmond Times Dispatch, July 9, 2014

Facing a revenue shortfall that could trigger budget cutbacks, Gov. Terry McAuliffe is turning his eye to contractor labor. …Through the second executive directive of his administration, McAuliffe is ordering his secretaries of administration, finance and technology to dive into the details of a swath of contracts….He wants a review of all IT full-time equivalent positions in state government, including contractors and state employees. State government saw an increase in more than 100 contingency IT contractors from 2012 to 2013, at an added cost of $17 million to the state, according to his directive issued today. That contingency labor is apart from larger IT contracts and projects, for example Northrop Grumman’s massive contract with the Virginia Information Technologies Agency to modernize and run the state’s vast computer network. The secretaries are also to report by Oct. 1 with a cost-benefit analysis of insourcing versus outsourcing contracted jobs with consideration of the costs and benefits of hiring full-time state employees….

Paris’s return to public water supplies makes waves beyond France

Source: Geert De Clercq, Reuters, July 8, 2014

Nearly five years after Paris took the management of its water supply back into its own hands, the move is inspiring other cities at home and abroad and hurting profits at private water firms Veolia and Suez Environnement. In 2008, socialist mayor Bertrand Delanoe ended the contracts with the two firms that had operated Paris water distribution systems since 1985 – Veolia on the right bank of the city and Suez on the left bank. … That is posing a big challenge to Suez and Veolia. While they have responded by focusing more on their waste and energy activities and looking for industrial clients, they still rely heavily on water.

Raimondo criticized for keeping hedge fund consultant dropped by Massachusetts

Source: Randal Edgar, Providence Journal, June 26, 2014

General Treasurer Gina Raimondo is standing by the state’s hedge fund consultant, even if her counterpart in Massachusetts has decided it’s time for a change in direction. Raimondo, who chairs the State Investment Commission, said through a spokeswoman Wednesday that there are no plans to part with Cliffwater LLC, the California-based firm that began advising Rhode Island officials — and, coincidentally, Massachusetts officials — in 2011….Now, Massachusetts plans to pursue “separately managed accounts” in which the state, rather than invest in existing hedge funds, would hire an account manager who invests the money in the state’s name, giving the state more control over, and potentially lower, fees….Siedle, noting moves in California and elsewhere to shift from hedge funds, questioned why Raimondo would stand by that strategy when financial figures, such as billionaire Warren Buffett, are recommending against it….

Tuscarora school board to vote on final 2014-15 budget Monday

Source: Amber South,, June 13, 2014

Tuscarora School District Board of Education will vote Monday on adopting the 2014-15 district budget. …. To bring the tax increase down, the board has gone through with various cost-saving measures that will save the district about $600,000 for 2014-15. According to Business Manager Eric Holtzman, they include …. insourcing maintenance tasks that were previously completed by outside companies. There were other things as well….
Committee will make recommendation on fate of director of facilities in Tuscarora
Source: Amber South,, March 24, 2014

Tuscarora school board will hold off on deciding whether or not to cut the position of director of facilities operations.

School board President Clifford Smith announced at the special board meeting Monday that the buildings and grounds committee would instead review the administration’s recommendation to cut the position, and make their own recommendation to the school board, likely at the April board meeting. The school board made the decision in an executive session prior to Monday’s meeting.

In a packet provided at the meeting, Superintendent Charles Prijatelj stated that eliminating the position could save the district $559,994 over five years.

His original recommendation to cut the director of facilities operations, held by Stanley Morgan, followed many weeks of contemplation over outsourcing the entire department of maintenance and custodial workers. The school board even voted to solicit bids on three options to make that happen.

“As it stands now, the board has decided that is not the way we want to go,” Smith said. ….

…Quinn added that the director of facilities “gives the district continuity” in working with contractors, and “is our watchdog” by ensuring contractors do what they are paid to do.

“It would be premature and imprudent to eliminate the facilities director position,” she said.

But according to Prijatelj, per the information packet, the position “is a redundant position that was created to deal with construction manager type tasks. At this time, our construction/renovation projects represent no more than 10 to 15 days of consultation work a year. Even with the proposed insourcing of maintenance services, this position is an unneeded luxury.” …