Essay Memo

1902 Words8 Pages
TOWN OF BELMONT CASE STUDY Executive Summary Course: ACCY6900.10 Professor: Marcus Melton, CIA, CGFM, PMP Student: xxxxxxxxxxx Date: xxxxxxxxxxxxxx Introduction The purpose of this summary is to present the results of a cost comparison analysis of the Town of Belmont’s two options in providing snow plowing services: to replace six of their snow removal vehicles on a one-to-one basis; or to subcontract six more vehicles for snow plowing services. This summary will also explore some of the financial and non-financial implications of public service outsourcing versus keeping the service mainly in-house, specifically in relation to the snow plowing services for the Town of Belmont. The Results of the Financial…show more content…
The first is the higher costs of the subcontracting services, as also demonstrated in the cost comparison analysis. This higher cost would prove especially problematic in years when snowfall is abundant, and depending on the conservativeness of the budget or availability of emergency funds, the town might not have the ability to pay for the upsurge need for the costly subcontractors in those years. The second risk is the reliability of the subcontractors. The case study mentions that during a storm, ninety percent of subcontractors called would show up. Although this percentage is on the higher side, the question is whether this “attendance” ratio will hold up when the new subcontractors are hired. This loss of control could mean that the uncertainty of having sufficient snowplows during heavy storms is prevalent. However, there are several benefits to hiring the additional subcontractors on the roster. If strong relationships with dependable contractors can be formed, the contractor can be locked in for a two or three year contract, costs can be better defined, which would aid the town’s budgeting process. Another benefit is the ability to define the relationship between the town and the contractor in a signing

More about Essay Memo

Open Document