SU Group

Back

County Government

Population 1,000,000+
Annual Budget $3 Billion+

Financial Profile

This County became a charter government allowing it the ability to respond to a changing environment and meet local needs. It enables the County to adopt laws without the need for prior authorization of the State Legislature.  The County is comprised of 13 municipalities in the incorporated area and 17 distinct neighborhoods in the unincorporated area.

Annual Eligible Equipment Maintenance Spend $308,789
Current Hard-Dollar Cost Savings $86,461 (28%)
Savings over the term of the Agreement $481,140

The Problem

The County was feeling pressure to reduce spending and the maintenance budgets were considered a target for review.  The Chief of Purchasing & Contracts felt the focus should be on Maintenance Contracts without disrupting the uptime of the equipment.  Although the Purchasing Manager was concerned about the recent rise in overall spending on maintenance, the real issue was the loss of control and the mix of coverage’s.  Similar types of equipment had different terms and various pricing.  There were situations where various departments had similar equipment covered by Service Contracts or handled on a time and materials basis.  It became apparent that each department within the County was working independently and not benefiting from best practices.  Due to not having a county-wide inventory of equipment, some departments purchased equipment similar to equipment which was in storage, being excess.

The Solution

“Our Utilities Division has used Specialty Underwriters LLC ever since it was available on the State Contract. Utilities have many different types of equipment applied to this contract including Laboratory Equipment, Copiers and Printers. We have saved money by using Specialty Underwriters without giving up the same quality of maintenance service by using the manufacturer’s maintenance program. The response time has been great and the repairs completed because we are using the maintenance companies we suggest. I recommend using Specialty Underwriters for all your maintenance service contracts.” Senior Fiscal Coordinator, County Utilities

An important first step was to determine which equipment was under a Service Contract, warranty, being serviced by in-house staff or being handled on a time and materials basis.  In addition it was critical to review the types of equipment and the vendors needed to repair equipment.  The most accurate way of obtaining this data was through a Financial Analysis.  This Analysis identified that data in addition to “out of scope” charges, which is a commonly overlooked expense in a maintenance budget.  The SU Group program solution provided:

  • Asset Management control of equipment by tagging each item
  • Numerous real-time online Management Reports
  • Improved communication through a single point of contact
  • Service Based Optimization by reducing administrative burden with one Purchase Order to SU
  • Initiating SU Group’s Warranty Watch, which tracks equipment coming off OEM warranty