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ROBERT S. SEGAL, CPA PA _ _ ~ <br />EXPENSE REDUCTION & REVENUE ENHANCEMENT 1912 EASTCHESTER DRIVE <br />SUITE 206 <br />HIGH POINT, NC 27265 <br />336.886.2100 <br />FAX 336.886-2101 <br />wwwsagalcpacom <br />April 26, 2004 <br />Mr. Ken Chavious <br />Director of Finance, Orange County <br />P.O. Box 8181 <br />Hillsborough, NC 27278-8181 <br />Dear Ken: <br />You have recently requested my thoughts about opportunities far savings if <br />two school districts were to collaborative purchasing. Please remember <br />that Robert S, Segal, CPA PA does not perform personnel related analysis. <br />It is our understanding that school districts are required to purchase all <br />products and services off of State Contracts unless the district can <br />document that the alternative vendor has equivalent quality and service. <br />Because of the documentation, many districts concentrate their purchase <br />through State Contract. <br />However, we believe there are some opportunities to reduce the expenses <br />by collaborative purchasing in the following areas: <br />Copying services -This is a volume driven expense (more copies, lower <br />cost) and we would assume that a larger the contract with more <br />volume/copies would have a lower cost per copy. <br />Waste disposal - If the waste is picked up by independent contractors (and <br />not the municipality), this is also a volume driven expense. A larger <br />volume of business would entice more bidders and should result in a lower <br />cost. <br />Wireless phone services -This is also volume driven and may be an <br />opportunity under an aggregate minute plan. <br />