Mercury - Outsourcing, Managed Competition

<body bgcolor=ffffff text=000000 link=0000cc vlink=990099 alink=cc0000> <center> <table width="620"> <tr> <td align="center"><b><font face="Arial" color="#0033CC">Mercury Associates, Inc - Fleet Outsourcing and Managed Competition Consultants</font></b></td> </tr> </table> <table width="620"> <tr> <td align="center"><font face="arial" color="c0c0c0"> <strong><br> this page is being forwarded</strong></font><br> <font face="arial" color="ffff00"><a href="http://www.mercury-assoc.com">click here!</a></font> <font face="arial" color="c0c0c0">if you do not have a frames compliant browser</font></td> </tr> </table> <br><br> <table width="90%" cellspacing="3" cellpadding="3" border="0" style="border-collapse: collapse" bordercolor="#111111"> <tr> <td width="100%" bgcolor="#FFFFFF" bordercolor="#FFFFFF"> <p align="center" style="margin-top: 0; margin-bottom: 0"> <font face="Arial"><span style="background-color: #FFFFFF"> <font color="#0033CC"><b>Fleet Outsourcing and Managed Competition</b></font><br>  </span></font></td> </tr> <tr> <td width="100%" bgcolor="#FFFFFF" bordercolor="#FFFFFF" align="justify"> <font face="Arial"><span style="background-color: #FFFFFF">In the mid-1980s, fleet managers started experiencing pressure from their bosses to investigate the desirability of, or actually proceed with, the outsourcing of fleet management activities that their organizations historically had performed in house. The initial focus of these pressures was on fleet maintenance and repair services, and the decision to outsource or not to outsource usually was based on a simple comparison of contractor fee proposals with the costs of the in-house fleet maintenance operation. In other words, the merits of outsourcing were often viewed in very basic, black and white terms - contractors either could maintain the fleet more cheaply than could in - house staff or they couldn’t.<br> <br> Not surprisingly, this simplistic view of outsourcing resulted in some poor decisions to outsource services, and considerable trepidation and resentment arose among fleet management professionals and their employees about the whole subject of outsourcing. One of the more notable outsourcing fiascos of the early 90’s occurred in Fairfax County, Virginia where a contract for the maintenance and repair of a 1,000 - vehicle fleet was terminated only months after being implemented. To their credit, County officials were courageous enough to admit that they had made a mistake when they tossed out an under-performing contractor and brought the fleet maintenance operation back in-house ( not all fleet maintenance services had been privatized in the County, so this was easier to do than might otherwise have been the case ). Some fleets, however, have continued to suffer the effects of ill - considered or highly politicized decisions that were made in the initial flurry of fleet maintenance outsourcing initiatives.<br> <br> Fortunately, lessons were learned from some of these early missteps and a more sophisticated approach to the consideration of outsourcing benefits and costs evolved. One major outcome of this evolution was the emergence of the managed competition project, a fleet management services contracting process in which the in - house fleet management organization is permitted to compete against outside contractors. The rise of managed competition reflected both an outcry from union and non-union workers that their jobs were being sacrificed in the pursuit of sometimes trivial cost savings, and the dawning realization by both fleet management professionals and their bosses that in-house organizations could be very competitive if they were given the opportunity to restructure their business processes and break through some of the bureaucratic red tape that so often hinders their competitiveness.<br> <br> Although the interest of the last five years in managed competition seems to have abated somewhat, the current slow down in the nation’s economy suggests that this hiatus may be short lived. Despite the mixed results of past outsourcing decisions, there is an undercurrent of opinion – particularly among elected officials in state and local government – that outsourcing is a sure-fire way to save money. It seems safe to say that shrinking profit margins in the private sector, and disappearing budget surpluses in the public sector are going to renew pressure on fleet mangers to consider outsourcing fleet management services. Smart fleet managers recognize that such a trend can be viewed either as a threat or as an opportunity. The reality is that it is both, and that the best way to deal with both is to be proactive – that is, to seize the bull by the horns. The fleet managers that are most vulnerable to the undesirable side effects of outsourcing are those that hide their head in the sand or otherwise deny that their company or government jurisdiction might benefit from outsourcing. A managed competition may be the best opportunity you ever have as a fleet manager to take control of your own destiny - embracing it almost always makes more sense than trying to fend it off. <br> <br> A number of fleet operations have adopted managed competition as a means of ensuring that taxpayers receive the best services at the lowest cost available in the market. The premise of managed competition is that the procurement of services through competitive proposals or bids - rather than the traditional model of granting an in-house organization a monopoly - drives improvements in service levels, quality, and costs. Managed competition provides state or local government employee groups with both the impetus and the opportunity to streamline their operations, adopt new business strategies, and pursue innovations that under normal circumstances would not be considered. The resulting improvements in efficiency and productivity often transform marginal performing organizations into competitive operations. If the in-house group is unable to institute required improvements and present a winning proposal, then a private firm is awarded a contract. In either event, managed competition can result in significant cost and / or service level improvements for a state or local government<br> <br> Managed competition is a complicated process with high stakes for the state or local government engaged in the process, its employee groups, and potential contractors. The state or local government’s risks include its credibility (if the process is designed and managed poorly) - potential disruptions in service delivery (if a poorly designed process results in the wrong decisions being made) - as well as a substantial investment in time, effort, and costs. The risks for involved employee groups are obvious – their jobs with the state or local government are on the line. The stakes are also high for potential contractors both in terms of the costs of participating in the proposal process and the potential for operational problems if the solicitation and resulting contract are poorly designed.<br> <br> The key to controlling the risks involved in a managed competition process is to carefully consider each aspect and step in the process to ensure that the state or local government’s interests are protected and that all stakeholders are treated fairly. This is something that is not easily achieved and requires significant consideration and professional planning. <br> <br> Our substantial experience with managed competition, outsourcing of fleet maintenance and management services, and in conducting competitiveness assessments for fleet organizations enables us to steer our clients around potential obstacles and pitfalls and to take advantage of the often painful lessons learned by other public and private entities that have conducted a fleet maintenance managed competition. <br> <br> Some of our outsourcing and managed competition related consulting services include:</span></font></td> </tr> <tr> <td width="100%" bgcolor="#FFFFFF" bordercolor="#FFFFFF"> <div align="left"> <table border="0" cellpadding="2" style="border-collapse: collapse" bordercolor="#111111" cellspacing="3"> <tr> <td> <img border="0" src="http://www.mercury-assoc.com/images/blue%20button%20x.gif" alt="managed competition,outsourcing,fleet outsourcing,fleet managed competition,fleet maintenance" width="15" height="16"></td> <td><span style="background-color: #FFFFFF"> <font face="Arial">Managed Competition Facilitation</font></span></td> </tr> <tr> <td> <img border="0" src="http://www.mercury-assoc.com/images/blue%20button%20x.gif" alt="managed competition,outsourcing,fleet outsourcing,fleet managed competition,fleet maintenance" width="15" height="16"></td> <td> <font face="Arial"><span style="background-color: #FFFFFF">Outsourcing Contract Negotiations</span></font></td> </tr> <tr> <td> <img border="0" src="http://www.mercury-assoc.com/images/blue%20button%20x.gif" alt="managed competition,outsourcing,fleet outsourcing,fleet managed competition,fleet maintenance" width="15" height="16"></td> <td> <font face="Arial"><span style="background-color: #FFFFFF">Outsourcing Feasibility Reviews</span></font></td> </tr> <tr> <td> <img border="0" src="http://www.mercury-assoc.com/images/blue%20button%20x.gif" alt="managed competition,outsourcing,fleet outsourcing,fleet managed competition,fleet maintenance" width="15" height="16"></td> <td> <font face="Arial"><span style="background-color: #FFFFFF">Outsourcing Facilitation</span></font></td> </tr> <tr> <td> <img border="0" src="http://www.mercury-assoc.com/images/blue%20button%20x.gif" alt="managed competition,outsourcing,fleet outsourcing,fleet managed competition,fleet maintenance" width="15" height="16"></td> <td> <font face="Arial"><span style="background-color: #FFFFFF">Competitiveness Assessment</span></font></td> </tr> <tr> <td> <img border="0" src="http://www.mercury-assoc.com/images/blue%20button%20x.gif" alt="managed competition,outsourcing,fleet outsourcing,fleet managed competition,fleet maintenance" width="15" height="16"></td> <td> <font face="Arial"><span style="background-color: #FFFFFF">Operation Performance Review</span></font></td> </tr> <tr> <td> <img border="0" src="http://www.mercury-assoc.com/images/blue%20button%20x.gif" alt="managed competition,outsourcing,fleet outsourcing,fleet managed competition,fleet maintenance" width="15" height="16"></td> <td> <font face="Arial"><span style="background-color: #FFFFFF">Rate Development</span></font></td> </tr> <tr> <td> <img border="0" src="http://www.mercury-assoc.com/images/blue%20button%20x.gif" alt="managed competition,outsourcing,fleet outsourcing,fleet managed competition,fleet maintenance" width="15" height="16"></td> <td> <font face="Arial"><span style="background-color: #FFFFFF">Business Process Reengineering</span></font></td> </tr> <tr> <td> <img border="0" src="http://www.mercury-assoc.com/images/blue%20button%20x.gif" alt="managed competition,outsourcing,fleet outsourcing,fleet managed competition,fleet maintenance" width="15" height="16"></td> <td> <font face="Arial"><span style="background-color: #FFFFFF">Organizational Realignment</span></font></td> </tr> <tr> <td> <img border="0" src="http://www.mercury-assoc.com/images/blue%20button%20x.gif" alt="managed competition,outsourcing,fleet outsourcing,fleet managed competition,fleet maintenance" width="15" height="16"></td> <td> <font face="Arial"><span style="background-color: #FFFFFF">Staffing Level Assessments</span></font></td> </tr> <tr> <td> <img border="0" src="http://www.mercury-assoc.com/images/blue%20button%20x.gif" alt="managed competition,outsourcing,fleet outsourcing,fleet managed competition,fleet maintenance" width="15" height="16"></td> <td> <font face="Arial"><span style="background-color: #FFFFFF">Strategic Business Planning</span></font></td> </tr> <tr> <td> <img border="0" src="http://www.mercury-assoc.com/images/blue%20button%20x.gif" alt="managed competition,outsourcing,fleet outsourcing,fleet managed competition,fleet maintenance" width="15" height="16"></td> <td> <font face="Arial"><span style="background-color: #FFFFFF">Managed Competition Facilitation</span></font></td> </tr> <tr> <td> <img border="0" src="http://www.mercury-assoc.com/images/blue%20button%20x.gif" alt="managed competition,outsourcing,fleet outsourcing,fleet managed competition,fleet maintenance" width="15" height="16"></td> <td> <font face="Arial"><span style="background-color: #FFFFFF">Vendor Contract Negotiations</span></font></td> </tr> <tr> <td> <img border="0" src="http://www.mercury-assoc.com/images/blue%20button%20x.gif" alt="managed competition,outsourcing,fleet outsourcing,fleet managed competition,fleet maintenance" width="15" height="16"></td> <td> <font face="Arial"><span style="background-color: #FFFFFF">Vendor Contract Reviews</span></font></td> </tr> </table> </div> </td> </tr> <tr> <td width="100%" bgcolor="#FFFFFF" bordercolor="#FFFFFF"> <hr color="#0033CC"> </td> </tr> <tr> <td width="100%" bgcolor="#FFFFFF" bordercolor="#FFFFFF"> <p align="center" style="margin-top: 0; margin-bottom: 0"> <font face="Arial">For further information about our fleet maintenance outsourcing and managed competition consulting services or a  fleet consultant please contact us at:</font></td> </tr> <tr> <td width="100%" bgcolor="#FFFFFF" bordercolor="#FFFFFF"> <font face="Arial, Helvetica"> <p style="MARGIN-TOP: 0; MARGIN-BOTTOM: 0" align="center">Mercury Associates, Inc.<p style="MARGIN-TOP: 0; MARGIN-BOTTOM: 0" align="center"> Fleet Management Outsourcing and Managed Competition Consultants<p style="MARGIN-TOP: 0; MARGIN-BOTTOM: 0" align="center"> 7701 Shady Brook Lane<br> Gaithersburg, Maryland 20879<br> voice/fax: 240 631 6780<br> email: <a href="mailto:contactme@mercury-assoc.com?subject=Request for Consulting Services Information"> contactme@mercury-assoc.com</a></font></td> </tr> <tr> <td width="100%" bgcolor="#FFFFFF" bordercolor="#FFFFFF"> <hr color="#0033CC"> </td> </tr> <tr> <td width="100%" bgcolor="#FFFFFF" bordercolor="#FFFFFF"> <p align="center" style="margin-top: 0; margin-bottom: 0"> <font face="AvantGarde Bk BT" size="2" color="#0033CC">All Content Copyright © 2002 by Mercury Associates, Inc.</font><p align="center" style="margin-top: 0; margin-bottom: 0"> <font face="AvantGarde Bk BT" size="2" color="#0033CC">Fleet Management Consulting, Simplified ™</font></td> </tr> </table> </center> <p>  </p> <table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111"> <tr> <td width="20%"> <a target="_self" href="http://www.mercury-assoc.com/contactus.asp"> <img border="0" src="../blank.gif" width="28" height="18"></a></td> <td width="20%"> <a target="_self" href="http://www.mercury-assoc.com/catalog.asp"> <img border="0" src="../blank.gif" width="28" height="18"></a></td> <td width="20%"> <a target="_self" href="http://www.mercury-assoc.com/qisv.asp"> <img border="0" src="../blank.gif" width="28" height="18"></a></td> <td width="20%"> <a target="_self" href="http://www.mercury-assoc.com/focus.asp"> <img border="0" src="../blank.gif" width="28" height="18"></a></td> <td width="20%"> <a target="_self" href="http://www.mercury-assoc.com/fleet/fleetmaintenanceconsultant.html"> <img 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