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District review of custodial RFPs: staff recommend contractor that would hire current custodians, replace equipment and offer potential three-year savings
Summary
Operations staff presented RFP results for district custodial services, recommending a contractor that would assume existing custodial staff, provide new equipment and benefits, and offer an estimated multi-year cost reduction. No contract award vote was taken at the meeting.
District operations staff presented the results of a request-for-proposal process for custodial services and recommended outsourcing to a vendor whose proposal included hiring current custodial employees, supplying a new fleet of equipment and offering health and retirement benefits for custodial staff.
Josh Madison, director of operations, told the board the RFP sought both cost and service comparisons and required each proposer to include a new fleet of equipment so bids could be compared on an "apples-to-apples" basis. The district's three-year projection to continue custodial work in-house, with an equipment replacement allowance, was presented as approximately $3,698,009.65. The top-ranked contractor's three-year price in the RFP evaluation was presented as approximately $3,325,907.28, which staff said represented a potential savings of about $430,000 over three years. District staff also estimated the cost to replace the aging custodial fleet at roughly $300,000.
The recommended vendor (identified in the RFP materials) proposed staffing at about 21 custodial FTEs plus an on-site manager (about 22 positions total); district staffing is budgeted for roughly 20 positions but was reported to be short (16 active staff at the time of presentation). The vendor proposed higher hourly wages (presented in the meeting as roughly $17 to $21 per hour depending on role) and a benefits package that included medical, dental, vision, 401(k) options, short-term disability and paid time off. As part of the RFP requirement, proposers agreed to offer positions to the district's existing custodial staff and provide transition plans; staff said the contractor would take on current employees if a contract were negotiated.
Board members asked about oversight and quality control, citing the district's prior experience with outsourced cleaning services and the reason custodial work was brought in-house about ten years ago. Madison said the recommended contractor provided references from more than 40 Michigan school districts and included contractual penalties and performance checklists to hold a vendor accountable. Staff recommended that, if the board later chooses to award a contract, the transition would take place at the start of a fiscal year (July 1) to align with vendor transition plans.
No formal procurement action was taken at the meeting. Board members asked for references and emphasized the need for contractual oversight, and staff said they would return with additional information and contract language before any award.
Why this matters: custodial services touch daily operations, student health and the district's payroll and benefits obligations. Outsourcing would shift staffing responsibility to a vendor, change benefit packages for employees and require contractual oversight to ensure cleaning standards are met.
Next steps: staff to follow up with reference checks, final contract language and a recommended award for a future board action if the board wants to proceed.
